Italian fashion returns to growth, boosted by domestic market and Europe

On the occasion of the opening of Pitti Uomo (PU), a key event for premium menswear in Florence, an exclusive study by Joor, a major global wholesale platform in fashion, revealed a return to vigorous growth in the Italian fashion market in 2025. After two years of decline, the Italian sector showed tangible signs of dynamism, driven by a renewed activity both domestically and internationally.

Sustained growth in wholesale sales

Over the first five months of the year, wholesale sales of Italian brands jumped by 20 percent compared to the same period in 2024. This recovery was based in particular on a 33 percent increase in volumes sold, illustrating a concrete revival in demand, especially for more accessible products, since the average purchase price fell by six percent, a sign of a readjustment of assortments in a context that was still delicate for distributors.

The increase in the gross merchandise value (GMV) of Italian retailers, who increased their purchases by 11 percent over the same period, confirmed that this positive dynamic was accompanied by a renewed appetite from local players for national collections.

Domestic market as a driving force

Italy, with 32 percent of total sales of Italian brands, remained the largest market by volume and posted impressive growth of 24 percent in 2025. This rebound reflected renewed confidence among Italian distributors, particularly concentrated in independent specialist stores—like 10 Corso Como or Luisa Via Roma—which represented 87 percent of the country's retail turnover. This strong presence of independent retailers highlighted a specificity of the Italian market, anchored in close and personalised relationships between brands and distributors.

Active political and fiscal framework

The positive dynamic observed in the Italian domestic fashion market in 2025 was also based on a favourable political and fiscal environment. The Italian government strengthened its support for the sector through several structural levers. On the one hand, the ‘Transizione 5.0’ Plan, with 13 billion euros, offered substantial tax incentives to companies investing in the digital transition, decarbonisation and industrial training, according to information from the Ministry of Economy and Finance (MEF) in 2024. This scheme was particularly relevant for fashion SMEs, often under-capitalised but ready to modernise. At the same time, a research and development tax credit was extended and strengthened to stimulate product innovation and sustainable manufacturing processes, according to the Agenzia delle Entrate.

In addition, the implementation of the Flat Tax for new residents and the tax relief on repatriated income contributed to bringing back creative and technical talent, particularly in historic hubs such as Milan or Florence (Il Sole 24 Ore, January 2025). Finally, the ‘Moda Italia’ programme, launched in cooperation with the Ministry of Enterprises and Made in Italy (MIMIT), provided direct support to companies in the sector via export subsidies, public guarantees and funds dedicated to the relocation of production (MIMIT, 2025). Together, these measures created a solid foundation for sustainable growth and improved competitiveness of the Italian fashion system on the international scene.

Expansion driven by EMEA and North America

Regarding this international dimension, while domestic demand played a central role in this recovery, the growth of Italian brands was mainly fuelled by the EMEA region (plus 23 percent) and North America (plus 12 percent), which now appeared as major growth drivers. Together, these areas accounted for 75 percent of the total sales of transalpine brands, showing strong penetration in key markets such as France, Germany, the UK and the US.

Conversely, the Asia-Pacific region continued to contract, particularly China, which recorded a marked decline of 41 percent in wholesale sales this year, amplifying a decline that began in 2024. This contrast highlighted a redistribution of forces in global fashion trade, where Western markets regained a central position for Italian brands.

Limited but growing geographical diversification

In total, Italian brands sold to distributors in 122 different countries in 2025, a large footprint that remained, however, highly concentrated in the EMEA region. This concentration reflected a cautious but effective strategy, aiming to consolidate positions in well-known markets, while exploring new territories.

On the Italian retailer side, their purchases came from 32 countries, with a clear preference for Italian, French and American brands, which together represented 78 percent of the volumes ordered. This triangulation of influences nourished the diversity of assortments offered to the Italian consumer.

Renewed vitality after years of adjustments

After two years of significant slowdown, Italian fashion therefore seemed to be returning to an upward trajectory. As Amanda McCormick Bacal, senior vice president of marketing at Joor, summarised: "The Italian market is a driving force in global fashion, and it is very encouraging to see this energetic growth taking shape in 2025, driven by sustained demand from both brands and retailers."