DESIGN ITALY EDITORIAL by Ranieri: The momentum is there. Now it’s a matter of keeping it going.
The fashion sector in Italy continues its post-pandemic climb and shows no signs of slowing down. The challenge is to seize this momentum and extend it as long as possible.
Projections on economic growth in Italy are dazzling and so is recovery in the fashion sector. The numbers all have a plus sign in front of them, and sector studies are showing that the growth trajectory, which has been rising since the early stages of the pandemic exit phase, shows no sign of slowing down.
This growth in the fashion sector is part of broader growth in the manufacturing sector, which in the first seven months of 2021 in Italy recorded revenue growth of +27.2% compared to the same period in 2020, with the fashion sector’s revenue coming in at +22.2%. This rebound is, in all reality, accentuated also because it is closely linked to the price the fashion sector paid in 2020, when the vast majority of companies reported suffering significant setbacks.
According to a recent survey by the Euler Hermes Data Bank, 51% of companies have suffered the consequences of the pandemic: 31% have experienced minor consequences, while 8% have seen “devastating” effects. The same study shows that 77% of companies still appear to be far from pre-pandemic levels in terms of both performance and revenues. Only a quarter of the respondents said they have bounced back to their pre-Covid levels of turnover and performance.
There is one solution for the upcoming months: that of harnessing the momentum of these past few months to make it last as long as possible, while also touching on as wide a range of sub-segments as possible. This is easier said than done, though, because it depends on factors of concern that until a few months ago had never been an issue, like the potential vulnerability of supply chains to external factors (e.g. the pandemic).
In terms of opportunity, in the coming months the fashion sector will also have to take advantage of cornerstones that have already been established in other sectors, such as the still-largely unexplored potential of the concept of circular fashion and the implementation of projects linked to sustainability and environmental impact.
Ranieri
