Tod’s and Schiaparelli owner Diego Della Valle on the impact of Trump’s tariffs on the EU, AI’s inability to replace a true ‘Made in Italy’ artisan, and why the shoemaker doesn’t chase trends

Italian luxury tycoon Diego Della Valle has been extolling the virtues of “Made in Italy” since he joined his family company back in 1975, when it was an anonymous firm making quality footwear for luxury brands. He eventually turned it into one of the most respected names in luxury: Tod’s. His global ambitions were clear from day one. After fully taking the reins in 1979, Della Valle named the company J.P. Tod’s (later changed to the simpler Tod’s), believing that the English-sounding name would resonate around the world. Back then, the Marche region of Italy, where Della Valle was born in 1953, was already the epicentre of shoe manufacturing in the country. From leather goods in Tuscany to silk fabrics in Como and gold jewellery in Veneto, Italy is still where most creations from luxury groups such as LVMH and Kering come to life. “Made in Italy” has become a byword for this precious know-how, often romanticised by brands trying to capitalise on the allure associated with Italian craftsmanship and culture. Given his background and family history, it’s no surprise that Della Valle has become a de facto ambassador for “Made in Italy” and a defender of all it represents. Last year, however, the prestige of that label came into question after the Italian government probed some factories making goods for high-end Italian and French brands over worker exploitation and safety. Tod’s is one of the few vertically integrated Italian companies fully in control of its supply chains – it owns its own factories and does not have to rely on large numbers of external suppliers that are not always easy to monitor. “You have to be careful not to demonise a brand just because it’s famous and say things that are not true just for [the sake of] headlines,” says Della Valle. “But [at the same time] when a brand is important and has a strong reputation, it’s not worth making little short cuts that from a financial point of view don’t really help, but from an image point of view can be disastrous. You also have to be careful because this affects the whole concept of ‘Made in Italy’ and its reputation, and journalists end up believing all this and then it becomes more dangerous when it spreads via social media because you can’t control it. Before talking about these things you need to actually visit these companies and not talk from an ivory tower.” While Della Valle is first and foremost known for Tod’s, he is one of Italy’s most celebrated – and wealthiest – industrialists. Parisian shoemaker Roger Vivier and casual footwear brand Hogan are also part of Tod’s Group, while he personally owns French couture house Schiaparelli, which he single-handedly revived. He is also on the board of LVMH – the largest luxury group in the world – and was one of the founders of Italo, a successful high-speed railway company. He’s seen it all, which is why he is very pragmatic about the current crisis gripping the luxury industry, especially in China, where reduced consumer confidence has impacted spending after the success brands experienced during and after the coronavirus pandemic. “The world is constantly changing and things go up and down. We always think it is worse than before, but I do remember being in Hong Kong during the Sars outbreak and the lobby at The Peninsula was completely empty – so it’s not the first time I’ve seen dramatic situations,” says Della Valle in an interview in Hong Kong. “This part of the world is vital; it’s so dynamic and people are full of life and initiative. They have a lot of energy and are fascinated by beautiful things and by Italy. I’m also excited by markets like Thailand – for the local customers and as a tourist destination. For us, it’s very important to add these new pieces to the puzzle.” While China doesn’t seem to keep him awake at night, the resilience of the US, still the world’s largest luxury market, is now in question due to the uncertainty brought by the Trump administration’s threats to impose tariffs on the EU. “With all the issues going on right now, adding so much confusion doesn’t help and is unnecessary,” he says. “Besides, imposing tariffs on a company like Tod’s is pointless because it’s not like they’re going to make shoes or leather goods in the US any time soon. When you think of modern technology, you think of Silicon Valley, but when you think of quality luxury, you think of Italy. When we want to buy a cellphone, we go to US brands – everyone has their specialities.” As a shoemaker and leather-goods specialist rather than a trend-driven brand, Tod’s has been less affected by the ups and downs that many European labels have experienced as luxury consumers become more discerning and focus on quality rather than trends that don’t stand the test of time. Take one of Tod’s most beloved creations – the Gommino loafer – a symbol of the unstudied and effortless approach of Italian style. “Brands that are very strong in fashion and creativity tend to have lots of peaks and valleys and they also [rely too much] on a certain consumer,” he says. “If the consumers are too