The Italian fashion industry will grow by 3.2% in 2023, but the sector’s margins will contract

According to data published by Confindustria Moda, the Italian fashion industry should close 2023 with sales of 111.7 billion euros, an increase of 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.

Furthermore, in 2023, as in 2022, there was a sharp reduction in margins, due to higher energy and raw material costs, which were not offset by higher subsequent prices.

“2023 was a special year, as is the current historical moment, characterized by continuous changes, especially in terms of geopolitical balances. The Italian textile, fashion and accessories sector, for which exports represent an important strength, is particularly affected by global instability, although it does not affect particularly strategic markets,” commented Ercole Botto Poala, president of Confindustria Moda.

“Added to this is the fact that the increase in production costs increases the uncertainty of the context, although our sector has undoubtedly shown great resilience in recent years. That is why it is also important to collaborate and work as a system, to “help industries that, although different, have the same needs. Only in this way will we be able to face the challenges that lie ahead in the areas of training, sustainability and innovation.”

Regarding exports, the first eight months of the year recorded an increase of 5.1%, with international sales amounting to 54.5 billion euros. In particular, the EU absorbed 47% of exports in value. While China saw a 5% increase over the period, Confindustria Moda believes a turnaround 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 caution of consumers.