fashion industry

Extra-EU parcel tax approved in Europe to curb ultra-fast fashion, as Italy joins the move

/ Leave a Comment
Reading Time: 3 minutes

Can the levy really deter low-cost purchases — or does it serve other interests?


Imagine a new charge on every low-cost fashion parcel from abroad: this is the core of the newly approved Extra-EU parcel tax. The measure represents a European policy intervention designed to make disposable clothing bear more of its real cost. At the same time, it protects local markets from what is increasingly described as unfair competition.

According to the European Commission, in 2025 alone around 4.6 billion items were imported into the EU. Each was valued at less than €150 — the equivalent of approximately 12 million parcels per day. This figure has doubled in just two years. Imports stood at 2.3 billion items in 2023 and 1.4 billion in 2022.

Italy, too, is moving in this direction. In fact, the government plans to introduce a €2 tax on each parcel arriving from outside the EU.

But can such a modest levy really curb the tide of low-cost and ultra-fast fashion purchases? And what are the deeper motivations behind this policy shift?

Europe approves extra-EU parcel tax to curb ultra-fast fashion


A €3 tax on all parcels valued below €150 and shipped from third countries has now been approved in Brussels. The measure is set to come into force on 1 July 2026 and aims to address the growing impact of low-cost e-commerce platforms – not only in fashion, but particularly visible there – such as Shein, Temu, and AliExpress.

The tax will be applied per parcel, not per item. This means that three products shipped together in a single package will incur a total charge of €3, whereas three separate parcels would be taxed €9 in total. 

The structure clearly incentivises consolidated shipping rather than discouraging consumption itself.

Extra-EU parcel tax: Italy targets low-cost imports in bid against unfair competition


Italy is preparing to introduce its own levy on shipments from outside the European Union valued under €150 (approximately $176). At the same time, the government plans to double its financial transaction tax, as Rome seeks additional revenue to fund costly budget amendments, according to official documents.

With around 330 million low-value parcels arriving in Italy each year, and accounting for the likelihood that some sellers will attempt to circumvent the new charge, the government estimates annual revenues of €245 million from the measure.

Specifically, the low-value parcel levy – fixed at €2 per shipment – is projected to raise €122.5 million next year, followed by €245 million annually in both 2027 and 2028, according to parliamentary documents cited by Reuters.

In September, the government led by Prime Minister Giorgia Meloni also projected that the overall tax burden – defined as total taxes and social contributions relative to GDP – would rise to 42.8% this year, up from 42.5% in 2024. This places Italy among the most heavily taxed economies in the developed world.

Some considerations: what are the real reasons behind this?


The extra-EU parcel tax represents Europe’s most direct challenge yet to Chinese ultra-fast fashion as a business model. However, this legislative move does not appear to be driven primarily by environmental or sustainability concerns. Rather, it functions as a form of industrial protectionism, aimed at shielding European fast-fashion producers from external competition.

This raises an uncomfortable but necessary question: if fast fashion is widely acknowledged as destructive and unsustainable, on what grounds should its European version be protected?

Ultimately, we must also ask whether a €3 or €2 levy can genuinely deter the purchase of ultra-low-cost goods. If the tax fails to alter consumer behaviour, it becomes reasonable to conclude that its true purpose is simply to redirect significant sums into national or European coffers.

And these sums are far from negligible.

Taking the 2025 estimate of 12 million parcels per day and multiplying it by €3 gives a theoretical annual revenue. This total exceeds €13 billion.

A considerable income for governments, even if consumer behaviour remains unchanged.

Extra-EU parcel tax approved in Europe to curb ultra-fast fashion, as Italy joins the move Read More »

Sisyphus’ seventh season — emerging fashion brands in today’s landscape

/ Leave a Comment
Reading Time: 4 minutes

JAMPROOF in Milan and the slow logic of resistance


Today, we share JAMPROOF’s reflection on their Sisyphus’ seventh season — a story about today’s landscape for emerging fashion brands and independent designers. We discovered the brand at White Milano and felt their narrative of persistence and slow-making deserved to be heard.

