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ItalyEyewear Key Figures 2015
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General information 2015
Population: 60.656.125 (-0,2% vs 2014)
GDP per capita: 26.840€ (+2% vs 2014)
Population over-40: 55% of population Population over-65: 22% of population
Population with visual defects: 61,5%
Number of optical shops: 9.817 (-0,8% vs 2014)
Population/shops: 6.178
Population data, GDP data: ISTAT Optical shops data: GfKOthers data: Anfao
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The global economic outlook in 2015 was basically dominated by four maintrends that emerged at the end of 2014: a slow global recovery, low oilprices, record low interest rates and a weak Euro.
Added up, these four strengths gave a considerable boost to Italian GDP,which gradually gained momentum. However, this ponderous boost didnot have a significant impact in pulling Italy out of the abyss it hitduring the previous recession, with the country failing to take off againat the end of the year.
Unlike many other sectors, Italian eyewear appears to have made themost of the overall situation not only on the internationalmarketplace with a new record in exports, but also on the domesticmarket, which finally started growing again in 2015.
2015 overall situation
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NEW RECORD ON INTERNATIONAL MARKETS:EXPORTS +12,3%, IN EXCESS OF 3,4 BILLIONEUROS.
DOMESTIC MARKET UP BY 5,7%:FIRST SIGNIFICANT UPWARD TREND SINCE2007.
2015 recap for Italian eyewear
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870 companies (+0,2% over 2014) 17.245 people employed (+6,5% over 2014) 3.566 millions euro production (+12,5% over 2014) 3.454 millions euro export (+12,7% over 2014) 985 millions euro domestic market (+5,7% over 2014 – sell-in value)
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Italian eyewear 2015: main figures
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In 2015 Italian eyewear production totaled €3.566 million, up by 12,5% over2014.
This increase was not driven by eyewear exports alone, but by a good pickup in thedomestic market.
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Italian eyewear industry: details of last years
Million € value Euro var.% Euro var.% Euro var.% Euro var.% Euro var.%
Output 2.659 8,6% 2.799 5,3% 2.898 3,5% 3.171 9,4% 3.566 12,5%
Export 2.459 11,3% 2.622 6,6% 2.782 6,1% 3.064 10,2% 3.455 12,7%
Import 808 5,8% 844 4,4% 885 4,9% 988 11,6% 1.146 16,0%
Domestic Mkt
1.008 0,6% 963 -4,5% 941 -2,2% 932 -1,0% 985 5,7%
2015201420132011 2012
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The number of companies remained basically stable, some closures were offset by newcompanies, especially SMEs, on the market, bearing witness to the good overall vitality of the industry. In2015, there were 870 companies in the country (+0,2% versus 2014).
Employment figures were more than positive: the sector is back to having more than 17.000employees. This is also the result of many existing temporary contracts being transformed intopermanent contracts because of government tax incentives. Therefore, without considering otheremployment contracts (about 500), there were 17.245 employees at the end of 2015, +6,5% over2014.
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Italian eyewear industry structure
YEAROUTPUT
(million € value)
EMPLOYEES (number)
FIRMS (number)
INDUSTRIAL FIRMS
(employment contract: industry)
2015 3.566 17.245 870 158
2014 3.171 16.195 868 165
2013 2.898 15.830 869 166
2012 2.799 16.220 880 169
2011 2.659 16.120 903 172
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Made in Italy
The comeback of Italian production, especially for the very high-end of themarket, dubbed “reshoring” or “back to Italy”, is gathering pace even amongthe large eyewear companies.The reasons are many (increased costs in China and other countries with lowproduction costs, the need to maintain a local market presence and to have amore flexible production, the need to increase brand positioning, great consumerawareness of social and environmental issues). However, Made in Italy is thedriving factor, for which sophisticated consumers are willing to spendeven more. Higher costs for companies are therefore more than offsetby the benefits of product image and quality.
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IMPORT-EXPORT
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Italian eyewear industry: 2015 export performance
Exports of frames, sunglasses and lenses, which account for almost 90% of production by thesector, rose by 12,7% over 2014, totaling €3.455 million (new record).
In 2015 exports of sunglasses posted a 14,1% year-on-year increase, settling at about €2.309million.
Frame exports posted a +10,1%, amounting to about €1.075 million.
The buoyancy of eyewear on international markets was also demonstrated by imports which grew by16% and were valued at almost €1.146 million.
The trade balance for Italian eyewear continues to be very positive (€2.309 million is the export-import trade balance for 2015), rising by more than 11 percentage points over 2014.
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A breakdown of sunglass and frame exports according to geographical area shows that:
the main export market for Italian eyewear exports in 2015 remained Europe, with 48,2% share of totalItalian exports by the sector, up by 11,1% (+14,4% for sunglasses, +6% for frames).
