MAURITIUS YOUR DUTY FREE SOURCING DESTINATION UNDER AGOA

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Presentation Italian Market
Presentation by Mr Sajjid Dansi Busropun- 13th
May 2009
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Introduction

• Italy is a European country comprising
• 60 Millions inhabitants and is spread
• over a total surface area of 301,225 km2
• Italy has the fifth highest population
• density in Europe which comes to about
• 200 persons per km2.
• The age structure in Italy is as follows
• 0-14 years 13.6 (male 4,086,951/female
  3,842,765)
• 15-64 years 66.3 (male 19,534,247/female
  19,024,776)
• 65 years and over 20 (male 4,864,189/female
  6,792,393)
• Concentration of textile companies
• Lombardi (Knitwear, Yarn Fabric)
• Venetto (Sportswear, Denim)
• Prato/Florence (knitwear)

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The Italian textile and apparel sector

• After China, Italy is the 2nd largest exporter of
  textile and apparel products
• 22,000 companies in Italy
• Out of overall production of Italian textile and
  clothing products, 61 are exported
• Exports to USA, Japan and Germany have been
  declining over past years while there has been an
  increase towards Russia (23.5) and China
  (14.8)

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COMPARISON OF ITALY FIGURES(GDP, GROWTH
RATE,INFLATION)
GDP PER CAPItA 30400 EXPORt 200 EUR 26BILLION
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Evolution of Italian market

• Taste of Italians for fashion
• Italians are different from other European
  counterparts.
• Italians take pride in their appearance, from
  their clothes and shoes to accessories as well.
• Brands- (Armani, DG, Cavalli)
• Creation and Design
• Collection
• Presentation
• Fair Fashion Show
• Chain Stores
• OVIESSE- 200 STORES
• UPIM- 160 STORES
• COIN- 40 STORES

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Distribution system

• Buying culture
• Prefer to work through local representative
• Brands
• High street Boutiques
• Departmental stores
• Chain stores
• Own Shops (OVIESSE, UPIM, COIN,)

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Sourcing in Italy- How is it done?

• Buying season/ trends
• Summer Collection
• Design presentation-January
• Production-July
• Delivery- November
• Winter collection
• Design presentation- August
• Collection definition- September
• Presentation of collection- January
• Order definition/ Production- Feb-March
• Delivery- June/July

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Realities of Italian Market

• Need a continuous presence approach
• Relation with buyers is very important and
  customer fidelity
• Language as a vehicle for better business
  relationship
• 90 of Italian buyers deal primarily through
  agents (local representative)
• Local partnership preferred (Buy back
  arrangements/ buying office/ agency agreements).

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Opportunities for Mauritian companies

• Mauritius is present on the Italian Market but
  there is a need for more market efforts and
  visibility on Italy
• Products (Quality that fits European Market)
• Need to focus on Product design, finishing and
  Presentation
• target middle and upper segments of market
• Flexibility in supply (more frequent orders,
  Quick response time- Average size of orders
  1000pcs/style

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Logistics

• Sea (sailing time one month)
• Air (2-3 days)
• Sea/Air- Not recommended
• Container (20ft) - 1,500

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Steps to penetrate the market

• Know how of clients/ customers
• Sourcing of raw materials is very important
  (single transformation under EPA is our
  advantage)
• China and Indian fabrics offers the required
  standard and quality
• Preparing collection for this market (knowing
  trends and fashion through market intelligence)
• Establishing contacts through a representative in
  Italy to become more responsive.

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Marketing activities envisaged

• Information dissemination on Italian Market to
  Mauritian companies on a regular basis
• Participation in fairs Organization of Buyer
  Seller Meetings/ Contact Promotion Program
• Representation in Italy envisaged
• Integrated programs from sourcing to product
  development and marketing envisaged (Matching
  size of Italian buyers with Mauritian producers)
• Trade press trip

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Conclusion

• Mauritius has not been visible enough on the
  Italian Market to benefit from the opportunities
  as compared to China, India and Bangladesh that
  have been able to capture a large share of the
  Italian market.
• Opportunities exist, however ground work needs to
  be done (visibility, information, product
  development etc.)

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• THANK YOU
• Questions????