Executive Summery
The textile sector is regarded as the engine ofgrowth for many developing countries, since
it accountsfor around 45 percent of developed markets imports from thedeveloping
countries.(1)
The best cotton for comfort, durability, and silky softness is the cotton with the longest,
strongest fibers. Pima, Sea-Island, and Egyptian cotton are all referred to as extra-long
staple cotton [ELS cotton]. They all lead to better cotton comfort than other cotton
varieties, yet Egyptian cotton wins the contest for having the longest, strongest fibers. The
search for the best quality cotton will always lead to Egyptian cotton. . (2)
For many years, it was so valuable that most of the crop was exported to European
countries, and Egyptians themselves could hardly buy items made from its cloth(3)
And from here the idea of using the competitive advantage of the Egyptian cotton and
market it through purely Egyptian cloths brand which is CONCRETE which is now a
market leader and one of the most prominent textile and clothing groups in the Middle
East. In addition, the manufacturing capabilities of the group guarantee sustained
dependability which makes CONCRETE a good candidate to compete on an international
level in Italy which is motivation to seek even higher standards.
CONCRETE are constantly looking for ways to enhance the brand. As they recently hired
Giorgio Davanzo, an Italian brand consultant, renovating othe shops’ concept,
standardizing the brand identity and enhancing the visual display of the garments in the
stores. All this is part of our continued efforts to provide our customers with the best Egypt
has to offer.
CONCRETE is a solid name, with solid roots, that can be trusted and relied on. And their
future vision for the brand includes cementing the CONCRETE name on the global
market.(4)
SWOT analysis
Strengths
• Concrete introduces its Made-to-Measure personal tailoring service.
These made to measure suits are fashioned by tailors who skillfully drape and sew the
fabric into shape. Concrete’s “Su Misura” service makes it possible to produce a tailor
made suit in just a few weeks (4)
• Availability of excellent Egyptian cotton.
• Economic of scale
• Pricing power
• Long tradition in textiles, deep knowledge of market
• Low obligation as a result of owner finance
• Access to GAFTA markets, EU Partnership, COMESA
Weaknesses
• Weak brand
• Customer service
• Online presence not active
• Recent increase in energy prices
• Competitive with Chinese and Indian cotton
• Lack of expertise with high value niche markets
• Limited design skills related to modern textile needs
Opportunities
• New market
• International expansion
• Nearness and access to European market
• Access to international technical assistance for training and Design
Threats
• Bad economy
• Intense completion
• Further liberalization of trade threatens remaining share of domestic market
• Reduced import tariffs
• Further rise in domestic energy price
• Lack of good business and economic indicators
As you can see by this next chart, Egypt does not rank in the top ten cotton producing
nations of today:
Top 10 Cotton Producing Countries
(in metric tonnes)
Rank Country 2009 2010 2011
1 China
6,377,000 5,970,000 6,588,950
2 India
4,083,400 5,683,000 5,984,000
3 United States
2,653,520 3,941,700 3,412,550
4 Pakistan
2,111,400 1,869,000 2,312,000
5 Brazil
956,189 973,449 1,673,337
6 Uzbekistan
1,128,200 1,136,120 983,400
7 Turkey
638,250 816,705 954,600
8 Australia
329,000 386,800 843,572
9 Turkmenistan
220,100 330,000 330,000
10 Argentina
135,000 230,000 295,000
— World
19,848,921 22,714,154 24,941,738
Source: UN Food & Agriculture Organization[5)
Overall Objectives
• To be the global leader in Egyptian garment industry
• To maximize the operation and financial performance
Strategies
• Understand consumers and customer’s needs and wants
• Multi-Brand strategies
• Create flexible supply chain
Global objective
• Wholesale: to delivers profitable market share growth to become the leading sales
organization for Egyptian garment industry
• Retail. To become the top retailer
• E – Commerce services with high Tec technology
Strategies
• Create consistence stream of quality products, services and process
• Establish strong relation with leading retailers by offering best in class and tailored
services
• To attract consumers by building enhanced e- marketing capabilities
• Reduce product and supply cost
• Allow customers to order products closer to the time of sale
Tactics
• Innovating products, services and processes
• Working to increase consumer awareness of the importance of Egyptian cotton
• Provide a variety of products to a wide spectrum of consumers
• Integrate manufacturing initiatives such as “quality circles” in the production process.
