COMO, Italy — Italy is declining domestically and demand is going down according to Piero Agnetta, principal of Milan based L.M. Consulting. 

“The Italian textile mills are caught in a credit crunch because the banks will not lend them money to survive and their only hope is to export—but where?” 

Agnetta says that Germany is still an interesting market and local demand in France and Holland is better than in Italy. “The buyers in France and Holland are more international in their thinking than the Italy based buyers.” Piero Agnetta

“Any Italian mill which cannot export at least 80 percent of its collection will not survive in the future,” he feels. He said that Giber and Fiorete are two Italian mills which export over 80 percent of their production. “Other Italian mills which have only 50 percent of their production geared for export will be in trouble.” 

Agnetta said that Italian buyers take a long time to pay—at least 90 days and more. “They protect their money. Italians must target new customers in Russia, Europe and China. “Proposte in China could be interesting. China is boiling like the water for pasta,” he said. “It is not easy for Italian mills to discover new opportunities. The Middle East including Saudi Arabia, The Emirates are also a possibility for the Italian mills. 

In order to be successful, the Italian mills must target designs and structure for each country. Service is more important than in the past. The delivery, quality and relationship are more important. Unfortunately, too many Italian mills are just too late in the game to discover new export markets and they will die out as a result.