Future of fashion: Italy calls for investment and training!

Future of fashion: Italy calls for investment and training!

A major fashion industry summit began today in Prato, Italy, under the theme “Season Change: The Future of Fashion is a Right – Strategies to Revitalize the Supply Chain.” This meeting will be attended by trade unions such as Filctem Cgil, Femca Cisl and Uiltec Uil, local institutions, employers' associations and small and medium-sized companies. The aim is to address the challenges of the Italian fashion industry, which generates a turnover of 100 billion euros and includes 62,000 companies with 600,000 employees.

The unions are calling for concrete measures to revitalize the industry. This includes a comprehensive investment program in industrial policy and a strengthening of social security systems. In addition, more loan guarantees should be made available to small and medium-sized enterprises (SMEs) in order to offer them the necessary support. The ongoing challenges such as falling global demand, rising energy and production costs as well as competition from dumping countries urgently require effective strategies.

Urgent need for action

The economic situation in Tuscany is alarming: last year, 428 companies had to close, while only 271 were founded. In the leather goods sector, short-time working hours also increased by 254% in 2024 compared to 2023. Another alarm sign is the increasing processing of non-European products, with 4.6 billion shipments in 2024 being exported duty-free up to 150 euros.

The Federazione Moda Italia-Confcommercio expresses concern about the impact of ultra-fast fashion on local stores. To counteract this, proposals to strengthen local trade were presented, such as tax deductions and incentives for fashion purchases in local stores, as well as tax credits on utilities, rent and digital payments.

A look at sustainability

The fashion industry is also under pressure to operate more sustainably. A key challenge is the increasing scarcity of resources in the textile industry. The European Green Deal aims to become climate neutral by 2050. To achieve this goal, the European Commission has adopted a strategy paper to achieve several “Sustainable Development Goals” (SDGs). However, current EU commitments are not sufficient to achieve the envisaged climate goals.

A groundbreaking element is the introduction of the Supply Chain Due Diligence Act (LkSG), which will come into force from 2023 for companies with over 3,000 employees and from 2024 also for those with more than 1,000 employees. Companies are required to take responsibility for their entire supply chain, which also includes indirect suppliers.

If the circular economy is implemented comprehensively, it could not only bring up to 700,000 new jobs to the fashion industry by 2030, but also increase gross domestic product by around 0.5% - that's around 80 billion euros with a GDP of 15,806 billion euros in 2022.

In summary, it is clear that the Italian fashion industry is facing major challenges, but these could be overcome with a clear strategy, comprehensive training opportunities and a strong focus on sustainability. These aspects are important not only for the economic development of the industry, but also for securing jobs and compliance with future environmental standards.

fashionunited.de reports that the fashion industry in Italy urgently needs revitalization strategies. At the same time lifts ey.com highlights the growing importance of sustainability in the industry.