SVEM, the company that is transforming the face of the Marche region

SVEM-Sviluppo Europa Marche is a company that for over forty years has been committed to supporting the economic, social and cultural development of the Marche region, the heart of Italy. Over the years, SVEM has evolved to become a joint stock company of regional importance, offering consultancy, design and technical assistance services to companies and local public entities. The company promotes technological innovation and helps companies access European and national funding. Its commitment is not only limited to the economic dimension, but also extends to the social and cultural dimension, also promoting the region’s historical and artistic heritage. The company is therefore an important example of how supporting businesses and the region can lead to sustainable and lasting progress for the entire local community. Here is an exclusive interview with President Andrea Santori, and Alessandro Panico, the company’s Coordinator, who tell us how the company operates. In particular, the Marche region is preparing to expand its presence in the American fashion market thanks to the ‘Footwear/leather goods USA 2023’ project. The Marche Region and Svem, Sviluppo Europa Marche, in collaboration with “ICE – Agency for the promotion abroad and the internationalisation of Italian companies”, organised a series of four training and informative webinars, along with an in-depth study on the US market. They organised an incoming visit to the Marche region by a group of American Operators and Influencers, as well as the participation of regional companies in the sector at one of the two most significant US trade fairs: Project Magic held in Las Vegas from 7 to 9 August. This was at the same time as Magic Market Week, which is considered the most important fashion event in the United States, with over 1. 800 participants from all over the world. Along with the Atlanta Shoe Market, from 12 to 14 August, that is dedicated to footwear and leather goods. Thanks to the project, participating companies will also be able to arrive prepared and organised for e-commerce, which accounts for 47% of the US shoe market. In addition, ICE forecasts show greater growth in the footwear sector than in the fashion industry in general, with a focus on environmental and social sustainability values.
How did the project come about?
Andrea Santori: ‘The Marche Region reactivated SVEM to seek new opportunities for Marche companies, not only in Europe, but also in alternative markets. After the conflict outbreak between Russia and Ukraine, but in general to support a sector that is the backbone of the regional economic system, the regional government gave us the task of identifying new opportunities for the fashion system, particularly for the footwear sector, which has seen exports to these countries plummet. After listening to the companies, we identified the American market as a strategic outlet for our footwear companies in the Marche region. In collaboration with ICE New York, as a first step, we organised a series of initiatives, including webinars and trade fairs, to support companies in conquering the American market. The long-term goal may be to create a ‘Marche Region’ brand for the American market, bringing together companies from various sectors. However, tackling the American market is not easy, as it requires a different approach to that of Europe, or Russia. The Americans want the product to be brought into their companies, so we will have to help companies manage all the logistical, administrative, and fiscal aspects involved. In addition, there are also the issues of American payment systems that are not recognised in Europe and on which we will give advice. In any case, this pilot project is a first step towards conquering the US market and could be extended to other economic sectors in the region.
Generating interest by highlighting the excellence of ‘Made in Italy’…
“My company has a solid understanding of the American market, therefore, we know that it is necessary to adopt a high-level approach that embodies true luxury. In cooperation with ICE, we are moving in this direction, with the aim of informing entrepreneurs about technical details at an early stage.
Companies in the Marche region, particularly those in the footwear sector, will lead the way in this project, correct?
