Loro Piana Expanded Vertical Manufacturing Reach
The luxury brand strengthened its supply chain through the 2026 opening of a knitwear plant in Ghemme, Italy.
Updated on Oct. 1, 2026 in Business Strategy
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Loro Piana, a luxury fashion house founded in 1924 and acquired by LVMH in 2013, has deepened its commitment to vertical integration. This operational strategy culminated in the inauguration of a new knitwear plant in Ghemme, Italy, in September 2026.
Why it matters
By keeping manufacturing processes in-house, the brand aims to maintain rigorous quality control and reduce dependence on third-party suppliers. This approach preserves the company focus on craftsmanship while mitigating risks associated with hidden subcontractors.
The company maintains vertical integration by operating its own spinning mills and weaving departments. These assets support production cycles fed by raw materials sourced globally from Mongolia, Australia, New Zealand, and Peru.
The players
Frédéric Arnault
He serves as the CEO of Loro Piana and oversees the brand's strategic direction under the LVMH portfolio.
LVMH
This French multinational conglomerate is the parent company that acquired Loro Piana in 2013 to expand its luxury goods division.
Loro Piana
Founded in 1924, this Italian luxury goods company specializes in high-end textiles and apparel using materials like wool and cashmere.
The details
Loro Piana has focused on bringing specialized skills in-house, including a recent acquisition of a firm dedicated to the ironing of precious knits. The company continues to operate without relying on celebrity ambassadors in its advertising, instead highlighting its internal manufacturing capabilities and material sourcing.
Timeline
Loro Piana was founded in Piedmont in 1924.
The brand began producing garments under its own label during the 1980s.
LVMH completed its acquisition of Loro Piana in 2013.
A new knitwear plant in Ghemme was inaugurated in September 2026.
A flagship store is scheduled to open in Tokyo in October 2026.
Market Landscape
Loro Piana's move to tighten control over its supply chain reflects a broader trend among ultra-luxury houses to insulate production from external manufacturing volatility. This positioning emphasizes superior craftsmanship as a differentiator in an increasingly consolidated luxury market.
Consumers can expect the brand to maintain high price points and exclusivity by avoiding celebrity-driven marketing in favor of quality-focused campaigns. While the brand expands its physical footprint into new flagship stores like the one in Tokyo, the core product remains tied to its Italian manufacturing heritage.
The takeaway
Vertical integration allows luxury brands to bypass the risks of third-party supply chain failures while reinforcing their reputation for authentic craftsmanship. For consumers, this strategy translates into a consistent, if expensive, standard of quality across all product lines.
Further reading
Learn more about corporate operational shifts in our Business Strategy section.
Source note: This article includes information reported by South China Morning Post.
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