Italian fashion is one of the main pillars of the industry globally. In this article, we will explore the world of apparel franchising in Italy, focusing on new emerging trends.
History of clothing franchising in Italy
Italy’s first franchise network saw the light of day in the 1970s, when the company Gamma d.i. gave the opportunity to open franchise stores to those who provided capital of 25-30 million liras, a sales space of at least 350 square meters and a single warehouse license.
Since then, franchising has gradually spread across the country, becoming a popular business model in the Italian fashion scene.
However, it was not until 2004 that the legislative gap regarding the subject was filled. Law 129 of May 6 provided for specifying the contents and minimum duration of the franchise contract, as well as the obligations of the franchisor and franchisee and possible penalties for contractual violations.
Where does apparel franchising stand in Italy?
According to the Assofranchising Italia 2023 Report, there has been growth in the franchising industry in Italy in 2022. In particular, the apparel sector was the second largest contributor to overall turnover, with as much as 7.5 billion euros in sales.
Despite progress in recent years, Italy continues to lag behind the European average in the number of outlets and businesses operated through franchising.
The lengthy paperwork required to open a store, the high tax burden and the credit crunch problem are among the biggest challenges for entrepreneurs, especially considering that many of them are young or inexperienced.
Trends in clothing franchising in Italy
In apparel franchising in Italy, there is a growing interest in sustainability, customization and technological innovation in order to meet new customer needs.
Sustainability
The urgency of climate change and its associated challenges have made consumers more attentive to the environmental and social impact of their purchases. As a result, franchise brands are increasingly investing in environmentally sustainable products and responsible production practices.
Customization
Customers are looking for unique products that can reflect their individual style. Therefore, franchises that offer customization options and create memorable customer experiences through in-store events, loyalty programs, and high-quality customer service are becoming increasingly successful.
Omnichannelality
New technologies are changing the shopping experience in apparel franchising. The most popular brands are those that integrate their online and offline operations, offering services such as click-and-collect and in-store pickup to ensure a seamless, omnichannel customer experience.
Brand franchise of trendy clothing in Italy
Let’s take a look together at 4 franchise brands that are emerging as innovative leaders in the fashion industry in Italy and the requirements needed to affiliate.
Newfoundland
Terranova is a fast fashion brand that is growing rapidly. Currently, its collections of men’s, women’s and children’s clothing and accessories can be found in 40 countries around the world with 537 stores, both direct and affiliated.
To open a Newfoundland store, you need to have a good knowledge of the local market, entrepreneurial spirit and investment ability. In addition, in order to obtain the affiliate contract, which has a maximum duration of 8 years, it is not necessary to have experience in the retail sector.
Regarding practical requirements, Newfoundland requires:
- a venue located in shopping malls or historic centers of cities with a population of 80,000 or more;
- A sales area between 550 and 750 square meters with a warehouse, preferably indoor, between 120 and 200 square meters in size;
- An initial investment of about 450 euros per square meter;
- A guarantee by bank deposit or bank surety, with a minimum amount of 120,000 euros.
Camomile Italy
Camomilla Italia is an Italian brand specializing in the sale of women’s clothing, accessories and handbags. Currently, it has more than 200 stores throughout Italy.
The requirements to open a Camomile store is are:
- a location in an urban center with a population of at least 20,000 or in major shopping centers;
- A sales area of at least 120 square meters with two lighting points;
- an initial investment in furniture is about 350/400 euros per square meter;
- A bank guarantee in favor of the goods;
- An insurance policy on the goods.
Reasons
Another brand of women’s clothing, accessories and shoes to watch out for is Motivi. Currently, it has a presence in 40 countries, 37 capitals and 350 cities around the world. In Italy alone, it has 600 single-brand stores located on the main streets of Italian cities and in major shopping malls.
To affiliate with Motives are required:
- 120 sq. m. location;
- A catchment area of 35,000 inhabitants;
- An investment of 250 euros per square meter for furnishings;
- A bank guarantee of 50,000 euros as security.
BluKids
Blukids is a good option if you plan to invest in children’s fashion. This brand owned by OVS Spa offers clothing, footwear, underwear and accessories for the 0-15 age group. It currently has 330 stores in Italy and abroad and 300 corners in Upim stores.
To obtain the BluKids affiliation contract, which has a maximum term of five years, you need:
- a room with an area of at least 150 square meters in the historic centers of cities with a population greater than 15,000 or in shopping centers;
- an initial investment of 250 euros per square meter (excluding vat);
- A bank guarantee as security.