Make a Good Impression
Interview with Valerio Leoni, Managing Director of Leoni S.p.a
They should be eye-catchers, make products or companies more well-known, and most importantly, differentiate themselves from the competition – promotional gifts, giveaways, promotional items. The flip side: They are often of inferior quality and eventually end up in the trash. For Leoni S.p.a. from Sorbara, this is not an option. The manufacturer of promotional items takes a new path, a different, more sustainable path than the competition. For Leoni, there is no alternative to Quality made in Italy.
Wirtschaftsforum: Mr. Leoni, you are the founder of the company named after you, which has been manufacturing promotional items since 1989. What is the core idea behind your products?
Valerio Leoni: It has always been important to me that we stand out from the market by creating something new, innovative. Ultimately, it's always about generating a competitive advantage for customers. Our promotional items are targeted at children; therefore, a great deal of sensitivity is required regarding quality and safety.
Wirtschaftsforum: Have there been any particular product highlights in the past?
Valerio Leoni: There have been various milestones that have influenced our path. In 1990, we collaborated with the company known for collectible stickers, Panini. For them, we developed small bags for toy animals and later a paper Noah's Ark. We focused on Flow Packs, which was a novelty at the time. For the dairy company Parmalat, we developed small mammals for the South American market - 30 million pieces in Venezuela alone. Since 2000, we have been producing 100 million figures annually for chocolate eggs. A very special project, truly a matter close to the heart, is currently underway: We have moved production back from China to Italy.
Wirtschaftsforum: Why this decision?
Valerio Leoni: We believe in the 'Made in Italy' seal - not only in fashion or culinary arts but also in our market. Therefore, we have invested in a new production site here in Sorbara, which is highly automated and accordingly high-performance. From development to complete manufacturing to painting the figures, all processes are in our hands, under our control.
Wirtschaftsforum: What are the advantages of products made in Modena compared to those made in China?
Valerio Leoni: They represent controlled quality and high ecological standards. We process high-quality raw materials and, thanks to our high level of automation, can offer competitive prices. At the same time, environmental awareness is playing an increasingly important role. Because we primarily use sustainable materials like recycled plastic or plastic from renewable sources, and packaging made from biodegradable material, our products are not only 100% made in Italy, but also 100% green. We are equally selective about our suppliers – all are certified and located within 25 km of our headquarters in Modena. The only exception we make is for colors; here we work with a well-known German company.
Wirtschaftsforum: Does this mean that all Leoni products are now being manufactured in Italy again?
Valerio Leoni: Not all of them yet. Build-up figures, which are collector's items, sometimes quite valuable, found regularly in magazines and particularly popular in Japan, are still produced in China. However, this is set to change in the long term.
Wirtschaftsforum: We're talking about large quantities here; what kind of corporate structure underlies these volumes?
Valerio Leoni: We have 24 employees and before the pandemic, our turnover was 18 million EUR. In 2020, we saw a decline due to COVID, but we expect growth of 30% for 2021. 35% of our products are exported directly, indirectly this number is significantly higher. Our goal is to further boost exports, especially targeting Germany and the German-speaking market, where, just like in Japan, quality products are in demand.
Wirtschaftsforum: What does the customer structure look like and what are the advantages for customers working with Leoni?
Valerio Leoni: Food manufacturers are traditionally our main customers; in addition, loyalty agencies are becoming more important. We also supply smaller agencies and non-profit organizations. Since the entire production process is under our control, we can deliver quickly and flexibly. The importance of this was just demonstrated by the supply shortages during the Corona times. Many customers now come to us to get a firsthand impression; this is difficult to implement with Chinese manufacturers.
Wirtschaftsforum: You mentioned loyalty campaigns and their growing importance. Could you elaborate on this?
Valerio Leoni: Loyalty campaigns are particularly popular in supermarkets. When a customer pays a certain amount, they receive a bag with a gadget. We have invested in a plotter that produces 500,000 pieces per day to conquer the market. Until now, China was the only source in this market; that's now history. We hope to gain a foothold in Germany with loyalty campaigns; we have already received the necessary certification.
Wirtschaftsforum: With what feeling are you looking forward now?
Valerio Leoni: With a very good one. The decision to bring production back to Italy was absolutely correct. More and more customers realize that our figures are more than just interchangeable gadgets. They are works of art, backed by creative minds.