THE COVID-19 EFFECTS ON THE ITALIAN FASHION INDUSTRY

Abstract

The label “Made in Italy” symbolizes the high quality, the prestige and the style of Italian products, which are admired and recognized all over the world. Fashion in particular is one of the sectors that best represents this concept; thanks to the high quality of its garments and design, Italy has always been a global leader in this sector. Italian fashion is not only known for its quality, but also because it is one of the most productive sectors: it is worth 80 billions. There are 36 fashion clusters, which are distributed all over the peninsula and that vary from shoes clusters to sportwear ones. The majority of production plants of these companies are located in countries where the cost of labor, raw materials and taxation are lower. During 2020, the pandemic of Covid-19 initiated a global economic crisis due to lockdown measures adopted by national governments. In Italy, the fashion industry was the second sector most hit by the pandemic effects. This crisis underlined its backwardness and its extreme need for a change. With my research I will study the reasons why the fashion sector was so badly hit by the effect of the Coronavirus. I will focus my attention on the possible measures that can adopted in order for the sector to start performing well again, by arguing that the valorization and exploitation of the quality of the Made in Italy are the key for the revival of fashion in Italy. This will be possible only if some changes are made inside the industry: for example, the pandemic has shed light on the fact that companies cannot afford to depend on other countries for raw materials and manufacturing; a process of reshoring is necessary, both to maintain a continuity in the production, in particular in time of crisis, but also to assure the quality that characterizes Italian products. This process will not be easy and instantaneous and the role of governments will be essential in providing economic incentives to make this transaction affordable. In addition, the digitalization process will have to become faster as the pandemic demonstrated the potential of e-commerce as a driver for profitability. Finally, a greater attention to the environmental protection and ethical standards will contribute to foster the fame and reputation of the Made in Italy in the fashion sector again.