What Do Italy'S Fashion Industry Leaders Think Of The Luxury Crisis?

In Italy

Association and BoF Fashion Business Review co create "shaping"

At the Crafting the Future of Fashion summit, leaders of Italy's fashion industry explored the challenges facing their industry.

Milan, Italy -- on Tuesday, in Milan's Camera Nazionaledella ModaItaliana and BoF fashion business review, the Crafting the Future of Fashion summit will focus on changing fashion schedules to sustainable development, and how to attract younger generation and multiculturalism.

Consumers interact with them, and the leaders of Italy's fashion industry explore the challenges facing their industry.

The social customs associated with fashion have disappeared.

The season is no longer meaningful, and the established procedures are no longer meaningful, "ClaudiaD" Arpizio, partner of Bain&Company, told the audience: "the world has become more mobile."

By 2025, X, Y and Z will account for 85% of luxury consumption. Asian consumers will occupy 50% of the luxury consumption group, while 20% of the global population will travel around.

D Arpizio said: the luxury industry must get rid of its single culture tradition to keep up with these younger, well-educated, mobile consumers.

"The concept of waiting for scarce products has not disappeared, but its meaning has changed and needs to be explained," she said.

D Arpizio also acknowledged that the overall growth rate of the industry is slowing down, pointing out that China's huge growth is no longer affecting the entire market. Brands need to find other areas or ways to grow, such as e-commerce, which is the only way for the luxury goods industry to grow in double digits.

"I think the so-called luxury formula is going through a crisis," she cautioned, noting that consumer demand for discount is rising.

Betting China

Patrizio Bertelli, CEO of Prada group, also pointed out the slowdown in growth and the excessive expansion of luxury brands in China in the dialogue with OTB Group CEO Renzo Rosso and Valentino Group CEO Stefano Sassi.

"Everyone is saying that the market is in crisis," Bertelli said. "People use this as an excuse.

The biggest mistake is not the problem of the market, but the mistakes we made before.

We have flooded the market with so many products that we have already had parallel trade.

Now we must be brave enough to pause for a moment, think about it carefully, change our business model, and change our industrial mode.

"Certainly, most of the global growth comes from China, but this is slowing down today," Sassi said. "Is it too much? Is it over expansion? I don't think so.

I think fashion is still playing a very important role in defining the trend.

But we need to predict the direction of the market rather than follow it.

Renzo Rosso warns that Chinese consumers are learning very fast, so they are looking for something beyond luxury.

The more education consumers receive, the greater their differentiation.

Instead of being limited to a few brands, they began to talk about more brands. "

Rebuilding fashion system

Stefano Sassi, Renzo Rosso, Patrizio Bertelli talk with Simone Marchetti together.

These executives have not recognized the move of Gucci to integrate men's clothing distribution and Italy brands into today's volatile fashion agenda.

"We need to be aware of the rights of every brand and make them choose," says Sassi, who points out that Valentino's Paris show is based on its own "brand DNA".

"Every brand, every enterprise must decide its strategy," RenzoRosso agreed. Its OTB group owns Diesel, Maison Margiela and Marni brands.

He said: the merger of men's and women's clothing releases can save costs, but it has been very difficult to do so because "the whole system will have to be rebuilt, and now buyers are accustomed to the situation."

Bertelli said he had suggested putting Prada's women's wear show in July and keeping up with men's wear released in June. He pointed out that Prada has been showing men's and women's wear for more than three years, but this method will not work on every brand.

"If Valentino puts men's clothing and women's clothing together, it may be a mistake," he said.

However, when it comes to the fact that Milan is returning to the important position of the global fashion stage, the atmosphere is lighthearted.

RenzoRosso suggests that Italy's fashion industry must develop its own path instead of following New York, London or Paris.

"We need to work as a network," he said. "We Italian people should take the initiative and do not care about others to find our own system."

CarloCapasa, President of the Italy Fashion Association, also said that the industry is rekindling the new area for Milan. He pointed out that the foreign media and foreign buyers attracted by the Milan men's wear week in the past had increased by 20% and 23% respectively compared with the previous quarter.

"Milan has a new flavor and we are getting cool again," he said.

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Scale and support

Support for Italy's next generation of luxury goods has become another key issue. Bertelli said Italy's prime minister MatteoRenzi's "Italy manufacturing" action failed to bring more momentum.

"The biggest problem with Italy fashion is that we do not have entrepreneurs," he said. "We need people to invest in their aspirations, aspirations, and enthusiasm to build new businesses.

We don't have these things now. "

FrancaSozzani

The United States is doing well in marketing and France in terms of production.

"In Italy, we lost our creativity because people started looking for business models that were not in line with the origins of Italy fashion," he added, and reminded the audience industry that they must keep their expertise in handicrafts and design as their core spirit.

"Small is not beautiful, small is useless," he said.

Franca Sozzani, editor in chief of Italy, has also expressed his views on the next generation.

"Finding young talent is not difficult. It's hard to invest in them," she said. "No one is willing to invest in young people because they are afraid."

Sozzani criticized the industry's practice of absorbing young people into the brand, giving them too much pressure to make commercial products, which endangered their creativity, or gave too much exposure to young people, but too little commercial support.

"What I'm worried about is that everyone is looking for young talent, and then they are exhausted," she said.

Discussion on Sustainable Development

LiviaFirth, the founder and creative director of EcoAge, a sustainable brand consultancy, and the winner of the United Nations fashion development award, talked enthusiastically about sustainable development.

She said many brand managers at the venue did not take enough steps to solve the problem.

She said: "since the tragedy of Lana square in 2013," the fashion industry has not changed. "

"Whether we like it or not, the fast fashion brand has set the agenda for everyone here."

The industry in Italy and China's factories in the Prado region are hit by low cost and low quality imports.

"We must establish the sustainable value to establish the uniqueness of Italy brand in the global market environment," she said.

Edoardo Zegna (left), Stefano Rosso (right) and BoF editor Imran Amed to talk.

In the conversation with BoF editor Imran Amed, the sub Stefano Rosso of Renzo Rosso and the Edoardo Edoardo of Ermenegildo Zegna also point out the need to increase publicity for sustainable development.

When asked about their differences with their parents, Edoardo Zegna, who oversees Zegna's omnidirectional channels, said that companies should provide more sustainable credentials, such as vertically integrated pparent supply chains from sheep to shops.

"If I complain about the companies in the past, it's not enough for us to spread these stories, because we used to focus more on products," he said.

Stefano Rosso, chief executive of OTB group, said that luxury brands had pushed their products to consumers in the past, and now they should first listen to consumers' needs.

"It's extremely important to connect with people and understand their needs," he said, adding that the center of every part of the consumer's business is "the only solution."