BBF products: Italy does better

Exports to emerging markets of Italian “beautiful and well-made” products will increase by 45% within 2020

According to a study conducted by the Dutch consultant, KMPG, “Made in Italy”, intended as an umbrella brand, has a degree of recognition which is second to only the giant multinationals in the field such as Coca Cola and Visa. Although, obviously it is such a generalized definition to encompass almost anything. From those products of proven appeal and quality, to those detrimental imitations which make use of the Italian sounding appeal. But what is obvious that in this period of economic downturn of the entire manufacturing sector, the positive commercial trade balance continues to highlight the potential of a country which has still a lot to offer. In real terms, with a GDP that has seen almost zero growth over the past twenty years, this loss of competitiveness is not reflected in the export figures and in fact Italian companies continue to be some of the most competitive in the world.

For the past six years, the Centro Studi Confindustria research centre in collaboration with Prometeia and with some of the main trade associations, have been presenting the data relative to research entitled “Exporting the Dolce Vita”, highlighting the market standing, and above all the growth potential of the “beautiful and well made” products (in Italian “belli e ben fatti” or BBF). This concept of “beautiful” and “well made” being applied to a collection of exported consumer goods at the medium-high end of the market, in the furnishing, food, clothing, footwear, optical, and jewellery sectors. The products being clearly distinguished by virtue of their design excellence, and the high quality of the materials and workmanship involved. According to a report by Confindustria, presented this year, exploiting the Expo 2015 showcase, the export value of these “beautiful and well made products” in the thirty main new world markets, reached a level of 11 Billion euros in 2014, and has a great growth potential: it being estimated that this figure could reach a value of 16 billion, an increase of 45%.

Made in Italy products in the medium-high end of the market category continue to have an irresistible appeal for the affluent classes in emerging countries, which by the year 2020 will have recorded a population increase of 224 million people. A true army of “new rich” people, of Indonesian and Indian origin, as well as Turks, that will take over the first place standing currently occupied by the Arab Emirates, which is currently the major customer of these goods, followed by China, and by Russia, despite a slow-down. At the top of this list of desired and purchased objects, is the fashion sector, which by 2020 could reach an export figure of 3.7 billion (+29%), with over half of the demand coming from Russia and China. With similar values for the jewellery sector which attracts the Arab Emirates in particular. While the furnishing sector occupies third place, with an estimated export figure of 3.3 billion euros in 2020, as compared to the current 2.1 billion euros, the demand for which coming principally from the Emirates and China.

Therefore a great potential. Not only for the major fashion houses, carmakers and design companies, but also for subcontractors who offer top quality manufactured items, conceived, designed and developed to meet the most sophisticated needs of the leading business enterprises in every field, involved in the production of top quality items.