I feel like most Italian hifi companies try to play up their Italian heritage a lot and act like they’re in the same league as products that come out of there like designer handbags and leather shoes. (...)
Not to mention they hire and employ the most low paid people in the country, in southern Italy. It’s equivalent to all the entrepreneurs starting up hifi companies in Poland and Romania and other impoverished nations and exploiting the dirt cheap labour there. (Audio Note does this)
Italy does have a penchant for creativity, originality, flair, and refinement as well as a very musical history and a culture where sound greatly matters. (elegance in technical aspects too: don't forget the auto heritage)
People forget that Piamonte, Lombardy, Romagna, etc are highly developed regions loaded with technical and engineering talent, and have been so for many, many decades.
Regarding production in the "developing" countries and regions in Europe don't forget that investment there creates wealth and social development (Think of South Carolina auto plants). This lessens dependence on overseas production on which the West may be a little over reliant. (A single ship gets stuck in the Suez canal and the global supply chain is disrupted).
Witness the postwar rise of Japan with its nurturing technical environment coupled to the low cost of manufacturing.
Let's not forget that income measured in purchasing power parity makes living and producing in an emerging economy very affordable. A subsistence wage in London or Paris plants you in the middle class in the "low cost regions" in Europe.
A speaker may be put together in Italy at much less cost than in Denmark or Norway. Add the Northern Italy penchant for technology, design and craftsmanship, including outstanding cabinet making and the EU wide Single Market and you have an excellent "ecosystem" for Audio to thrive.