Despite the impasse caused by Covid-19, GSC GROUP company producing chemical products for the tanning sector is investing in view of the recovery. Meanwhile, it has launched the virtual road-show
Looking ahead with confidence, despite the worldwide deadlock due to Covid-19. That’s the choice and business strategy of GSC GROUP, based in Montebello Vicentino, in the Arzignano leather district, which develops and manufactures chemical products for the whole tanning process such as tanning, fattening and finishing. The company, founded in 1976 by Donato Serafini and Giovanni Gianesini, boasts cutting-edge production techniques and systems, which have led it to become a leader in the national and international scene.
Owner of large and prestigious brands (some recently acquired) and specialized in the treatment of automotive leather, the GSC GROUP provides an important international look-out of the year, characterized by the health pandemic which has significantly reduced production and trade for almost all the sector industries. “The 2020 analysis – underlines Diego Cisco, Export Sales Director of the GSC GROUP – can only be drawn up at the end of December, even if at the beginning of autumn the signs indicated an overall decrease between 20 and 25%. The Italian market counts about the 60% of our turnover, while the export share turnover decrease is around 30% compared to the previous year. The difficulties linked to the drop-in orders concern everyone, no one has the magic stick. However, our group, while aware that there will be a decrease in turnover, will continue to invest in quality and environmental issues, which still represent the strength of our products and are appreciated worldwide for their personalization and features.”
Adriano Serafini
How did you live during the spring lockdown? “We kept on working, in the company when it was possible or through online meetings. We focused on some aspects, partly linked to the R&D. Almost daily, we kept in contact with our agents abroad: working in 52 countries, we “spied out” the trend and difficulties caused by the pandemic, that kept on for the rest of the year: even if we strongly trust in a positive trend in the next year, we fear that troubles will continue also throughout 2021. 2020 has been characterized, at least for our sector, by noteworthy ups and downs: after the lockdown we have recorded a good recovery from May to July but far from the same period of the previous year, also due to the need of our customers to supply the warehouses; the summer months were surprisingly in line with previous years.”
What are the major difficulties caused by Covid-19? “They are mainly linked to flights and the transport of goods, also considering that who travels must make multiple checks and quarantines. For example, our specialized technician had to go to China, so he had to do the swab before leaving and upon his arrival: once it was ascertained negative, he remained isolated in the hotel for 14 days. As you can imagine, this choice is made only for a real need. To overcome this problem, we improved our channels, working more on social networks and creating something that we consider particularly innovative.”
What is it specifically about? “Virtual road-shows: a dozen selected agents and customers, spread all over the world, from China to Mexico, up to South America connect simultaneously to interact. In our headquarters’ meeting room, a mega 80-inch screen and some cameras were installed. Our partners, who are also unable to travel, have previously sent us some leathers that we processed in the laboratories of Arzignano and Santacroce. At the end of the process we have virtually presented the articles to this audience; our customers have shown to be enthusiastic. Obviously, we wish to move freely around the world as soon as possible, however the road-show can become a valid alternative allowing cost and time savings.”
According to your data, what was the market situation at the beginning of autumn? “Even in a situation of generalized difficulty, the signals continue to be mixed. For example, once the lockdown ended in May, a sector such as furniture in Italy recorded a very strong recovery, so that in summer the numbers were even better than in the same period of the previous year. The reason has a logical explanation: by living more at home, the average consumer has favored the replacement of furniture or curtains, stuff that he had ignored by staying out many hours.”
What kind of strategy have you implemented? “During the lockdown, the president of the GSC GROUP, Adriano Serafini, favored the employees to use their own holidays days, and taking the least possible advantage of the layoffs, helping those with the lowest salaries with money additions.”
Do you regret the investments you made recently? “Absolutely not. In particular, the acquisition of the IKEM brand, which took place at the beginning of 2019, is strategic and is part of an industrial plan studied in detail, even if, with the benefit of hindsight, we’d probably save lots of money if we did it in the second half of 2020 – but no one could foresee a pandemic. However, we are convinced of what has been done: it’s like buying shares, the balance must be done after several years, not after a few months. Like other companies and brands in this period, we are penalized by the fact of not being able to attend international fairs, which are important and indispensable showcases, but we are still ready to do so as soon as possible.”
How does your commitment to environmental sustainability go on? “It continues to be a priority, as it has been a long-standing path, which will be implemented at different levels also through research and development: all our warehouses are now equipped with photovoltaic panels. We recently reached the important GHG quality certification, which monitors CO2 emissions, and for years we have been certified on safety at work. We are also certified for quality and for the environment, linked to different parameters within the company. The transport organization as well aims at reducing travels and their environmental impact. A further step concerns the use of sustainable materials.”
Hence the choice to support Leather Naturally? “GSC GROUP supports this association, which has planned a media campaign aiming at spreading the identity of leather, informing and educating producers and consumers in every sector in the best possible way, on how important and profitable it is to choose a quality leather product. Most of the people think that synthetic materials are the ecological alternative to leather processing, forgetting that, in a circular economy, processing a by-product of meat considerably limits waste. The goal is to counter this untrue message. Thanks to modernity and the technological evolution, the tanning sector companies can fight head-on against this presumption, enhancing the versatility features that the leather product is able to give: beauty, sustainability and quality.” www.gscgroup.it