Italian fashion industry to grow by 3.2% in 2023, but sector margins contracting

According to data published by Confindustria Moda, the Italian fashion industry should close 2023 with sales of €111.7 billion, up 3.2%. This growth can be attributed exclusively to an increase in sales in value terms, while for the first time since the pandemic there has been a contraction in volumes.

In addition, 2023, like 2022, saw a sharp reduction in margins, due to higher energy and raw materials costs, which were not offset by higher downstream prices.
 
“2023 was a special year, as is the current historical moment, characterised by ongoing changes, particularly in terms of geopolitical balances. The Italian textile, fashion and accessories sector, for which exports represent a major strength, is particularly affected by global instability, even when it does not impact on particularly strategic markets,” commented Ercole Botto Poala, President of Confindustria Moda.

“Added to this is the fact that rising production costs increase the uncertainty of the context, even though our sector has undoubtedly shown great resilience in recent years. That’s also why it’s important to collaborate and work as a system, to help industries which, although different, have the same needs. Only in this way can we meet the challenges ahead in the areas of training, sustainability and innovation.”

As far as exports are concerned, the first eight months of the year showed an increase of 5.1%, with international sales totalling 54.5 billion euros. Notably, the EU absorbed 47% of exports by value. While China saw an increase of 5% over the period, Confindustria Moda believes that a change of course will occur in the near future due to a greater push for domestic products at the expense of imports.
 
According to the association, the main challenges facing the sector are market instability and the resulting consumer caution.