Sergio Tamborini, the head of Sistema Moda Italia (SMI) and Ratti, a leading silk specialist in Como, shared his insights on the challenges faced by today’s luxury market with FashionNetwork.com. According to Tamborini, the Italian fashion industry had a strong start in 2023, exceeding 110 billion euros in total revenue, with the textile-clothing sector alone reaching €64 billion.
However, Tamborini pointed out that the luxury market has been facing production problems since the second half of 2023, leading to a decline in volumes despite an increase in sales. He highlighted the excessive spiral of price rises in the luxury sector, which has resulted in luxury boutiques selling fewer items at higher prices, affecting manufacturers who produce fewer products.
Tamborini mentioned that the drop in volumes has been evident for the past six to eight months, with the crisis affecting various sectors across different Italian regions. He emphasized the need to find a new balance in the luxury market, especially in terms of environmental sustainability and economic sustainability.
The challenges facing the luxury goods market include supply chain issues, sustainability concerns, and the need to redefine the system to ensure economic sustainability. Tamborini highlighted the importance of finding a balance between environmental sustainability, social sustainability, and economic sustainability to support the resilience of the production system.
In terms of sustainability, Tamborini emphasized the need to consider environmental sustainability, social sustainability (fair wages for workers), and economic sustainability (business profitability) as interconnected elements. He mentioned that sustainability will be expressed differently in the future, with a focus on durability, repairability, and recyclability of products across different market segments.
Overall, Tamborini stressed the importance of finding the right balance in the luxury market to address the challenges posed by production issues, pricing strategies, and sustainability concerns. By redefining the system and emphasizing sustainability in its various forms, the luxury market can overcome these challenges and ensure long-term growth and profitability.