2014-01-09 17:49:02 - Apparel in Italy - a new market research report on companiesandmarkets.com
Italy´s severe economic recession is having a negative impact on sales of apparel. Aggregated data from 2008 to 2012 shows an overall decline in domestic sales and consumption across all apparel categories. 2012 was the worst year for the Italian economy since the onset of the economic crisis as a combination of internal and external factors contributed to steep economic decline. High taxes, increasing unemployment, the VAT increase from 21% to 22% and low consumer confidence were some of the negative factors influencing apparel in Italy during 2012.
According to ISTAT, during 2009 Italians spent an average of â¬142 per month on apparel, a figure which had declined by 13% to â¬126 per month by the end of 2012. 76% of
Italian households stated that they spent less on new clothes in 2012 than ever before. This phenomenon seems to be the result of three main factors. On the one hand, there is the overall contraction of household spending power, which is reflected in all industries. On the other hand, there is the gradual expansion of low-price apparel retail outlets which offer access to fashionable apparel for low amounts. Finally, there is the persistent tendency among retailers to extend discount periods and increase the numbers of promotions on offer, which reduces the overall cost of essential apparel items.
Ongoing changes in purchasing habits help to explain the success of foreign and local fast fashion chains in Italy. These retail outlets present consumers with the opportunity to purchase apparel quickly at low prices, while the success of luxury brands which cater to Italy´s high-income consumers is due to wealthy Italians not suffering from the economic crisis. Successful companies have been able to combine the fast fashion concept with a distinctive and recognisable style, creating brands with a clearly defined image at competitive prices. In addition, the Italian apparel industry is rapidly moving towards a more environmentally sustainable position. There are now several brands which choose to engage with consumers in terms of the environment, using environmentally friendly materials and engaging in more recycling. During the economic recession time, maintaining liquidity can make the difference between success and failure and companies with low levels of debt and high levels of cash flow now have the opportunity to reinvest their capital in purchasing stock at lower prices.
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