Milan – Experiencing a sharp rebound fashion has had an extraordinary ripple effect on garment manufacturers, who are collecting orders and trying to deal with an overloaded supply chain to ensure deliveries. But prospects may not be as bright, with analysts predicting inflation could lead to a recession early next fall.
During the three-day textile trade show Milano Unica – which closed on Thursday 4,052 visitors, up 31 percent from the same edition last year – officials were upbeat about the current but still cautious, noting that brands and retailers were hit by the pandemic two years later and fearing the cost of raw Overstocking clothing to replenish depleted warehouses. There will be further growth in materials, logistics and energy.
In the first quarter of 2022, the sector’s revenues grew by 34.3 percent on a similar basis, although sales figures were not yet available, while exports registered a growth of 46.2 percent to 816 million euros, which is further reflected in the is on the way to grow. The dollar has almost leveled with the euro this week.
“Growth has been experienced across the board, but less so in Asia, particularly in Europe and the Americas,” said Alessandro Barbaris Canonico, president of Milano Unica.
“When markets are positive, companies are more eager to return on investment … said.
“We can hardly explain why the market is performing so well despite slowdown and inflation. During the opening ceremony of the fair, Claudia D’Arpizio, a partner at Bain & Company in Milan, said investors, too, expected the Russo-Ukrainian war to dent consumer confidence.
She predicted that the order books would be reconciled for the fall in 2023 collections presented at the fairgrounds by 445 exhibition companies, which were followed by US brands and retailers resuming production from China, thus European and Italian manufacturers benefited. It will generate substantial revenue by the first half of 2023, he predicted.
“Unlike other sectors, current sales are a compensation for lost revenue,” said Barbaris Canonico.
EuroJersey’s sensitive fabric samples for the fall of 2023.
Courtesy of EuroJersey
According to EuroJersey Managing Director Andrea Crespi, “Among the social vulnerabilities caused by inflation, the supply chain crisis, the needs of different consumers, it is going to be a revolution … if retail sales fall by 20 percent. [in coming months] And with brands left with 20 per cent more stock, sales to garment manufacturers will drop by 40 per cent,” he forecast.
“The current ‘surge’ in sales is a direct effect of the lockdowns and shutdowns over the past two years,” echoed Canepa’s director of commercial and marketing, Patrick Lone. “With increased prices and sales peaking, the fall in 2023 could mark a different scenario,” he said, adding that the company will hit revenues of around 22 to 23 million euros in 2022. Irrespective of the context, the company is committed to regaining its market share in the luxury segment after it went through financial troubles over the past few years. It will also welcome a creative director next week, but his name has not been disclosed yet.
Vitale Barberis Canonico’s Shaket fabrics.
Courtesy of Vitale Barberis Canonico
Italian companies must take advantage of long-term planning to meet future challenges and volatility.
“We are facing unprecedented changes and challenges as the fashion business model will change, so we need to make long-term investments to anticipate this,” said Matteo Mantellasi, CEO of Manteco. He said the company’s sales in the first half have already exceeded the 2021 level by more than 50 per cent, although the company continued to make profits even during the pandemic.
“Despite prices being an average of 20 per cent higher, our business is growing three times that of competitors. This is because we have established a reliable relationship,” said Fabio Tamburini, CEO of Cotonifio Albini, the production arm of the Albini Group, which expects to post revenue in the region of €130 million this year and the same-for-60 registering a percentage increase. Like a falling order. “We aim to strengthen our volumes and grow organic growth in the range of 5 to 6 per cent.
Albini Group’s Re-Oxide Permanently Dyed Cotton Fabric.
Courtesy of Albini Group
In contrast, Tessitura Monti, once a powerful competitor in the sector, recently received a green light from the Italian government to postpone the sale of its assets until 30 November. This is part of the special administration process it entered into last year to ensure production. As a continuation it is looking for a buyer.
Overall, officials noted that increases in raw material costs are less constraining than energy costs, the latter reflected in the price points of their collections, which have risen by an average of 15 to 20 percent.
“In June we were forced to raise prices in-season, and we will need to get used to it,” said Filippo Vadda, CEO of Lanificio Fratelli Cerutti. This won’t stop the company from doubling revenue in 2022, once full speed production capacity is guaranteed in the first months of the year.
At velvet specialist Radelli Velluti, the 35 to 40 percent increase in unit price per meter reflected a disrupted landscape, worsened by the time- and energy-consuming manufacturing process core to that fabric.
“It is difficult to explain to the market how dependent our production is on energy, and there are only two ways forward: reducing the quality or maintaining it and paying higher prices,” explained Pierluigi Fusco Girard, CEO of Marzotto Lab, of The division Marzotto Group consisting of Radelli Velluti. He estimates that revenue will grow between 15 and 20 percent in 2022.
