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Editor in chief: Vincenzo Pagano Editorial staff: Ilaria Nesti - Maria Lardara Publisher/Organized by: Pratotrade via Valentini, 14 - 59100 Prato Tel. +39 0574 455280-1 Fax +39 0574 21293 pratotrade@pratotrade.com www.pratotrade.com Graphics: Calzolari/Pacini Tel. +39 0574 690556 Registered with the court of Prato art nr. 6/96 on 26/04/96 Published twice a year. Year 14 - July 2009

co-financed by Ministry for Economic Development

The economic situation in Prato

Notes on the economy by the Study Office of the Industrial Association of Prato- Juanuary 2009

The negative spiral "decrease in demand- production- employment- worsening expectations- further decrease in demand" triggered by the bursting of the financial/mortgage bubble in the U.S. in August 2007 gradually grew in magnitude through 2008, keeping pace with the destruction of wealth that followed it, putting most of the banking and financial system in a crisis situation, with the restriction of credit that has contributed, until now, to render largely ineffectual a monetary policy of the central banks that has become more and more expansive (until, as in the U.S., the Fed decreed the zero interest rate).
The "real" crisis struck industry first of all, causing a drop in production that was one of the worst in the post-war period. The sectors most seriously damaged are those that produce investment goods, durable consumer goods (in particular those with a high unit value, such as automobiles) but also semidurable goods (like apparel) and intermediates (in the industrial chains, especially the long ones, the businesses downstream are waiting to see the level reached by demand, and the effects upstream are proportionately more intense).
All this explains why the textile sector has been so badly hit, and could not be otherwise. Effectively the drop in production and exports was severe already in 2008, as indicated by the Italian Fashion System data (-12.1% was the level of exports in the cotton-linen chain in January-September 2008 with respect to 2007, -10.0% for the woolen chain).

The Prato textile district

The effects of the crisis were strongly felt in all the textile districts, which suffered a severe drop in exports. In the period from January to September 2008 with respect to the same period in 2007, textile exports from Prato were down 10.7% in value, from Biella 6.2%, Como Ð3.3%, Bergamo Ð15.2%.

As regards foreign markets, sales of woven fabrics, knits and other types of fabrics in the first nine months of 2008 were negative on all markets, starting from the most "important" clients like Germany (-13.1%). Only exports to China (+6.7%) and Russia (+4.9%) fared better, but they account, together, for only 6.8% of the total export market for textiles in Prato.
With regard to forecasts of an upturn, 19.4% of the operators in the sample think it should begin toward the end of 2009, 58.3% in 2010; 22.2%, the most pessimistic, after 2010.
In view of this recovery of the world economy, while will have to come, sooner or later, the Prato district maintains its position as the main center of production of textiles and fashion in Italy, with inimitable products from the viewpoint of research, creativity and quality, with greater capacity than ever in terms of customized solutions, flexibility and service.

For spring/summer 2010 fashion rediscovers design

Design is beautiful. In the beginning, only architects, painters, sculptors and artists revered the cult of line and shape. These elements are recent additions to the vocabulary of fashion designers, fascinated with the opportunities offered by industrial design to their creativity and imagination, as we will soon see in the spring/summer 2010 wardrobe. They have used this new tool to develop extreme solutions in their application of the language to fashion in its original essence, and generate new interest in consumers often distracted by the excesses of fashion on the market. A taste for minimalism, simplicity and freshness of style gains new ground in the trend book for the season developed by the Trend Study Center of Pratotrade for its members, inspiring the creations of new frontiers by our fashion designers. A unifying theme capable of harmonizing even the most extreme processes, in a synthesis between sober minimalism with its preference for natural materials, and decorative maximalism expressed, however, in a soft, attenuated key. Whether the mood of the season is called "Urban Garden", "White Rainbow", "Raw Earth", "Sweet Spring" or "New Excess", the backdrop is the same: in the magic hands of the designer the fabric becomes a work of art, shaped by the pen or pencil. And so, to be in fashion and in step with the times, we can only follow scrupulously in the wave of these fashion trends that inspire the collections. What matters is that fashion reappropriate the concept of design, trusting in its own talent for reinvention and renewal.

Urban garden Welcome to the reign of the safari in the city, the asphalt jungle of the feline and reptile, where the taste for the military look and the fascination with the exotic not only favor technical cotton and cool wool, but can also amaze us with collections of glossy fabrics and stretch satin, enveloping feminine curves with gauzy lightness and crushed linen.

White rainbow A timeless style, suspended between the enchantment of the fairy tale and the thread of imagination. The new tinted whites transport us into an other dimension, one of modern romanticism: a universe of femininity bathed in delicate lines, emphasized by crisp cotton and natural fibers with a glossy, lacquered look.

Raw earth Ethnic but without a real identity, the soul of fashion rises from the depths of the earth. This is the triumph of the Mediterranean spirit, with that rustic chic style that has such an Egyptian flavor in the art of printing on weaves and experimenting with three-dimensional effects. The creations in linen and cotton reinterpret the shadings of bronze, marble and stone with abstract jacquards and printed patterns.

Sweet spring Welcome back to the Forties: from our grandmother's closets come dresses in tulle, sablé, crèpe, veils and chiffon. Past and future weave themselves into the designers' language. The revisitation of sculptured drapery and technical macramé with futuristic transparencies leads to painted technical textiles in shades of salmon pink, yellow, cream and grey.

New excess Luxury is at home in the Asian fashion tradition. Brushstrokes of intense, dark color create a VIP lounge style focused on shades of purple, bright green, fuchsia and electric blue. Mixtures of tradition, patchwork and applications celebrate the new season with new excess in spring/summer 2010.

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