In the aftermath of an eighty-year journey, Schmid grasps the need for transformation by starting over from major financial investments and a renewal of the product catalog
Schmid, an icon brand of Italian production, turns eighty. Founded in Italy in 1942 by the Swiss-German entrepreneur Walter Schmid, from the early nineties the company became object of interest of funds and investors whose mainly speculative financial interests weaken its drive for innovation and growth. After the relaunch plan launched in 2013, the company went through a further difficult period mainly due to the effects of the Covid-19 pandemic.
However, Schmid has never lost the ability to offer an artisanal product able to interact with the needs of the major Italian and international fashion houses. Its role as a converter of excellence in the sector of fabrics and semi-finished products for the production of footwear and leather goods is confirmed today by the new corporate structure. Schmid, based in San Giuliano Milanese (Milano province) is entirely owned by Prima Partecipazioni Srl of Mario Boselli and Giorgio Iacobone by 90% and 10% by Valerio Baiardo. This team guarantees a correct balance between managerial skills and an entrepreneurial soul.
We met the general manager Valerio Baiardo. Joining Schmid in 2020, Baiardo boasts a long and consolidated commercial and managerial experience in fashion companies such as Fratelli Peluso, Cesare Catini, Alexander Nicolette, Vittorio Piani, Bally, Levi’s, U.S. Polo Assn., Ermenegildo Zegna, Frau, just to name a few. According to his point of view, it is essential to never lose contact with the market, so to understand how it evolves, even by observing directly what is sold in stores.
Valerio Baiardo, you are the new general manager of Schmid. How did the idea of this relaunch come about? Schmid represents one of the best excellence brands of the Italian and foreign supply chain in the fashion and luxury sector. The entire shareholding is now in the hands of three well-integrated professional figures working in the related areas of professional competence. The Cavaliere del Lavoro Mario Boselli and the lawyer Giorgio Iacobone involved me to ensure the company a new organizational structure that would allow it to change pace after two critical years due to the economic impact of the Coronavirus outbreak. We initially guaranteed its financial solidity, paying off the debts and approving a substantial capital increase. Once the company has been secured, we have drawn up a prudent three-year work plan aimed at relaunching this historic brand, which is widespread in the international production system and driving the world of fashion accessories, a leading sector of the Italian manufacture in the world. The figures are already growing, thus proving us right.
What are your development strategies? We intend to consolidate Schmid’s role as a proactive company in terms of innovative products and flexible service, aiming at seizing opportunities related to future trends. We are renewing and expanding the catalog. Schmid has always enjoyed an excellent reputation for innovation and inspiration. Historically we collaborate with the most renowned fashion houses creating special tailor-made products. We are known as “those” of mesh, satin and velvet, but we also deal with glitter, vinyl and polyurethane, nylon, lycra and neoprene, as well as lace and sequins, microfiber, jacquard wool and much more. The fierce competition, the impossibility of scheduling orders as in the past, the shortage of raw materials, the increasing transport costs have made the service and work organization increasingly complex. My primary intent is to reorganize the warehouse, filling it with those basic products that do not suffer from the mutable flow of fashion trends, not only in the field of fabrics, but also in those categories in line with our offer, such as, for example, a new range of reinforcement sheets carefully designed to meet the needs of the footwear and leather goods sectors. The other important goal is to expand abroad. We are evaluating to enter new markets according to a precise and defined intervention plan.
How important is the development of human resources in this context? An example for all. I brought back to the company a professional pillar, Silvio La Cava, Schmid’s sales manager for twelve years. La Cava, also thanks to his historical background, is a key person with excellent technical skills, able to work closely with fashion houses and to perfectly interact with style offices. We boast a young and determined team: from Andrea Badoni, sales and customer service, to Stefania Caramagn and her collaborators, accounts, up to the logistics and warehouse staff who carry out important planning and quality control work. I am very happy with the current team, especially with the collaborative climate that is felt in the company.
How do you deal with the growing demand for sustainability in the fashion sector? We are trying to obtain the GRS-Global Recycle Standard certification – the procedure is slow and complex – which establishes the requirements for products obtained from recycled materials. According to the availability of raw materials, we are investing in eco-sustainable items by facing all the difficulties that this entails. On the other hand, it is necessary to make it clear to the end user that the recycled product offers different performances from the traditional one and that costs more mainly due to the production processes adjustment and the price of the necessary certifications.
Valerio Baiardo, Schmid’s general manager
A word with Mario Boselli
Cavaliere del Lavoro and – along with lawyer Giorgio Iacobone – long-standing shareholder of Schmid, Mario Boselli firmly believes in the plan to relaunch the historic Italian company under the new general management of Valerio Baiardo. The first step in securing the company’s future was to safeguard its capital and financial position and to redefine the organisational structure. Today, Schmid is ready to face the challenges of tomorrow.
Cavalier Boselli, you have believed and continue to believe in Schmid. Why is that?
The first to believe in this project was the new general manager Valerio Baiardo, who shared the vision by accepting the role and contributing to the company’s recapitalisation. For my part, thanks to my long experience (the Boselli family’s textile businesses date back to 1586, Ed.) I saw a parallel between successful companies that produce luxury items for the high-end ready-to-wear market and Schmid, which specialises in sub-supplying fabrics and materials for the footwear and leather goods industry, which are also intended for the premium ready-to-wear brands. I consider myself an advocate of Italian excellence. The supply chain in the luxury goods sector is behind the success of Italian-made goods. It is no coincidence that Italy is the “workshop” of the major French labels. Schmid is an example in this area.
Despite the events of the last two years, the icon brands of fashion have not suffered great consequences, because of their universally recognised image. Desired and appreciated by new markets, luxury brands export 80 to 90% of their production, of which 30, 40, 50% goes to China. Our future, like our past, is all about exports. Direct and indirect. A position as sub-supplier to brands that export 80, 90% of their goods means being able to take advantage of this value chain and to expand one’s comfort zone in terms of margins.
Our gamble, which is supported by rational factors, is to be sub-suppliers to international luxury, meaning Italian and French excellence, which alone can offer true fashion and true creativity.
What strategies should be brought into play to conquer luxury brands?
Two in particular: with the new course, research and innovation have come a long way. It is essential to do one’s bit and propose products that are qualitatively in line with market demand, both aesthetically speaking and in terms of the new objectives of sustainable development and the circular economy. It has become “fashionable”, for some time now, to talk about sustainability. In fact, it is a real issue which must be responded to in absolutely concrete terms.
For us the gamble is achieving sustainable products at costs, and therefore at prices, that are equally sustainable. The second strategy concerns service. It is fundamental for there to be a close dialogue between suppliers and customers, meaning designers, creative directors, purchasing departments. Service should be personalised, à la carte, as the French would say, but at the same time it should be proactive, in other words, capable of providing the label with creative ideas from which to start creating an exclusive product.
How do you intend to compete on international markets?
The methods are always the same and I essentially see two: creating an extensive network of agents in the field who receive regular visits from area managers.
Taking part in international exhibitions and fairs like Première Vision and Lineapelle, which are strategic channels for strengthening relationships of trust with buyers.
Il Cavaliere del Lavoro Mario Boselli