The Italian leather, footwear, and fashion accessories sectors are grappling with significant economic and geopolitical pressures, as revealed by the latest report from Confindustria Accessori Moda. The year 2024 has proven to be challenging for these industries, impacted by market slowdowns, credit difficulties, and shifting global dynamics.
Sales in the footwear, leather goods, fur, and tanning sectors dropped by 9% in the third quarter of 2024, contributing to an anticipated annual decline of 8.1% compared to 2023.
Total revenue is expected to settle at €30.1 billion, reflecting a slight easing in the rate of decline as the year progresses.
“The economy is not showing any significant sign of an immediate improvement. However, we are confident that with the right support, a recovery could be possible.”
Giovanna Ceolini, President of Confindustria Accessori Moda,
Exports also faced turbulence, falling by 8.5% to €16.7 billion. While sales to Germany decreased by 3.6% and exports to China dropped by 6%, there were notable bright spots. Exports to Spain grew by 9.1%, and sales to the United Arab Emirates rised by 37.8%, showcasing opportunities in emerging markets.
The Italian leather goods sector saw a steep decline in production, with output shrinking by 16.1% during the first nine months of 2023, according to ISTAT data.
The contraction extended to employment, with approximately 4,800 jobs lost in the fashion accessories sector a 3.3% decrease from December 2023.
Moreover, 330 companies shut their doors, further intensifying the economic strain. Nearly 36% of businesses turned to government-funded wage support programs, highlighting the widespread need for intervention.
Amid these difficulties, the Italian fashion and leather industries are grappling with pressing challenges such as adapting to stricter European sustainability guidelines, preserving traditional manufacturing skills, and fostering international expansion.
The Italian government has shown support by approving an amendment on December 5 that guarantees income support for workers in companies with fewer than 15 employees. These businesses, forming the backbone of Italy’s renowned value chain, are critical to the nation’s economic resilience.
The article was originally published by Confindustria Accessori Moda
