As per Cirilo Marcolin, President, Confindustria Moda, small and medium sized fashion companies showed a great ability to react despite the dramatic situation faced by the sector in 2020. The association includes 64,300 fashion companies. The Associations preliminary estimates of Italian fashion sector revenues show a drop of 26 per cent to €72.5 billion in 2020 as against consolidated sales of €98 billion in 2019, with only 8 per cent of the sector’s companies registering growth last year.

Marcolin ascribed the decrease to COVID-19’s impact, along with production halts during the lockdown last spring and a drop in demand and production besides issues like sourcing from foreign countries, including Asia. As per the association, only 26 per cent of interviewed companies expect an increase in the first quarter of 2021, while others projected an average 18.4 per cent drop in first-quarter sales and a 10 per cent fall in the second quarter. Overall a rebound is expected in the second half of the year provided vaccines are widely distributed and travel bans are lifted.

In terms of employment, 50 per cent fashion companies said they reduced their workforce in 2020, despite Italy’s extraordinary measure preventing businesses from laying off employees. The mandate is in place until March 31 but the new government helmed by Prime Minister Mario Draghi could extend it until next fall. In the first half of 2021, 39 per cent of associated fashion businesses forecast a further reduction in the number of employees and Marcolin was vocal about what he expects from the government, in which he expressed his trust.