Luxury fashion has always been synonymous with exclusivity, prestige and craftsmanship. However, behind the elegance of iconic garments and attention to detail lies an industrial system that today appears increasingly out of step with consumer expectations. High costs, often opaque production processes, materials that are not always in proportion to the price and a complex global supply chain are raising questions about the traditional model.
According to Bain & Company's 2024 report, the operating margins of large luxury brands remain among the highest in the market (up to 19% EBIT - Earnings Before Interestand Taxes), but cost pressures and shrinking volumes are making the system increasingly rigid and unclear¹. In this context, there is a growing demand for more affordable, traceable and authentic alternatives that can solve the problems of the luxury fashion supply chain.

In the luxury segment, the final price can be up to five or six times higher than the industrial cost of a garment. This phenomenon, known as mark-up, includes very high distribution, marketing, retail and margin expenses. According to an analysis by Business of Fashion², mark-ups in luxury can exceed 80%, while in more transparent high-end brands they are between 10% and 20%.

The real issue is not so much the price itself, but the lack of transparency surrounding the real value of what one is buying. More and more consumers are questioning whether a EUR 700 jumper really justifies that amount, especially when the quality of the materials or workmanship is not easily verifiable.

The luxury fashion supply chain is often long, fragmented and difficult to trace: design developed in Europe, raw materials imported, packaging made in third countries, finishing entrusted to Italy or France. This approach, designed to optimise margins, comes at a cost in terms of control, transparency and environmental impact.

The distance between the various links in the production chain makes it difficult to guarantee fair working conditions, constant quality and real traceability. In Italy, too, several journalistic investigations have raised questions about opaque subcontracting and labour exploitation, even in production destined for the big luxury names³.

Made in Italy production remains synonymous with quality all over the world. However, current legislation allows the label to be affixed even if only part of the processing (sometimes minimal) takes place in Italy. Thus, many companies entrust only the final finishing stages to our country, while a large part of the garment is made elsewhere. In this way, craftsmanship is in danger of disappearing. According to CNA⁴, more than 2,000 textile workshops have closed in the last five years, and a shortage of about 75,000 skilled workers in the fashion supply chain is expected in the coming years. The real goal should be to build a sustainable Made in Italy, capable of combining traditional craftsmanship, low environmental impact and controlled supply chains.

1. Short supply chain and direct control

More and more realities are rediscovering the value of the short supply chain. Reducing the steps between those who design and those who produce means:

• improving the quality and control of the garment
• guaranteeing fairer working conditions
• limit waste and environmental impact
• responding more quickly to market needs

Producing locally also makes it possible to give value to the territory and preserve traditional craftsmanship.

2. Natural and traceable materials

The perceived quality of a garment depends largely on the materials. In recent years, the use of natural, organic or regenerated yarns has increased: mulesing-free merino wool, organic cotton, recycled cashmere. According to IMARC⁵ report 2024, about 40% of the raw materials used in European fashion come from certified sustainable sources. This approach not only improves garment performance, but also reduces the environmental impact of textile production, one of the world's most polluting industries.

3. Transparency and technology at the service of traceability

Digital tools such as QR codes, blockchain, digital passports now make it possible to follow the path of a garment from the origin of the yarn to the packaging. Transparency in fashion has become a decisive criterion, so much so that 72% of consumers between the ages of 25 and 40 say they are more inclined to buy from brands that clearly and transparently tell their production process⁶.

Artknit Studios: a short, transparent and Made in Italy supply chain

In this evolving scenario, we at Artknit Studios propose an alternative model to traditional luxury. We were born with the aim of offering quality clothing, made entirely in Italy, at a fair and transparent price. Production takes place in a selected network of artisan workshops distributed throughout Italy, maintaining a special bond with Biella, the historical capital of Italian knitwear. Our supply chain is short, direct and traceable, with no unnecessary steps or intermediaries. We use only natural and certified yarns, such as extra-fine merino wool, GOTS organic cotton and regenerated cashmere. Every detail - from the material to the laboratory that makes the garment - is clearly communicated and verifiable on the website. Our aim is to build an alternative to luxury brands, offering a model designed for those who prefer fashion that is conscious, transparent and destined to last.

The high cost of a luxury product is linked to complex dynamics, which often make the final price far removed from the real value of materials and workmanship. Our approach is different. It is not just about making luxury affordable, but about clearly communicating what costs and choices define the price. We adopt a direct-to-consumer model that allows us to tell every step, every fibre selected, every workshop involved in the creation of our garments. Thus, the price becomes transparent, understandable, justified. And true luxury is no longer just owning something valuable, but knowing where it comes from and how it was made.

The future of high-end clothing passes through production models that are more human, traceable and respectful of people and the environment. While the traditional luxury system remains anchored to a dispersed and unclear model, more and more consumers are looking for alternatives that combine quality, ethics and transparency. We at Artknit Studios deeply believe in this vision: we prove every day that it is possible to produce in Italy, choosing excellent materials and maintaining fair prices, without ever compromising on our values.