2015 exports to America accounted for 30,6% of the total, with sunglass-frame exports rising by 17,1%over 2014 (+16% for sunglasses, +20,4% for frames). North America led the growth (+23,5%), versus thenegative performance of Central and South America (-8,6%) which were impacted by high tariff barriersand other difficulties.
In Asia, which absorbs 18,3% of Italian sunglass and frame exports, the 2015 export trend was +15%(+14,9% for sunglasses, +15,4% for frames).
Italian eyewear export: 2015 geographical details
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The first 10 export markets count about for 73% of the total Italian exports of sunglasses and frames. So
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Italian eyewear export 2015: first 10 mkt and share
1 USA 27,7% 1 USA 20,9%
2 France 11,0% 2 France 16,9%
3 United Kingdom 6,9% 3 Germany 9,2%
4 Spain 6,3% 4 United Kingdom 7,8%
5 Germany 5,3% 5 Spain 5,7%
6 China 4,3% 6 China 4,0%
7 South Korea 3,6% 7 Netherlands 3,2%
8 Turkey 2,8% 8 Brazil 2,2%
9 Hong Kong 2,8% 9 Hong Kong 1,9%
10 United Arab Emirates 2,6% 10 Portugal 1,6%
Sunglasses Frames
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Italian eyewear export 2015: countries details
Percentage changes by value
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Italian eyewear export 2015: emerging countries
Percentage changes by value
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Overall, Italian exports in 2015 amounted to about 98 million pairs of glasses, a 4% increase over 2014.
Of the 98 million, 64 million were sunglasses (65.3%) and 34 million were frames ( 34.7%). More specifically, sunglass exports rose by 4.9% and frames by 3% in quantity over 2014.
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Italian eyewear industry: 2015 export volume
98 million pairs
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DOMESTIC MARKET
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In 2015, there was a turnaround in the stagnant domestic market trendand interesting signs of a recovery with significant percentage increases(+5.7% for the sell-in figure) finally emerged.This figure is particularly important if we consider that it was the first plus signposted for the domestic market since 2007.
Contributing to this result were mainly a pickup in sunglasses, which hadbeen the most hard-hit, and, as regards prescription eyewear, the morethan good performance put in by progressive lenses.
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Main facts
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Sell-in figures for eyewear frames in 2015 improved by about 5percentage points over 2014 while sunglasses recovered by 9.8%.
Noteworthy is the trend posted by ophthalmic lenses which closed the year with asignificantly positive result in terms of value (+6%) and volume (+4.5%). Withinthis segment, progressive lenses started growing significantly again(+10% in volume and value). The Italian market share for progressives iscurrently about 17% and definitely offers the best opportunity for companies,distributors and consumers because of a guaranteed high added value.
Although a return to pre-recession levels is still a long way off, 2015 posted thefirst significant increases in both sectors (sunglasses and eyewear) and themarket was dynamic again.
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2015: sell-in details
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2015 Italian eyewear industry sell-in by units
Products 2014 2015 15vs14
Frames 5,09 5,36 5,3%Sunglasses 5,86 6,50 10,8%Lenses 17,78 18,56 4,4%Pal 2,90 3,19 10,0%Single Vision 14,88 15,37 3,3%
Products 2014 2015 15vs14
Frames 5,09 5,36 5,3%Sunglasses 5,86 6,50 10,8%Lenses 17,78 18,56 4,4%Pal 2,90 3,19 10,0%Single Vision 14,88 15,37 3,3%
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2015 Italian eyewear industry sell-in by value
Products 2014 2015 15vs14
Frames 214,12€ 220,72€ 3,1%Sunglasses 322,22€ 358,35€ 11,2%Lenses 260,80€ 276,59€ 6,1%Pal 125,63€ 138,09€ 9,9%Single Vision 135,17€ 138,50€ 2,5%
Products 2014 2015 15vs14
Frames 214,12€ 220,72€ 3,1%Sunglasses 322,22€ 358,35€ 11,2%Lenses 260,80€ 276,59€ 6,1%Pal 125,63€ 138,09€ 9,9%Single Vision 135,17€ 138,50€ 2,5%
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by value
2015 sell-in market share
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2011 2015
Frames and sunglasses sell-in: plastic and metal
2011 2015
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Frames and sunglasses sell-in: brands
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Single vision and progressive lenses share the lenses market.Pal represent 19% in term of volume, but count for about 53% of turnover.
In 2011 the market share still remained on 2010’s level.About PAL position, Italy is slowly recovering (ie 2015 vs 2010).
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Plastic lenses sell-in: geometry market share
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Photocromatic segment represent the 10,3% of total lenses in volume.In 2015 the market share still remained on 2010’s level, but Italy is one of the best
performer in this segment.
