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Italian fashion in turmoil, daily closures and shrinking output

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UFFICIO STUDI CONFARTIGIANATO IMPRESE

The Italian fashion industry is currently undergoing a particularly challenging period. Recent economic indicators present a concerning picture: between January and August 2025, production in the textile, apparel, and leather sectors fell by 6.6% compared to the same period in the previous year, more than five percentage points below the overall performance of Italian manufacturing (-1.4%). The month of August also confirms the negative trend, when itregistered a year-on-year decline of 1.9%.

This analysis was conducted by Confartigianato Research Office, following a meeting held on October 15 at the Ministry of Enterprises and Made in Italy (MiMIT), where the current difficulties of the fashion sector were discussed. During the session, Moreno Vignolini, President of the Fashion Federation of Confartigianato Imprese, shared his insights and raised key concerns regarding the industry’s outlook.

Exports of textiles, clothing, and leather goods decreased by 3,4% in the first eight months of 2025 compared to the same period last year, while overall manufacturing exports grew by 2,6%. The downward trend was reinforced in August, which saw an even sharper year-on-year drop of 7,6%. At the same time, imports of fashion-related goods rose by +3,4%, driven by contrasting dynamics: imports from EU countries fell by -2,0%, while those from non-EU markets surged by +8,2%. Notably, imports from China increased by +11,8%, now representing approximately one-third (34,3%) of all non-EU fashion imports.

FASHION PRODUCTION TRENDS IN ITALY AND THE EU-27
January 2022-August 2025 year-on-year % change, calendar-adjusted data, C13-14-15 - Compiled by the Confartigianato Research Office based on Eurostat data

FASHION EMPLOYMENT IN 26 EU COUNTRIES
Year 2023. Absolute values. ATECO 2007: 13, 14, and 15.
* Luxembourg excluded (n.d.) and Spain estimated by us
Compiled by the Confartigianato Research Office based on Eurostat data

Order forecasts for September 2025 remain negative, with a balance of –9,6 (compared to –11,4 in August and –9,0 in July). The downturn is taking a heavy social toll. In the second quarter of 2025, the textile–clothing–leather sector saw 1.035 business closures, of which 843 were artisan enterprises. This translates to an average of 11 closures per day, including nine artisan businesses daily.

As outlined in the recent Bank of Italy report “Fading glamour: are Italy’s fashion exports in trouble?”, two years of elevated inflation have led consumers to become increasingly price-sensitive, while greater economic uncertainty has encouraged higher savings rates. The green transition is also raising demands for circular production models, and the fashion industry’s share of global trade has significantly declined.

Tariff barriers continue to constrain competitiveness, despite Italy’s strong qualitative positioning. In addition to reduced exports to the United States due to tariffs, Italian producers may suffer from the diversion of Chinese goods, previously bound for the US, toward other markets. The possibility of Italian fashion replacing Chinese products in the U.S. remains limited, as buyers increasingly seek alternatives from other Asian suppliers, particularly Vietnam. Global demand uncertainty is also impacting supply chains, especially in the luxury segment.

The evolution of the Italian fashion industry has a direct impact on the sector across Europe. The Italian fashion industry employs 461.000 people, more than any other EU member state. It is followed by Portugal (168.000), Poland (139.000), Romania (133.000), and Germany (131.000). Italy alone accounts for 27% of total EU employment in the sector. •

Fashion, Vignolini (Confartigianato): “Targeted measures are needed to protect the quality of the fashion supply chain”

Combating ultra-fast fashion and safeguarding employment in Italian companies requires decisive measures to counter the influx of low-cost foreign textile and footwear products, which disadvantage domestic producers and threaten the integrity of the entire supply chain. This strategy was outlined by Adolfo Urso, Italy’s Minister of Enterprises and Made in Italy, during an urgent meeting on October 15, held ahead of the Fashion Table scheduled for November 17, which will bring together leaders of the country’s main fashion associations. Moreno Vignolini, President of Confartigianato Moda, participated in the discussion, commending the Minister’s commitment and stressing the need for targeted interventions to protect the quality, traceability, and legality of the Made-in-Italy fashion system. This sector encompasses nearly 80.000 companies and 456.000 employees, including 40.515 artisan businesses employing 129.000 workers.

President Vignolini emphasized that policy measures should incentivize legality and sustainability within production chains, without penalizing the sector’s most vulnerable enterprises. He also underlined the importance of transparency and traceability throughout the entire supply chain, advocating for detailed mapping of supplier capacities and operations, fair compensation for orders, and a system of controls proportionate to the size and characteristics of each company. •

DETERGO MAGAZINE # DECEMBER 2025

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