Why does La Compagnia delle Pelli say “no” to reshoring

Why does La Compagnia delle Pelli say “no” to reshoring

“Reshoring? No thanks”. Giuseppe Bettinelli (in photo), entrepreneur leading La Compagnia delle Pelli, believes that the price difference between producing in Asia and Italy is still too wide. At least for his reference segment. Created in 1993 and specialized in managing licenses in the leather goods’ industry (currently Baldinini, Harmont&Blaine and Ungaro), La Compagnia delle Pelli is located in Bonate Sopra, Bergamo. It mainly manufactures bags (for men and women) and small leather goods and, in smaller portion, gloves, suitcases, scarfs and umbrellas. Bettinelli also leads Lemie, a company created in the 70s that manufactures (in Italy) belts for luxury brands. The two companies employ over 100 people, plus 45 individuals working as contractors. Peculiarities: all leather is Italian.

La Compagnia delle Pelli say “no”

Where is production done?

La Compagnia delle Pelli manufactures in India and China, but only with Italian leather. Beside from lower costs compared to made-in-Italy, we have found very capable producers, and their quality level doesn’t make us regret leaving Italy. Lemie manufactures in Italy. Again, leather all comes from Italy. The production process is takes place in Verdello, where the production area is 12,000 square meters.

Two different business models depending on clients?

Yes. Lemie’s customers are luxury brands. For La Compagnia delle Pelli, they are distributors and retailers.

Did you have problems with Asia’s supply chain in the last two years?

We have had some delays when it comes to deliveries, compared to the past, but now there are no issues. Even from a shipping standpoint, we are back to pre-pandemic behaviors.

Have you seriously thought about reshoring production from Asia to Europe/Italy?

If I am being honest, no. The cost difference is still too wide.

Desire to do business

How was 2022?

Pretty good. All aspects, from production to sales, are going back to normal.

How will 2023 be?

Not as negative as they say. There certainly is a climate of uncertainty. I of course refer to inflation, war, energy matters. But I do see positivity in the air, so I remain optimistic.

What makes you believe 2023 will go well?

The frequent contacts with clients. There is a desire to do business. The market isn’t flat, but rather active.

Geographically speaking, which do you think will be the most interesting market?

I believe it will be the USA. There is a return of beauty and made in Italy in that market. And we have an advantage from a currency standpoint, so it is convenient for US consumers to shop in Europe. And Italy is the leader when it comes to leather goods.

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