For accessories an uphill year: lay-offs for 28% of companies

The signs keep coming from many quarters: 2024 is a critical year for the Italian fashion system. The slowdown in demand in some key markets has led to a slowdown in luxury sales. This has been compounded by the effects of the spike in orders triggered by the post-pandemic euphoria: along the entire supply chain, from manufacturers to retailers, warehouses are flooded. And orders for the coming seasons are decidedly more lukewarm than in the past.

In this context, companies are experiencing a negative moment: this is confirmed by the data of the 1st Economic Survey drawn up by the Study Centre of Confindustria Moda (an association that, as of January 2024, in fact represents only the tanning, footwear, fur and leather goods sectors). In the first quarter of 2024, member companies estimate a drop in revenue of -9.5 per cent compared to the first quarter of 2023. "In the first three months of the year, companies in the supply chain have experienced a big setback," explains Annarita Pilotti, a footwear entrepreneur from the Marche region who has been president of Confindustria Moda since January 2024. "These figures take us back to the economic crisis we experienced in 2010 after the collapse of Lehman Brothers, and I fear that, although the sector has shown greater resilience over the years than others, recovery is not to be taken for granted. At least under these conditions'.

The fall in revenues and production is weighed down by the slowdown in demand from international markets: exports, which in the last 15 years have been the main driving force behind the made-in-Italy fashion accounts, would have fallen by 10.1% in the January-March 2024 period compared to the same period in 2023. The drop concerns some historically important markets for Italy - from France (-1.4%) to the USA (-4.8%) and Germany (-8.4%). The most conspicuous drop, however, is to Switzerland: -64.6 per cent. The Swiss market has for years been a hub for luxury groups from beyond the Alps, which have their logistical hubs in Switzerland. The collapse, net of a logistics transformation phenomenon involving direct shipments to markets, highlights the impact that the slowdown of luxury groups is having on the made-in-Italy supply chain. "The fact that luxury groups rely largely on Italian manufacturers," Pilotti continues, "is certainly a source of pride for Made in Italy: our workers are the best in the world. The fact that during the peak of demand they filled their warehouses and are now facing a critical moment certainly has an impact on the supply chain, but there are many other Italian luxury brands that are doing well'.

The difficulties faced by companies - 18% reported a drop in revenues of over 20%; one in three reported a very unsatisfactory production trend - has resulted in an increase in the use of social shock absorbers: 28% of the companies associated with Confindustria moda said they had resorted to , to wage supplementation tools.

If the start was complicated, the rest of the year could be no less so: almost half of the entrepreneurs (43%) imagine a further worsening of the economy. On the revenue front, between April and June six out of 10 entrepreneurs expect a further drop in revenues compared to the same period last year. 'There is no recipe,' explains Pilotti, 'and certainly the months of September and October that lie ahead will be very critical. However, we hope for a recovery starting in late autumn, when we will start working on the collections for spring summer 2025 and then autumn 2025/26: the period between November 2024 and February 2025 will be a real test on the recovery of production. We will already have some signs from the September fairs (Micam, Mipel, ndr)'.