Italian fashion industry sales expected to grow 20% in 2021 – WWD
MILAN – The Italian fashion sector is recovering faster than expected and this will help the industry get out of the quagmire related to the pandemic unless there is an increase in global COVID-19 cases and a new variant of Omicron. impose new restrictions.
That was the outlook provided by Cirillo Marcolin, president of industry association Confindustria Moda, on Thursday. According to figures presented by the organization, the sector is expected to end 2021 with a 20.6% increase in revenue year-on-year to €90.4 billion – equivalent to a decrease of 7.7%. compared to revenue in 2019. In 2020, the industry lost 23 billion euros, or 23.5% of revenue.
“There’s been positive business at all companies, but it’s not even,” Marcolin said on a Zoom conference call. “I would expect the recovery to be quicker and before 2023, but that remains to be seen,” he suggested.
In the first eight months of 2021 ending August 31, exports grew 26.2% year-on-year to €42.7 billion. This is still 5.1% below pre-pandemic levels, although exports to most international countries are growing in the region by high double digits.
For example, in 2021 exports to the US and China skyrocketed, up 46.5% and 64.6% respectively compared to 2020. After months of losing market share in Hong Kong, the region grew 19.6 %, but not back to the 2019 quota.
“Even as we are seeing a recovery with soaring interest in Made in Italy products across markets, we are still asked to exercise caution, as the pandemic is still ravaging Europe,” noted Marcon.
For the three months ended September 30, according to an interview-based estimate, fashion sales grew 18.1% year-on-year, while orders grew 21.3%.
“Fashion companies are facing many challenges,” says Marcolin. “Although we are left with a pandemic, minus the bad news to come, the health emergency has left its mark on the fashion sector,” he said.
Rising costs of raw materials and energy are causing trouble in the supply chain, and according to interviews Confindustria Moda conducted with 300 of its associates, 70% ItalyFashion companies complain of increased costs and reduced supply and 78% of them believe this will impact the recovery.
To achieve this goal, Marcolin joined his other peers in declaring that size is more important now than ever.
“Small and beautiful is no longer sustainable, the right size is the key to continue to emphasize,” he said.
The CEO is not necessarily referring to the M&A activities – which are taking place at the top of the fashion supply chain in Italy – but rather the associations and assemblages aimed at providing companies with all the means. be better equipped to face future challenges and be prepared once capital from the National Recovery and Recovery Plan is unlocked.
“We will not give funds indiscriminately, they will be channeled into projects and initiatives that promote the digital and sustainable transformation of the sector,” he explained.
When asked about the association’s relationship with the Italian government led by Prime Minister Mario Draghi, he said Confindustria Moda had articulated its recent inquiries around three main pillars, including digitization, sustainability and education. The latter issue is at the heart of an ongoing debate among organizations and industry representatives, who feel that the education system in Italy is not doing enough to prepare the craftsmen of tomorrow. , thereby putting Italian production at risk.
Those requests are in line with comments made by Camera della Moda this week, which asked the Italian government to allocate funds and support measures to train staff and relieve financial pressure on fashion companies. of the country are committed to supporting their workers through welfare initiatives.
https://wwd.com/business-news/business-features/italian-fashion-sector-sales-grow-20-percent-1235008459/ Italian fashion industry sales expected to grow 20% in 2021 – WWD