MILAN — “Numbers are usually not comforting us however fortunately our efficiency was barely higher than we anticipated. That is the second to react, even when it’d take us longer than we thought to return to [pre-pandemic] performances,” stated Renato Ancorotti, president of the Italian affiliation of magnificence firms Cosmetica Italia throughout a webinar on Wednesday.
Through the occasion, the group launched preliminary information on the trade’s efficiency in 2020. Final yr, whole gross sales of Italian cosmetics firms have been down 12.8 % to 10.47 billion euros in comparison with 2019.
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Exports — a key driver for the nationwide magnificence trade — decreased 16.5 % to 4.1 billion euros. Italian provide firms have been those most affected by the contraction in worldwide demand brought on by the pandemic, as these corporations’ gross sales have been down 17.5 % to 1.37 billion euros final yr.
Inevitably, the well being emergency affected distribution throughout most channels. Lockdowns and restrictions precipitated a slowdown in gross sales generated in skilled hair and wonder salons, the place revenues decreased 28.5 % and 30.5 %, respectively, leading to a mixed lack of 240 million euros.
Comparable performances have been registered for direct gross sales made by door-to-door operations in addition to in perfumeries and herbalist outlets, with decreases fluctuating between 27 % and 30 % and losses of 150 million euros, 550 million euros and 120 million euros, respectively.
Pharmacies and mass distribution, which have been in a position to function with extra continuity all through 2020, confirmed better resilience, every reporting losses of two.5 %. Particularly, the mass market nonetheless represents the prime distribution channel of cosmetics items in Italy, accounting for 44.4 % of whole gross sales, adopted by pharmacies and perfumeries.
The one channel performing positively was e-commerce, the place gross sales jumped 42 % to roughly 700 million euros final yr, making it the fourth largest, accounting for 7.4 % of whole gross sales.
Though projections for the primary half of 2021 confirmed that on-line gross sales will proceed to develop on the similar price, Ancorotti harassed the significance of brick-and-mortar shops, underscoring that the 200 million euros gained in on-line gross sales final yr “can’t make up for the opposite losses.”
But, along with e-commerce, projections for the primary half of 2021 present a restoration and optimistic indicators throughout all channels. General, whole gross sales and exports are anticipated to extend 6.1 % and 5 %, respectively, by the tip of 2021.
Ancorotti lauded firms’ resilience and their entrepreneurial dedication even by difficult instances, as final yr corporations continued to take a position 6 % of their revenues in digitalization and R&D actions, in comparison with a nationwide common of three % invested by firms working in different manufacturing sectors.
“Flexibility and adjusting to the evolving context, digital investments and persevering with to safe high-quality requirements in manufacturing” have been three of the optimistic components the pandemic revealed in magnificence firms, in keeping with Ancorotti. However, he talked about the “issue in planning actions, funds cuts because of contractions in revenues, the sudden acceleration within the transformation of distribution fashions and shifting behaviors of customers” because the cons of the pandemic for the trade.
An inside survey performed among the many affiliation’s members — which final yr rose to incorporate 594 firms, 95 % of that are small to medium-sized — confirmed the general optimism, with 46 % of firms believing a restoration is already in progress and 37 % of them pondering it would occur within the second half, whereas 14 % cautiously predict it would happen in 2022.
“On one hand, firms really feel the urge to restart, however on the opposite they want new and stable circumstances to have the ability to obtain their objectives, flanked by a governmental plan that may help them by way of the promotion of Made in Italy, of innovation, of digitalization and growth in overseas markets,” stated Ancorotti, who sounded cautious on the newest developments within the nationwide political scenario. To wit, his method clashed with the overall sentiment of hope and confidence generated by the appointment of economist and former European Central Financial institution president Mario Draghi, who final week was invited by Italian President Sergio Mattarella to type a brand new authorities following the resignation of Prime Minister Giuseppe Conte because of a authorities disaster.
On the product entrance, Ancorotti underscored the ever-increasing significance that cosmetics providing pure and sustainable options may have sooner or later, whereas those claiming antiaging and multifunctional properties will see a slowdown.
A report compiled by Cosmetica Italia’s research heart discovered that sell-in gross sales of cosmetics with pure and bio formulations generated 778 million euros final yr, whereas sustainable merchandise totaled 876 million euros, for a mixed worth of 1.66 billion euros. Particularly, hair merchandise accounted for 33 % of mixed gross sales, adopted by skincare and make-up.
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