Fashion accelerates, revenues up by 32%.  And fashion becomes more sustainable

Fashion accelerates, revenues up by 32%. And fashion becomes more sustainable

It had been hit hard by the pandemic, but fashion recovered rapidly in 2021 with a 32% rebound in turnover in the first nine months and 28% growth expected for the full year. Figures that allow multinationals in the sector to exceed pre-crisis levels by 10%. These are the main indications of the new report on the Fashion System of the Mediobanca Studies Area, which aggregates the data of 70 world players and 134 large Italian fashion companies, which in 2021 should make a leap in revenues by 22%. A ranking that sees our country in the lead with 7 big players, followed by Great Britain with 5, by France and Germany with 4 each.

More sustainable fashion

The recovery, also favored by the boom in online sales, which with an increase of 60% in 2020 and 25% in 2021, reached a quarter of the total turnover, was also accompanied by a decisive spur of attention towards ESG issues . From the sustainability reports it emerges that in 2020 the large fashion groups decreased water consumption by 13.1%, waste production by 10% for every million of turnover (and therefore not in relation to revenue trends), co2 emissions by 1%, and instead increased the use of electricity from renewable sources by 7 percentage points, bringing it to the total from 49.9 to 57.6%.

The firsts in the world of Lvmh and Nike

The relaunch of the sector appears more clearly if we look at 2020: in the year of lockdowns and the complete stop to travel and tourism, the 70 largest world players (with revenues exceeding 1 billion) had a turnover of 379 billion with a decrease of 13, 8% on 2019. France ranks first by turnover with 38% of the aggregate turnover. The ranking of multinationals sees the French luxury pole LVMH at the top with 44.7 billion. However, if we consider only the turnover in fashion, equal to about 25 billion, the conglomerate loses its leadership in favor of the American Nike which in 2020 achieved revenues of 36.3 billion. Followed by the Spanish group Inditex (which controls Zara) with 20.4 billion, the German Adidas with 19.8, the Swedish H&M with 18.6, the Japanese Fast Retailing (Uniqlo brand) with 15.9 and EssilorLuxottica, which has in France, with 14.4 billion. Among the big global players, the first Italian Prada with 2.4 billion, 38th in the ranking.

And in Italy of Prada and Luxottica

In our country, the turnover of the 134 largest companies in the sector (with more than 100 million revenues) should rebound by 22% in 2021 and a return to pre-crisis levels is expected this year (we are still below 6%). %). 38.5% of the turnover referred to foreign-owned companies, 19.1% French with Kering (8.7%) and Lvmh (6.4%). The big names in Italian fashion generated 49.8 billion in revenues in 2020 (0.9% of GDP), down by 22.8%, with 265,000 employees. 66.6% of the turnover is achieved abroad, a share that is close to 70% in clothing and reaches 75.7% in jewelery. Our country has a record presence in the supply chain: over a quarter of the suppliers of the European fashion groups are based in Italy, with peaks of 80% in the top end of the market.

In the top 20 of our country, Prada ranks first with 2.4 billion in turnover in 2020, followed by Luxottica group with 2.12. The report also specifies that Luxottica’s Italian consolidation will no longer be available since 2019, after the merger with Essilor, and that the consolidated turnover of Luxottica group, included in EssilorLuxottica, is 7.7 billion. Followed by Calzedonia with 1.9 billion, Giorgio Armani with 1.6, Moncler with 1.4, Otb (Diesel) with 1.3, Max Mara with 1.2, Decathlon Italia with 1.1, Gucci with 1.1 and Ovs with approximately 1 billion. Of the 20 big 8 are foreign owned. Kering is supplied in Italy for 85% and Prada for 80%.

Italian groups do not excel in terms of gender equality. If the share of women on average equal to 64.3% of the total employed in the fashion industry, the presence of women in the boards of directors stops at 27.5% against 37.9% in the US and 32.5% in Europe. The least represented are Japanese women: one for every 10 directors.

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