The 28th Pambianco PwC Fashion Summit in Milan unveiled insights into the dynamic challenges facing the fashion and luxury industry in a ‘new normal’ competitive landscape. Erika Andreetta, partner and EMEA Fashion & Luxury leader at PwC Italy, shared findings from PwC’s latest study on the fashion and luxury sector. Despite a global trade slowdown due to inflationary tensions and rising interest rates, the luxury industry demonstrated resilient growth in the first nine months of 2023, albeit with a slight deceleration in Q3.
Leading the charge in revenue growth for 2023 were prominent luxury labels, including a remarkable 14% increase for LVMH, a 17% surge for Moncler, a noteworthy 22% climb for Hermès, an impressive 25% uptick for Zegna Group, and a substantial 27% rise for Brunello Cucinelli. Surprisingly, the USA witnessed robust GDP growth in Q3, with nearly 40% of American consumers gearing up for increased spending on Black Friday, driven primarily by Gen Z and Millennial consumers.
Conversely, European consumption remained static, with Black Friday forecasts indicating significant declines in purchases across key markets such as Italy, Spain, France, and Germany. Asian markets, notably China, encountered challenges such as decreased exports and complex macroeconomic issues impacting consumer spending capacity. Despite these hurdles, luxury labels continued to thrive in China by leveraging holidays, traditional culture, and a strategic focus on enduring value.
Addressing urgent challenges in the fashion industry, Luca Colombo, Country Director Italy at Meta, emphasized a transformative shift toward more immersive and connected internet experiences. Colombo envisions a future where mobile phones become obsolete, replaced by hands-free wearables. Noteworthy is Meta’s substantial investment in R&D, particularly in immersive VR experiences and wearable technologies.
Artificial intelligence and the metaverse, as highlighted by Colombo, are revolutionizing marketing and advertising strategies, urging fashion SMEs to swiftly embrace this cultural shift. Lastly, Riccardo Vola, Managing Director Italy and Spain of Zalando, discussed the critical transformation in e-tail. He emphasized a ‘new wave’ in the fashion sector, highlighting Zalando’s commitment to providing innovative digital solutions for an inspired, personalized shopping experience, catering especially to the evolving preferences of Gen Z consumers.
