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In an interview for McKinsey, Carlo Capasa, chairman of Camera Nazionale della Moda Italiana (CNMI), offers his insights into how Italy's fashion sector can overcome current challenges and reposition itself for future success. I have summarized the key messages below.
The Evolution of Italian Fashion Leadership
The Italian fashion landscape has undergone dramatic transformation, with CNMI evolving from a trade organization focused on Milan Fashion Week into a comprehensive industry advocate representing the entire fashion supply chain. The industry's shift toward "retailization" represents perhaps the most significant structural change, as brands that once relied on wholesale distribution have transformed into direct retailers, creating uncertainty for mid-sized brands lacking the scale to compete as multibrand retail continues to weaken globally.
Preserving "Made in Italy" Amid Industrial Pressures
The closure of over 2,000 Italian factories in 2024 highlights critical vulnerabilities in Italy's fashion ecosystem. Capasa emphasizes that Italy's strength lies in its district-based supply chain system where small, medium, and large entities collaborate, but many businesses remain undercapitalized. The solution requires achieving greater scale without sacrificing creativity through strategic mergers and digitalization programs. Italian fashion leaders must also develop greater pride in "Made in Italy" value, which is often taken for granted, and invest in more ambitious international storytelling to communicate their unique proposition to global consumers.
Rebuilding Consumer Trust Through Transparency
Consumer surveys reveal that luxury buyers have lost trust in brands that appear to increase prices without corresponding quality improvements. Capasa explains that price increases resulted from brands' strategic pivot toward "super luxury" positioning, requiring substantial investments in enhanced craftsmanship and premium services. However, these genuine improvements were poorly communicated to consumers, who only perceived higher prices without understanding the underlying value. The solution involves comprehensive communication strategies and sales staff training to ensure customers understand why products justify their pricing.
Balancing Creativity and Commercial Success
Capasa warns against allowing marketing to replace creativity as the driving force behind fashion products. While financial investment has brought advantages, it risks diminishing the emotional desire that distinguishes passionate fashion consumers. Fashion must prioritize creativity while building cultural content and deep narratives that extend beyond individual products. The frequent rotation of creative directors poses additional risks by creating uncertainty about brand identity. Brands that rely too heavily on marketing risk losing the authenticity and sense of belonging that create genuine consumer loyalty.
Looking forward, fashion's environmental impact demands that sustainability remain central to industry strategy, though frameworks must respect supply chain realities and apply equally to domestic and imported products. The industry's future success depends on strategic thinking rather than tactical responses, balancing creative excellence with robust business fundamentals to ensure long-term sustainability in the evolving fashion landscape.
The Evolution of Italian Fashion Leadership
The Italian fashion landscape has undergone dramatic transformation, with CNMI evolving from a trade organization focused on Milan Fashion Week into a comprehensive industry advocate representing the entire fashion supply chain. The industry's shift toward "retailization" represents perhaps the most significant structural change, as brands that once relied on wholesale distribution have transformed into direct retailers, creating uncertainty for mid-sized brands lacking the scale to compete as multibrand retail continues to weaken globally.
Preserving "Made in Italy" Amid Industrial Pressures
The closure of over 2,000 Italian factories in 2024 highlights critical vulnerabilities in Italy's fashion ecosystem. Capasa emphasizes that Italy's strength lies in its district-based supply chain system where small, medium, and large entities collaborate, but many businesses remain undercapitalized. The solution requires achieving greater scale without sacrificing creativity through strategic mergers and digitalization programs. Italian fashion leaders must also develop greater pride in "Made in Italy" value, which is often taken for granted, and invest in more ambitious international storytelling to communicate their unique proposition to global consumers.
Rebuilding Consumer Trust Through Transparency
Consumer surveys reveal that luxury buyers have lost trust in brands that appear to increase prices without corresponding quality improvements. Capasa explains that price increases resulted from brands' strategic pivot toward "super luxury" positioning, requiring substantial investments in enhanced craftsmanship and premium services. However, these genuine improvements were poorly communicated to consumers, who only perceived higher prices without understanding the underlying value. The solution involves comprehensive communication strategies and sales staff training to ensure customers understand why products justify their pricing.
Balancing Creativity and Commercial Success
Capasa warns against allowing marketing to replace creativity as the driving force behind fashion products. While financial investment has brought advantages, it risks diminishing the emotional desire that distinguishes passionate fashion consumers. Fashion must prioritize creativity while building cultural content and deep narratives that extend beyond individual products. The frequent rotation of creative directors poses additional risks by creating uncertainty about brand identity. Brands that rely too heavily on marketing risk losing the authenticity and sense of belonging that create genuine consumer loyalty.
Looking forward, fashion's environmental impact demands that sustainability remain central to industry strategy, though frameworks must respect supply chain realities and apply equally to domestic and imported products. The industry's future success depends on strategic thinking rather than tactical responses, balancing creative excellence with robust business fundamentals to ensure long-term sustainability in the evolving fashion landscape.
