Anfao: six-months results
The Italian eyewear industry, a market leader worldwide for medium to high-end and luxury products, is still feeling the pinch of the worldwide economic crisis and is suffering from the sharp standstill in consumption which, from the U.S. market, has extended into Asia and Europe. The situation has been exacerbated by incidental and structural factors such as the strength of the Euro versus the U.S. dollar, strong competition by emerging countries, the forms of protectionism against imports adopted by many non-EU countries where customs duties are very high, counterfeit brands and patents.
As a result, during the first semester of 2003 exports totaled 795 million Euros, 2.7% less than the same period in 2002 and imports posted 11.6%, amounting to 215 million Euros. The last figure highlights the standstill in Italian demand. The downturn in exports was mainly the result of the 6.1% drop suffered by sunglasses (471 million Euros), partly offset by the 3.1% increase in frames (304 million Euros). Despite hopes of a pick up in consumption after the war in Iraq, the situation has continued to worsen.
Overall, exports remained stable in Europe (+1.6%), valued at 401 million Euros, especially as a result of the growing demand for frames (4.3%), while the demand for sunglasses remained unchanged (-0.2%). The situation is still difficult in the United States, where exports totaled 235 million Euros, equal to -8.5%. There are preliminary signs of a pickup in frames (+3.9%), whereas the demand for sunglasses continues to fall (-16.1%).
Asian markets also hit a low point, where the value of exports fell by 2.3%, with a very negative slump in Hong Kong, China and Singapore. This is definitely a temporary result that is closely associated with the recent Sars emergency, which caused a slowdown in domestic consumption and therefore a turnaround may eventuate by the end of the year.
Imports took a nosedive in both product sectors, with frames at 86 million Euros (-2.9%) and sunglasses at 66 million Euros (-21.9%).
All the sectors of Italian fashion and luxury products, including eyewear, are experiencing a severe crisis that has impacted everybody, not just small- and medium-sized companies; yet the situation is even more difficult in the eyewear industry, which is dominated by small- and medium-sized businesses concentrated in the Belluno district - accounting for 80% of national production - and these companies are the worst hit.
