Market demand remains strong for Italian-made products, according to Ancorotti.
In the face of the ongoing pandemic, managing uncertainty has become a crucial aspect for businesses worldwide. One such company, Ancorotti Cosmetics, based in Europe, is no exception. Operating in the cosmetics industry on a third-party basis, Ancorotti has a significant presence in 50 different countries and boasts 300 active clients.
The company, particularly active in Saudi Arabia and the United Arab Emirates, has also registered significant growth in Northern Europe. However, the recent US tariffs on European products, including cosmetics, could pose a significant challenge.
The tariffs, announced by Trump, refer to high rates on European goods, making them less competitive in the US market. This has weakened the export performance of the European beauty and personal care industry, potentially encouraging US manufacturing alternatives. The French cosmetics industry alone risks an annual loss of about 300 million euros and threats to thousands of jobs due to these tariffs.
While direct information on Ancorotti Cosmetics is scarce, the experience of major players like L’Oréal offers insights into how companies in this sector mitigate uncertainties. Companies often adopt strategies such as stockpiling inventory, maintaining flexible global manufacturing and distribution networks, and considering slight price increases to absorb tariff impacts. They also evaluate operational changes and potentially relocating production depending on how the trade environment evolves beyond 2025.
To manage internal and external uncertainties, companies often use risk management strategies such as diversifying supply chains, increasing stock reserves, and leveraging production capabilities in multiple regions to adapt rapidly to tariff and regulatory shifts. This approach likely applies to Ancorotti Cosmetics, enabling it to remain resilient despite the challenges posed by US tariffs and the broader geopolitical trade environment.
Graziano Fumarola, the COO of Ancorotti Cosmetics based in Crema, has led the company through these challenging times. The company closed 2024 with strong growth figures, reaching €150 million in turnover (+30% on 2023). Despite growing regulatory pressure at the European level, which risks compromising the competitiveness of the Ancorotti group's industrial system, the company is forecasting a significant increase in revenues for 2025.
The Ancorotti group remains confident in the market's demand for "made in Italy" products. Strengthening its presence in strategic high-potential areas, such as the Middle East, the company is poised to continue its growth trajectory despite the uncertainties that lie ahead.
[1] Tariffs on European Cosmetics: Implications and Mitigation Strategies [2] L’Oréal’s Strategies to Navigate the US-China Trade War [3] Impact of US Tariffs on the European Cosmetics Industry
Ancorotti Cosmetics, in the midst of increasing international trade uncertainties, might employ strategies similar to L’Oréal, such as stockpiling inventory, maintaining flexible global manufacturing and distribution networks, and considering slight price increases to absorb tariff impacts, in order to remain resilient against challenges posed by tariffs and changing geopolitical trade environments. In light of the increased competition due to US tariffs on European cosmetics, the European beauty and finance industry, including Ancorotti Cosmetics, might need to adapt their business operations, potentially considering production relocation or operational changes, to maintain their competitiveness.
