Many are asking themselves how the fashion and luxury industry are facing the present moment’s challenges. Among various conventions taking place in recent times, a significant business talk has just taken place in Milan, as part of the RCS Academy program of education projects.
Organised by the Italian publishing house of the Corriere della Sera newspaper, the working day was entitled “Fashion & Luxury Talk–Vision, innovation and new consumption”. It analysed the present situation with a clear approach hosting key managers of important conglomerates–from fashion and luxury to beauty, along with trade show, events and institutions, but also hosting personalities from the retail and hospitality sectors. Among companies participating there were managers from Armani Group, Louis Vuitton/LVMH, Prada, Tiffany, Tod’s, Camera Buyer, Altagamma, Golden Goose and many more (see my next reports about it).
Opening works was Barbara Stefanelli, co-director, Corriere della Sera, who pointed out how this year’s convention wanted to intercept recovery signs within the global luxury and fashion markets.
“In this new phase, we’re seeing that certain elements—which have always represented, constituted, and shaped ‘Made in Italy’—are in high demand. These include, for example, craftsmanship, authenticity, tradition, and experience, and they set Italian industry apart from products that are simply dumped onto the market in an attempt to mimic quality and luxury. This is why ‘Made in Italy’ has a chance to rebound in the current landscape,” said Stefanelli.
“We are here to engage with the leaders of major corporations, with those working on technology and innovation, with those who, of course, study the markets, and with those who help shape and influence our collective imagination,” she emphasized, pointing out that a fresh start is always possible, especially during times of crisis that bring about necessary changes.
Among the first recovery signs, they indicated a survey by BCG, as presented by Beatrice Lemucchi, Managing Director e Partner of the global consulting company.
In light of the current situation, the expert noted that a cautiously positive outlook can be projected for 2026, as the first half of the year saw a more positive performance than in previous years. “Our stance regarding 2027 is certainly one of cautious optimism. By the end of 2026, we see a market that will hover around 2–4% growth. This is a very different message and signal compared to market trends from 2023 to 2025, when growth essentially didn’t exist, or was negative,” Lemucchi explained.
Right now, performance varies significantly from one region to another. That’s why the challenge for brands is to figure out how best to serve markets operating under completely different conditions and contexts.
Studies show high single-digit growth rates of 7%, 8%, and 9%. This is undoubtedly driven by the fact that the US has the highest concentration of wealth in the world. Approximately 70% of high-net-worth individuals reside in the US, and this is what’s happening in the world of AI and the creation of new wealth.
In Asia, China’s recovery remains relatively modest, with a growth rate of around 2–3%, while the rest of Asia is showing much more positive trends—for example, in South Korea and Taiwan. For Europe, on the other hand, growth in 2026–2027 will be extremely limited, while in the Middle East—where growth had been occurring—there is currently a 15–20% contraction compared to 2026.
Among the most important levers for fostering growth, the research group identifies three main tools. First clienteling initiatives are becoming increasingly strategic and should be implemented at scale. The second most important area relates to costs. In recent years, many brands have placed greater emphasis on costs—especially indirect costs, and in some cases even direct costs—while maintaining product quality and identifying opportunities to improve the efficiency of production and management costs.
The third area is AI, which has now become essential, even though the luxury sector has been slow to adopt it compared to other sectors that were early adopters, such as retail.
“The luxury sector was a bit late to the game, but over the past 6–12 months we’ve seen a very strong acceleration in the application of use cases across virtually the entire value chain—from content creation to logistics and production, as well as client-facing use cases,” she added while breaking the belief that only the young use AI.
“AI usage is extremely high across all regions and among various age groups. It is not true that only younger consumers use it, because a study by our company shows that 70% of consumers now interact with AI, if not daily, then at least weekly,” she summed up.