China raises stake in Italy

China is no longer satisfied with being a destination for cheap production and is looking to raise its business stake in the Italian fashion industry. Chinese companies are therefore either looking to acquire Italian textile mills, which are suffering as a result of competition from China, or to establish joint ventures to launch new brands or distribute existing Italian brands in China.

" China is no longer content with producing goods - it wants to go to the next level, to share brand vision, to be part of a distribution plan and bring added value to a project," Alfredo Canessa, chairman of Ballantyne, told WWD. The knitwear company is launching a new brand called Chinese Cashmere Company together with Hong Kong-based Fenix. Franco Penè, chairman of manufacturing company Gibò told WWD: "I am 100 percent sure that the Chinese will enter Europe this way, not with their own brands, but buying international brands that have their own distribution network."

For those Italians feeling threatened by the Chinese invasion, Alberto Del Biondi of design studio Industria del Design, has this to say: "They way the Chinese can imitate business models is impressive -their learning abilities are extraordinary and so is their economic potential. What will help us? The brand and our tradition, good taste and quality. We believe ideas are the most valuable asset on the market and, fortunately, those abound in Europe ."