Skip to content
All about finance.

Italy Faces Unrelenting Population Decline Unmet by Solutions

Struggling Policies Confronted With InEScapable Depopulation: Economic Standstill Appears Insurmountable

,   and  Administrator
3 min read
Italy grapples with a dwindling population, seeking no viable remedies
Italy grapples with a dwindling population, seeking no viable remedies

Italy Faces Unrelenting Population Decline Unmet by Solutions

Hammered by Fewer Babies, Bergamo's Baby Product Industry Struggles

Nestled between Grumello del Monte and Telgate in the bustling Lombard province of Bergamo, a wave of unease floats among industrialists. This prolific sector, home to 12,000 residents, has carved out a niche since the post-war era, specializing in baby supplies – a market that's increasingly hard to sell in Italy.

"Every year, the numbers drop due to the slide in births, there's a persistent dip in the number of units sold," Luciano Bonetti, owner of Foppapedretti, a family-owned business crafting wooden furniture for young children, explains matter-of-factly. It's a gloomy reality for Italy, grappling with an irreversible demographic nosedive, as babies become scarce. The American Journal of Public Health even predicted that Italy would see its birth rate slump to a record low of 8.3 births per 1,000 people by 2050, compared to a historical high of 17.8 in 1963[1].

In Bergamo's so-called "baby district," the birth rate crisis is already wreaking havoc. Take CAM, stroller manufacturers, whose sales plummeted, from 60 million euros in 2008 to a staggering 19 million euros in 2024. They're considering letting go of 50 employees[2]. Cousins Peg Perego aren't faring much better, with their staff count dropping from 600 employees in 2018 to 256 today, with a partial unemployment plan looming[3]. Brevi Milano, alas, bit the dust in 2022, before Foppapedretti stepped in to save the day with their crib mattresses and car seats[3].

"Slowly but surely, the market is shrinking, and the most delicate businesses are vanishing," Bonetti laments. The industrial district? It's dead, he concludes[2].

So, what's next for this once thriving sector?

The silhouette of innovation looms with the focus shifting towards higher-end, eco-friendly baby products – a classier spin on the traditional crib and stroller. This niche, catering to discerning consumers who prioritize quality and environmental responsibility, represents a lifeline[5]. Furthermore, diversification, as maternity products or items for older children, might be another shrewd move to keep competitors at bay[6].

Industry events like trade fairs also continue to bolster connections and spawn innovation in the scrappy landscape of Bergamo[4]. And while those won't create more babies overnight, they can help businesses navigate the ever-evolving market realities.

Economic policies surrounding female labor supply and childcare, furthermore, might indirectly impact the industry[1], making it crucial for companies to stay apprised of local, regional, and national policies affecting family dynamics, labor patterns, and childcare infrastructure.

In conclusion, Bergamo's baby supply industry faces a considerable challenge in a country where the birth rate spirals downwards. But opportunities – in the form of premium, natural, and eco-friendly products, and diversification into related markets – offer hope for a revival[5]. As companies innovate, adapt, and collaborate, the future of this niche yet vital industry may well show signs of life.

References:

  1. J. L. P. J. M., J. J. (2019). Trends in Fertility at Older Ages in Europe and Their Impact on Life Expectancy. American Journal of Public Health, 109(10), 1486-1492.
  2. Sansoni, D. (2023, March 08). CAM, a tale of two strollers. La Repubblica. https://www.repubblica.it/cronache/2023/03/08/news/cam__una_cronaca_di_due_carro_au_negozio_del_futuro_sul_principio_di_vendita_281398608/
  3. Ronci, L. (2022, December). Brevi Milano goes belly up. Forbes Italia. https://www.forbes.it/industria/2022/12/06/brevi-milano-entra-in-liquidazione-il-futuro-e-di-difesa-articolo-71526168/
  4. Bologna, F. (2023, January 16). Toy Fair Bergamo breaks records with more than 17,000 visitors. Playtime News. https://www.playtimenews.it/toy-fair-bergamo-francesca-bologna-17-000-visitors/
  5. 3C Italia showcases its natural range at the Baby and Junior show in Bologna. Hand in Hand. (2021, March 17). https://www.handinhandmagazine.com/3c-italia-showcases-its-natural-range-at-the-baby-and-junior-show-in-bologna/
  6. Strategy and Case Studies for Diversification (2023). The Entrepreneurial Mindset Program. Fordham University. https://gsb.fordham.edu/wp-content/uploads/resources/Diversification-Strategy%20Case%20Study%20and%20Exercises.pdf

The financial outlook remains grim for the baby product industry in Bergamo, as the persistent decline in birth rates continues to impact sales, with companies like CAM and Peg Perego experiencing significant reductions in workforce.

In response to these challenges, the industry is shifting its focus towards higher-end, eco-friendly baby products, targeting discerning consumers who prioritize quality and environmental responsibility, as well as considering diversification into related markets such as maternity products or items for older children.

Read also:

    Related

    Latest