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Lenses sell-in: photocromathic segment
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Optical trade structure
Optical Shops 2011 2012 2013 2014 2015
TOTAL POS 10.121 10.041 9.969 9.895 9.817chain 756 817 821 829 810groups and independent pos 9.365 9.224 9.148 9.066 9.007TURNOVER PER POS 317.000€ 282.000€ 279.000€ 280.000€ 285.000€
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Optical trade share of turnover
Ophthalmic lenses represent more than 50% of optical trade turnover.
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Italian retail market: renovation period
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Mill
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2015 Italian eyewear industry sell-out by value
Products 2014 2015 15vs14
Frames 497,49€ 532,32€ 7,0%Sunglasses 563,05€ 596,84€ 6,0%Lenses 1.192,88€ 1.289,00€ 8,1%
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Opportunity for optical trade sector
The distribution sector should think carefully about how to take advantage of thechanges of the market and it has to focus on:
1. Differentiation2. Quality3. Service offered to the end consumer.
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2016 outlook
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Forecast for 2016
Towards the end of 2015, risks of a downturn emerged as a result of a furtherslowing down of the emerging economies, the consequences of terrorist attacksand war developments in Syria.
The global economy got off to a turbulent start in 2016, with stock market lossesand the falling prices of raw materials and a weakening Euro. As a result, financialconditions have become more restrictive, and almost equal to a one percentagepoint increase in interest rates. According to the latest figures released by theConfindustria Studies Center, the regained confidence of families and companiesappears to be already feeling the effects of this.
Overall, therefore, early 2016 does not appear to provide the ideal setting for anincrease in Italian GDP. Also, although there has been a slight slackening in thecredit crunch, loans to companies remain weighed down by the bad debts ofbanks, with stricter requirements on bank capital and the entry into effect of bail-inlegislation.
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Forecast for 2016
A further drop in oil prices will further boost disposable income in consumercountries (for Italy this will amount to a 0.2% increase in GDP this year), but in theimmediate future is both a reflection and source of international instability.
All this fibrillation is a sign that the situation has become more challenging, with agreater risk of downturns.
However, the outlook remains favorable. A strong recovery is underway in theUnited States and the Eurozone countries are growing, albeit at a moderate rate.China is slowing down as expected and the good news is that the changeover frommanufacturing to tertiary activities is gathering pace, even if with some inevitablejolts.Brazil and Russia are slowing down instead and India is posting some signs ofweakness.
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Forecast for 2016
Given the situation, although the Italian recovery remains sluggish, there has beena strong pickup in exports mainly to the Eurozone markets. Domestic demand isrising fueled mainly by consumption; there is a strong increase in domestic orders.The extent and content of the Italian stability law will provide the expected support(0.4 points of GDP in 2016-17, according to both CSC and Bank of Italy estimates).
Considering how the sector is structured, with its export drive and new domesticmarket vitality, we could be moderately optimistic about 2016, even if initial figuresfor 2016 point to a slight slowdown.
But the situation is still full of uncertainty and there is the shadow of BREXIT!
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Export: 1st Quarter 2016
Products (value in mln€) 1Q 2015 1Q 2016 16vs15FRAMES 279,63 284,32 1,7%SUNGLASSES 583,61 632,76 8,4%
FRAMES+SUNGLASSES 863,24 917,08 6,2%
Products (value in mln€) 1Q 2015 1Q 2016 16vs15FRAMES 279,63 284,32 1,7%SUNGLASSES 583,61 632,76 8,4%
FRAMES+SUNGLASSES 863,24 917,08 6,2%
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Domestic Market sell-in: 1st Quarter 2016
Products (unit in mln) 1Q 2015 1Q 2016 16vs15Frames 1,12 1,21 8,0%Sunglasses 1,44 1,52 5,8%Lenses 4,50 4,72 4,9%Pal 0,85 0,96 12,9%Single Vision 3,65 3,76 3,0%
Products (value in mln€) 1Q 2015 1Q 2016 16vs15Frames 51,88€ 57,03€ 9,9%Sunglasses 79,72€ 85,32€ 7,0%Lenses 66,12€ 70,40€ 6,5%Pal 34,73€ 37,87€ 9,0%Single Vision 31,39€ 32,53€ 3,6%
Products (unit in mln) 1Q 2015 1Q 2016 16vs15Frames 1,12 1,21 8,0%Sunglasses 1,44 1,52 5,8%Lenses 4,50 4,72 4,9%Pal 0,85 0,96 12,9%Single Vision 3,65 3,76 3,0%
Products (value in mln€) 1Q 2015 1Q 2016 16vs15Frames 51,88€ 57,03€ 9,9%Sunglasses 79,72€ 85,32€ 7,0%Lenses 66,12€ 70,40€ 6,5%Pal 34,73€ 37,87€ 9,0%Single Vision 31,39€ 32,53€ 3,6%
