Data from Confindustria Moda, Italy’s fashion trade body, reveals that Italy’s textile and fashion industry has reported a 3 percent increase in revenues in 2023 to €111.7 billion as against 2022,
There has, however, been a significant drop in volumes; the higher growth in value was due to higher sales values. Experts hope that it is a potential end to the post-pandemic economic rebound. Higher revenues, however, have not gone into the pocket of the exporters. Instead, they saw their margins thinning. Higher energy and input costs reduced their margins.
The Italian trade body has expressed optimism that energy costs may return to pre-COVID levels in 2024, but uncertainties persist regarding the trajectory of raw material costs.
Exports from the textile and fashion sector in the first eight months of 2023 recorded a year-on-year growth of 5.1 percent to total €54.5 billion. Those exports to the EU accounted for 47 percent, while 53 percent was to the rest of the world.
We acknowledge the challenges posed by production cost increases, geopolitical shifts, and global instability,” Ercole Botto Poala, President of Confindustria Moda, said. He said despite the industry’s resilience, there is a need to collaborate and address shared needs in training, sustainability, and innovation, preparing for the sector’s future challenges.
Confindustria Moda represents 150,000 companies in textiles and fashion and collectively employs 5.38 million people.