Sales of Italian Fashion Jump 22.6 Percent in 2021, but Geopolitical Instability Looms


MILAN — The Italian vogue sector is on keep track of for a entire recovery, as instructed by the greater-than-envisioned 22.6 p.c leap in 2021 income in contrast to 2020. But escalating force on the bottom line from increased raw material and energy expenditures, as very well as the Russian-Ukrainian conflict dampening client confidence and stability, are looming.

That was the outlook offered by Cirillo Marcolin, president of business affiliation Confindustria Moda, on Thursday. In accordance to figures offered by the corporation, the sector posted sales of 91.7 billion euros last 12 months, an enhance of 16.7 billion euros on 2020 but nevertheless 6.3 per cent below 2019 revenues.

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“Data propose that the style method is out of the pandemic-related quagmire, with some sectors even improving in contrast to 2019,” including jewellery and eyewear, Marcolin reported.

A similar development was highlighted by Sistema Moda Italia, the consortium of Italian trend and textile firms, which posted sales of 52.9 billion euros in 2021, up 18.4 p.c as opposed to the year prior.

Confindustria Moda said exports of Italian style items jumped 23.5 percent very last year to 67.5 billion euros, with France, Germany, China and the U.S., between the best-performing importers.

General supervisor Gianfranco Di Natale highlighted how the U.S. confirmed “impressive acceleration” in comparison to primarily flat progress over the earlier two decades. At the exact same time, exports to the U.K. reduced 10.2 p.c final year, signaling the impact of inflation on customer usage there.

Even though figures for the to start with quarter of 2022 have been nonetheless getting gathered, a survey carried out between its affiliated companies authorized the group to forecast that like-for-like product sales will increase 19.3 p.c in the quarter. “The development in the 1st quarter has exceeded our expectations and proved our organizations ended up resilient and a leading drive of the Italian economic climate,” Marcolin mentioned.

The same study highlighted an expected slowdown in profits advancement for the next quarter, when the impression of the Ukrainian conflict is remaining felt far more broadly and income really should maximize 12.9 p.c on a equivalent foundation.

“There are shadows on the horizon, such as the Russo-Ukrainian conflict, which leaves us without having clear responses on future prospective buyers, as perfectly as a quantity of challenges these as strength and raw supplies expenses, that are impacting the sector as a total,” Marcolin claimed.

According to Confindustria Moda, exports to Russia and Ukraine amounted to 1.72 billion euros in 2021, representing 2.5 percent of full exports and down 3.1 percent as opposed to 2019.

Though Marcolin contended that the sector’s all round publicity to the area is reasonable, he underscored how some districts and merchandise classes are particularly afflicted by halted company.

The renowned footwear hub in the Marche area, as perfectly as garment suppliers in Veneto, are amongst the most pressured. Confindustria Moda believed that 3 p.c of Italian manner firms create more than 50 p.c of revenues in Russia and 11 per cent involving 10 and 50 %.

“We have generally supported the institutions and the governing administration on sanctions simply because we firmly imagine that they can assistance spearhead a peace offer,” he explained. “The context is notably elaborate ideal now, and despite realizing that sanctions are impacting some of our linked corporations, we can’t enable but sympathize with influenced populations residing a humanitarian crisis.”

Nonetheless, the ripple effect of the war is getting felt throughout the sector, impacting expenditures and denting shopper self-assurance globally. In accordance to the study done by the business, 49 % of fashion enterprises count on next-quarter income to continue being flat as opposed to the previous quarter, while 43 p.c of them forecast a deterioration in their general performance.

The conflict, as effectively as the quit-and-go lockdown strategy in China, “pose the hazard of vanishing the publish-pandemic rebound, with a potential disastrous effect for our providers,” Marcolin reported.

To this close, the executive reiterated the relevance of building a supportive lifestyle amongst the country’s business people to ability via the geopolitical instability and pilot the digitization, internationalization and sustainability of the sector.


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