L'Italo-Americano

THURSDAY, AUGUST 10, 2023 www.italoamericano.org 10 L'Italo-Americano I magine a place where beauty is not just a concept, but a thriv- i n g i n d u s t r y w h e r e innovation and entre- preneurial spirit lead the way. Welcome to the Beauty Val- ley, a lesser-known power- house of Made in Italy, nes- tled between the regions of Lombardy, Emilia Romagna, and Veneto. This vibrant hub i s t h e p u l s a t i n g h e a r t o f Italy's cosmetics industry, accounting for a staggering 75% of the country's total cosmetics exports. With a turnover of €12 billion in 2022, the Beauty Valley is a s h i n i n g e x a m p l e o f t h e strength and vitality of Italy's cosmetics sector. A sector that recorded a remarkable growth of 4.3% in turnover in 2022. But what makes this part of the country so special? C l e a r l y , w e a r e t a l k i n g about more than just a geo- graphical location: the Beauty Valley is a thriving ecosystem teeming with a diverse array of entities within the cosmet- ics industry: from budding startups making their first foray into the beauty world to global brands that have long been household names, the valley is a bustling communi- ty of businesses continually redefining the landscape of b e a u t y a n d p e r s o n a l c a r e products. 79.3% of all Italian firms producing cosmetics call this area their home: they collaborate with global giants i n t h e f i e l d s u c h a s D i o r , C h a n e l , E s t é e L a u d e r , L a n c ô m e , S h i s e i d o , a n d Helena Rubinstein. These c o m p a n i e s , n u m b e r i n g around 500, generate six-fig- ure turnovers and produce 60% of eyeshadows, mas- caras, powders, and lipsticks used worldwide. The strategic partnerships in this beauty district are often local, with supply distances averaging around 74 kilometers and it isn't surprising: Lombardia's strong inclination towards t h e c o s m e t i c s i n d u s t r y i s rooted in its thriving chemi- c a l a n d p h a r m a c e u t i c a l i n d u s t r y , o n e o f t h e m o s t dynamic in Europe. Many pharmaceutical companies, l o s i n g c o m p e t i t i v e n e s s i n their core market since the l a t e 1 9 6 0 s , e x p l o r e d n e w business opportunities in the beauty industry. I t i s i n t h o s e y e a r s , f o r i n s t a n c e , t h a t I n t e r c o s , founded by Dario Ferrari, began its adventure in the cosmetics industry. From its humble beginnings, Intercos blossomed into a global pow- erhouse, boasting a turnover of 835.6 million euros and a dedicated workforce of over 5,200. A n o t h e r B e a u t y V a l l e y leader is Ancorotti Cos- m e t i c s , a c o m p a n y t h a t crafts one-fifth of the world's m a s c a r a , a n d s a w i t s turnover more than double in just a few years. Ancorotti Cosmetics' meteoric rise to a revenue of 110 million euros in 2018 caught the attention o f s a v v y i n v e s t o r s , w i t h White Bridge Investment acquiring a 30% stake in the c o m p a n y f i v e y e a r s a g o . Then there's Chromavis, a firm born from the fusion of two family businesses that now employs 800 people: C h r o m a v i s c a r v e d o u t a niche for itself in the Beauty Valley with its innovative products, including a spray n a i l p o l i s h t h a t q u i c k l y b e c a m e a f a v o r i t e o n t h e net. But the beauty industry also intersects with other sectors deeply rooted in the r e g i o n , s u c h a s f a s h i o n , design, and packaging. The latter, in particular, has been gaining increasing impor- t a n c e i n r e c e n t y e a r s , a s noted in a Forbes article by Pier Anna Franini: sustain- able packaging significantly influences consumer choices, as does clean and minimalist design. In 2022, the turnover of cosmetic packaging manu- facturers exceeded 2019 fig- u r e s b y o v e r 1 0 0 m i l l i o n euros, reaching 3.75 billion euros, a growth of over seven percentage points compared to the previous year. The m a i n d e s t i n a t i o n s f o r e x p o r t s a r e F r a n c e ( + 6 % c o m p a r e d t o 2 0 2 0 ) , t h e United States (+28%), and G e r m a n y ( + 6 . 6 % ) , w h i c h together yield over 1.5 billion e u r o s . A c c o r d i n g t o t h e analysis conducted by Cos- metica Italia — more about it below — other countries with double-digit growth com- pared to 2020 include Hong Kong (+23.1%), the Nether- l a n d s ( + 3 4 . 0 % ) , a n d t h e U n i t e d A r a b E m i r a t e s (+37.2%). But the Beauty Valley is not just about business and innovation. It's also a signifi- cant contributor to Italy's e c o n o m y , a s i t e m p l o y s 35,000 people directly and an additional 200,000 indi- r e c t l y . T h e s e j o b s s p a n a wide range of roles, from research and development to marketing and sales, reflect- ing the diverse opportunities that the cosmetics industry offers. A t t h e e p i c e n t e r o f t h e B e a u t y V a l l e y ' s s u c c e s s is Cosmetica Italia, an association that has been instrumental in shaping the Italian cosmetics industry. E s t a b l i s h e d i n 1 9 6 7 a s Unipro, the National Union of Perfumery, Cosmetics, Toilet Soap and Ancillary i n d u s t r i e s , C o s m e t i c a Italia evolved into a pivotal organization, serving as a benchmark for disseminat- i n g n o r m a t i v e , t e c h n i c a l information, and market sur- veys. All in all, it represents more than 550 member busi- nesses, both in production and distribution, accounting for an impressive 95% of the Italian beauty market. Cos- metica Italia is committed to p r o m o t i n g t h e v a l u e s o f product excellence, sustain- ability, and social solidarity; it fosters association loyalty and cohesion and provides its members with the neces- sary tools to favor product excellence and sustainable development. The associa- tion also focuses on the cul- tural growth of its member firms, nurturing an environ- ment that encourages inno- vation and progress. E x t e r n a l l y , C o s m e t i c a Italia works tirelessly to pro- mote the industry's values and safeguard its interests: it does so by intensifying and i m p r o v i n g r e l a t i o n s w i t h stakeholders and ensuring that the voice of the Italian cosmetics industry is heard and its interests are protect- ed. It is true then, that the Beauty Valley is more than just a region: it's a symbol of I t a l y ' s v i b r a n t c o s m e t i c s industry, a place where busi- nesses, big and small, come together to create products t h a t e n h a n c e b e a u t y a n d well-being. As we look to the future, the Beauty Valley is poised to continue its growth trajectory and is well-posi- tioned to navigate the chal- l e n g e s a n d o p p o r t u n i t i e s that lie ahead. Firms in the Beauty Valley produce both makeup and skincare products (Photo: Radub85/Dreamstime) Italy's cosmetics powerhouse, the "Beauty Valley" GIULIA FRANCESCHINI IMPRESA ITALIA MADE IN ITALY TOP BRANDS BUSINESS & ECONOMY

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