Editor’s Note
Amid global economic headwinds, the luxury sector is finding pockets of resilience. As this report highlights, Italy stands out with exceptional confidence for 2026, with its industry leaders far more bullish on revenue and profit than the global average.
Against a backdrop of global geopolitical turmoil, trade tensions, and slowing demand, the luxury industry is cautiously optimistic about 2026. Italy, in particular, emerges as one of the most confident markets. The report states:
Deloitte’s data shows that 84% of Italian fashion and luxury industry executives expect revenues to remain stable or grow, significantly higher than the global average (66.9%). Profitability expectations also remain optimistic: 70% of executives anticipate operating margins will hold steady or improve, aligning with the international trend.
This study, conducted among 420 executives from ten countries, paints a picture of an industry entering a phase of strategic consolidation after years of rapid expansion. The key is pragmatism: growth remains important but must be accompanied by discipline, selective investment, and an increasing focus on efficiency.
Despite a slowdown in growth over the past two years, China still holds a significant place in executives’ expectations: 19.3% of executives predict China will continue to be the primary driver of global demand in 2026. Japan, the Middle East, and the Asia-Pacific region follow closely, with India ranking third, confirming the trend of increasingly diversified growth geographies.
Looking at segments, the focus is increasingly shifting towards experiential consumption. Tourism remains the sector with the brightest growth prospects, while expectations for beauty, apparel & footwear, and jewelry are more moderate. Forecasts for watches, leather goods, and fine dining are more conservative.
Artificial Intelligence stands out among the key transformation drivers identified in the report. In Italy, 30% of executives view it as a strategic lever, in line with the global average. However, large-scale adoption of AI remains limited: only 6% of Italian companies report having integrated Generative AI (GenAI) into their most critical functions.
AI is primarily seen as a tool for product and design innovation, marketing and advertising, customer interaction, and supply chain optimization. The jewelry, watchmaking, and apparel sectors are most sensitive to this issue, as the balance between creativity, technical complexity, and speed of execution is particularly crucial in these fields.
Looking at strategic priorities for 2026, Italian executives list business growth and enhancing financial resilience as top objectives. This fosters a “robust” development model where the quality of expansion is as important as its scale.
The most frequently cited growth drivers are customer experience and loyalty (38%), followed by innovation (20%), digital acceleration (18%), entry into new market segments (14%), and expansion through M&A or brand extensions (10%). These figures confirm that customer relationships and brand consistency remain paramount in an increasingly competitive market.
Regarding investments, 2026 is not expected to be a year of aggressive expansion. 36.2% of executives anticipate a reduction in capital expenditure, prioritizing efficiency gains. Price adjustments are considered one of the main tools for financial stabilization, particularly in Italy.
Resources will be concentrated primarily on marketing and brand positioning, digital transformation, and omnichannel strategies, aiming to create a seamless experience between physical and digital channels while maintaining stores as relationship hubs.
A notable finding relates to talent: Italy ranks first in investment priority for talent, culture, and organizational readiness (24%), well above the global average. This reflects the need to support technological transformation with corresponding skills and new managerial talent pools.
Meanwhile, sustainability remains a strategic pillar. Italian executives point to reducing environmental impact, the circular economy, and compliance with reporting regulations as key areas. Globally, material innovation and supply chain transparency are driving the transition from “conscious luxury” to “conscientious luxury,” capable of balancing appeal, responsibility, and credibility.
In short, 2026 will be a year of rebalancing for the fashion and luxury industry: less pressure for expansion and more focus on value, brand distinctiveness, and robust development. And Italy, in this context, solidifies its position as one of the most confident and strategically prepared markets.
Ida Palombella, Deloitte Global Fashion & Luxury Leader
