Feature: China trade fair major opportunity for “Made in Italy” brands

Abstract : The brands behind the "Made in Italy" trademark — battered by months of slow production from Italy's national coronavirus lockdown and the worldwide economic slowdown — are increasingly looking toward Shanghai as a way to speed up their recovery.

Photo
shows decorations at the west entrance of the National Exhibition and
Convention Center (Shanghai) in east China’s Shanghai, Oct. 23, 2020.
The 3rd China International Import Expo (CIIE) will kick off on Nov. 5.
(Xinhua/Fang Zhe)

“A
lot of time has been lost (during the lockdown) and that has shaken up
the international import and export markets in a dramatic way,” said
Nicola Guerini, managing director of the Milan Fashion Institute, adding
that the China International Import Expo will be “one of the few
constants.”

ROME,
Oct. 28 (Xinhua) — The brands behind the “Made in Italy” trademark —
battered by months of slow production from Italy’s national coronavirus
lockdown and the worldwide economic slowdown — are increasingly looking
toward Shanghai as a way to speed up their recovery.

The
China International Import Expo (CIIE), scheduled to take place in
November, has been a mainstay on the calendar for exporters around the
world. But this year it is taking on an added level of importance. The
expo is also one of the few major touchstones among trade fairs that
have not been forced to shorten its length or move to a new spot on the
calendar.

“A
lot of time has been lost (during the lockdown) and that has shaken up
the international import and export markets in a dramatic way,” Nicola
Guerini, managing director of the Milan Fashion Institute, told Xinhua,
adding that CIIE will be “one of the few constants.”

Beams
of light are projected from the Sinar Mas Plaza in Shanghai, east
China, Oct. 26, 2020. A light show will be held on Nov. 5 to celebrate
the opening of the third China International Import Expo (CIIE), which
will take place in Shanghai from Nov. 5 to 10. (Xinhua/Fang Zhe)

Guerini
said the Italian fashion industry will use the expo as a way to
“reintroduce” itself to Chinese consumers after the challenges of recent
months. But many other Italian export sectors will be on hand there
including shoe makers, food producers, wine makers, jewelry designers,
medical equipment, and the high-tech.

According
to Javier Noriega, an economist with the investment bank Hildebrandt
and Ferrar, Italian exports are expected to lead the way as Italy seeks
to emerge from the economically crippling period during the coronavirus
lockdown.

“Italy
is the second-largest exporter in the European Union (EU), behind
Germany,” Noriega said in an interview. “Exports are especially
important for Italy in part because small and medium enterprises have
carved out a niche with higher-end ‘Made in Italy’ products, whether
food and wine or fashion and design.”

Aerial photo taken on May 18, 2020 shows a vineyard in Turin, Italy. (Photo by Federico Tardito/Xinhua)

Noriega said the Italian economy is too small to consume the goods it produces in these areas.

“Depending
on the sector, Italy domestically consumes between 10 percent and 40
percent of what it produces,” he said. “Meanwhile, the Chinese economy
is vibrant and the events there (like the CIIE) represent a major
opportunity for companies to either build on their reputations in China
or to make themselves known if they are new to that market.”

Italy
was the first country in Europe hit hard by the coronavirus pandemic
earlier this year. The country was the first to issue a national
peacetime lockdown in March. However, the pandemic remains more under
control in Italy than in some other European countries like France or
Spain.

Italy’s
exports to China grew by 4.8 percent in August this year compared with
the same month last year, even as Italian exports towards non-EU
countries overall dropped by 11.7 percent in the same period, according
to the data from Italy’s National Statistics Institute (ISTAT).

This comes after exports to China from Italy jumped by 14 percent in July compared with the same month last year.

Italy
exported to China goods worth a total of 14.54 billion U.S. dollars
during 2019, according to the United Nations Comtrade database on
international trade. In 2019, Italian exports to China made up 2.7
percent of Italy’s total foreign trade, according to ISTAT.

In
its “China 2020” annual report, the Study Center for Businesses of the
Italy China Foundation (CeSIF, in its Italian acronym) wrote that “China
is central in the relaunch strategies of exporting companies after
COVID-19” because although its economy slows down due to the pandemic,
its growth will still be higher than that of other countries.

About Xinhua Silk Road

Xinhua Silk Road (en.imsilkroad.com) is the Belt and Road Initiative (BRI) portal.China’s silk road economic belt and the 21st century maritime silk road website,includes BRI Policy, BRI Trade, BRI Investment, Belt and Road weekly, Know Belt and Road, and the integrated information services for the Belt and Road Initiative (BRI).

Source: Feature: China trade fair major opportunity for “Made in Italy” brands