“Made in Italy” makes its mark in new markets.

By

Dominique Muret

Published
Jun 3, 2014

Again this year, the Italian employers’ federation Confindustria and research consultants Prometeia have published “Exporting la Dolce Vita”, a report examining potential export opportunities in new markets for businesses, particularly Italian businesses, with respect to their high-quality “Belli e Ben Fatti” (BBF) goods. The report covers mid- to high-end goods (but excludes the luxury segment) in sectors including apparel, home textiles, shoes, eyewear, and jewelry, gold and silver.

According to the study’s estimates, exports of BBF products by Western countries to the 30 largest new markets will go from 146 billion euros in 2013 to 212 billion in 2019, an increase of 66 billion euros and a 45% jump in six years.

Russia, the UAE and China will continue to be the top three markets. In total, these three countries will buy 69 billion euros’ worth of BBF products in 2019, a third of all imports in the new markets. The report indicates that Asia will remain the fastest-growing region, with a 57% increase in imports over six years.

Italian companies are expected to capture 4.8 billion of the 66 billion euro increase in 2019. In these new markets, Italy holds an 8% market share in the BBF segment. The study’s authors estimate that this percentage will take Italian exports in the sector up to 16.6 billion euros in 2019, as compared with 11.8 billion in 2013, for a 41% increase.

Of the 212 billion euros projected for exports of BBF products to new markets in 2019, 72 are attributable to clothing and home textiles, 20 to shoes, 16 to jewelry, gold and silver, and 3.3 to eyewear.

Exports of Italian BBF apparel to these 30 new markets will go from 3.5 billion euros in 2013 to 4.7 billion in 2019, with a 38% increase in demand from Russia. Exports of “Made in Italy” shoes will reach 2.1 billion euros, with an increase from 271 million euros to 641 million euros in the Russian market over six years.

During the same period, Italian eyewear exports will grow from 508 to 800 million euros, with Latin America reflecting the greatest part of the increase. Finally, imports of Italian BBF products in the jewelry, gold and silver sector will expand by about 1 billion euros, to reach 3 billion in 2019. This is thanks to an additional 620 million euros of exports to the UAE and another 229 million to China.

The export potential for “Made in Italy” products is enormous. And it’s all the more so because, according to the report, these new markets will be home to 202 million additional well-off inhabitants in 2019 as compared to 2013. This burgeoning middle class will earn an average annual income of 30,000 dollars (21,500 euros).

Half of them will live in China, India and Brazil, but the number of well-off households will also grow in countries closer to Italy and France, such as Russia, where Confindustria and Prometeia estimate there will be an additional 5 million such households in 2019.

As for global exports of Italian fashion accessories (shoes, leather goods, gold and silver, eyewear and furs), FIAMP, the Italian Federation of Fashion and Personal Accessories, announced overall growth in all markets of 8.1% for 2013 by comparison to 2012, up to 23.1 billion euros. This is in keeping with 2012’s 8.7% increase over 2011.