As of December 2025, the Italian fashion landscape is undergoing a massive structural realignment. While the ‘Made in Italy’ label remains a global gold standard for craftsmanship, the sector is currently dominated by strategic mergers and foreign capital inflows as brands seek the scale necessary to survive a volatile luxury market.
The 2025 Christmas season has become a historic window for M&A activity, headlined by the Chinese investment firm HSG’s acquisition of a majority stake in Golden Goose. Supported by Singapore’s Temasek as a minority partner, this move aims to catapult the brand’s presence in Asia while maintaining its Venetian manufacturing roots. Analysts note, this transition marks a broader trend: Italian ‘lifestyle’ luxury is becoming a high-yield target for Asian private equity seeking stable, heritage-backed assets.
Prada and Versace rewrite the high-end playbook
Simultaneously, the domestic landscape has shifted with Prada Group’s integration of Versace, a deal that closed in the final quarter of 2025. This €1.25 billion landmark transaction successfully repatriated one of Italy's most storied houses from American ownership. By appointing Lorenzo Bertelli as Executive Chairman, Versace, Prada is signaling a focus on ‘generational agility,’ leveraging the same digital-first strategies that pushed Miu Miu to record heights this year. The combined group now boasts a formidable turnover of €6.3 billion, creating a domestic powerhouse capable of rivaling French conglomerates LVMH and Kering.
Beyond pure financials, the ‘green’ premium is now a central driver of M&A math. Investors are specifically targeting firms like Usha Yarns and circular-tech innovators who can verify their supply chains. With Italian luxury consumers reportedly willing to pay 64 per cent to 128 per cent more for certified bio-based products, the M&A focus has shifted toward ‘supply chain security.’ The challenge remains ‘slowbalization’- global trade friction that is forcing Italian brands to diversify their manufacturing hubs even as they fiercely protect the artisanal ‘Made in Italy’ credential.
