Breaking the Manufacturing Cage: Italian Luxury Clusters in the Global Fashion Economy

The luxury fashion industry is undergoing a major shift, shaped by digitalization, sustainability, and changing consumer expectations. While historically rooted in craftsmanship and exclusivity, today’s market is increasingly driven by innovation and ethical concerns. This thesis explores how global value chains (GVCs) have evolved in luxury fashion, focusing on Italy’s industrial clusters, particularly the Brenta district and Tuscany, where traditional artisanship faces pressures from globalization and shifting production dynamics. The thesis examines how regionalization and localization can help safeguard artisanal excellence while ensuring long-term competitiveness. It also explores how luxury brands are adapting through digital innovation, sustainability initiatives, and the shift toward experiential luxury. Through case studies, it highlights challenges in value distribution and branding strategies that help Italian clusters retain economic power. Ultimately, this research argues that the future of luxury fashion depends on balancing heritage craftsmanship with modern market demands, ensuring Italy’s luxury districts remain competitive in an increasingly digital and ethically conscious world.