• The company offers a lifetime repair guarantee
• Extensive laboratory equipment test products (e.g. opening and closing zippers 5000
times )
• Build skills sales team
• Use the most cost efficient quality and material
Doing Business in Italy :
Reasons to invest in Italy
• A strategic position in Europe and in the Mediterranean Sea
The strategic position makes the country a perfect meeting point both for land, sea and air
routes, representing three key markets with over 800 million consumers.
• The new shipping ferry line established in 2010 would help reduce the transportation
costs of exports and will cut on the time of transportation as well. It also will link south
Europe with Middle East via Egypt.
• Concrete did hire Giorgio Davanzo, an Italian brand consultant, to renovate the shops’
concept, standardizing the brand identity and enhancing the visual display of the garments
the stores
• Market size
Italy is the 10° largest market in the world, with significant economies of scale
• Italy is generally the main trade partner of North African countries, especially Libya,
Tunisia and Egypt. Interestingly, Italy is Egypt’s second trade partner after the United
States; and Egypt is home to many Italian investments. So this will assure a smooth and
stable business in Italy too when we think of investing there (7)
• An extensive infrastructure network Companies deciding to invest in Italy can rely on an
extensive infrastructure network:(8)
The fifth longest rail network in the EU27 with 16,703 km of working lines and 24,216 km
of tracks;
One of the most developed freight village systems in Europe. 7 Italian freight centers are
classified in the Top 20 of European logistics infrastructures, with Verona ranking first
The second most important country in Europe for maritime freight transport: 24 main
commercial ports, with 3 International Hubs, spread out along 7,400 km of coastline and a
total traffic of container around 10 million TEUs in 2011;
2 ports are classified in the Top 20 of European container ports: Gioia Tauro and Genoa
• Countless opportunities for expanding companies
Italy is the 4th largest economy in EU (FMI) with a potential market of almost 60 million
consumers of innovative services (more than 30 million internet users) and products.
• The value of Egyptian exports to Italy increased from 1.265 billion euros in 2005 to
2.247 billion euros in 2008, while Egypt’s non-petroleum exports exceeded one billion
euros to reach 1.86 billion euros in 2008 which reflects diversity of the Egyptian exports
and their ability to compete other exports in the Italian and European markets.(6)
• Facilities and support for foreign companies
Invitalia comprises a single and reliable national reference point for foreign investors eager
to expand or to set up a new business in Italy. It provids a range of free services for all
stages of the investment process, such as updated information on the business
environment, investment opportunities in specific sectors and business advisory services
throughout the implementation process.
• Innovative value system
A modern network of over 40 modern science and technological parks ensures that
research is widely integrated into industrial processes. (9)
• High qualified human resources
Italy ranks 2nd in Europe in terms of manufacturing companies with a skilled workforce
praised at international level, contributing to the high quality of Made-in-Italy products.
The highly qualified human resources in the field of research, supported by the tradition
and the high quality of the University system and several research centers, makes Italy one
of the cutting-edge country in the R&D sector. Companies investing in Italy can rely on an
average of 270,000 graduates per year. (10)
• Quality of life and lifestyle
Italy is a modern and cosmopolitan country with 3,8 million inhabitants with an excellent
standard of living. Superior health and education provision, endless opportunities in
beautiful landscape, and a vibrant cultural country are just some of the reasons why more
than 4 million foreigners (7,0% of total residents –Source: Istat) have decided to live in
Italy. Italy is recognized for its international brand in strategic sectors such as fashion,
automotive and marine engineering, design, mechanics. The Italian style, innovation,
creativity and love for the tradition are all key factors for the success of the
“Made-in-Italy” brand in the competitive world market. Moreover, Italy has the largest
number of World Heritage (UNESCO) sites in Europe, with 47 locations listed as places of
outstanding cultural and historical significance.
Global Company Vision:
Egyptian cotton redefines global fashion
PESTLE Analysis:
Political environment
Egyptian-Italian relations are friendly and strong; they are considered a model to be copied
by countries on the two sides of the Mediterranean.(6)
The European Union is the largest trading partner and the European market provides a
wealth of opportunities for companies. Furthermore, since Italy is a Member of the
European Union (EU), it is important to be aware of and comply with EU technical and
regulatory requirements.
Economic factors:
weather/climate?
Italy benefits from a fair and temperate climate.
Languages
Knowledge of English is reasonably extensive in Italian business, but far less so in the
south.
Businesspeople and investors need, if possible, to arrange a way of communicating in
Italian with public authorities, agencies and potential business partners. The importance of
personal contact in the Italian business sphere cannot be over-emphasized; and it’s always
