Italy is the leading supplier of quality eyewear in Russia
Already dominating the scene last fall in Paris, Italian eyewear, which holds the world leadership in the medium-high and luxury markets, is continuing its overseas promotional campaign with Moscow catwalk. This time it has focused its efforts on the Russian market, which is becoming increasingly more interesting, given the fact that during 2000-2003 the demand for eyewear rose sharply by 40-50%.
According to a recent survey of the market in the Russian Federation that was commissioned by Anfao and Ice, prospects for Italian companies remain very good; with a catchment area of 145 million people, Russia is one of the largest markets in Europe, and with a very good purchasing power especially among the inhabitants of Moscow and St. Petersburg.
In 2003 eyewear sales, albeit slacker than the previous years, posted a significant 25% increase and are expected to settle at 15% for 2004.
'Russia', stated Anfao President Cirillo Coffen Marcolin, 'loves Made in Italy as an expression of style and quality that is reflected in mass consumer goods, especially upscale goods, such as fashion, furniture and luxury accessories. This country has been presented as one of the most dynamic emerging countries with the greatest potential for development by all international analysts. We believe this and so does our government, there is room for growth, it is all a matter of fine-tuning the promotion and distribution of our products'.
At present, the main suppliers of eyewear in Russia are: China, Italy and Turkey, but Italy is the leading supplier of quality eyewear. Italian eyewear holds 19% of the Russian market of imported goods (second after China for sunglasses and first for prescription eyewear). Italian eyewear, despite the handicap of the rising Euro especially over the last 18 months, continues to play a leading role on the Russian market and is viewed as being an original product among importers, distributors, and also consumers, because of its style and design, prestige and reputation. Exports of Italian eyewear experienced a veritable boom in 2000 and 2001, when the increase in value doubled in both years, and in 2002 managed to grow by 28%.
Meanwhile, instead, Italian exports of eyewear frames to Russia rose and Italy strengthened its #1 position, and on its own accounted for 40% of the market of imported goods in 2003, followed far behind by China at 17%, Germany at 10% and France at 5.4%. For the 12 months in 2003, the value of Italian exports to this country is estimated at €17.5 million (+9%), €6.2 million for frames for which there continues to be an upward trend (+60%) and €11.3 million (-12%) for sunglasses where sales continue to be sluggish (source: Anfao based on Istat figures).
Italy's strategy to strengthen and expand its position on the Russian market can be achieved by upgrading the local distribution network, which involves a constant monitoring action and safeguarding the property rights of Italian producers from counterfeiting in Russia and countries in the area.
Another factor worthy of consideration is the ongoing growth of real income of the Russians: in 2003 it rose by 14.5% (real value) versus 9.9% in 2002. The nominal value of pro-capita income was 5,524 Rubles at the end of September, (approx. $185) while the average wage was 5,982 Rubles at the end of October (approx. $200). In the third quarter of 2003, the minimum official subsistence level was 2,121 Rubles a month, equal to approx. $71.
Russia ended 2003 as one of the most dynamic economies in the world after China, and looks set to double its GDP within the next eight years. The economy continues to have a positive trend, as confirmed in the end-of-year figures which show 7% increases in GDP and in industrial production (in 2002 the increase was 3.8%).
At the same time, working in team with the Russian authorities will also be important in order to try to fight the counterfeiting of designer labels, most of which are Italian. Russia is the very country where the counterfeiting industry is developing and this severely impacts the Made in Italy image and leads to falling market shares.