JAMPROOF: an emerging fashion brand at White Milano


On September 25, in Milan, the stone was pushed uphill once again.

It was JAMPROOF’s seventh collection, and also our first.
Our first attempt to step into Europe. Our first conscious plunge into the eye of the storm. From Tokyo Fashion Week in March to White Milano in September, we climbed the hill twice, each time from silence to signal. No one promised success, and no summit ever waits.

Born during the pandemic, JAMPROOF has always existed against the odds.
While the global fashion industry shrank and speculation collapsed, we kept working, thread by thread, season by season.
In China, we built a retail ecosystem from scratch. But this year, we tested something larger. Something harder to move.

A glimpse of JAMPROOF's exhibition space at White Milano, showcasing clothing and design details within a curated section of emerging fashion brands.
JAMPROOF at White Milano – Sept. 25

A silent jury in Tokyo


March, Tokyo. Our first time outside China. A chance to align with another kind of Eastern sensibility.
Japanese buyers were quiet, composed. They came with notebooks, cameras, and a few words. They observed like scientists in a controlled experiment.

Some art students stopped at our coats and said, “Very Yohji.”
Some senior buyers admired the exposed stitchwork inspired by Chinese bookbinding. They gave no clear answers, but we knew we’d been seen.

Three months later, we closed a deal with a Shibuya department store. It was modest, but solid. A small set of classics on the rack.
A quiet summit.
Then the stone slipped again.

A system of speed vs. the pace of making


Emerging fashion brands rarely fail because of creativity. They fail because they run out of breath. This system demands speed: release, refresh, discount, and repeat.
Some platforms once promised a haven for independent brands, a place for Gen Z to hunt for niche pieces. But they, too, drowned in their own discount logic.

Creative time doesn’t obey seasons. But the market enforces the quarter.
“Do we need this many styles?” we often ask ourselves.
“Does the world really need this many clothes?”

We keep recalibrating, testing our balance on the scale. What makes a brand “mature”? When does persistence become coherence?

Milan: the start of something Sisyphean


At White Milano, we brought our SS26 collection, the Chants of Sirens:
plant-dyed fabrics, organic materials, richly textured Italian textiles, a hybrid of Eastern aesthetic and Western tailoring. Even our hangtags were hand-sewn from Japanese washi. They hung quietly, waiting to be understood.

Buyers came. “Bellissimo,” they said. They touched, photographed, took notes. There was excitement in the air.
But then came the silence.
They flipped the tags and paused. Our prices, shaped by small batch production and hand-finished techniques, made them hesitate. They asked about logistics, lead time, and customs. What they really asked was: can these pieces sell out within three months?

We explained: we don’t work by seasons. Our SS23 is still selling. They are not dead stocks; they are still finding their people.
They nodded. Then walked away.
The system no longer waits. Not for ideas. Not for clothes.

The slow logic of value


October. Our inbox was filled with pitches, pop-up offers, showroom ads, more platforms selling the dream of scale. But very few real buyer responses. The same refrains: misaligned positioning, budget cuts, economic slowdown, and more time to be examined.

So the stone rolls back again. Sisyphus lowers his head, reaches out, and starts over.

This is not a loud rebellion. It’s a quiet insistence.
Designer brands live in constant tension:
Protecting creative integrity while surrendering to commercial timelines.
Resisting discount culture while navigating the demand for “affordability.”
Making slow, honest work while running fast enough not to disappear.

We don’t reject the logic of fashion. We’re simply choosing to speak with it differently.
We believe that patience, restraint, and mindful consumption aren’t outdated; they’re just under-articulated.

Spending less on more is wasteful.
Spending more on something made to last isn’t indulgence; it might just be clarity.

We are building toward that clarity, one collection at a time.

The seventh, the first


This is our seventh season, and also our first.
Not the first collection, but the first act of will. The first time we chose to climb again.

