home  › Business and economy

Re-shoring is not taking off in fashion and textiles but Made in Italy is an added value

by Giulia Crivelli

The idea is good and could boost the national economy, everyone agrees. But for now it’s just wishful thinking: we’re talking about re-shoring in the fashion and textile industry, that is, bringing production moved overseas back to Italy.

The data came out yesterday in a conference: only 27% of the companies polled in a survey by research teams (45 businesses with average revenue of €102 million) said they produce entirely in Italy. The remaining 73% described a mix, with some Italian and some foreign production. That’s in line with an analysis by Moda 24 based on Hermes Lab data and published last Friday, which shows that four garments out of ten are produced abroad. The difference from three years ago is negligible. According to the companies polled, the percentage of garments produced in Italy shifted to 53% from 52%. That’s too small a change to start talking about a reversal of the trend of off-shoring that’s taken place in recent years, and not just in the textile and fashion sector.

Francesca di Pasquantonio, head of global research at Deutsche Bank, discussed the connection between production strategies and the market, concluding that the “Made in” helps with brand positioning and analysts’ rankings, but is not decisive. “Yet it’s interesting to see how the big overseas groups have been the ones making acquisitions in Italy, and clearly consider Made in Italy an added value.”

It’s a scenario confirmed by David Pambianco, vicepresident of Pambianco Strategie di Impresa, who quoted investments in Italy by both Lvmh and Kerin. Sydney Toledano, CEO of Dior, said that “the real high-end comes only from Italy.”

Pambianco also said that in the world of high fashion, Made in Italy is strategic and is justified by growth rates. According to an analysis by Bloomberg, high-end revenue rose 30% in the past five years, growing from €173 billion in 2009 to €226 billion in 2014. Expectations for the next four years are another 17% jump, to €265 billion in 2018.