Prada, Kering and More Come Together to Keep "Made in Italy" Alive
By investing in local manufacturers and producers.
Italian luxury fashion brands are teaming up to retain control of their supply chains. As prices rise and competitors pivot to outsourcing labor or getting their materials elsewhere, domestic companies are doing all they can to keep the “Made in Italy” label by investing in Italian manufacturers, according to a new report from Reuters.
Approximately 50% to 55% of luxury clothing and leather goods globally are produced in Italy, the publication reports, citing consultancy Bain.
Smaller Italian manufacturers are at risk of being snapped up by French conglomerates, such as LVMH, which would give them more control over the supply chain and an additional advantage to supply their own brands.
Additional deals and acquisitions within the country have provided artisan companies with the resources to continue operating through tough financial periods. Prada and Zegna, for instance, is a partial owner of the cashmere and yarn producer Filati Biagioli Modesto. Kering, meanwhile, owns a majority stake in the leather producer Nuti Ivo Group.
“Italy has not created a (major) luxury hub, but we have entrepreneurs who have the ability to activate the right relationships at the right time,” said Stefania Lazzaroni, general manager at Italian luxury industry association Altagamma, told Reuters..
“The approach has changed, (it is) much more collaborative – to face more complex challenges.”
In other fashion news, Places+Faces teased a forthcoming collaboration with Havana Club featuring Headie One.
