European Fashion in the United States. Interview with Torello-Viera

Interview with Paolo Torello-Viera

The United States represents a strategic market for the European textile and fashion industry. However, the market is evolving, and apparel—historically one of the most heavily tariffed sectors in the U.S.—is now facing additional duties introduced in recent years. What is the current situation? What challenges and opportunities exist today for European textile companies in the North American market?

We discuss these issues with Paolo Torello-Viera, a long-time executive in the textile and fashion industry, originally from Biella, Italy, and a resident of New York for the past twenty years.

Today, Torello-Viera serves as President for the Americas at Scabal, the historic luxury and high-fashion brand founded in 1908 and headquartered in Belgium. Throughout his career, he has held management positions at Ermenegildo Zegna, Brioni, Samuelsohn, BVM USA, Pal Zileri, and Lanificio Fratelli Cerruti.

Good morning, Paolo, and thank you for your availability. European fashion and textiles, including Italian luxury fashion, are currently facing challenges overall, yet they continue to enjoy a positive reputation in the United States. Why is the U.S. market strategic for European exports? Which segments perform best, and what are our main strengths?

The European textile industry is undergoing a structural transformation. This is not a cyclical downturn but rather a genuine shift in the industry’s trajectory, characterized by an overall resizing of the sector.

After the post-COVID rebound, production volumes and revenues have been declining since mid-2022, due both to weaker demand—linked to the reduced purchasing power of European consumers—and to increasing international competition and low-cost imports from Asia.

Europe’s textile trade balance is deteriorating, and after the significant slowdown of 2024–2025, which followed a contraction already underway since 2022, there has been no real rebound in 2026. On one hand, the Premium/Luxury segment has shown relative resilience but is no longer growing as it once did. On the other hand, the rise of “Ultra-Fast Fashion” is placing strong pressure on European textile manufacturers in terms of pricing, production lead times, and product turnover. All of this is happening in a context where small businesses and micro-enterprises still dominate, particularly in Italy, making it difficult to absorb market shocks.

In such a scenario, the United States can certainly represent a strategic market and a major commercial opportunity for European fashion and textiles. The U.S. is a market where consumers place a strong emphasis on value and brand equity—a market that rewards quality, heritage, and design, and where profit margins are generally higher than in many other international markets.

It is therefore a highly attractive market for an industry that, despite its well-known challenges, continues to be globally recognized for strengths such as quality and craftsmanship, leadership in both accessible luxury and high-end luxury segments, sustainability, design, brand reputation, supply-chain integration, know-how, creativity, and distinctiveness.

The strongest-performing segments for European textile and fashion exports to the United States are:

• High-end womenswear and menswear
• Tailoring and bespoke clothing
• Premium knitwear
• Coordinated accessories (bags, shoes)

 

What are the characteristics of the U.S. fashion market, and how is it changing? How have consumer behavior and sales channels evolved over the years, and how do they differ from the European market?

Today’s American fashion consumer pays close attention to factors such as value, storytelling, brand identity, and the overall shopping experience. From this perspective, they are naturally attracted to historic European fashion brands and the stores that carry them.

Compared to European consumers, American consumers generally have greater purchasing power. However, that spending power is no longer growing at the pace seen in the past and is increasingly accompanied by a more cautious and selective approach to purchasing decisions.

The U.S. market is changing. Traditional department stores are declining, while Direct-to-Consumer (DTC) channels, e-commerce, and branded retail stores are expanding. In this environment, brands are required to exercise greater control over distribution and invest more heavily in omnichannel strategies capable of integrating physical and digital sales and customer service channels.

From a commercial standpoint, demand in the high-end segment remains highly resilient. The luxury market is performing better than the European domestic market, and there are particularly interesting opportunities for fashion brands in several growing markets, especially Miami, Dallas, and Atlanta.

 

We briefly touched on tariffs earlier. What direct and indirect impact are the additional tariffs introduced by the U.S. government in 2025 having—and likely to have—on European textiles and fashion in the United States?

The tariff situation is evolving, and the details of U.S. measures have changed several times. However, apparel has historically been among the most heavily tariffed sectors in the U.S. market, and it is clear that additional tariffs on top of existing ones would create further challenges for companies exporting textile products to the United States.

The direct impact concerns the sales of European products in the U.S. market. However, there are also indirect effects on the European textile and fashion industry, including increased pressure on margins, pricing, and visibility throughout the supply chain, a slowdown in global trade, a reallocation of sourcing activities, and greater competitiveness from Asian manufacturers—who are also affected by U.S. tariffs—in European and Mediterranean markets.

As an experienced textile executive and a deep observer of both European and American markets, what advice would you give to European textile and fashion entrepreneurs looking to succeed in the United States?

The winners will be the companies capable of combining distinctive positioning, a strong supply chain, commercial discipline, and technological capabilities.

Based on what we have discussed, I would offer the following recommendations to European textile and fashion entrepreneurs interested in the U.S. market:

• Strengthen direct market presence (expand branded retail operations and reduce reliance on intermediaries);
• Reassess pricing and costs (factor tariffs into pricing strategies and evaluate localized production opportunities);
• Invest heavily in brand building and storytelling (emphasizing supply-chain transparency, craftsmanship, and sustainability);
• Segment the offering carefully (at the moment, strengthen the top end and avoid the mid-market segment, which is more vulnerable; compete on value rather than price, since the most critical area in the U.S. today is the mid-premium segment, while luxury and high-end categories remain resilient);
• Leverage data and AI (to improve assortment planning, pricing, and marketing, using AI as a support tool rather than a replacement).

As President for the Americas at Scabal, what initiatives are you promoting to strengthen the presence and success of this historic European luxury brand in the United States?

Among the many initiatives underway, I would particularly like to mention one that I believe perfectly illustrates the importance of cultural brand enhancement and the ability to offer customers engaging and inspiring experiences.

I am referring to our project, Dalí Beyond Time: Fashioning the Future.

The project began with the rediscovery of twelve paintings by Salvador Dalí. These works had been commissioned by Scabal in 1971, and in them Dalí envisioned the wardrobe of the man of the twenty-first century.

After being restored in 2024, the paintings became the foundation not only for exhibitions and public displays but also for a major collaborative project involving the Fashion School of Kent State University and the Peg’s Foundation in Hudson, Ohio, as well as B&B Italia in New York.

Top students and young designers drew inspiration from Dalí’s paintings to create new high-fashion designs. Scabal also developed a collection called Vision, entirely inspired by the works of the great artist.

Dalí Beyond Time: Fashioning the Future is a project that is particularly close to my heart, and one that I would very much like to bring to Europe as well—especially to Italy, if I may indulge in a little national pride.