Having moved from Italy to Switzerland in 1977, the company is now making the journey back 48 years later, as production in Italy proves to be more cost-effective. Consitex SA, based in Mendrisio and part of the Ermenegildo Zegna Group, has decided to relocate its cutting department to its production site in Oleggio (Novara).
Zegna’s about turn
The Zegna Group has announced a “reorganisation of its production structure”. In other words, its subsidiary Consitex will transfer the cutting department from Mendrisio (Canton Ticino, Switzerland) to Oleggio (Novara). The transfer is set to be completed by the end of 2025. The Italian luxury group justifies this decision by citing the “continuous rise in the minimum wage in Canton Ticino and the current exchange rate of the Swiss franc” (source: Il Giorno). This move, however, will not be without consequences. It will result in a “redundancy programme affecting around 80 employees” who will have to decide whether to relocate or accept a severance package.
What remains in Mendrisio
The Zegna Group states that the Mendrisio facility will continue to play an important role in bespoke tailoring, prototyping, and sample production. Around 700 employees will remain in Canton Ticino. Corriere della Sera recalls that in 1977, Zegna was one of the first fashion brands to move production from Piedmont to Ticino to cut labour costs by 25%. Now, 48 years later, Zegna is bringing part of its production back to Italy to save 30%. According to the Swiss trade union UNIA, the rise in the minimum wage is not the main factor. Instead, the key reasons are the euro-franc exchange rate and, above all, the “legal requirements surrounding the Made in Italy label”. This means that part of the production must be carried out in Italy (source: areaonline.ch).
Discussing it in our monthly issue
The situation in Switzerland’s “fashion valley” will be examined in detail in the upcoming April 2025 issue of La Conceria. Business associations, trade unions, and university professors will provide insights into what is happening in Canton Ticino.
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