The AP reports that “Made In Italy” is going to cost more.
Italian designers including Gucci, Armani, Fendi and Versace are finding that it costs more to make fashion in Italy, and prices will begin to reflect that as of next year.
The fashion industry has also been affected by the rising Euro against the dollar. Demand for luxury goods in the U.S. seems to be declining, while production costs are rising. It’s a pinch to be sure.
Other big names hot in the Italian fashion market right now include Roberto Cavalli, Dolce & Gabbana, Diesel, Miss Sixty and Etro, just to name a few.
"Those who produce in Italy are at a disadvantage," Diego Della Valle, founder of Tods shoes and leatherwear, said. "But it doesn't mean you have to pull out your hair. This is a trade where you shouldn't make the error of sacrificing long-term strategy for the short term."
Stephen I. Sadove, chairman and chief executive of Saks Inc., said the luxury department-store chain recently started seeing some price resistance among consumers.
"It's forcing everyone to be careful," Sadove said. He said Saks is working more closely with its suppliers, who are either changing fabrics, absorbing costs or raising prices.
(luxist)
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