Italy Key Figures 2013 1
General information 2013 Population: 60.782.668 (1,8% vs 2012) GDP per capita: 22.147 (-4,9% vs 2012) Population over-40: 55% of population Population with visual defects: 61,5% Number of optical shops: 10,041 (-0,8% vs 2011) Population/shops: 6,053 Population data: ISTAT GDP data: IMF Optical shops data: GfK Others data: C.R.A., GfK, Anfao 2
Italian eyewear 2013: main figures 869 companies (-1,3% over 2012) 15.830 people employed (-2,4% over 2012) 2.919 millions euro production (+4,3% over 2012) 2.811 millions euro export (+7,2% over 2012) 892 millions euro import (+5,7% over 2012) 940 millions euro domestic market (-2,3% over 2012 sell-in value) 3
Italian eyewear industry: details of last years 2009 2010 2011 2012 2013 Million value Euro var.% Euro var.% Euro var.% Euro var.% Euro var.% Output 2.252-14,5% 2.448 8,7% 2.659 8,6% 2.799 5,3% 2.919 4,3% Export 1.873-16,3% 2.210 18,0% 2.459 11,3% 2.622 6,6% 2.811 7,2% Import 638-7,3% 764 19,8% 808 5,8% 844 4,4% 892 5,7% Domestic Mkt 1.016-6,2% 1.002-1,4% 1.008 0,6% 963-4,5% 940-2,3% Italian eyewear production in 2013 totaled 2,919 million Euro, a 4.3% increase compared to 2012. Exports were solely responsible for this growth. Exports of frames, sunglasses and lenses, which account for 90% of the sector sales increased by 7.2% vs. 2012 and reached 2,811 million Euro (a historical record). 4
Italian eyewear industry structure YEAR OUTPUT (million value) EMPLOYEES (number) FIRMS (number) INDUSTRIAL FIRMS (employment contract: industry) 2013 2.919 15.830 869 166 2012 2.799 16.220 880 169 2011 2.659 16.120 903 172 2010 2.448 16.150 927 175 2009 2.251 16.600 950 178 The overall number of companies decreased slightly as small businesses and micro-enterprises find it harder to survive the situation due to their limited size. In 2013, there were 869 companies in the sector (-1.3% compared to 2012). A decrease in employment (which hardly moved for two years) also applies to industrial leaders this year; without counting temporary workers (nearly 1,000) the sector employed 15,830 people in 2013, - 2.4% compared to 2012. 5
IMPORT-EXPORT 6
Italian eyewear industry: 2013 export performance Percentage changes by value 7
Italian eyewear industry: 2013 export value PRODUCTS 2012 2013 2013vs2012 LENSES OF GLASS 15.298.816 21.380.976 39,8% LENSES OF OTHER MATERIAL 41.899.522 39.207.041-6,4% LENSES 57.198.338 60.588.017 5,9% FRAMES 846.906.753 878.193.669 3,7% SUNGLASSES 1.717.620.406 1.871.997.436 9,0% FRAMES+SUNGLASSES 2.564.527.159 2.750.191.105 7,2% TOTAL EYEWEAR 2.621.725.497 2.810.779.123 7,2% value The main segments in the sector, frames and sunglasses, are responsible for this growth trend, with sunglasses recapturing the lead lost the year before. In 2013 exports of sunglasses soared 9% year on year, for an overall worth of approximately 1,872 million Euro. The reported increase in the export of frames instead was decisively lower at +3.7%, and settled at 878 million Euro.. 8
Italian eyewear export: geographical details Considering exports as a whole, that is sunglasses and frames, we can see that: In 2013 recovery and consolidation respectively marked the two primary reference markets of Italian eyewear, Europe and the United States, which together purchased 80% of products exported by companies in the sector. Europe remained the main market outlet for eyewear exports in 2013, accounting for almost 50% of all Italian sector exports, with a 9.4% y/y increase (+9.8% for sunglasses, +8.8% for frames). In 2013 the volume of exports to America was just shy of 30%, with an 8.8% increase from 2012 in exports of sun-prescription eyewear. 9
Italian eyewear export 2013: first 10 mkt and share Sunglasses Frames 1 Stati Uniti 25,0% 1 Francia 19,2% 2 Francia 11,7% 2 Stati Uniti 19,1% 3 Spagna 6,5% 3 Germania 9,1% 4 Hong Kong 4,8% 4 Regno Unito 6,9% 5 Germania 4,7% 5 Spagna 5,9% 6 Regno Unito 4,6% 6 Hong Kong 4,0% 7 Repubblica di Corea 3,1% 7 Paesi Bassi 3,8% 8 Turchia 2,9% 8 Brasile 2,1% 9 Brasile 2,9% 9 Portogallo 1,7% 10 Emirati Arabi Uniti 2,6% 10 Messico 1,6% The first 10 export markets count about for 69% of the total Italian exports of sunglasses and 73% for frames. 10
