The head of luxury goods research at Bernstein, Luca Solca (pictured), has said that, although recent financial results have dampened optimism, supply chain partners that offer high-value materials or products and good service can still be confident of doing well. By Leatherbiz.

He went on to explain, however, that this does not mean they have to be big.

“I believe success in the luxury industry is based on ability to innovate,” he said at the Milano Unica exhibition on July 9. “Suppliers need to be strong in research and development, but small companies can also achieve this strength by teaming up.”

He argued that major luxury groups based in France had relocated some of their production to Italy because they had found excellent suppliers there. “Here, we have small companies that excel in leathergoods,” Luca Solca said.