Anfao: first half results
Exports of sunglasses, frames and lenses recorded an overall gain of +3.2% over the same period in 2003, reaching a share of 821 million Euros and returning to the positive outcome that characterized the first half of 2002. This is what comes out from Anfao data announced today at the Paris press conference prior to the third edition of the Italian eyewear fashion show.
The increase in exports can be traced specifically to the excellent performance demonstrated by sunwear, up 5.5% in the first six months of the year (valued at 496 million Euros), thus reversing the downward trend set in 2003. Slightly less sweeping, but a strong indicator of stability, however, is the trend set by frames, with a rise of 0.2%, equal to just over 300 million Euros, compared to the same period last year.
Europe is still the primary consumer of Italian exports (with a 50% share) and posted a 7.7% increase over the first half of the previous year. A 10% increase in sunglass sales contributed significantly to the positive trend. France was one of the countries driving European market imports (+20.5% for frames and +12.6% for sunglasses), followed by Greece, Portugal and Spain.
The second key market for Italian eyewear is America, dominated by the United States which, alone, claims approximately 26% of all Italian exports. Here, the trend stayed virtually the same all over the American Continent, compared to 2003, encouraging increments in the area of sunglasses (slightly less than + 10%), were offset by an almost equal decline in the frames sector. However, a look back at the first six months of 2003, where the drop in this market was a dismaying 8.5%, and -16% in sunwear, makes it clear that these results are the harbinger of a likely revival in demand.
Asia still does not offer any bright prospects for the eyewear sector, in spite of the fact that in some countries, like China, the burgeoning numbers of the populace in the medium-high earnings range hold out enormous potential. Growth in this area, however, still seems of modest proportions, with one exception, exports to Hong Kong were up +35%.
Imports were steady at +4.3% compared to the same period in 2003, at 224 million Euros, and 60% of this was specifically in products imported from Asia. This represents an increase of 22% over the same period in 2003, while there was a 17.6% drop in imports from European countries.
Comparison of the performance of eyewear with other sectors of the Italian Fashion System (clothing, footwear, leather goods, jewelry, and cosmetics) reveals good results. A 3.2% increase during the first half-year of 2004 places eyewear among the key driving forces behind Made in Italy products, along with cosmetics (the other sectors, however, suffered a slight dip of one or two percentage points).
The global situation surrounding Italian-Style exports intensified in the United States market where Italian eyewear (led by sunglasses, +12%), is one of the few Made in Italy items showing strong signs of recovery compared to the previous 6-month period. Despite the encouraging performance during the first half of the year, there remains appreciable concern over the state of the global economy in general.
Instability in international markets and in domestic demand; the surge in crude oil prices and the inevitable negative impact it has on production costs and, indirectly, on consumption; continuing penalization due to the Euro/Dollar ratio; and competition from Asia and emerging economies; are all factors that invite us to take a close look at how we can keep a watchful eye on the warning signals and, at the same time, ensure that this trend toward renewed vigor is not just a sporadic event.
If the established manufacturers in our sector are used to reacting to volatile situations and to successfully tackling the competition and markets in the global economy, we should also keep in mind that the Italian eyewear industry is primarily composed of small and medium-sized companies, many of which were hit hard, and are still reeling from last year's economic crisis.