Italian eyewear export: countries details For the United States (the traditional primary market outlet for the eyewear industry, claiming more than 23% of exports in 2013) overall exports of sun-prescription eyewear soared by +11.7% from 2012. Sunglasses (+13.6%) contributed more than frames (+6.5%) to the overall exports. The extraordinary performance in the European market was unquestionably the result of exports to France and Germany. Germany confirmed the positive trend already established last year with ever increasing sales of sunglasses. Hence the sun-prescription glasses export trend for Germany increased by 23.7% overall, with +26.6% for sunglasses and +21.2% for frames. In 2013, Italian eyewear exports to France increased sharply compared to 2012, with a +10.4% rise in the overall growth trend, of which +10.6% for sunglasses and 10.3% for frames. Italian exports rebounded in Greece (+12.97% overall compared to 2012, with +14.8% for sunglasses and +6.5% for frames) and The Netherlands (+19.6% sun+prescription average, with +23.6% for frames and +16.6% for sunglasses). After the crisis of sovereign debts for the third consecutive year exports to Spain remained weak (-4.1% overall compared to 2012, specifically -1% for sunglasses and -10.6% for frames) as well as Portugal (+1.4% overall, with the good performance of frames (+11.9%) being offset by the -5.7% drop in export of sunglasses). 11
Italian eyewear export 2013: USA Percentage changes by value 12
Italian eyewear export 2013: main performed Countries in EU Percentage changes by value 13
Italian eyewear export 2013: emerging countries 2013 vs 2012 Export Growth Rate Countries Sunglasses + Frames Sunglasses Frames Brazil 19,7% 18,0% 25,0% South Korea 18,7% 22,5% 15,3% Turkey 27,4% 28,7% 13,9% Russia 16,5% 28,8% 10,3% Japan 20,5% 14,5% 37,6% Thailand 11,4% 11,8% 9,9% India 11,7% 2,0% 10,9% Poland 26,4% 29,5% 24,2% The year 2013 was not as dynamic as 2012 also because growth in some of these countries actually slowed down a little. China is an iconic example of the drastic drop in exports experienced in 2013, especially for frames. In terms of market shares our exports to these countries are hardly significant, and therefore it its quite easy for the indexes (positive or negative) to swing beyond the double digits. Nonetheless, the general and constant growth, even if slower, still inherently holds great potential as an export channel for Italian eyewear. 14
Italian eyewear export 2013: emerging Countries Percentage changes by value 15
Italian eyewear industry: 2013 export volume 93,5 million pairs Overall Italian eyewear companies exported approximately 93.5 million pairs of eyeglasses in 2013, a 1.6% increase from 2012. Of the 93.5 million pairs exported, 62 million were sunglasses (around 66%) and 31.5 million were ophthalmic frames (34%). 16
Italian eyewear import 2013: 10 leading suppliers Sunglasses Frames 1 Cina 45,9% 1 Cina 79,9% 2 Stati Uniti 18,8% 2 Germania 2,2% 3 Francia 7,9% 3 Austria 2,1% 4 Regno Unito 4,7% 4 Francia 2,0% 5 Germania 3,5% 5 Giappone 1,1% 6 Irlanda 2,9% 6 Svizzera 0,7% 7 Taiwan 2,1% 7 Paesi Bassi 0,7% 8 Svizzera 1,8% 8 Regno Unito 0,6% 9 Paesi Bassi 1,4% 9 Stati Uniti 0,5% 10 Giappone 1,1% 10 Hong Kong 0,5% China is the leader supplier for both sectors. 17
DOMESTIC MARKET 18
Italian eyewear in Italy 2013 was the sixth consecutive year of economic crisis in our country, and the eyewear sector was not immune to the general situation although the results were a little less negative than the year before. In terms of sell-in, domestic sales for 2013 amounted to 940 million euro, down by -2.3% compared to 2012. The substantial stability of the opticians' segment, which together with the frames segment experienced a slight improvement, was offset by the negative performance of the sunglasses segment, substantiating the concerning state of Italian consumer spending. Actual proof is given by the sell-out figures. The data provided this year by GfK Retail & Technology Italia, once more in partnership with ANFAO, confirm the same trend. In 2013 sales dropped by 1.8% in value due to the negative performance of sunglasses (-8%) vs substantially steady sales of frames (+0.9%) and prescription lenses (-0.1%). 19
Thank you for your attention! f.gili@anfao.it c.ronchi@anfao.it 20