Erika Andreetta, partner and EMEA Fashion & Luxury leader at PwC Italy, presented the results of PwC’s latest study on the fashion and luxury sector. The study found that, despite the global trade slowdown caused by current inflationary tensions and rising interest rates, the luxury industry continued to grow in the first nine months of 2023, although a slight deceleration was observed in Q3 compared to the first six months of the year.“Among the top luxury labels that are recording revenue growth in 2023, the stand-out names are LVMH (up by 14%), Moncler (up by 17%), Hermès (up by 22%), the Zegna Group (up by 25%) and Brunello Cucinelli (up by 27%),” said Andreetta. “The USA posted surprising GDP growth in Q3 (when it was up by 4.9% year-on-year), despite being more strongly impacted by inflation. This triggered a consumption increase in Q3 2023, with nearly 40% of American consumers ready to spend more on Black Friday. Gen Z and Millennial consumers were the main ‘big spenders’ driving US consumption growth,” she added.

In Europe, consumption was instead stagnant, and Black Friday forecasts were significantly down, with purchases expected to slump by 56% in Italy and Spain, by 55% in France, and by 50% in Germany.As for Asian markets, Chinese exports in the first nine months of the year decreased by 14.5% compared to the same period in 2022. “China is facing complex macroeconomic challenges, including high youth unemployment and property market issues, which in 2022 reduced Chinese household wealth by 4.3%,” said Andreetta. “This has resulted in a rise in the cost of living and a reduction in Chinese consumers’ spending capacity. However, luxury labels are still able to grow in China, taking advantage of holidays and traditional culture, and focusing on goods that maintain their value over time,” she added.

 Introducing new technology and digital solutions are clearly among the most urgent challenges faced by the fashion industry. Luca Colombo, country director Italy at Meta, spoke about these challenges at the Fashion Summit: “We believe that in future the internet will be much more immersive and connected with people; we will probably no longer need a mobile phone, but we will access the web through hands-free wearables. One example of this is the latest generation of headsets, enabling users to enjoy an immersive VR experience while watching the physical world. Another example is a model of glasses we have developed with Luxottica, featuring cameras and speakers that can be used for making video calls, listening to music and surfing the web.” Colombo added that “our current priority is to allow people to enjoy an online experience by means of items they wear in their everyday life. We’re spending between $3 billion and $4 billion on R&D every quarter, with the goal of achieving these results in 10 years’ time.”Colombo also mentioned artificial intelligence and the metaverse, which, he said, “are radically changing how we market and advertise products, and how we reach consumers. It’s essential that fashion SMEs too embrace this new culture, and start investing in it right away.”Finally, Riccardo Vola, managing director Italy and Spain of Zalando, spoke about the future of e-tail: “E-tail is in the midst of a crucial transformation, there’s a real ‘new wave’, especially in the fashion sector. Customers have different needs, such as seeking more inspiration and personalising the shopping experience. Zalando is constantly working to offer the most innovative digital solutions for every aspect of the fashion world. We ensure that consumers are able to enjoy an experience that is consistent with their new requirements: a journey that starts with inspiration, continues with a more relevant global and local fashion assortment, and incorporates a shopping experience in which innovation is a key driver. And this is even more relevant for younger generations: more than 70% of Gen Z consumers say they make purchases when they’re looking for inspiration.”