Tuesday, July 21, 2020

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Back To The Future: This 350-Year-Old Company Could Be The Blueprint For The Future Of Fashion Industry

Back in January, before the rest of the world started taking COVID-19 seriously, Alessandro Barberis Canonico had already felt the storm coming with many clients from China, South Korea, and Japan cancelling or postponing their orders. As infection cases rose in Italy, his company, Vitale Barberis Canonico, an iconic fabric mill located in the northern part of the Biella region, followed the government’s recommendations and closed down its factories. This was one of the rare occasions in the company’s 350 years of existence where workers were sent home and all activity was stopped.
As an immediate response to the health crisis, global lockdowns, and the economic downturn many fashion brands postponed launching new collections and outright cancelled orders from suppliers. For Vitale Barberis Canonico that resulted in a loss of nearly 40-50% of all their orders. This story repeats itself all over the industry and according to research by Bain & Company, the luxury fashion market is expected to contract by 25-30% by the end of the year.
Manufacturing at Vitale Barberis Canonico
Vitale Barberis Canonico, official Instagram account The company is one of the thousands of artisan and fashion manufacturers spread all over the Italian countryside who helped put “Made in Italy” on the world map as a symbol of high quality and luxury fashion. Today, the future of this industry and the livelihood of many of its workers is threatened.
In preparation for the government restrictions being eased in late April, the company had ordered more than 3,000 masks for their 450 or so employees and instituted distancing rules to ensure that working conditions would remain safe. Now, with production being ready to resume at near full capacity and some European and Asian countries showing early signs of recovery, Alessandro told me he is “cautiously optimistic” about seeing a sunrise after the storm.
Unfortunately it might take longer for Vitale Barberis Canonico and other manufacturers to get to pre-pandemic levels than hoped. Many companies are hesitant to make any positive predictions with a potential second wave of the pandemic still looming on the horizon. At the same time special events like weddings and large gatherings, that have traditionally been a driver of summer revenues, are still largely limited or postponed. Alessandro also expressed concerns about the United States, one of their key markets, where the health crisis is far from under control and an economic recovery seems unlikely in the near future.
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The plight of Italian fashion manufacturers is not just a local issue. It could have big implications for the global market with more than 40% of global luxury goods being produced in Italy, according to McKinsey. Faced with the increasing danger of losing artisans and craftsmen, the fashion industry is coming together to save struggling businesses. Famous luxury brand Gucci has recently announced a partnership with Italian banking group Intesa Sanpaolo, with the goal of directly helping manufactures with cash flow problems. Struggling manufacturers can apply for a range of loan programmes and financial tools to help them weather the crisis and smooth out supply chain shocks.
Some initiatives include introducing digital and technological solutions – for example, shifting operations online. While e-commerce is being embraced by many retail companies, the digital transformation can be more challenging for manufacturers. Alessandro mentioned that together with other textile companies they’re looking into building a digital platform for buyers and manufacturers to visualise their products and make decision making faster.
Other initiatives are focused on trying to energize the demand. For example, Milano Unica, an international textile fair held in Milan twice a year, is now offering special discounts in hopes of attracting buyers to its showcase of

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producers.
Milano Unica is opening its doors for the 31st time in September 2020
Milano Unica While the focus is currently on restarting the economy and saving the industry, this might be the right time to reconsider the fundamental principles that it is built on.
It is no secret that fashion has a sustainability problem – poor labor practices, excessive waste, heavy pollution – and accounts for 10% of global carbon emissions. In our eagerness to address these issues, it can be easy to overlook potential solutions that have been around for a long time and instead only focus on technological innovation. But perhaps local communities of artisans and craftsmen can serve as inspiration for the rest of the industry. That is why I found it important to highlight a company like Vitale Barberis Canonico, that was founded more than three centuries ago with sustainable principles in mind.

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