“Life Style” strategies for competitiveness

To be competitive we need a system that integrates the three “core assets” of Made in Italy – Food, Fashion and Furniture – relied by an “Italian Life Style” concept, i.e. an all-inclusive package of solutions representing all the best of our national creativity. This is the message of the survey carried out by The European House Ambrosetti for Assolegno/Federlegno-Arredo, presented in Milan. According to the study, to reverse the trend of the industry, a step-by-step plan based on new strategies is required for the integration between production and distribution. Within the framework of a dynamic global market, characterized by the competition from developing countries such as China, India and Russia on one side, and the rise of a new social class of rich people on the other, made in Italy has to join forces (Food, Fashion and Furniture) and create an emotional synergy proposing the Italy brand as a lifestyle. The way to reach this goal is to implement a three-pole structure: “Ambassadors” (brands and companies supporting Italian high quality and image, including luxury and design), “Diffusers” (companies spreading experience of consumption and the adoption of the Italian furniture system in the world – including “Life Style” retail chains addressed to specific consumer targets, but also corporations appealing to medium-high-end consumers with international companies controlling design, marketing, price policy with smart concept store for sales and consumer service) and flexible and special “Small and medium businesses”. Four action strategies are possible: the creation of centers through a model of aggregation by acquisition (it increases the negotiation power towards partners, retailers and real estate developers), strategic alliances (ensuring a more flexible aggregation towards scale economies at retail level), “project-based” aggregation (to face business opportunities requiring scale efforts which cannot be carried out by single companies) and “independent retailers” (for the development of common platforms providing channel management expertise).