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Published
Jan 2, 2013
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Italian fashion driven by emergent markets and retail

Published
Jan 2, 2013

“Made in Italy” fashion and luxury really has the wind in its sales. In 2011, ten of Italy’s main fashion houses reported on average a 10.1% growth and reported combined revenue of over 200 billion euros. Net profit increased by 25.4% and operating profit by 21.9%. Clothing sales rose by 8% and watches and jewelry by 18%.

A new Prada store opened in Jinan in China in December.


Such is the picture painted by Mediobank, a leading investment bank in Italy, following a detailed study of the industry. The study focused on the activity of 10 major Italian groups (Benetton, Dolce & Gabbana, Ermenegildo Zegna, Salvatore Ferragamo, Giorgio Armani, Max Mara, Miroglio, OTB de Renzo Rosso, Prada, Tod’s). The study did not include the Gucci group or PPR due to the unattainability of figures.

The companies were able sustain growth thanks to three major strong points: brand reinforcement through efficient communication channels, enriched product range and quality and the renewing and the extension of retail networks. In particular, “a return to each brands true market positioning through retail outlets has been a major competitive advantage,” says the study. Additionally, affluent consumers in emergent markets such as Asia, Russia and South America, continue to drive brand’s growth.

Of the ten groups studied, Zegna, Ferragamo, Prada, Tod’s and Armani all saw double-figured growth statistics in 2011. Benetton and Dolce & Gabbana saw sales decline in 2011, while Miroglio saw an overall net loss. Mediobanc predict an average of 7% growth for top Italian fashion and luxury brands in the coming years.

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