Global markets love Italian made goods and will increasingly buy them in the future. This is what emerges from a new study presented during the recent “Luxury Summit del Sole 24 Ore–New Market Trends and Digital Disruption,” held in Milan and organized by the Italian financial newspaper Il Sole 24 Ore.
The study, called “Exporting the Dolce Vita” and conducted by Centro Studi di Confindustria and Prometeia, focuses on how consumption of Made in Italy high-end fashion, design and food products could potentially grow in the next six years in 30 emerging markets. The analysis concluded that such consumption might rise about 40% from the present €10 billion to €15 billion by 2023. In addition, according to more optimistic forecasts, sales in these markets might even reach up to €18 billion, a 75% increase.
The emerging “top premium” markets recognized are China, Russia and United Arab Emirates, countries that register a significant request for such items and willingness to pay the prices for them. Three others–Saudi Arabia, Mexico and Malaysia–were also noted as being important.
Out of the total purchases of 2017 of “beautiful and well-done products” 63.5% were fashion ones (of which 23.7% was apparel), therefore making the analysis an important one to those in Italy’s fashion industry.
The study also said that by 2023, out of the 30 emerging countries analyzed. the most significant growth will be registered in Asia (+47.6%), followed by Northern Africa and the Middle East (+42.9%).
Most of these consumers will be young Millennials. In 23 of the 30 evaluated countries over 50% of the population will be under age 30, with peaks of 70% in Sub-Saharan African areas.
The population of these “nouveau riche” (whose spending power is estimated to be very similar to those of Western countries’ inhabitants) will be more than 660 million in 2023 and will grow from the present 486 million of 2017, or potentially 174 million new clients–about three times more than what is expected from mature markets.
The survey also underlined some risk factors that could alter things such as a change to the export growth ratio due to moves by the US and its allies, possible geo-political tensions in the Middle East and Asia and taxation on Russia.
During the convention Confindustria Moda’s president Moda Claudio Marenzi explained that the Italian fashion industry earns €96 billion in sales and employs more than 700,000 people. It exports €61 billion worth of goods and generates revenues of about €25 billion. Italy accounts for 35% of European fashion production, 20% more than the second largest European fashion producer, Germany.