RESHORING CASE

Falconeri

Company details
Code: 
Falconeri
Company name: 
Falconeri
Group name: 
Calzedonia
Company country: 
Italy
Group home country: 
Italy
Number of employees: 
26000
Sector: 
C - Manufacturing
Sector detail: 
C14 - Manufacture of wearing apparel
Reshoring details
Reshoring announcement date: 
23/05/2015
Reshored to: 
Italy
Location of affected unit(s): 
Avio
Location code: 
ITD20
Reshored business function: 
Production
Partial or Total reshoring: 
Total
Reasons for reshoring: 
"Made in" effect
Poor quality of offshored production
Case narrative: 

Falconeri is an Italian fashion brand currently owned by Calzedonia Group.  Falconeri was founded forty years ago, but was acquired by Calzedonia during the 2009 crisis.

Sandro Veronesi, the group's CEO, adopted an offshoring strategy for the majority Calzedonia production. However, in the case of the Falconeri brand, Veronesi has opted for backshoring. This is because the majority of the products designed by the group retail in the mid-to-low end segments of the market and therefore require low production costs. Falconeri, however, is considered the premium brand in the group. The "Made in Italy" tag is beneficial for the image of the product, while the relocation provides better access to high quality Italian materials. 

On the other hand, lower segment brands, such as Calzedonia, leverage on price and therefore require production in low cost countries (currently the company has three plants in Serbia)

Sources: 

Corriere del Veneto, 23 May 2015

Corriere del Veneto, 16 June 2015 

Offshoring details
Offshoring location: 
Romania