Alessandro Panico: ‘I would like to point out that the Marche region is the one with the highest production specialisation in Italy, together with Lombardy. Our region is mainly characterised by the presence of small and medium-sized manufacturing companies, which account for over 90% of the productive population. Our core business is the production of high-quality products. Therefore, it is only natural that we seek to expand our market outside our home country, particularly in Europe and in countries as far away as the United States, where we can capture a broader segment of demand. However, the US market does not represent the predominant business arena for our territory. Consequently, we have decided to approach this market in a different way, as an opportunity to export our high- quality products, also appreciated in the United States. To achieve this goal, an important partnership has been built: Svem, which is the in-house company of the Marche Region, the Marche Region itself, and ICE, the Agency for foreign promotion and internationalisation of Italian companies. Each of us has a specific role to play. The Marche Region has carefully and competently sought out suitable companies to be part of this project, while ICE has organised a series of training and information webinars to make our companies better acquainted with the American market and to support their participation in certain trade fairs. In addition, ICE has tried to lower the costs of participation in these fairs to benefit the companies. SVEM, on the other hand, deals with market segmentation, because in order to access this vast and articulated market, we have to know it thoroughly. We have therefore commissioned a study from an agency specialising in foreign trade, in particular the US market, to better understand the situation. In addition, we are organising an incoming visit for American stakeholders, including influencers and trade operators, to make our Marche region more visible and to bring our companies to the United States. Our goal is not only to sell our high quality products, but also to make the Marche region known, which represents a distinctive factor behind our production. In fact, we have a very unique industrial context, with specialised districts in various sectors, including footwear, furniture, agriculture and food, mechanics, shipbuilding, leather goods and many others. This project will help us give our companies visibility through participation in trade fairs, but it will also allow us to assess the competitiveness of our products on the market and to prepare other strategic initiatives to promote our production in other sectors. Ultimately, this project represents a kind of pilot project to be able to plan other initiatives in the future.’.
In the light of the change of course in America’s protectionist policy, do you believe that a sort of Italian-American bridge can be built with America through ICE?
Andrea Santori: ‘We are convinced that this project is only the beginning of a broader path that could be developed by the regional government. The US market represents a very interesting opportunity for us, as consumers ‘overseas’ appreciate quality and work well done, which are distinctive features of our products. Furthermore, we have noticed an increase in exports to this market, which makes it even more important for us. Currently, it is already one of the Marche Region’s top export markets, with a growing share of regional exports. In spite of this, we believe that this initiative is significant especially for companies in the footwear sector that have yet developed a deep understanding of this market. However, this project is only the first step of a broader and more articulated path, which could be further developed with more investment. The goal is to create a structural and ongoing business relationship, not only with the US market, but also with other rich markets outside Europe, such as China, South Korea, South African and Middle Eastern countries, in order to diversify our business activities. Ultimately, our goal is not to replace traditional European markets such as Germany or France,but expand our commercial operations to attract new segments of demand and ensure that the relationship with these markets becomes routine and structural’.
Are you satisfied with the feedback you received from the companies involved in this project?
Andrea Santori: ‘We have involved a significant number of companies in this project, just under 30. This is an important result, considering both the type of market we are facing and the fact that not all companies are equipped to approach it. However, the companies involved are dedicated to internationalisation and many of them are already used to exporting their products abroad. The positive thing about this project is that it is not an individual action, but that each of them is supported by an organised system in which ICE, the Marche Region and SVEM work together. This support system is fundamental to the success of the project and represents added value for the actors involved. The support system, in fact, helps the participants in all phases of the project, from training to information, to participation in trade fairs and the possibility of meeting American stakeholders through the incoming mission that we organised. In this way, the companies involved can face this challenge in a structured and organised manner, with a greater chance of success and growth. All this is fundamental for the fashion and footwear production system of the Marche economy, which represents – as mentioned – an important resource for the region’.
How exactly can we define SVEM?
Andre Santori: ‘SVEM is a company 100% owned by the Marche Region, it deals, among other activities, with the design and implementation of territorial development projects arising from European Union, national or regional initiatives; of the controlled entities we hold 96% of Interporto. One of the initiatives we have followed was the arrival of Amazon in the Marche region, which represented an investment of EUR 550 million, of which EUR 350 million in infrastructure and EUR 200 million in technology and robotics. Our activity also includes providing technical assistance and supervision to all companies participating in regional or European calls for tenders managed by the Region. In the 2021-2027 programming period, Marche, which is recognised as a region in transition, will have more than one billion euro in European resources at its disposal, and we have been working for months on focusing on strategic areas of intervention, which favour regional socio-economic development, also by intercepting funds and preparing new projects.

Andrea Santori