I would say that consolidation is a more important issue for the mid-tier companies,'' she said. The new order has not only forced rapid consolidation throughout the industry, it has also increased the desire for control. The change has prompted Italian production companies with lucrative license agreements to start their own labels. Both Ittierre, which has license production agreements with several top Italian designers, and Marzotto, which produces some Calvin Klein lines, have started their own brands in anticipation of the changes. Italian manufacturers for the mass market are unable to compete with the emerging countries, where production costs are so much lower.
Labor costs are an eighth of what they are in Italy while energy is half the price it is here.
The other companies, which produce quality textiles that require advanced technology, can continue in Italy, otherwise moving the production center is becoming essential to be able to compete with emerging countries,'' he said. Many other textile manufacturers have moved to Romania which increased its exports to Italy by 12 percent to 506 billion lire in the first half of last year. The migration is a clear sign of the challenge facing Italy's once dominant industry. If fashion houses do not move with the times, they risk being swept away by the tide of global expansion.