Italian Manufacturers Say Big Luxury Must Examine Sourcing Practices

Italian trade group Confindustria Moda has called for a “concrete dialogue” focused on the sourcing practices of big luxury brands, as the sector grapples with a series of scandals linking Dior, Armani, Valentino and Loro Piana to sweatshops outside Milan.

The cases have drawn more scrutiny to Italian supply chains, where roughly half of the world’s luxury fashion and leather goods are made, heaping additional pressure on a sector already struggling to navigate a sharp downturn in consumer demand.

Confindustria Moda, which represents Italy’s fashion and textiles sector, said incidents of labour exploitation remain “the exception, not the rule,” but added that preventing such issues in the future and protecting the integrity of “Made in Italy” manufacturing requires a broader discussion about big brands’ sourcing demands.

Cost targets need to be compatible with standard hourly labour costs and quality requirements, it said, adding that manufacturers also need the security of long-term contracts to de-risk investments in innovation and growth.

“Over the past 15 years, Italian manufacturing has generated significant value and margins for major international brands,” Confindustria Moda said in a statement. “It is now essential that this value chain be reinforced and rebalanced, recognising the strategic role of Italian manufacturing not only from an industrial perspective but also from an ethical and cultural one.”

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