BBC NEWS | Business | Italian style takes root in China
When Luca Ricci sold his first batch of leather sofas in 1998 he told the North American distributor they were made in Italy.
"I was scared because I didn't know if a sofa made in China was saleable," he admits, laughing at the memory.
Three months later, he felt confident enough to own up and told his startled buyer, "It's made in China - I lied."
Great article on the DeCoro firm by Mary Hennock. I thought these first few lines highlighted a number of issues about belief, transparency and trust.
"Retailers all over the world, they advertise the product as an Italian leather sofa, not as a Chinese sofa," says Mr Ricci.
Among consumers, Made-in-China spells tacky not trendy. Its reputation as a producer merely of plastic toys and cheap clothing may be out of date but seems unbudgeable.
If it were not for China's image problem, DeCoro's Chinese credentials would seem to be impeccable.
The 'brand' China does not for one minute communicate the type of message that 'DeCoro' obviously seems to and yet while the founder, Mr Ricci, obviously came to terms with the origin of his products retailers don't want to inflict the truth on its publics.
However, given DeCoro's stance on a number of issues maybe they would be better doing so:
DeCoro says it pays 2,000 yuan ($241; £144) to 2,500 yuan a month, double the average factory hand's wage. Like most factories around here, it provides dormitories and food.
If they are paying double the average it would seem that they are investing in China to mutual benefit. The suggested 40% increase if the furniture was really made in Italy shows sound business sense by investing in China and the statement that when he started his employees had bikes and now they have mobile phones and motorcycles is something not to be taken lightly.
Globalisation is here whether we like it or not and companies and individuals and countries need to accept that. Some will purely turn that to their advantage and others will work to mutal advantage. Those are the firms we should invest our purchasing power in.
Posted by Paul Goodison at October 20, 2003 10:39 PM | TrackBack