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.
Italian Designers Predict Higher Prices in 2008
Gucci, Versace, Fendi, Armani
Trend Themes
1. Rising Production Costs - The increasing costs of producing fashion in Italy present an opportunity for disruptive innovations in manufacturing processes or sourcing strategies.
2. Declining Demand for Luxury Goods - The decreasing demand for luxury goods in the U.S. calls for disruptive innovations in marketing tactics or product offerings to attract customers.
3. Impact of Currency Exchange Rates - The effect of the rising Euro against the dollar creates an opportunity for disruptive innovations in financial strategies or international partnerships to mitigate the pricing challenges.
Industry Implications
1. Fashion Manufacturing - The fashion manufacturing industry can explore disruptive innovation opportunities in supply chain optimization or automation to reduce production costs and maintain competitiveness.
2. Luxury Retail - Luxury retail industry players can leverage disruptive innovations in omni-channel strategies or personalized experiences to stimulate demand and attract customers in a changing market.
3. International Trade - International trade industry companies can explore disruptive innovations in hedging strategies or digital platforms to manage currency exchange risks and enhance profitability despite exchange rate fluctuations.