Inside a factory in a small town just outside Florence, the workers on the Stefano Ricci production line are trying hard to keep up with demand. Crocodile leather shoes and belts, silk ties and silverware are all made by hand, many of them destined for the Chinese market.

In his office above the factory floor, CEO Niccolò Ricci - one of founder Stefano Ricci's sons - tells me that he "can't take credit" for the company's strong links to China. He says he was "still in high school" when his father first spotted China's potential in the early 1990s.

Ricci explains: "He talked to me and my brother and he told us: 'kids, I just came from one country where I was very, very impressed about the speed of how everybody was walking. So I believe this is the country where we have to invest for our company because I'm sure that in the future they will lead the future of the economies around the world,' and that's how everything started," said Ricci.

Since then, the brand has opened boutiques in Beijing, Shanghai, Hong Kong and several other Chinese cities. It's been described as the outfitter for the "0.001" percent, selling suits, bags and homeware with dizzying price tags.

Made in Italy, sold in China

For Italian fashion brands including Stefano Ricci, the official 'Made in Italy' label has been a key part of their marketing push into China over recent decades.

‌"Chinese consumers appreciate Italian products for their artisan quality, the workmanship, good taste, the style, the aesthetic that we call 'the Italian sound,' which is inspired by the Italian lifestyle," said Stefano Recati, a Professor at the European School of Economics Florence.

Different countries in Europe have varying rules but companies marketing their products as 'Made in Italy, 100 percent' have to design, produce and package them on Italian soil. The government in Rome is now exploring reforms to the protective framework, including plans for a sovereign wealth fund.‌

Cooling off?

‌When we visited Ricci headquarters, CEO Niccolò Ricci was bullish about China's future as a market for his company's high-end products. However, there are increasing signs the global luxury sector is starting to cool off after bouncing back from the coronavirus pandemic.

In May, shares in luxury giants LVMH and Kering, which owns Gucci, dipped substantially. According to a recent report from the U.S. bank J.P. Morgan, luxury shoppers in the U.S. and Europe are "tightening their purse strings." It says this is "partly because consumers are using up the excess savings they accrued during the pandemic."

However, the bank's analysts believe "the return of the Chinese consumer looks set to be a huge boon for the luxury industry."

So while Stefano Ricci's super wealthy clients in China might not have to tighten their crocodile leather belts immediately, the sector itself is not completely isolated from a weakening global economy.

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