EGYPTIAN garments and apparel producers had the opportunity to show off their production potential to some of the top Italian fashion houses last week. Paolo Zegna, CEO of Ermenegildo Zegna Group, Michele Norsa, head of the Valentino Fashion Group, Gaitano Marzotto, director of Marzotto Group and Leonardo Ferragamo, head of Ferragamo Fashion Group, were in Egypt for the first time at the invitation of Rachid Mohamed Rachid, Egyptian minister of trade and industry. The Italian businessmen were in Egypt as both representatives of their companies and, as well, in their capacity as members of Italian fashion federations. Norsa is board member of the Italian Chamber of Italian Fashion and Zegna is president of the federation which combines the former "Italian Fashion System" and the Italian Textile Association. The Italian CEOs scouted Egypt's potential as a retail market for luxury Italian products at a time when their own domestic apparel industry is facing an influx of Chinese products. Italian entrepreneurs are seeking to open up new markets for their goods after their own market has become inundated with Chinese products, since quotas were lifted in January 2005. Egyptian manufacturers, for their part, suggested that Egypt could become a part of the Italian fashion production chain by means of outsourcing. A number of local manufacturers are already involved in outsourcing for major European and US brand names. Egypt is also targeting outsourcing for the higher-end luxury items. "Why produce cheap goods, when we can produce luxury items?" said Alaa Arafa, chairman of Arafa Holding, a major Egyptian textiles and garments maker and exporter. Valentino manufactures some 100,000 men's suits annually in Egypt, out of 30 million pieces produced by the group. This is Valentino's only outsourcing operation outside of Italy. But Italian designers whose clientele are keen on the "Made in Italy" sign are not, for the greater part, enthusiastic about outsourcing. "It takes time to change the psychological way of thinking," said Zegna. Some top fashion manufacturers currently outsource the lower end of their production lines, such as sports wear.
