Fashion system: photography on a global level (data from Bain & C. Fondazione Altagamma)
In 2016, the world turnover of luxury goods for the person amounted to 250 billion euros, a figure slightly down on 2015 (-0,4%), but growing on 2012 (+17,9%) . Positive estimates for 2017 (+5% on 2016). The main markets remain the Americas, albeit down (-2,4%), and Europe, each with 83 billion euros, but the most dynamic area is Japan, with 23 billion euros and +15% compared to 2015.
If leather goods are confirmed as the predominant sector, with 75 billion (+2,7%), cosmetics-perfumery runs with a +6% reaching 53 billion. On the other hand, clothing (58 billion and -3,3%) and jewelery (55 billion -5,2%) suffer. Who are the main luxury big spenders? The Chinese are confirmed in first place, with an expenditure of 2016 billion in 75 (equal to 30% of total revenues), followed by the Americans with 58 billion (23%) and by the Europeans with 45 billion (18%).
More than half of luxury goods are still purchased in single-brand stores (30%) and specialized boutiques (22%), but it is online that is growing fastest: a turnover worth €18 billion with a forecast by +24% in 2017. But if online is gaining more and more space, tourist shopping is confirmed as a strategic lever for companies all over the world. Europe is the continent where tourists buy the most; around 84% of tax-free sales are concentrated in just five countries: France (22%), United Kingdom (20%), Italy (16%), Germany (15%) and Spain (11%).
And what about Italy? The top spenders are the Chinese with 29% of tourist shopping, followed by Russians (14%), Americans (9%) and Koreans (6%).
Fashion system: photography in Italy
Fashion companies grow more than large manufacturers in terms of revenues, profits and workforce. Margins are still good, albeit down. 40% of them are in foreign hands. In 2016, the turnover of the 146 Italian Fashion Companies (with turnover > 100 million) amounted to €66,1 billion (+25,8% on 2012 and +4,6% on 2015), equal to 4% of GDP. Among the sectors clothing confirms its predominance, followed by leather goods, but the most dynamic is jewelery (55,7% on 2012). Foreign turnover, in addition to being very significant (64,4% of the total), is also the one that grew the most (+24,7%) on 2012.
Italian fashion manufacturing companies (excluding distribution) accumulated almost €2012 billion in net profits in the period 2016-15, of which €3,4 billion in 2016 (best year), despite recording a continuous erosion of industrial margins, with the 'ebit margin which stood at 9,6% in 2016, up from 10,9% in 2012. Not only that, these are companies with high financial solidity, with equity that exceeds debt by 3 times, and a liquidity slightly lower than the financial debts (about 9 billion, equal to 85% of the financial debts).
The 15 largest Italian groups (Top15 Moda Italia): "more contained" turnover growth (+18,6% on 2012 and +0,3% on 2015), but higher export rate (84,1%). Non-European countries most relevant markets (57,9% of sales)
The Top15 Moda Italia have an increasingly important weight: they are worth 53% of the aggregate turnover of the Italian fashion manufacturing companies, 67% of the profits and 63% of the workforce. In 2016, the turnover of the Top15 Moda Italia amounted to €30,3 billion, with exports which – in addition to having a more significant weight – also recorded the best performances, above all at a non-European level (+24,5, 2012% on 9,1). Luxottica is confirmed in first place for turnover with €3,2 billion, almost three times larger than Prada (second with €XNUMX billion).
But Valentino (+2012%) grew the most in the period 2016-155,6, followed by Moncler (+66,8%) and Calzedonia (+41,6%). And on the employment front? The share of employees abroad is also growing sharply (+37% on 2012), reaching 64,6% of the total in 2016 (from 56% in 2012). The ebit margin also decreased for the Top15, falling from 14% in 2012 to 11,6% in 2016. Moncler took the podium with 28,6%, followed by Ferragamo (18,4%) and Luxottica (15,1 ,15%). The Top10 have accumulated net profits of over €5 billion over the five years and distributed dividends of over €54,6 billion, but their average payout (69,3%) is lower than that of large Italian manufacturers (XNUMX%).
Finally, the Top15 are very solid financially, with debts equal to 22,7% of equity. Added to this aspect is the large liquidity, with €6,4 billion equal to 1,2 times the financial debts. The most solid is Armani, substantially without financial debt. And it is always Armani who stands out as the most liquid company in relation to debt.
Fashion Italy vs Fashion France
In the comparison between the Italian and French Top15, the companies from beyond the Alps invoice and grow more and are more profitable, while the Italian ones are more solid and much more liquid. The turnover of the Top15 Fashion France is equal to 76,9 billion, more than double that of the Top15 Fashion Italy, but it is more concentrated: the LVMH Group (37,6 billion) alone is worth about half of the turnover of French business and more than all the Top15 Moda Italia. From 2012 to 2016, the revenues of the French big 15 (+24,4%) increased more than the Italian Top15 (+18,6%).
Even in terms of industrial margins, albeit in a common context of decline, Italian fashion is less profitable than French: the ebit margin in 2016 of the Top15 France is 17,2% against 11,6% of the big Italians. Conversely, the Italians are more solid (financial debts equal to 22,7% of equity against 35,5% of the French) and above all more liquid (120% of liquidity on debt against 51,2% of the French) .
