Altagamma says young consumers to account for 180% of luxury market growth by 2025

Stefania Lazzaroni, general manager of Altagamma, the association of Italian luxury brands, speaking at the 'Imprenditori d'Italia' (Entrepreneurs of Italy) forum organised by EY, said that “in the next four years, young consumers will account for 180% of our industry's growth. While eight years ago, [luxury] consumers were chiefly American, European and middle aged, now they are becoming much younger and, by 2025, half of them is forecast be Asia-based, something that has turned the tables in our sector.”

Lazzaroni added: “Fashion labels will have to train their sights in two virtually contrasting directions: on the one hand, markets that are stable and consolidated, and on the other, markets that are expanding at pace and look for contemporary, vital products - while both are seeking quality and sustainability.”

Talking about sustainability in fashion, Niccolò Ricci, CEO of Italian label Stefano Ricci, underlined the importance of “having mentors able to teach young people a trade. We have our own internal academy through which we hand over skills that would otherwise be lost.”

According to Massimiliano Giornetti, head of fashion academy Polimoda, “the market needs innovation and agile, lean creative thinking, but young people are extremely resistant to manual skills.”

Franco Gabbrielli, president of Assopellettieri, the association of Italian leather goods manufacturers, said that “Italy’s strength lies not just in quality products but in our daily experience of craftsmanship. Italian handbags are produced in a family milieu.”

Francesca Lusini, president of streetwear brand Peuterey, underlined how “the fashion supply chain is extremely fragile,” and to bolster it during the Covid pandemic “we continued to place orders with our suppliers and artisans, and we allowed [retailers] to return unsold stock, because we realised how important team spirit was.”

The importance of a networked approach was emphasised also by Attila Kiss, CEO of the Florence group. “We have created a business model through which we preserve excellence, and we compensate any fragility by pooling companies together as a group. Together we can achieve more, and there are many companies keen to join in,” said Kiss.