What is the Future for Fashion "Made in Italy"?

While Italy is synonymous today with luxury, innovation and high quality, the industry and ecosystem are at a crossroads which will determine the direction of the future.

By SCOTT B. NEWTON

June 2025

Driving through the rolling hills of Veneto, Toscana and Lombardia, the fashion and luxury industries feel like a dream and a gorgeous cinematic experience. Rising out of the impossibly beautiful settings, the design and creation of some of the most desired fashion in the world takes place. Customers from every corner of the world choose Italy for their most precious purchases, and the "Made in Italy" branding commands a steep premium. In fact, in one study I completed together with our teams years ago, the simple fact of stating "Made in Italy" on an article in fashion increases the price a customer is willing to pay by up to 15%. Yet is this future secure today?

The ecosystems which have made the industry and the intricate Made in Italy supply chains work are at risk, both due to internal challenges, questions about succession, brand consolidation and changes in the external environment, all adding up to industry shifts and disruption. Starting with the generational changes, the smaller suppliers, known as the "terzisti," did not build solid succession plans, and as a result the risk is with many founders now well into their 80s and even 90s, the companies have a question mark on continuity.

At the same time, the large fashion conglomerates in their quests for ever greater margins have put continuous pressures on their suppliers to cut costs, even to the extent of cutting significant corners. In two high-profile cases during 2024, the external supply chain offices of both Dior and Armani in Lombardia were put under court-ordered supervision after widespread labor law abuses were detected in the factories of the external suppliers near Milano.

Meanwhile, many of the luxury brands with the strongest Italian identities have been sold to multinational groups: Bottega Veneta, Brioni, Ginori 1735, Gucci and Pomellato are all now owned by French multinational Kering, while Acqua di Parma, Bulgari, Emilio Pucci, Fendi, Loro Piana and Repossi are all controlled by LVMH. Giorgio Armani, 91 on July 11, remains CEO of the global empire bearing the Armani brands he controls and remains famously tight-lipped about any succession plans, with his latest Wall Street Journal interview sharing his quote "Work is the Best Medicine."

On a brighter note, there are some exciting developments taking place in Italian fashion. This spring, the announcement of Prada to acquire Versace and bring this legendary luxury brand back under control of Italian industry was greeted with enthusiasm in Milano. Miu Miu, also part of the Prada Group, recorded a remarkable 93% increase in sales in 2024 and with strong momentum into 2025. Another success story in maintaining Italian ownership is Dolce & Gabbana, which remains privately held by founders Domenico Dolce and Stefano Gabbana since its establishment in 1985.

The brand has successfully resisted acquisition attempts by multinational conglomerates, preserving its distinctive Italian character while achieving global recognition and financial success with estimated annual revenues exceeding 1.5 billion euros. Meanwhile, Reggio Emilia-based Max Mara continues to grow and build on their legacy which dates all the way back to the founding in 1951 by industry visionary Achille Maramotti. Today the Max Mara Fashion group includes 10 brands: Max Mara, Sportmax, Weekend Max Mara, Max&Co., PennyBlack, Marella, iBlues, Marina Rinaldi, Persona by Marina Rinaldi and Intrend.

The group, headed by President Luigi Maramotti, generates revenues of close to 2 billion euros with their 5,681 employees. Milano-based Moncler/Stone Island, with production in Trebaseleghe near Venezia, reached record-breaking revenues of 3.1 billion euros in 2024, and with an impressive EBIT margin at 29.5% generated with their 6,754 global workers.The fashion industry today is a pillar of the Italian economy and a major employer and economic engine, with more than 53,000 businesses generating revenues of 96 billion euros in 2024, representing 41% of the EU total. The fashion industry is estimated to have contributed a whopping 5% of the total GDP for the nation in 2024, and the Cassa Depositi e Prestiti indicate that over 1.2 million people in Italy are employed in the region. Two-thirds of all luxury fashion in Europe are produced in Italy, and 10% of total exports from Italy to the world are fashion-related.

Investing in the future?

Bulgari is a good example of how the forward-thinking brands are preparing for the future of fashion and luxury. The Manifattura Bulgari facility, located in the Northern Italian village of Valenza, first opened in 2017 with a production space of 19,000 square meters. In May 2025, Bulgari deputy CEO Laura Burdese announced in the Financial Times: "After five years [of operating the original Manifattura], we already realized that it was not big enough to sustain the demand of our jewelry," and are now launching a long-planned expansion to 33,000 square meters, one of the largest jewelry production sites in the world. In 2017, Manifattura Bulgari reported 650 full-time employees in production, rising to 1,100 today, and a projection of 1,600 artisans by 2029, in effect increasing production capacity 400% in a decade.

In fashion, Italy is not only a recognized leader in luxury but also is well known and loved in technical and outdoor apparel. Global motorsports leader Alpinestars is based in Asolo, Veneto, as is SCARPA, the global outdoor footwear and ski brand, which has been continuously operated by the Parisotto family since 1938. Asolo, DalBello, Diadora, La Sportiva, Nike, Nearby Group, Nordica, Northwave, Oberalp, Rossignol, SIDI, Tecnica Group and Vibram are all located in the nearby Montebelluna Sportsystem cluster, as are many fashion brands including Geox, Fashion Box (Replay) and Benetton (Treviso). Just up the road in Longarone (Belluno), EssilorLuxottica realized sales of 26.5 billion euros in 2024, and employs more than 15,000 people in Italy alone, with more than 200,000 employees globally located in 150 countries.

What is required for a solid future are succession planning throughout the Italian luxury and fashion industries, development of the skills and capabilities in younger employees necessary to create tomorrow, and ecosystem support and planning to invest in startups and continue to build on the legacy and innovation that has driven this incredible industry for centuries.