Italian Confindustria Fashion Accessories: economic situation 1st quarter 2025, shadows but also some light

Confindustria Accessori Moda, the Federation that represents about 10,000 companies in the footwear, leather goods, tanning, fur and leather clothing sectors, presents the results of the 1st Business Cycle Survey, which photographs the trend of the sector in the first two months of the year. The data confirm the continuation of the critical situation that characterised all of 2024, a year that closed with a total industry turnover of around 30 billion euros. The negative trend also extends to the beginning of 2025, with a -6.4% drop in turnover in the first quarter compared to the same period of the previous year, confirming a slowdown across all production sectors. A further cause for concern is the industrial production index, which – according to ISTAT data referring to the first four months of 2025 – shows a marked drop in activity: -16.4% compared to the same period in 2024.

Employment: increased use of CIG

The production difficulties are also reflected in employment: in the first three months of the year, almost 13 million hours of CIG were authorised in the sector, up 66% compared to the same period in 2024.

Export and Import

Exports in the first two months of 2025 fell by -6.5% year-on-year to EUR 4.2 billion. The figure, negative in itself, should however be assessed in relation to exports (total year) in 2024 over 2019, the pre-covid year: in this case, there is a 3% growth (€25.1 billion in 2024, €24.3 billion in 2019) that confirms the appreciation that consumers all over the world have for Made in Italy. Resistance is therefore a must.

Inbound flows, driven by imports from the Far East, have started to grow again (+7.5%). As a result of these dynamics, the trade balance of the sector – although in surplus for 2.2 billion Euros – has recorded a double-digit drop (-16.7%) compared to 2024: this leads to a reflection on the price of Made in Italy products on the market, which are too expensive for the current purchasing power of Italian families.

Geographically, exports to the European Union remain stable (-0.3%). The US market is also holding up at the moment (-1.2%), although it is reporting difficulties linked to the introduction of new duties by the second Trump administration. There was a sharper slowdown in China (-30.5%) and Hong Kong (-20.4%); positive signals came instead from the Arab Emirates (+11.4%), Turkey (+23.5%), Kazakhstan (+10.4%) and Ukraine (+0.5%).

Outlook for the current year, stable but unsatisfactory

The forecast analysis for the second quarter of 2025 shows no signs of recovery. Business sentiment remains cautious:

52% of respondents expect stable but unsatisfactory conditions, while one in two companies fear a further reduction in revenues;

On the employment front, 7 out of 10 companies estimate a stable workforce, 28% expect a contraction, while only 10% expect an increase;

39% of companies expect to resort to the CIG in the second quarter as well.

Underlying the continuing difficulties is, firstly, the general weakness of domestic and foreign demand, indicated by 8 out of 10 companies. This is followed by the effects of geopolitical conflicts: Russia-Ukraine and the Middle East, cited by a total of 28% of companies. No less important is the concern linked to the crisis of the big luxury brands and the new US duties, indicated by 40% of the sample.

Giovanna Ceolini, President of Confindustria Accessori Moda, commented: “The picture that emerges is undoubtedly complex, but the companies in the supply chain are showing great resilience and a willingness to adapt. Alongside the difficulties linked to falling demand, geopolitical tensions and the export slowdown, companies are also facing long-term strategic challenges, starting with sustainability. Consumers are paying more and more attention to this aspect in their purchasing choices and, while for 56% of companies in the sector sustainability is a top priority, 38% expect the focus on these issues to grow further in the coming months. However, transforming this commitment into concrete action requires significant investment, resources that many SMEs today struggle to find. The situation is difficult: there is a risk of collapse of an entire sector, made up of thousands of small and medium-sized enterprises, artisans, professionals and hundreds of thousands of workers’. And he adds: ‘While appreciating the attention shown by the current government in recent months, we call for the urgent opening of a joint table between production companies and Brands, to build together a sustainable future for the Made in Italy production chain, given that it is our companies that in many cases produce the accessories appreciated by consumers around the world and signed by international Brands. It is essential to act promptly and adopt concrete measures, such as the 2015-2019 tax credit for samples, support for internationalisation and access to credit, the extension of anti-crisis tools, including the CIG, and the implementation of a new industrial policy capable of accompanying companies towards innovation and sustainability. Time is a decisive variable: every month that passes without answers represents a step backwards for the entire Italian fashion system”.