MIS Study Abroad – Can Tech-Smart High-End Fashion Save The City of Venice?

Can Tech-Smart High-End Fashion Save The City of Venice?

Beautiful is an understatement when describing the timeless city of Venice. Gorgeous canals, stunning architecture, and wonderful weather are just a few of its hallmark characteristics. Once upon a time, the Venetian empire was one of Europe’s most powerful and wealthy nations, leveraging its strategic position to trade with the Middle East and Asia. Today, the city is swimming (no pun intended) in challenges. Centuries of a declining economy has sent the city through hard times, and transformed it into a hot vacation spot that now struggles with overtourism. Rising prices have led to a mass exodus of native Venetians, threatening the very fabric of its culture. To make matters even more complicated, rising sea levels jeopardize the city, requiring spending big on infrastructure; but to fund said infrastructure would require more tourism. It’s a real catch-22, allow the city to be swallowed by a sea of water or a sea of tourists?

Allow me to introduce Fondaco Dei Tedesci, a stunning, eclectic building founded by German merchants in the 12th century.

The iconic building is now home to a large department store in a joint venture between DFS and LVMH. Created with Asian tourists in mind, the blow struck by COVID-19 proved fatal, and the store has been slated to shutter by the end of 2025. Visiting the location myself, I could feel an undeniable anxiety in the air. Hundreds of local employees soon to be left jobless in an already difficult economy, the city to lose out on a massive revenue source. It felt like a microcosm of the city as a whole. The locals I spoke to are looking for a solution, and they all have one savior in mind: Rinascente.

The Hero of Our Story?

Milan based high-fashion department store Rinascente traces its roots all the way back to the 1800s with its founding by the Bocconi brothers. With such a long and storied history, one must wonder how the brand has survived for so long in one of the most competitive fashion industries in the world? There are two main aspects:

1. High quality offerings for loyal, generational customers.
2. An open mind to new technologies allows adaptability to trends.

The importance of the latter cannot be understated. Rinascente’s embrace of modern technology has placed it firmly ahead of the competition and allowed it to thrive in a notoriously antiquated market. So what’s the secret sauce? The answer is Snowflake, an American based cloud data company. They help Rinascente keep track of real-time customer data, meaning they can adapt to trends proactively instead of reactively. In fact, the system is so fast, that the data tables are able to be updated every 15 minutes. After the data is collected, it gets analyzed by Snowflakes proprietary AI software, providing an even faster rate turnaround. After vising Rinascente’s two locations in Rome, I can personally attest to it’s success. Both are consistent staples for tourists and locals alike.

Return to the floating city

Okay, back to Venice. How does Rinascente fit into the equation? Of course, the people are crossing their fingers for a buyout, and the subsequent ushering in of Rinascente’s forward thinking mentality. But can bringing in a department store that caters to high-end tourists really help Venice battle overtourism? Yes. Here are a few things the city could learn from them:

1. Data Analytics and Real-Time Monitoring: Similar to Rinascente’s use of real-time customer insights, Venice can use data analytics to monitor tourist flows and behaviors in real-time. This can help city officials make informed decisions on crowd management and resource allocation.
2. Visitor Management Systems: Advanced visitor management systems can help control the number of tourists in specific areas. By partnering with tech companies, Venice could use IoT sensors and AI to ensure visitor numbers remain within sustainable limits.
3. Promotion of High-Quality Tourism: Rinascente is known for highlighting local artisans in their lineup. A greater focus on small batch, high-quality product, could help the city lower the tourist footprint without hurting local economies.

Eyes on the future

While Venice’s current situation may seem dire, it’s important to remember that the city itself is the byproduct of conflict. Founded by poor fisherman fleeing invaders, the very foundation of its culture is rooted in struggle. Throughout some of the most dramatic highs and lows, Venice, along with the rest of Italy, has remained shining and resilient. During my time in Italy, it became abundantly clear that the new generation of Italians are hungry for new technologies to get the job done. The question remains, will the old guard see the tides of change, or is Venice destined to be swallowed by the sea?