Italy: Tough times for small leathergoods makers but luxury brands thrive
The value of leathergoods exports from Italy reached a record in 2019, according to Assopellettieri, highlighting the strength of the luxury brands.
The industry association said the sector was the “most dynamic” among the accessory sectors, with values up 25% in the first 10 months of the year.
However, while values increased significantly, volumes were flat, and the results mask that while the luxury brands performed well, there were more than 100 closures of small manufacturers; it is estimated that 70% of these types of business have five or fewer employees.
Assopellettieri said: “Behind the overall considerable numbers linked to subcontracting for the brands, there is a very uneven situation among the companies (artisan workshops, small to medium own-brand companies or not working for luxury brands) which have achieved, in 2019, less profitable or even negative results.
“The data on Italian leathergoods and tanned leather exports also show that only Tuscany, among the main export regions, has recorded significant growth.”
In Europe, France and Germany remain the main export markets, while Switzerland showed a large increase, as this is where many luxury brands operate distribution centres.
Sales to Canada (+16.8% in value) and the US (+4.9% in value) grew well. “The American market, our third destination in value and fourth in volume, is very important and it’s for a long time under observation because we fear that tariff disputes with China, which have recently eased, may also extend to trade with the EU,” said Assopellettieri.
Exports to mainland China grew by 11% in value (+5.3% in quantity).
In terms of cheaper imports, those from China (with a share of more than 60%) increased by a 6.6% in quantity and 4.2% in value and there was a significant increase for Vietnam (+ 22% in volume and +39% in value). There was Considerable growth for imports from France and Switzerland, but a reduction from Romania and Spain.
