Italian eyewear: a good first quarter 2014

Total exports for the segment up by 9.5% According to the latest estimates, the global economy during the first few months of 2014 has improved, but it is still vulnerable. Economic growth of 3.0% is expected in 2014 and 3.3% in 2015.   This context includes a good trend in the Italian eyewear sector, which closed 2013 with an improvement (+7.2%). The first quarter of 2014 confirmed this positive trend in exports: potential 9.5% growth in value. In detail: exports of sunglasses increased by 10% and frames by 8%.   The driving forces are still some of the sector's reference markets, which confirmed the results recorded at the end of 2013: the United States, France, Germany and some emerging countries are leading the growth in our exports.   "Exports are crucial for our sector because they absorb a significant part of our production and have always been our major resource", confirmed Anfao President Cirillo Marcolin. "In this climate of cautious confidence – both nationally and internationally – they again represent the distinctive element of our segment, which is among the best I-style sectors. The development of international markets is really encouraging recognition for the culture of eyewear manufacturing that has always been nourished by technological expertise and huge creative passion".   2013 closed with a plus sign (7.2%) compared to 2012 and a value of 2,811 million euros, a level that had never been achieved before. The new year opened with an equally positive two-figure trend and a first-quarter value of about 772 million euros.   Both segments contributed to the good result of the first months of 2014, with sunglasses having a slight advantage with a double-digit growth (+10%) and a value of around 513 million euros. For optical frames, growth stood at +8 %, with a total value of about 243 million euros. Sunglasses consolidated their position during the 12 months of 2013 and were again the driving force compared to recent years.   Overall, the monthly trend in exports was not very significant, but it indicates constant and consolidated growth compared to the same period last year, when the last quarter showed the best performance. An excellent start – also with double-digit growth (February) – that gives hope for the trend throughout the year.   The trade balance for Italian eyewear during the period January-March 2014 was also positive (a total of 536 million euros for exports-imports compared to the same period last year).   Lastly, considering the sector within the broader I-Style context, eyewear is making an increasing contribution to the commercial assets of the "Made in Italy" fashion system: at +9.5%, it is one of the sectors with the biggest growth in exports (second only to gold and other jewelry at +11.1%). Such a growth is even more significant in the United States (+10.5%), where recovery in other sectors has been more difficult.   Breakdown of exports by geographical area   The sector's reference areas that are most appreciative of the creativity and quality of "Made in Italy" eyewear are primarily Europe, which absorbs over 50% (52.7%) of exports and grew by 9.5% in value in the January-March 2014 period (sunglasses and frames), followed by the American area, which counts for about 26.6% of Italian eyewear exports with a growth of 7.9% (sunglasses + optical) compared to the same period of 2013. Good growth again in the Asian market. Asia absorbs 17.7% of Italian exports of sunglasses and frames and the trend showed a recovery during the first quarter of 2014 compared to 2013 (which closed with a mediocre +2.7%), with a total of +12.1% (12.8% frames, 12% sunglasses).   If 2013 was the year of recovery for Italian eyewear exports to the two major areas of reference - Europe and America (which overall absorb almost 80% of Italian exports in the sector), then 2014 seems to be the year in which this positive trend will consolidate, supported by the cautious general optimism of international markets.   Also positive were the results for Italian eyewear exports to emerging markets.   Analyzing each country in detail:   *In the United States (the first reference market for Italian eyewear with a share of about 22%) total sunglasses-optical exports stood at +10.5% compared to the January-March 2013 figure. Nevertheless, there is a big difference between the two segments: while exports of frames increased by 6 percentage points, the figure for sunglasses was more significant, at +12.3%, in the first quarter of the year.   *Europeans were confirmed as being particularly receptive to the charm of Italian eyewear. References for the sector are France, Germany and United Kingdom. Sunglasses-optical exports to France stood at +4.3% (frames +6.4%, sunglasses +2.5%), with a market share of about 15%. Double-digit growth in exports of sunglasses and optical frames to Germany: +14.3% (frames 8.9% and sunglasses 18.7%), with a market share of 7.7%. The United Kingdom replaced Spain - which is still showing signs of a downturn in consumption (-4.8%) despite the recovery - with a significant +18.5% (frames +5.2% and an interesting +28.9% for sunglasses) and an overall market share of 5.2%.   *In Europe there was excellent performance by some countries with a small market share but significant growth in percentage points: still catching up – as shown at end 2013 – are Italian eyewear exports to Greece (+15.2%, frames +7.4%, sunglasses +16.3%) and the Netherlands (+18.4% total for sunglasses + optical with +13.2% for frames and +22.7% for sunglasses). Performance was also interesting in Poland (+22.3% sunglasses + optical, +20% frames, +25.4% sunglasses), Finland (+33.2% sunglasses + optical; 23.9% frames, 43.3% sunglasses) and Sweden (16.9% sunglasses + optical; 21.6% frames, 12.3% sunglasses). However, these countries have a market share of less than 1%.   *During the first 3 months, there was interesting performance by overall exports of sunglasses and frames in certain countries which, even though the value is still relative, could be potential end markets in the future: Hong Kong (+51% sunglasses + optical with a market share of 4.8%), United Arab Emirates (18.2% sunglasses + optical and a market share of 2.2%), Brazil (+36.3% sunglasses + optical and a market share of 2.1%) and Japan (+25.5% sunglasses + optical and market share of 1.4%).   Apart from those virtuous countries that have a greater appreciation of "Made in Italy" eyewear, disturbing signals are coming from countries that until a few years ago were considered interesting outlets for exports, including Russia, which had a downturn in exports of 8.3% (sunglasses + optical); Mexico (overall -3.7%) and China (-31.5%, with a 37.2% collapse of sunglasses). Chinese economy has certainly slowed down compared to 1980-2010 levels. In Russia, "Made in Italy" purchases are penalized by the loss of buying power due to an almost 10% decline in the value of the local currency (the ruble) against the euro since January, which makes I-Style products more expensive.   However, apart from some exceptions, Italian eyewear is confirmed as the unquestionable star of international markets. This just goes to prove the extent to which the sector is characterized by extreme dynamism and competitive ability, elements that contribute to making it one of the top sectors in the Italian economy and I-Style.   "A precise and targeted internationalization strategy is still the main and essential path for continued growth", concluded Cirillo Marcolin. "The good results of the first quarter 2014 and the general international climate characterized by cautious optimism gives us hope. A determining factor remains the backing of the institutions that must make an important contribution to supporting companies and the credibility of the Italian system".