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

MILAN — The Italian fashion sector is on monitor for a comprehensive restoration, as recommended by the greater-than-anticipated 22.6 p.c soar in 2021 revenue compared to 2020. But developing pressure on the base line from improved uncooked materials and vitality prices, as effectively as the Russian-Ukrainian conflict dampening client self confidence and balance, are looming.

That was the outlook delivered by Cirillo Marcolin, president of sector affiliation Confindustria Moda, on Thursday. According to figures introduced by the organization, the sector posted product sales of 91.7 billion euros previous yr, an boost of 16.7 billion euros on 2020 but nonetheless 6.3 percent below 2019 revenues.

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“Data suggest that the manner program is out of the pandemic-associated quagmire, with some sectors even bettering in comparison to 2019,” including jewellery and eyewear, Marcolin claimed.

A equivalent development was highlighted by Sistema Moda Italia, the consortium of Italian manner and textile companies, which posted product sales of 52.9 billion euros in 2021, up 18.4 percent compared to the yr prior.

Confindustria Moda mentioned exports of Italian vogue products jumped 23.5 p.c past 12 months to 67.5 billion euros, with France, Germany, China and the U.S., between the ideal-accomplishing importers.

Basic supervisor Gianfranco Di Natale highlighted how the U.S. showed “impressive acceleration” in contrast to largely flat progress above the past two many years. At the exact time, exports to the U.K. lowered 10.2 percent last 12 months, signaling the impact of inflation on shopper usage there.

While figures for the 1st quarter of 2022 were being still being gathered, a study carried out among the its associated firms authorized the group to forecast that like-for-like revenue will improve 19.3 per cent in the quarter. “The development in the initial quarter has exceeded our anticipations and proved our organizations have been resilient and a top pressure of the Italian financial state,” Marcolin explained.

The similar survey highlighted an expected slowdown in income expansion for the 2nd quarter, when the impression of the Ukrainian conflict is remaining felt much more broadly and revenue should really enhance 12.9 p.c on a equivalent basis.

“There are shadows on the horizon, which include the Russo-Ukrainian conflict, which leaves us with no apparent answers on foreseeable future prospective clients, as properly as a quantity of issues this sort of as energy and raw elements expenses, that are impacting the sector as a full,” Marcolin stated.

According to Confindustria Moda, exports to Russia and Ukraine amounted to 1.72 billion euros in 2021, representing 2.5 % of total exports and down 3.1 percent compared to 2019.

Even though Marcolin contended that the sector’s general publicity to the area is reasonable, he underscored how some districts and solution categories are particularly influenced by halted business enterprise.

The renowned footwear hub in the Marche region, as properly as garment suppliers in Veneto, are amid the most pressured. Confindustria Moda believed that 3 per cent of Italian manner firms produce more than 50 % of revenues in Russia and 11 % involving 10 and 50 percent.

“We have constantly supported the establishments and the govt on sanctions simply because we firmly consider that they can help spearhead a peace offer,” he reported. “The context is specifically complex right now, and despite recognizing that sanctions are impacting some of our linked organizations, we just cannot enable but sympathize with afflicted populations living a humanitarian crisis.”

Even so, the ripple result of the war is remaining felt throughout the sector, impacting charges and denting shopper confidence globally. According to the survey conducted by the organization, 49 percent of manner enterprises be expecting second-quarter sales to continue to be flat compared to the former quarter, whilst 43 % of them forecast a deterioration in their efficiency.

The conflict, as effectively as the stop-and-go lockdown method in China, “pose the danger of vanishing the article-pandemic rebound, with a opportunity disastrous effect for our firms,” Marcolin stated.

To this conclusion, the govt reiterated the importance of building a supportive society amid the country’s business people to electricity by way of the geopolitical instability and pilot the digitization, internationalization and sustainability of the sector.