The Italian fashion industry has made a remarkable comeback in 2021 by surpassing its 2019 export level. Carlo Capasa, the president of the National Chamber of Italian Fashion (CNMI), expressed his optimism for the industry during the unveiling of the program for Milan Fashion Week in February. Capasa stated that two-thirds of what was lost in 2020 has been recovered, and he anticipates a return to pre-pandemic levels in 2022.
According to estimates for the first 11 months of 2021, the turnover of the Italian fashion sector, which includes textiles, leather goods, clothing, footwear, jewelry, beauty, and eyewear, is projected to reach 83.13 billion euros. This represents a 20.9% increase compared to the previous year. However, it still falls slightly below the 2019 level, with a decrease of 0.8% from 90.2 billion euros.
The Italian market experienced a slowdown during the summer after significant growth in the first and second quarters. However, it rebounded in the fall, particularly in November, with a growth rate of 31.4%. This recovery can be attributed to the high vaccine coverage rate in Europe.
Inflation was a major concern at the beginning of the year, but it had a minimal impact on the fashion sector in Italy. While consumer goods prices rose by 3.9% in December 2021, fashion product prices only increased by 0.6%, according to data from the Italian statistics institute Istat. Production costs in the country increased by 22.6% over the same period, but the fashion industry saw a modest increase of 3.2%.
The most significant growth has been observed in international exports. Italian leather goods and clothing exports have increased by 16.4%, while jewelry, beauty, and eyewear exports experienced a surge of 39.9%. The Italian Trade Agency (ICE) noted that exports have risen by 6.2% compared to 2019, reaching 67.9 billion euros. Carlo Ferro, president of ICE, highlighted that Italian fashion has seen double-digit growth in seven out of its top ten markets. Particularly noteworthy are the exceptional growth rates of 50.1% in China, 32.8% in the United States, 20.6% in France, and 19.3% in South Korea. The United Kingdom, however, experienced a decrease of 18.3% due to Brexit.
Carlo Ferro emphasized the importance of both immediate and long-term market growth. Italian companies have made progress in nearby markets but have also shown potential in markets such as the United States and Asia. To bolster their international presence, ICE has launched 19 new projects in the last three years, with a particular focus on the digital sphere. They have created 33 virtual showcases on global marketplaces like Amazon and Alibaba, featuring products from 7,000 Italian small and medium-sized enterprises (SMEs).
On the other hand, imports have fallen by 1.7%, mainly due to logistical and supply chain difficulties from non-European countries. Imports from China saw a significant decline of 35%. This decline reflects a potential restructuring of international supply chains in favor of countries closer to Europe.
This positive trade balance is expected to reach 34.4 billion euros for 2021, surpassing the 2019 level of 32.2 billion euros. The trend indicates a notable shift in production relocation within Italy.
Overall, the Italian fashion industry has demonstrated resilience and recovery in 2021, surpassing its pre-pandemic export levels. With promising growth rates in international markets and a focus on digital platforms, Italian companies are well-positioned for continued success in the coming years.
Useful links:
– Italian Fashion Week
– Italian Trade Agency
