Underreported: Give us Armani

Thursday, March 26, 2009

Italy is the second largest exporter of clothing in the world and the nation's fashion industry employs some 800,000 people. Much like the rest of the global economy, the industry is hurting. The solution? The Italian government is offering financial help to its fashion houses in the form of a bailout. Lauren Sherman is a reporter for Forbes magazine.


Lauren Sherman

Comments [3]

Patrick Courtney from New York

Great job, Lauren!

Mar. 26 2009 03:56 PM
Peter Joseph from New York City

Any reaction to the Mafia influence shown in "Gommohra"?

Mar. 26 2009 01:56 PM
Anonymous from NYC

I have experience working with italian factories. One of the ways that Italy could help it's italian manufacturers would be for it to change it's tax structure. To buy italian fabrics and yarns and make the clothes in an italian factory is unnecessarily expensive due to taxes. You pay Value Added Tax for goods that are shipped within the EU. Often, if you are italian, you can work around this bureaucracy (i suspect). However, if you are from a country outside of the EU the cost of materials alone adds 20% and then if you sell to a store in the EU there is another 20%. In order to have the privilege to import goods and get the "VALUE ADDED" part of the tax you need to employ an italian fiscal representative. This is very difficult to find a good deal and the prices range from $5000- $25000 per year. Without this service, it is almost impossible to export or import materials and finished goods. Italy is about to loose their famous skilled labor force because of that. Many factories are going out of business. I am fine with spending 20% more for italian quality, but i have issues with paying 40% to the italian government for this privilege.

Mar. 26 2009 01:10 PM

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