Prato is a world-famous base for "fast fashion" clothing. Today, apparel companies here are facing urgent challenges.
Italy's Corriere della Sera reported that there are more than 5,000 large and small Chinese companies in the "fast fashion" garment industrial zone southeast of Prato. Over the past 20 years, Chinese businessmen have maintained their vitality in the face of market fluctuations. But now, like the rest of Italy's fashion industry, Prato's vast fast-fashion cluster is experiencing a crisis.
"This year our corporate revenue has halved, and 40% of 'fast fashion' businesses are in real trouble." Wang Liping, a 66-year-old Chinese entrepreneur, said.
Wang Liping is the president of the CNA Chinese SME Association in Italy, which has more than 350 registered Chinese entrepreneur members. He has a deep understanding of the current state of the "fast fashion" industry in Prato.
In fact, because Chinese entrepreneurs are often reluctant to discuss the details of their business situation publicly, news of the global "fast fashion" clothing base facing difficulties is particularly rare.
You know, until a few months ago, "fast fashion" was the largest market in the apparel industry in terms of sales volume and transaction volume.
But given the shift in consumer consciousness of "Gen Z" (the generation born after circa 1997), their increased focus on environmental sustainability, and the impact of the current war conflict, it is worth exploring whether the "fast fashion" industry will continue to dominate the market in the future.
Wang Liping explains: "Almost all of the raw materials we use come from Asia. With the outbreak of the war in Ukraine and the sanctions against Russia, transportation costs have increased fourfold. Obviously, these costs will eventually be passed on to the market, but the real problem is in the delivery time, which is at least doubled. Now it takes an extra month to get the goods, and the international market has almost come to a standstill. ”
In this context, "fast fashion" no longer runs so "fast".
Due to the lack of transparent statistics on the labor market in the local "fast fashion" industry, it is difficult to accurately assess the true state of the industry. But some rumors are often confirmed to some extent in reality.
For example, in the past few weeks, there has been a significant decrease in vehicular traffic in the Macrolotto 1 industrial zone, where Chinese companies are concentrated. At the same time, suppliers in the region are starting to notice that many Chinese entrepreneurs are abandoning cash payments for the first time.
Regardless of the rumors, one thing must be emphasized, the industrial zones of the other fashion industry show the stagnation of the entire sector with clear data.
According to the National Institute of Statistics of Italy, in the first seven months of 2024, the output of the "textile, clothing and leather" industry fell by 10.8% compared to the same period last year. From May 2022 to July 2024, the decline was even more pronounced, reaching 25%.
A similar situation can be seen in the town of Scandicci, not far from Prato, where many luxury brands are concentrated. Since last year, production in the region has fallen sharply, and dozens of companies have applied for shutdown subsidies.
(Yi Yi Original, Translation: Sasha, Editor: Shu Liao, Image source: Pixabay Network, please indicate Yi Stew: oushitalia)