young, often they propel rapid growth but also tend to abandon you quickly so you have to be careful when dealing with them. We go slower but are more persistent and it’s not just words; when you are really known for quality, it’s not something that fades quickly but it’s about the material and how things are made. So we stay coherent with our gospel, and [stay true] to the Italian lifestyle – Italians have an innate elegance recognised everywhere and it’s not an elegance that you would associate with the red carpet. You can go to a small town in a small province and you see ladies who are elegant just in the way they walk, even farmers in a field, and it’s something that comes from seeing beauty and frescoes and art everywhere you go.” Della Valle also believes that making timeless items that you can keep wearing season after season is inherently sustainable. He explains that plenty of fashion brands would be better off making at least 50 per cent fewer of their seasonal creations, which often don’t sell through and have to be discounted. He is also undaunted by the rise of AI (artificial intelligence) because in a field like luxury, artisans will always reign supreme. “It’s a job based on people’s skills and their hands. Many of these workers have been with us for many years and we wouldn’t be anything without them,” he says. “Without great artisans you can’t talk about quality or innovation, which in our sector often involves rediscovering old techniques. In technology, innovation means looking ahead, but in our field it’s often about looking back, so everything revolves around human beings. Everyone talks about artificial intelligence but I talk about artisan intelligence, with humans at the centre. It’s the sum of the two and they complement each other; they’re not in contrast.” Della Valle takes his responsibility as an employer very seriously. He is aware that every decision he makes as the owner of a major luxury group affects people’s livelihoods. He adds that while as recently as a decade ago working as an artisan in a shoe factory might have been seen as less desirable than a white-collar job, these days young people are rediscovering craftsmanship and are enticed by the lower cost of living in the countryside. “When we show those photos of workers making shoes and all the steps involved in the process, those are just as important, if not more, than photos of our celebrity ambassadors,” he says, adding that they capture the essence of Italian savoir faire and also act as recruitment tools. “Many young people today can’t afford luxury goods because sometimes they’re not priced fairly and are too expensive, but young people love the stories behind these products; there is always a story behind quality products, from the raw materials to the process,” he says. “The young want to hear about it even though they don’t always have the spending power. It’s the same with food. When you have [something as simple as an] aperitivo in Italy, they tell you everything and explain where the salami and bread come from – it’s like haute cuisine. They will tell you about provenance.” As one of the few Italian moguls to have created a luxury group based in Italy by acquiring and reviving French brands, Della Valle stands out in an industry dominated by French groups. For some perspective, Italian powerhouses such as Gucci, Fendi, Bulgari and Bottega Veneta are all French-owned. So why hasn’t Italy been able to build its own LVMH, Kering or Richemont? “It’s almost become an academic question,” he says matter-of-factly. “Why is there no Italy’s LVMH? I’ve been on the board of LVMH for more than 20 years and I’ve seen all the acquisitions and they’ve all been very successful – not just for LVMH but also for those who were acquired, because the companies ended up growing and LVMH also kept the investment in Italy – these companies have prospered after the acquisitions. “Today, LVMH makes so much in Italy and has thousands of workers who are very well treated. The issue is that many Italian luxury companies are still owned by founders, who are often the designers themselves, like Armani, but in France, the groups always focused on quality and creativity but also on finance and marketing, so it was less personal to them. Selling an Italian brand as a family company is more complicated because there is more personal involvement, so there is a romantic aspect. Ultimately, it’s not like LVMH comes and steals the know-how and brings it somewhere else, but these groups keep everything in Italy and invest even more.” In spite of all he has accomplished and achieved for himself and his country, Della Valle has also been a pioneer as a patron of Italian culture by financing a restoration of Rome’s Colosseum back in 2011 – but he is far from slowing down. “Luxury for me as a person is free time, so I have very little luxury in my life because these days you can’t take time to think or listen,” he says ruefully. As for the life and work lessons he lives by, he actually had them emblazoned on his own made-up coat of arms: “Dignità, Dovere e Divertimento”, it reads. Dignity, duty and fun: a call to never take yourself too seriously, even more so while building an empire based on beauty, elegance and quality.