The 'Italian Fashion Days in India' (Le Giornate della Moda Italiana nel Mondo), marking a significant new step in the strategic partnership between Italy and India, was held between Oct 28-30. This three-city (New Delhi, Mumbai, and Ahmedabad) initiative, being described as the first of its kind in India, is a key component of Italy's "Diplomacy and Growth Strategy."
A vital discussion during the summit centered not on Italian design, but on Italian business structure. The nation’s renowned fashion industry, historically built upon a network of highly specialized, small-to-medium enterprises (SMEs), is now facing a difficult choice: consolidate or risk being marginalized by the global market.
The erosion of ‘Small and Beautiful’
Claudio Marenzi, CEO of Herno and Montura and an industry leader, addressed the challenge head-on. He noted that Italy has long prided itself on the "small and beautiful" model—specialized manufacturers focusing on niche, high-quality products.
However, Marenzi warned that this approach is becoming unsustainable. "The world is becoming more and more round-the-clock, not only global, and it's more and more difficult to stay with a small organization," he stated. While specialization still creates superior goods, the global logistics, digital demands, and continuous competition make it overly complicated for small entities to manage.
The mandate for aggregation
The solution for the future of "Made in Italy" is aggregation. For Italian fashion to scale successfully and compete with global conglomerates, SMEs must merge or form strategic alliances to create operational efficiencies.
Marenzi outlined the specific areas where consolidation is critical: Information Systems, involving the pooling of resources to create modern, shared IT infrastructures; Production Efficiency, focusing on gaining efficiencies through coordinated, larger-scale production strategies; and Global Distribution, which requires establishing common distribution channels and logistics networks to serve vast, complex markets like India and Asia without crippling internal costs.
This movement toward consolidation is seen as a strategic necessity, providing the necessary operational muscle to protect the country's creative heritage while securing a profitable future.
Building a foundation for India
The need for structural change is particularly acute when looking at a complex, high-potential market like India. The current SME model struggles with the scale and infrastructure required for successful expansion. By aggregating, Italian brands gain the stability and centralized resources needed to effectively understand and serve the massive new middle class emerging in India.
The consensus from the business side of the event was clear: the ingenuity and quality of Italian design remain peerless, but for the industry to endure, its back-end manufacturing and logistics must evolve from specialized islands of excellence into a unified, resilient global competitor.
