Altagamma, Made in Italy to the test of global uncertainties: 'We will overcome them by focusing on quality and innovation'

The threat of duties, international tensions and the consequent uncertainties are factors that are undermining luxury consumption, which after more than ten years of growth, interrupted only by the pandemic, is estimated to fall by between 2 and 5% by 2025. Taking stock of the industry's situation was the Altagamma Day, held in the Sala della Regina in Montecitorio, the customary annual meeting and discussion occasion for the 123 members of the association, representatives of the country's companies of excellence.

"Duties are likely to have a very heavy impact on our industry," said Matteo Lunelli, president of Fondazione Altagamma. The United States is and must remain a key, indispensable market, and with China, although it is slowing down, we must not lose contact. We therefore ask for the support of national institutions and Europe to overcome this complex moment'.

To cope with the complexities of these markets, Made in Italy is increasingly looking to others, such as the Middle East and some Latin American countries, including Brazil and Mexico. Speaking on the day, Juan Carlos Escribano, CEO of El Palacio de Hierro, a chain of Mexican luxury department stores, recounted the explosive growth of personal luxury goods in Mexico, a market estimated at EUR 4 billion and growing at around double figures. The neighbouring Brazilian market, for its part, is experiencing its biggest expansion since 2021 in macroeconomic terms. For Fahed Ghanim, ceo of Majid Al Futtaim, an Emirati holding company that owns and manages shopping centres, shops and hotel facilities in the Middle East and North Africa, reiterated the area's growing centrality for the luxury industry: in the Emirates, in particular, turnover in high-end goods has risen from €3.7 billion in 2019 to around €6 billion today.

In these markets, the attractiveness of Made in Italy is very powerful, especially when associated with the enhancement of the craftsmanship that distinguishes our products. "Italy has succeeded in evolving even small family businesses into luxury brands, something that has not happened in Japan, although it is also a country with a strong craftsmanship vocation," added Takayuki Nozawa, CEO and President of Yasuda Shipyard Group, one of the most important shipyards in Japan, a country that generates around 33 billion euros a year in personal luxury goods spending, growing by around 12% in 2024.

As also revealed by the most recent report on luxury by Bain & Company, carried out in collaboration with Fondazione Altagamma, it is actually experiences, rather than physical products, that are driving the market: this was confirmed by Laurent Gardinier, president of Relais & Châteaux France: "We do not see any decline in luxury hospitality, on the contrary: we expect the market to grow by an average of 5/6% per year over the next five years. Demand from the Uhnwi (individuals with assets of at least USD 1 million, ndr) is rising, as is the demand for personalised, made-to-measure experiences that communicate the authenticity of places and remove any risk of standardisation. Italy is in this sense a success story, because it has been able to create very strong brands around its regions, such as Apulia and Sicily'. The High-end Hospitality sector was indeed among the best performing in 2024, with a global value of EUR 242 billion and growing by 4-5%.