Italy, a major hub for international luxury goods producers, is particularly affected by the recession. The textile and apparel industry has had a persistent and worsening downturn that started in late 2023. Nearly 75 per cent of businesses reported lower revenues by the middle of 2024, with a quarter seeing drops of at least 20 per cent.
Economic uncertainty, high interest rates, inflation, and increasing energy costs have diminished consumer purchasing power, compounded by geopolitical tensions. This tough environment is a significant concern for the Italian fashion industry, as detailed in a recent survey by SMI.
Just 17 per cent of the entrepreneurs surveyed shared revenue increases in the first half of the year. SMI predicts an average sales decline of 5.8 per cent in comparison to the same period in 2023. Industry experts do not foresee improvements in the latter half of the year. Specifically, 48 per cent believe market conditions will stabilise, 33 per cent assume further deterioration, and just 19 per cent anticipate any improvement.
The survey, conducted in early July among small and medium-sized enterprises (SMEs) across various regions, reveals that only 19 per cent of companies predict sales to rise for the remainder of the year. In the meantime, 61 per cent expect a slowdown, and 20 per cent predict their sales will continue to remain stable. SMI forecasts a 6.2 per cent revenue decrease for the textile and clothing sector in the first nine months of 2024.
The Italian fashion industry, including leather goods and accessories, exceeded € 110 billion in revenue in 2023, a 5 per cent increase from 2022. The textile-clothing sector alone achieved € 64 billion, with 70 per cent coming from exports, and men’s fashion accounted for nearly € 12 billion.