Sisyphus pushes the stone uphill again. It falls. Again.
The light is still at the summit.
And for a brief second, he looks up.

✍️ Consti Gao, co-founder of JAMPROOF, writing from Beijing.

Sisyphus’ seventh season — emerging fashion brands in today’s landscape Read More »

13 more brands under investigation in Milan for labour exploitation

/ Leave a Comment
Reading Time: 5 minutes

A crisis for the fashion industry, or a reflection of the economic system at large?


Authorities in Milan are cracking down on labour exploitation in the fashion supply chain, placing 13 more brands under investigation after a major operation revealed severe irregularities. A sweeping inquiry has uncovered new allegations of abusive conditions linked to several manufacturers, prompting prosecutors to widen the scope of the probe. The Milan Prosecutor’s Office has now demanded documentation from 13 major fashion brands to demonstrate their compliance with labour and safety laws. Garments tied to these companies were discovered in warehouses run by Chinese subcontractors, leading investigators to call for deeper scrutiny.

From D&G and Prada to Adidas, Versace, and Gucci, the Milan Prosecutor’s Office has sent documentation requests to verify compliance with safety and legal controls.

But is labour exploitation unique to fashion, and to Italy, or is it a feature of the economic system itself?

The Milan probe: fashion & illegal hiring


Once again, the fashion industry is in the spotlight. Another 13 major groups have come under the scrutiny of Milan prosecutors. Late on Tuesday, 2 December, labour protection officers of the Carabinieri, under the mandate of Prosecutor Paolo Storari, carried out raids at corporate offices, demanding documents proving that safety and legal compliance checks had been performed along the supply chain.

Within days, the companies must provide investigators with the requested materials. Based on this documentation, the prosecutor’s office will decide whether to seek judicial oversight—under Italy’s anti-mafia legislation—or bring formal charges related to illegal labour intermediation (the so-called caporalato system) under Law 231.

Milan: 13 more brands under investigation


13 more brands under investigation — who are they?
The brands required to submit documentation include Missoni, Off-White Operating, Adidas Italy, Yves Saint Laurent Manifatture, Givenchy Italy, Ferragamo, Versace, Gucci, Pinko, Prada, Coccinelle, Dolce & Gabbana, and Alexander McQueen.

Investigations have identified cases of “Chinese migrant labour being used under conditions of severe exploitation,” with work performed “on behalf of” the brands listed. Workshops visited across Lombardy, Tuscany, and Marche revealed hazardous conditions, extremely low pay, excessive hours, and workers without contracts, protective equipment, or overtime compensation—many threatened because of their irregular immigration status.

The documentation requested from the companies is extensive: registry extracts, contracts, organisational charts, role descriptions, board minutes from January 2023, internal control system reports, supplier accreditation procedures, internal audit plans and results, monitoring and traceability plans, supplier lists, and financial statements for 2023–2024, including sustainability reports.

The prosecution appears to be urging companies to regularise their operations.

Patterns of exploitation 


This investigation is part of a broader effort to dismantle subcontracting networks marked by severe labour exploitation. Previous cases involving Alviero Martini, Armani Operations, Loro Piana, Valentino Bags, and Manifatture Dior revealed similar dynamics. Tod’s was also investigated, although judicial oversight was denied due to jurisdictional and substantive considerations.

Except for the unusual Tod’s case, interventions have not begun from direct sweatshop conditions linked to major brands. Instead, they start from the observation that checks along supply chains were insufficient or ineffective, allowing illegal practices to persist.

Judicial administration—already implemented for certain companies—aims to establish transparent supplier registries. Separately, illegal labour charges may lead to managers being held personally accountable in court.

Made in “Chitaly”: Chinese workers operating in Italy


In a post dedicated to the contradictions of 1 May 2023, we discussed “Made in Chitaly” to illustrate how the abuses seen in Rana Plaza or in the forced labour of Uyghurs in China have parallels in Italy. Thus, we see a clear, global pattern.

