The Fashion Industry in Italy

The fashion industry encompasses many different and diverse industries, ranging in size and inclusive of niche industries involved in textiles, fashion and accessories etc.

This includes not only retail/online stores, design firms and brands, and fashion magazines, but also all other artisans and industries that manufacture products in the sector.

For this consumer-focused industry, change is occurring rapidly, constantly, and increasingly. The industry as well as consumers are constantly evolving over time.

Despite a radical change in consumer habits, especially after the pandemic, favoring new methods of approaching and buying products by moving from physical stores to online shopping, fashion numbers are still growing.

For the Italian fashion industry, 2022 marked record numbers, reaching the figure of almost 100 billion euros in turnover. The pandemic has also accelerated a process of reshoring, the return to Italy of production that had been relocated to the Far East and Eastern Europe and from which the local economy has benefited.

In 2023, fashion and luxury will remain among the most attractive sectors for investors and financial operators with growth estimated at around 4 percent. As is now well known, numerous foreign investors have brought and continue to bring their resources to our country, and there have been numerous acquisitions of Italian brands. In 2022, there has been a further increase in transactions and more growth is expected in 2023 due to the quality and design of high-end brands and Made in Italy products that have sparked the interest of investors. The main Italian provinces where most foreign investments have converged are Milan, Rome and Florence.

Over the past 20 years, the list of Italian brands that have passed into the hands of foreign multinationals, especially in the fashion industry, has grown longer and longer. These include large groups such as Kering and LVMH. Not to be outdone, many Chinese players have acquired stakes in Italian fashion companies or are standing out as talented designers ready to tread the most coveted catwalks.

Great challenges await such operators, however, foremost among them being the trend of sustainability. Companies and consumers worldwide are increasingly attentive to these ethical aspects, and fashion firms as well as all manufacturers in the industry will have to adapt to meet the demand by engaging it as an opportunity and competitive advantage.

D’Andrea & Partners Legal Counsel boasts a team of professionals specializing in the world of fashion, who will be able to comprehensively assist you on all legal aspects that affect companies involved in the fashion industry.

The above content is provided for informational purposes only. The provision of this article does not create an attorney-client relationship between D’Andrea & Partners and the reader, and does not constitute legal advice. Legal advice must be tailored to the specific circumstances of each case, and the contents of this article are not a substitute for legal counsel.