Italian Fashion and Textiles Sector Charts Five-Year Rebound Plans – WWD | Instant News

MILAN – The Italian fashion sector has become increasingly vocal about the need for support from state institutions, as it faces an unprecedented crisis.

Meanwhile, Camera della Moda from Italy Having given the government plans to restart the country’s fashion system with an investment of 3 billion euros, the Italian Moda Sistema, an association that represents fashion, textile and accessories companies, is also paying attention to the issues challenging this sector, which is affected by the COVID -19 pandemic.

“After an unprecedented crisis, our goal is to carefully analyze the context and provide the institution with a viable and sensible plan, without making compelling claims,” ​​said Marino Vago, president of SMI during a virtual press conference on Wednesday. .

According to the ISTAT National Institute for Statistics data, 8 percent of Italy’s exports from the manufacturing industry come from the fashion industry, which employs 400,000 workers and comprises about 45,000 companies, 14 percent of which Italywhole manufacturing base.

University professor Massimiliano Serati of the Carlo Cattaneo LIUC business school, who led research being carried out for SMI assessing the impact of the pandemic on the sector and developing aid plans submitted to the government, said, “The state of a healthy fashion supply chain is directly linked to the health of the country. “The association shares its request with ItalyPrime Minister Mario Draghi, Ministry of Economic Development and Ministry of Manpower and Social Policy, among other agencies.

The research and plans are designed to initiate “open conversations with policymakers about the Italian fashion supply chain, which is one of the most important in the country’s manufacturing system,” he added. The professor cites international calling, the ability to provide bespoke products, and a collaborative mindset as distinctive qualities that fashion suppliers can deliver.

Aiming to highlight the medium to long-term impact of COVID-19 on the sector if no action is taken to reduce it, the study evaluates key performance indicators including income, exports and employment, showing that if no investment is made, sales will decline by 15.9 percent in 2023 compared to 2019 levels, while exports and employment are expected to contract 9.4 percent and 17.3 percent, respectively. This translates to an estimated 68,200 job losses.

“The plan is designed to change the evolution of sector inertia through industrial policies to support its recovery,” said Serati.

The plan is organized for five years in three phases. The Libra Association asks to channel 2 billion euros for emergency relief measures that will require an extension of the so-called “Cassa COVID” extraordinary wage support measure at no cost to companies, helping companies to implement restructuring plans and manage job redundancy plus unpaid financial support. back. for businesses that were hardest hit in the April to December period last year.

The second phase will require a blockbuster investment of 4 billion euros to ensure a speedy recovery over a span of 36 months. The actions to be taken in this phase focus on five pillars, some of which – including sustainability and a circular economy – align with the mandate of the European Union being asked to access the country’s COVID-19 Recovery Fund which amounts to more than 200 billion euros. Other initiatives include supporting technological and creative innovations from state fashion companies, stimulus for jobs in the sector through re-propping projects and reducing fiscal pressure related to energy consumption.

The research projects the impact of the second phase on the recovery of the Italian fashion industry, suggesting that all the major KPIs will rebound, resulting in a “long positive wave,” as Serati said. Sales, for example, will grow from 8.8 billion euros in 2019 to more than 11 billion euros in 2023, while the number of positions will add 167 jobs.

Requiring an additional investment of 2 billion euros, the third phase to be launched over five years is focused on investing in the training and education of new and existing employees in the sector, as well as a communications plan to promote Made in Italy abroad.

“Despite all the struggles we have faced over the past 20 years, we are still committed to the future of this sector,” said Vago, closing the meeting. “With this policy we will succeed in maintaining the supply chain and its knowledge, the only one in Europe that remains intact,” he said.

“The earlier we get feedback, the better,” he concluded.

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