The new fashion economy

Protecting the supply chain is the key to innovating textile-fashion and ensuring a future for Made in Italy. For Sistema moda Italia (Smi), the pillars at the root of this new economy are the digitization of systems, artificial intelligence, blockchain, with more advanced materials, and biotech, corporate welfare, production and logistics reshoring.

The new economy will go through as well environmental and ethical sustainability, thanks to traceability and upcycling, supported by the development of regulations by the government, and the training of young people that is now essential to maintain craftsmanship. The issues and strategic actions were explained to MFF by Sergio Tamborini, Smi’s president and Ratti’s ceo.

How is Smi working to innovate and accelerate the textile-fashion industry?

We aim to protect the supply chain through innovation and cultural information. We need to understand that behind fashion shows there are a lot of activities represented by workers. In textiles alone they reach 400,000. However, if you extend to other sectors, they could reach 600,000. In recent years in Europe, we have become accustomed to ever-lower prices and ever-higher volume of consumption, and this has led to deindustrialization. We need to bring back some of this activity, and we are lucky that we have not lost the supply chain. We need to train the younger generation for the working world, educate a conscious consumer, knowing that buying has an impact on everyone’s life. Getting dressed in the morning is a political act. There has to be quality. However, it is a duty of the government and the culture, not of the associations.

How have you acted in relation to the Epr decree?

At the beginning of the year, we filed a strong note regarding the strength of the supply chain, with a focus on sustainability and responsibility, out of which a series of stimuli have emerged to reason and push the Government toward Italian and European extended producer responsibility (Epr decree, ed.) to ensure that producer rules in Europe, and especially in Italy, are the same for products coming in from abroad. We are in open dialogue and will meet again to discuss the necessary changes (see MFF of march 25).

What are the growth prospects in reshoring?

Reshoring is happening and will still have growth prospects, but it must be integrated with a policy to investment and staff training. Labor is needed. There are conditions that we need to accelerate. However, to create them, there must be industrial activities to bring back, such as garment manufacturing, which has migrated to Eastern Europe. Southern Italy is working with the right tools to bring up the number of people employed for this activity. Building a wider garment supply chain will allow us to make room for the heavier industries we have in the North.

What is the situation in recycling on the investment front?

Finance confirms to us that the trend is important. The big investment banks are looking at the recycling sector in Europe and Italy and the willingness to invest, starting with training at all levels, design and research of workers. We are at the beginning of a path that is not yet consolidated. We need to make the younger generation understand the importance of this phenomenon, while fashion brands need to focus on a communication operation. Something is moving, with alliances among the operators in the system and the great interest in terms of capital. To mention a few figures, according to Euratex, the textile recycling industry can generate up to 5 billion euros in economic, social and environmental benefits by 2030. In this regard, as Italians, we really have a chance to play an important game.

On April 12, you will host a conference in Milan on welfare in fashion…

Textile welfare is among the most advanced ones. We will tell its evolution together with Previmoda, Sanimoda, and the operators involved. The contractual system is based on three main pillars, namely supplementary welfare, supplementary health care, and life insurance. Starting this month, it will also be enriched with insurance coverage for non-self-sufficiency. Companies’ investment in benefit systems will surely be able to attract younger workers.

In conclusion, what do you see in the future of the industry?

The textile system has been extremely resilient. We go through continuous disruptions that we have to get used to, with ups and downs on productions that require the need to put in place flexibility and immediacy. It means to be able to change, when necessary, materials, volumes, energy contracts, building bonds between workers and unions. Culturally speaking, we are strong, but we will have to reinvent ourselves over the years. (all rights reserved)