Invisible hands, enduring value: the strategic role of Italian supply chains

Behind every impeccably stitched garment or crafted timepiece lies a supply chain made up of highly specialized SMEs, often family-run, sometimes centuries old. In Europe, and particularly in Italy, this hidden ecosystem forms the backbone of many industries. Competitive advantage in global landscape is not simply about brand equity, it’s about mastery, continuity, and localized know-how passed through generations.

Italy has long specialized in high-end manufacturing niches—ready-to-wear, footwear, leather goods, fine jewelry, cosmetics, eyewear—where its supply chain is second to none. But the system is fragile. Challenges include generational succession, a lack of appeal to younger workers, and limited resources that inhibit investment in training, modernization, or international expansion. These issues are compounded by market volatility: suppliers are often required to be ultra-flexible without volume guarantees, creating structural fragility despite technical excellence.

So how can we preserve this invaluable industrial heritage? A new wave of responsible supply chain integration is emerging:

• Gruppo Florence, for example, has aggregated 37 laboratories across 9 Italian regions, employing over 4,500 people and producing more than 7 million luxury items annually. By building scale without compromising artisanal integrity, Florence is offering a blueprint for systemic resilience.
• In France, initiatives like LVMH Métiers d’Art and Chanel’s Paraffection aim to safeguard and nurture craft excellence through long-term partnerships and equity stakes in ateliers.

Beyond group-driven initiatives, several luxury brands have stepped in:

• Golden Goose in 2022 acquired its sneaker supplier IFT based in Salento to ensure creative and production continuity. Today, Golden Goose outsources around 60% of its production; the rest is produced in house.
• Kering Eyewear in 2025 has invested in Lenti to anchor quality and innovation internally.
• Cartier continues to expand its industrial presence in Italy with a landmark site in Turin and an upcoming facility in Valenza, a historic jewelry cluster.
• Prada Group is actively investing across its supplier network to ensure resilience and traceability. In June 2025, it acquired a 10% minority stake in Rino Mastrotto Group. As part of that transaction, Prada also contributed 100% of Conceria Superior S.p.A. and Tannerie Limoges S.A.S. into Rino Mastrotto, to consolidate its leather processing infrastructure

These initiatives signal a strategic shift: craftsmanship is no longer a mere marketing story. It's a core asset requiring preservation, governance, and long-term investment.

As Europe’s luxury sector navigates new global challenges, protecting its "invisible hands" is not just about safeguarding heritage. It’s about sustaining the future of competitive advantage.

To better understand the role of Italian supply chains in the international landscape we asked Cyrille Vigneron, Chairman of Culture and Philanthropy at Cartier International, who recently joined the SDA Bocconi faculty, to reflect on these recent shifts and share his perspective.

Cartier has made notable long-term investments in Italy, including the Maison’s manufacturing site in Turin, already a benchmark for the jewellery industry, and the upcoming facility in Valenza, located in the heart of one of the world’s most important fine jewellery clusters. In our conversation, we explored the motivations behind these investments, how global players like Cartier are partnering with Italian savoir-faire, and what the future may hold for Italy’s industrial and cultural advantage in luxury production.
 

GL: Cartier has long valued craftsmanship and cultural legacy. What motivated the decision to invest directly in Italian manufacturing sites such as Turin and Valenza?

CV: The decision was made about 20 years ago. With the fast development of jewelry volumes, the strategic move was to balance three countries, France, Switzerland and Italy. First by acquiring key suppliers and then expanding their savoir faire.

GL: Why Turin and Valenza specifically? 

CV: Valenza is a traditional hub for jewelry, with many specialized companies. Turin was a different story. There was no history of jewelry but a strong industrial base developed around automotive. Building a facility in Turin aimed at making the best hybrid of industry and craftsmanship. It worked very well, creating a new jewelry pole in Italy.

GL: What are the main differences — technical or cultural — you observe between France, Italy and Switzerland ?

CV: With watchmaking and other industries, Switzerland has a very strong industrial know-how. France and Italy have strong traditional jewelry know how especially around molding, jewelry, stone setting. Cross fertilising all allows to develop new techniques, improve stone setting on watches or semi industrial spare parts in jewelry.

GL: How can Maisons manage the balance between internal and external manufacturing capacity in Italy?

CV: When there is a robust eco-system like in Italy, the ideal is to master all know-how internally but also to use subcontractors, either for very specific elements (like chains or clasps) or simply capacity. Collective capacity management is more stable and reaches more easily the critical mass needed to invest in new technologies.

GL: What initiatives can support or ‘valorize’ the local ecosystem and know-how — including artisans, SMEs, and training institutions?

CV: As there is a need to attract talent, it is important to develop relationships with universities as well as professional schools, and sometimes create your own, as it has been done in Turin.

GL: In your view, what are the competitive strengths of the Italian luxury supply chain today,  and what are the areas of vulnerability we must address for the future?

CV: The competitive strength comes from the diversity of know-how and the ability to work in ecosystem. The vulnerability comes from the relatively small size of many actors, who have difficulty facing economic shocks, and may not have enough resources to invest and stay performant. Small-sized companies also have more difficulty adapting to the recent CSR obligations.

GL:  Is the Italian ecosystem attractive globally?

CV: It is, beyond the Richemont group. As Jewelry has become an attractive category for Maisons that originated from other sectors like fashion and accessories, the Italian ecosystem is in high demand.

GL: Looking ahead to the next decade, how can Italy retain — or even elevate — its strategic positioning in the global luxury landscape?

CV: The key is to continue to invest in new technologies and learn how to navigate through demand cycles, which have more frequent ups and downs. Jewellery know-how takes time to build and needs stability. A robust ecosystem can provide such stability.

GL: Cartier is often associated not only with products but also with cultural engagement and long-term thinking. How does that mindset influence your approach to building lasting partnerships in territories like Italy?

CV: The decision to invest in manufacturing in Italy was taken 20 years ago and continues. A large part was to build strong relationships with a network of partners, growing together. The major investments in Turin and Valenza aimed at creating state-of-the-art manufacturers, both in technology and sustainability. Both are LEED platinum, using only clean energy. The presence in Italy also included a professional school in Turin, strong relationships with the Politecnico, and cultural presence in Milan, Rome and Venice.