His last name is synonymous with high-quality, full-flavored Italian coffee. Since his appointment as chairman of Italy’s luxury goods association Fondazione Altagamma in April last year, Andrea Illy, chairman and chief executive officer of coffee producer Illycaffé SpA, has been brewing up initiatives to support the Made in Italy industry.
In an interview at Altagamma’s Milan headquarters, Illy discussed the association’s strategies to further bolster the country’s industrial assets.
WWD: What are the goals of Altagamma going forward?
Andrea Illy: Our mission is to strengthen the competitiveness of our companies. Italy has been going through some difficulties, but high-end companies have been doing well, so we want to contribute to boost the country’s economy.
Related Articles
There are excellent growth prospects, in light of the desire for products with a high aesthetic and experiential content. Italy is a champion in this industry, a leader in terms of style and product, and we want to raise awareness of different sectors across the board — from design and food to cosmetics or jewelry. We are also thinking of opening up to culture and real estate, for example. Heritage spreads to any kind of expression of Italian manufacturing. We are in a privileged situation and we have a competitive advantage.
You May Also Like
WWD: What assets can Italy and high-end brands rely on to develop further?
A.I.: There are three pivotal and unique local distinctions. First, Italy is the country of beauty. We are creating a Fondazione Italia Patria Della Bellezza [“Home of Beauty”]. This beauty is an objective quality around us, in our landscape. Then there is the country’s central position, socially and culturally in the Mediterranean — a crucible of civilizations. And, third, for 3,000 years Italy has been inspired by beauty to create.
Beauty and culture inspire production, and designers are inspired by the territory. As Italians, we are used to it and often don’t even realize its value. Our goal is to create more beautiful products to export worldwide — exports are the engine of Made in Italy. Our products, our restaurants and stores are ambassadors of Italian culture around the world.
I just saw how [French household appliance maker] Moulinex is marketing a toaster called Subito [which means ‘immediately’ in Italian]. The Italian name adds an aura of glamor. But there is one comparison I abhor. It’s when someone says that our beauty is our [gasoline]. It’s not true. [Gas] dries up and hurts the environment, while beauty generates more beauty and there is no end to it. It’s worth a lot more.
WWD: How is Altagamma’s relationship with Italy’s new government led by prime minister Matteo Renzi, and what concrete steps are you taking to build business?
A.I.: We need to strengthen the skills of companies, which will positively contribute to the image of the country. To be competitive, companies need a business development, an industrial culture and a promotional system. Altagamma wants to do all that companies singularly cannot do — a role that will become increasingly important in the future, given the complexity of markets and all the different variables.
Our motto is to cooperate to compete. Renzi is focused on emergencies now, but we are working with the ministers on exports and a fiscal leverage, for example. We think we can work very well with Renzi. We provide coordination to talk with institutions and develop joint marketing projects. We are an incubator of new ideas, such as the Larte restaurant [in Milan, a new concept that regroups brands belonging to the association, from San Pellegrino water to Alessi home design pieces]. In tourism, we are planning the “Italian Style Itineraries,” targeting high-net-worth individuals, and customized on beauty, culture, manufacturing — sort of like a safari, all organized and reliable, or similar to a [concierge] service.
WWD: What is the feedback you receive?
A.I.: It is in the companies’ interest to promote and open up, make good use of our market research, which provides more clarity on the evolution of the market. We are partners of Bocconi University. We hold quarterly meetings [with associates]. Organization and best practices are fundamental.
In Italy, family capitalism is still strong. Companies’ structures are streamlined and flexible, but they are built around the entrepreneur, who is the decision-maker. There is a limit to that, and companies are smaller. This must be overcome in light of a globalization that requires a managerial structure. Salvatore Ferragamo is an excellent example — it’s still a family business, but totally managerial and publicly listed. It’s a great example of a successful transformation and a cultural change.
WWD: In terms of craftsmanship, there is much talk of generational changes and a lack of new and young artisans.
A.I.: Our creativity is strengthened by our heritage, but we need to reinvent our unique creativity. We should try to be thought leaders. We know how to access, interpret and read our culture. We must be innovative, not only with shapes and design, but also in function, with emotional and social, ethical benefits, such as sustainability. We should inspire the new workers, from tailors to cobblers. There is a vocational crisis and a lack of a training system, so there should be a more centralized coordination at a government level. This should not be a regional issue. We don’t have a hotel school at a University level, for example. We must preserve our assets and make them inexhaustible.