Fall 2023 fabric from Redaelli Velluti.
Redaelli Velluti. Courtesy
“This is not the time to fight over prices,” Lone echoed. “We are embedding an added value, leveraging innovation and sustainability” to help brands digest expensive clothing, he said.
In a worst-case scenario, officials agreed, inflation will severely impact the bottom line, affecting companies’ investment ability. “We haven’t experienced this kind of growth in the last 10 seasons,” said Barbaris Canonico.
D’Arpizio also noticed that fashion companies are placing their orders in advance for fear that production disruptions could cause delays. Lead time is really an unresolved issue, which he urged companies to commit.
“We don’t expect [market] Stability in the near future, rather a return to pre-COVID-19 business trends, whether they be adaptations or the more fragmented buyouts that we are seeing today. But within a recurring environment that will call for caution and short-term planning,” said the analyst.
Reda’s CEO, Ercole Boto Poala, outlined how the supply chain is under more pressure and went on to say that, in the fall, production could be halted for a lack of gas supply, while usually due to a seasonality. Great beginnings are predicted which should raise the company’s revenue for the year to 100 million euros.
The scenario partly explains why brands are stocking more of the ubiquitous solid and traditional clothing at the fair. Some companies have already sensed this trend and have offered clients such services as Albini Group’s Textum, a stock service consisting of 70 different garments ready to be fabric-colored or printed.
Elsewhere, Redaelli Velluti is providing customers with apparel-making experts to ensure velvet is treated the best, while Maglificio Maggia is working with suppliers to ensure supplies at the start of each season. Redrawing contracts.
Against this commercial background, clothing manufacturers acknowledged that the ongoing contingencies had changed fashion trends, but D’Arpizio noted that the post-streetwear wave has given way to clothing that is interchangeable at any occasion and towards self-expression.
Lanificio Fratelli Cerruti was among those wool mills that worked on damier, gingham and Vichy patterns for wool fabrics that stood out for their tactile effect.
“Consumers buy fewer suits, but when they do, they set out to create a more sophisticated look, it’s no longer a business duty, it’s a fashion statement,” Vadda offered.
A fabric fall 2023 collection by Lanificio Fratelli Cerruti.
Lanificio Fratelli Cerruti. Courtesy
To this end, the fall collection hinges on a 3D and tactile look and feel aimed at showcasing craftsmanship and detail with natural fibers, particularly wool – the more recycled and less treated, the better. – Standing out and the suggestion of textile companies is a progressively circular embrace.
“Wool is gaining momentum,” said Francesco Magri, regional manager for Central and Eastern Europe at The Woolmark Company, which in collaboration with Zegna Barufa Lane Borgosia launched a campaign highlighting the naturally biodegradable and performance features of fabrics Gone.” It’s long lasting and is adopted by luxury and sportswear companies alike. The latter are leaning away from polyester and towards natural fabrics,” he claimed.
The textiles with µGG12.9 cards patented in Maglificio Maggia were already produced by some luxury brands for suiting, while the Retrieve range of upcycled cashmere had a circularity component, made from Vita by Manteco, Wool or Wool A series of and was revived. Nylon blends crafted from the signature regenerated MWool, now rated according to LCA principles, and designed on an eco-design basis.
Madras, tartan and checkered options were all the rage, showing up on EuroJersey’s printed sensitive fabric; Part of Albini Group’s shirt options on cotton and Tencel flannel; Reda features merino wool in its Attitude collection, which weighs about 13 ounces and weighs in at a Prince of Wales pattern, and Vitale Barberis Canonico’s overshirt-intentioned wool shacket line. The latter mill also introduced GRS-certified carded flannels featuring 40 percent recycled wool.
In Redaelli Velluti, 3D effect was provided by wild animal, psychedelic and folk motifs, achieved by employing ink jet print, rust and tie-dye techniques. The company also introduced velvet imitation fur crafted from cotton or viscose and other man-made yarns.
Earthy tones were ubiquitous, often deep and saturated, as was the case with the Albini group’s recently industrialized re-oxidized dyes, which were derived from iron oxidation and the velvety-looking corduroy overshirts and Shetland-looks of Maglifisio Magia. In the jersey, he used to mix cashmere and camel hair.
Maglifisio Maggia’s Shetland-looking jersey for fall 2023.
Courtesy of Maglificio Maggia
Sustainability is a given today, but the companies were particularly proud of their most recent achievements on that front, including Botto Giuseppe for Slowwool Earth, cradle-to-cradle certified, RSW flannel, grisaille and fabric available in five colors . and Canepa with its nylon and viscose, developed in partnership with Fulgar and Sodra, respectively, both of which are biodegradable within five years. Tamburini of the Albini Group said he aims to only manufacture sustainable fabrics by 2025.
Originally published at Pen 18
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