All the numbers of fashion in Italy
Full recovery for the fashion sector, which has produced a turnover of 500 billion euros. Investments are struggling, down from pre-Covid levels. Well the younger companies. What emerges from the Mediobanca report
Almost 500 billion euros. This is the turnover of the fashion sector in the world which has shown a rapid recovery after the drop in sales due to the Covid 19 pandemic. The Mediobanca Study Area analyzed the sector data in the report on the World Fashion System, focusing on financial data of the 78 major fashion multinationals with revenues exceeding one billion euro each. Of these, almost half, 35, are based in Europe (and nine in Italy, the most represented in this analysis), 29 in North America, 12 in Asia and two in Africa
FASHION: ESTIMATED AVERAGE GROWTH OF 18% IN 2022
The fashion sector, after the downturn due to the strict restrictions imposed by the Covid 19 pandemic, has started running again. In the first six months of 2022, the major world players recorded a 15% increase in turnover. In this positive scenario, the European market pushed the most, with +24%, and the American one, which stops at +19%, (driven by the United States), Asia, however, stops at +3 %, penalized by policies to contain the Covid-19 pandemic . Expectations for the sector also remain positive throughout 2022: in the first nine months of 2022, turnover is estimated at an average growth of 18% . The fundamentals of the fashion multinationals are solid and they are increasing their lists by +6% in response to increases in production costs.
A TOTAL TURNOVER OF 500 BILLION EUROS
The 78 major fashion multinationals had a turnover of 497 billion euros, 26.0% more than in 2020, exceeding pre-pandemic levels by 8.5%. European players generated 57% of the turnover, while North Americans generated 33%. If Italy is the most represented with its nine big names (D&G, Valentino, Salvatore Ferragamo, OTB of the Renzo Rosso group, Max Mara, Giorgio Armani, Moncler, Calzedonia and Prada) , the richest is France, with a 40% share of turnover, ahead of Germany (12%) and the United Kingdom (11%), with Italy at 6%.
THE RICHEST COMPANIES: LOUIS VUITTON IN FIRST PLACE
The Scrooge of the fashion Scrooge is the French LVMH, of Bernard Arnault's Louis Vuitton group , with a turnover of 64.2 billion euros. Followed by the American Nike with 41.2 billion euros, and the Spanish Inditex which, with 2 7.7 billion euros, controls Zara and completes the podium. Rounding out the five richest fashion companies is the German Adidas with 21.2 billion euros and EssilorLuxottica with 19.8 billion. The first among the Italian companies is Prada with a turnover of 3.4 billion which ranks 33rd in the standings, then there are Calzedonia Holding, in 46th position, and Moncler in 52nd. King Giorgio (Armani) only in 54th place.
THE COMPANIES THAT GROW THE MOST: THE YOUNGEST IN FIRST PLACE
The British Farfetch is the company that increased revenues the most in 2021, compared to pre-pandemic levels with a net +90.5%. Farfecht, founded in London in 2007 by Portuguese entrepreneur José Neves and launched in 2008, is also the youngest in the standings. Born as an e-commerce for luxury boutiques, in 2018 it was listed in New York, and in October last year it launched its There Was One brand. Immediately behind Farfetch is the US Crocs with a +87.9%, founded in 1999 and also among the youngest. Even greener are the British Boohoo from 2006 and Asos from 2000.
STUFFED GROWTH FOR FASHION INVESTMENTS: YOUNG GROUPS BETTER
Investments are struggling to grow, still below the levels of 2019. Overall, they rise by 20.6% on 2020 but stop at -5.9% on 2019. It is the Asians who push the investment pedal harder: they recorded a growth of 22.7% on 2019, exactly as much as the North American groups fall back (-22.6%), the Europeans also lag behind but stop at -6%. Among the Italian groups that have invested the most, Moncler is in seventh place and Giorgio Armani in thirteenth, the Italian brand Zegna in tenth.
THE INTERNAL PRODUCTION
54% of the global groups covered by Mediobanca 's analysis preferred to retain control over the entire production chain: these groups produce internally through their own production plants, combining direct production with the use of selected external laboratories . The remaining 46% do not have their own material production sites, do not produce internally but outsource most of the production activities to external laboratories, exercising control over the production chain. Instead, the design and development of prototypes remains internal.
THE GEOLOCATION OF THE FASHION SUPPLY CHAIN
The role of the supply chain is of primary importance and for global fashion groups it extends worldwide. On average, 62% of suppliers are located in Asia , 29% in Europe, 7% in the Americas and the remaining 2% in the rest of the world. The supply chain of European companies is mostly located in Europe, 52% of suppliers are European, 44% in Asia, 2% in the Americas and the remaining 2% in the rest of the world . As far as North American companies are concerned, the supply chain is more concentrated in Asia: on average, 76% of suppliers are located in Asia, 17% in the Americas, 5% in Europe and the remaining 2% in the rest of the world.
SALES IN FASHION: PROXIMITY WINS
When it comes to sales, proximity is the winner. For European and North American groups, the main market is the geographically closest one: Europe for Europeans and North America for North Americans. European fashion groups show the highest diversification in terms of sales globally: 39% of their net turnover is achieved in Europe, 32% in Asia and Oceania, 23% in North America and 6% in other areas (Latin America and Africa). Europeans increased the share of sales in North America by two percentage points , by one point in Asia, a clear effect of the shift in purchasing power towards the United States and China due to lower tourist traffic in Europe. US companies are the most focused on their domestic market: North America accounts for 69% of their total net sales , followed by Europe, Asia and Oceania. For Asian fashion groups, the domestic market represents 46%, followed by North America, at 27%, and Europe at 20%. So sales on foreign markets represent 61% of the sales of European multinationals, only 31% of North American companies and 54% of Asian groups.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/tutti-i-numeri-del-fashion-in-italia/ on Sun, 27 Nov 2022 09:34:45 +0000.