To preserve high profit margins, brands outsource production to Chinese-run workshops, requesting the lowest possible prices. This keeps the mythology of “Made in Italy” alive. At least for those with no understanding of quality but who seek only a famous label. Minimum wage is nowhere to be found.

Yet major publications, including Business of Fashion, frame this as an Italian issue. But is it truly confined to Italy?

From subcontracting to the system: the wider mechanism


While these cases occur in Milan, the underlying pattern is not local but global. Labour exploitation involving Italian brands may describe the immediate facts, yet the mechanism extends far beyond Italy. Opaque, multilayered subcontracting chains are deliberately structured to reduce costs through distance and deniability. Each additional layer dilutes responsibility, making it easier for major groups to claim ignorance while benefiting from lower production costs.

Fashion is not unique in this respect. The same system is at work across logistics, agriculture, electronics, beauty, automotive manufacturing, and more. Wherever cost reduction becomes the primary objective, labour is the pressure point.

The real issue: capitalism as the underlying engine


The fashion industry is now deeply entrenched in global capitalism, shaped by conglomerates such as LVMH, Kering, and Richemont, as well as private equity. In fact, luxury giants and shareholder rule. Publicly traded empires prioritise profit margins, scalability, and acquisitions. Fashion is no longer about creativity—it is a financial asset.

Let’s be direct: sweatshops and fashion are connected, but fashion did not invent exploitation. It merely mirrors the logic of the economic system that governs it. What we see in these investigations is not an isolated malfunction but a structural feature of capitalism: extraction, exploitation, and the relentless pursuit of cheaper labour.

There is no fully ethical business under capitalism—only degrees of complicity.

We suggest reading this post: Behind the Seams: Fashion Industry & Forced Labour

Social washing as the final disguise


As public scrutiny increases, so do corporate campaigns emphasising social responsibility. This is social washing: the social counterpart of greenwashing. Marketing narratives multiply, while evidence remains scarce. Ethical imagery obscures extractive practices. The gap between branding and reality continues to widen.

In this context, social washing becomes the final layer of the system—an effort to reassure consumers while the underlying logic remains unchanged.

Final thoughts


The expansion of the probe, with 13 more brands under investigation in the Milan area, sends a clear signal. It’s a stark warning for the industry — but will shoppers take notice, or simply shop as usual?

Yet, this is not a uniquely Italian scandal, nor a flaw specific to the fashion industry. It reflects a global economic structure that treats labour as a cost to be minimised. Social responsibility campaigns may attempt to soften the narrative, but they cannot obscure the systemic logic that produces these outcomes. Read: capitalism.

Until that logic is questioned, cases like these will continue to surface—across fashion and every other industry built on the same foundations. And everyone will just say: we didn’t know…

13 more brands under investigation in Milan for labour exploitation Read More »

Altagamma Observatory 2025: a study in cautious optimism

/ Leave a Comment
Reading Time: 4 minutes

While the luxury market is apparently stable, the report’s own data reveals a sector in profound transition


The recent Altagamma Observatory 2025 report, presented in Milan, offers a seemingly positive outlook: a stable global high-end market of €1.44 trillion and a forecasted +5% recovery in 2026. However, a closer reading reveals a more complex and less reassuring picture. 

The report adopts what we could describe as a form of cautious, institutional realism. It is a framing that often feels softened, designed to reassure the industry rather than deliver unvarnished truths.

While confidence may attract investors, change can only come from a clear-eyed assessment of the challenges. The industry’s preference for good news should not come at the expense of truth, which is the real foundation of credibility and meaningful transformation.

The core contradictions: stability versus a sector in crisis


The report’s central narrative of stability is undermined by its own data. In fact, these data paint a portrait of a market defined by polarisation, where opposing realities coexist.

1. The myth of a monolithic market

The headline figure of €1.44 trillion masks severe divergences. While the ultra-wealthy continue to spend on jewellery (+4/6%) and experiences, the aspirational consumer is retreating. This is starkly reflected in the collapse of leather goods and footwear (-7/-5%)—the heart of accessible luxury. This isn’t a slowdown. It is a clear signal that the customer who once bought bags and shoes as status symbols is now struggling or has shifted priorities.

