Italian Fashion Chamber predicts record results in 2022

Italy
Published:  09 September, 2022
Credit: CatwalkPhotos/Shutterstock.com

The Italian fashion industry is expected to reach record results in 2022, according to Italian Fashion Chamber President Carlo Capasa.

Speaking at the presentation for the upcoming Milan Fashion Week, Capasa said: “In 2022, we are going to reach and even exceed the level of sales generated before the 2008 crisis, recording the [Italian] fashion industry’s highest revenue in the last 20 years.”

Capasa confirmed this expectation despite ongoing issues affecting the entire fashion supply chain including energy costs, raw material costs, Covid-19 restrictions, problems due to the Ukraine-Russia conflict and further factors.

He added: “Even if the sector was to stop growing in H2, thanks to the record-breaking first six months of the year, we can predict a rise in sales in the region of 10-11% for 2022 as a whole.”

Fashion Network commented that the results are partly explained by price increases across the sector in response to increased costs. A report from the Chamber indicated that “excluding the [consumer] price increase effect, what we might call ‘real’ revenue has grown by over 18% above the level recorded before the 2008 financial crisis”.

Reportedly, Italian fashion sales saw sizeable increases across the first five months of 2022 in the U.S. (59.7%), South Korea (34.1%), Spain (31.5%), France (25.1%), Germany (20.2%) and the UK (22.3%). Overall, Italian fashion exports increased by 21.9% for this period over 2021. Understandably, sales to China, Hong Kong and Russia have dropped significantly, as much 26% for the latter due to widespread retail closures.

Capasa did express some concern over the ongoing energy crisis at the event, saying that “it will have a major impact, because our manufacturing sector is energy hungry. Previously, energy costs amounted to 10% of a textile producer's revenue. Now, they have reached the 30% threshold, and beyond. If prices will continue to rise, many companies may be forced to stop producing”.

Source: Fashion Network