How could the Contract Sector help your business grow?

The Italian Contract sector is a growing business, especially in new markets such as the sub-Saharan Africa that, in recent years, has experienced a high growth rate of its GDP and where the new middle class shows a strong appreciation for the Made in Italy furniture. In these countries, where it is very complex to organise an efficient retail network, companies operating within the Contract Sector can benefit from great business opportunities thanks to the solid reputation of the Italian design.

A trend that involves supplies for private residences, large commercial spaces and the hotel industry. In recent years, in fact, large hotel groups are increasingly asking for luxury products characterised by the use of high-quality materials, prerogative of the “made in Italy” companies. In order to “catch” these opportunities, it is very important to offer “turn-key” solutions so that customers can liaison with a single representative able to coordinate the entire project. Moreover, the production processes that characterise the Contract Sector are different in each country and require the ability to respond quickly to each requirement. A complex scenario that also SME can take advantage of, for instance by obtaining a subcontracting deal.

In this respect, SME must invest in key areas such as the creation of a proactive marketing structure, a supply chain able to manage the development of customized and marketed products (P-FMEA, FMEA, Quality Built-in, Lean sourcing) and an effective cost controlling process in order to ensure revenue traceability for each single asset of the project (Full cost, ABC – Activity Based Costing).