2. A fragmented and defensive fashion sector

This polarisation is acutely felt in fashion. The moderate +4% growth in apparel hides a reality where only a few brands thrive while others suffer—a dynamic the report itself describes as “highly polarised among brands.” This fragmentation is exacerbated by:

  • The threat of ultra-fast fashion. Carlo Capasa (CNMI) explicitly identifies the “growth of ultra-fast fashion products imported from China” as a “crucial issue to address,” framing it as an existential risk.
  • A crisis in distribution. Traditional wholesale channels and department stores are confirmed to be “in crisis,” undermining the foundational sales model for many brands.
  • Defensive brand strategies. The reliance on outlets to clear unsold stock and the forecast that high-end brands will introduce “lower price proposals” in 2026 are not signs of health. They indicate an inability to sell at full price and a risk of brand value dilution.
3. Geopolitical optimism versus ground-level realities

The reported “recovery” in the Americas (+0/+2% in 2025) feels tenuous against the backdrop of a weak dollar, tariffs, and a climate of uncertainty. This growth stems not from a buoyant general economy but from the resilience of the Top Tier. High Net Worth Individuals drive this, with their domestic spending and higher average transaction values propping up the figures.

Altagamma Observatory 2025: the “sugar-coated” lens of the report


These contradictions are presented through a specific, mitigating lens, which explains the report’s softened tone.

  1. A partisan purpose. 
    As a foundation for Italian luxury, Altagamma’s primary role is to defend and promote the sector. Its objectives—to reassure investors, signal resilience to the government, and promote the Made in Italy system—naturally discourage alarmist messaging.
  2. Corporate lexicon.
    The consistent use of terms like stable, resilient, and consolidate serves to normalise stagnation and decline. Yet the report presents a -7% drop in a core category as part of a broadly stable landscape.
  3. The “Yes, but…” rhetoric.
    The report consistently employs a technique of admitting a problem only to immediately counter it with hope. For instance: “Yes, China is down, BUT HNWIs are increasing”. So, this creates a glass-half-full narrative that can obscure the severity of the situation for many players.
  4. Long-term faith over short-term pain.
    The emphasised +5% growth forecast for 2026 acts as a lifeline, encouraging the industry to view current difficulties as “temporary headwinds” on the path to a “bright future.”

Final thoughts


The Altagamma Observatory 2025 provides the most realistic photograph yet of a luxury market that is no longer a monolith, but a collection of micro-markets with opposing dynamics. So, is it sugar-coating the situation? Yes, in part.

However, for the attentive reader, it also highlights undeniable structural shifts, even if wrapped in boardroom language. It makes clear that the aspirational consumer is in crisis, the old model of endless price increases is broken, and the new drivers are value, ethics, and experiences.

In conclusion, the report is convincing in its diagnosis of key trends. But remains overly optimistic and diplomatic in its tone. For a truly dispassionate analysis, one must cross-reference its findings with reports from investment banks and independent analysts who are not tasked with safeguarding an entire ecosystem. 

Ultimately, Altagamma is doing its job. It is presenting Italian luxury as resilient and forward-looking, despite the evidence of a painful and fundamental restructuring.

But one question arises: do investors truly fall for data so cleverly dressed up?

Altagamma Observatory 2025: a study in cautious optimism Read More »

Pambianco Fashion Summit: thirty years of fashion, from designers to large groups. What future for Made in Italy?

/ Leave a Comment
Reading Time: 4 minutes

When sustainability becomes a buzzword and growth remains the real goal


We have just followed the 30th Pambianco Fashion Summit. Once again, sustainability was the magic word everyone loved to repeat. But immediately afterwards came the true priority: growth. Always growth.

In this panel, ultra-fast fashion from China plays the villain, while Northern European fast fashion receives applause. After all, H&M is on stage to explain circularity.

And so the question returns, louder after every panel:
What haven’t these CEOs, presidents, managers, founders and the rest understood about the meaning of sustainability?
Because the more they say it, the more the word sounds like a joke.

Consumers want authenticity—so why is fashion still pretending?


Erika Andreetta (PwC Italy) highlights what already seems obvious:

  • People want reliable, transparent, consistent brands. In short, authenticity.
  • They seek alignment with cultural values.
  • Second-hand is growing three times faster than traditional fashion.
  • Outlet shopping is growing five times faster.
  • Value matters: products aligned with personal values, at the right price.
  • Brands still produce too much—and don’t sell their overproduction.
  • Multi-brand stores have become the places where people actually look for something new.

As for European fashion, the disillusionment is generational:

  • Young people don’t see originality.
  • Baby boomers have other priorities.
  • Gen Xers find prices unjustifiable.

Fashion listens, but selectively.

Pambianco Fashion Summit: Sburlati, “a system under attack”


According to Sburlati (Confindustria Moda), the fashion ecosystem is under pressure on three fronts:

  1. From the East: exports down 3%, imports up 5%, fueled by China (+18%).
    Postal packages under €150 pay no customs duties or VAT—an obvious distortion.
  2. From the West: a weak dollar, double tariffs in the US, and a push for local brands.
  3. From within: a fragile Italian market.

Sburlati came to a dramatic conclusion:

“We are on the brink of collapse and risk ending up like the automotive industry.”

Capasa (CNMI): the luxury narrative is shifting


A negative narrative surrounds luxury — one that started in China.
Proposed solutions include:

  • An anti–fast fashion law with tariffs across the board.
  • A French-style approach: taxes on packages and a ban on misleading advertising.
  • Support for new businesses at a time when more are closing than opening.

Capasa adds a point on young consumers: “Young people are all environmentalists. We must explain to them that fast fashion is not. We need to explain the value of quality and creativity.”

And then… H&M entered the room


This is where the contradictions become glaring.

The industry complains — rightly — about Chinese ultra-fast fashion. However, it then invites H&M, a symbol of Western fast fashion, to discuss circularity and therefore “sustainability.”

So yes, we ask again:
What exactly have these leaders failed to understand about sustainability?
Can a brand built on overproduction ever be sustainable?
Because every time fast fashion is framed as “sustainable,” we’re entering the realm of greenwashing.

E-commerce


Another point raised: a shift in digital strategy is necessary.

  • Over 60% of brands are not ready.
  • Yet today, 80% of sales involve a digital touchpoint.

Clothing & sustainability

  • The idea of more durable, timeless garments is gaining traction — pieces suitable for multiple seasons and less overconsumption.
  • 54% of products are sold on sale. The second month of sales is the strongest — meaning consumers wait for the sales of the sales.
  • Millennials (28–44 years old) spend more — around 36 items per year.
  • Clothing is losing value; personal care and beauty are more engaging.
  • Women continue to consume a lot, but above all, they remain tied to fast fashion.
  • Gen Z is starting to think about quality, longer-lasting pieces, and niche products.
  • Young people are the demographic most sensitive to sustainability — but garments should not cost more than their traditional counterparts.
  • Gen Z wants clarity: What is a sustainable garment?
    A simple question the industry will probably never answer. But we do — you’ll find the answer in This Is Greenwashing here.

Final thoughts


In conclusion, the 30th Pambianco Fashion Summit analysed fashion, from designers to large groups, and attempted to explore what the future holds for Made in Italy.

If sustainability continues to coexist with an obsession for infinite growth, with overproduction, with contradictory narratives, the word will lose all meaning.

Until the industry stops applauding whoever says “circularity” the loudest and starts reducing — truly reducing — its impact, these summits will remain conversations about sustainability without actual sustainability.

Pambianco Fashion Summit: thirty years of fashion, from designers to large groups. What future for Made in Italy? Read More »