Italian footwear industry faces significant slowdown in Q1 2024

The Italian footwear industry experienced a sharp slowdown in the first quarter (Q1) of 2024, with notable declines in both exports and turnover, according to the latest report from Centro Studi Confindustria Moda for the national association representing industrial shoemakers in Italy, Assocalzaturifici. The sector saw a 9.7 per cent drop in export value and a 10.3 per cent decrease in the number of pairs exported. Additionally, turnover fell by 10.1 per cent. The downturn extended to domestic purchases, with Italian families reducing their footwear purchases by 1.6 per cent in quantity and 0.7 per cent in expenditure.

The report reveals that 85 per cent of domestic production is destined for export, with 51.9 million pairs sold in the first quarter of 2024, worth 3.17 billion euros. This represents a decrease of 6 million pairs compared to the same period last year. January showed some resilience in export value with a 1.4 per cent increase, but February saw a decline of 6.2 per cent, leading to a sharp 20 per cent drop in March, both in value and pairs.

An analysis by product type indicates declines across all sectors. Footwear with leather uppers, which accounts for 65 per cent of foreign sales by value, saw an 8.6 per cent drop in volume and a 7 per cent decrease in value compared to the first three months of 2023.

Export destinations also showed varied performance. The European Union (EU) markets fared better than non-EU markets, with a 4.1 per cent decline in value compared to a 15 per cent overall drop in non-EU markets. Within the EU, France and Spain showed growth in export value despite a decrease in quantity, with increases of 1.7 per cent and 8.5 per cent respectively. France remains the top destination for Italian footwear, including production carried out in Italy for French luxury brands, despite a 4.3 per cent decline in volume. Exports to Germany and Belgium dropped by more than 10 per cent and 20 per cent in value, respectively, with Belgium also seeing a 37.6 per cent fall in quantity.

Outside the EU, exports to Switzerland, a traditional hub for fashion multinationals, halved in value (-53.4 per cent) and dropped 36.7 per cent in volume, pushing Switzerland to fourth place among export destinations. Meanwhile, exports to the Far East and Middle East showed growth, with values rising by 4.3 per cent and 14.1 per cent, respectively. China and Hong Kong performed well in the Far East, with China seeing a 10.8 per cent increase in value and a 17.8 per cent increase in quantity, and Hong Kong achieving a 26 per cent rise in value and 4.9 per cent in volume, though still below pre-COVID-19 levels. Japan maintained stability with a slight 0.9 per cent decline in value but a 3.1 per cent increase in quantity. South Korea, however, faced a significant downturn, with approximately 30 per cent declines.

In the Middle East, the United Arab Emirates saw a 34.4 per cent increase in value despite a 4.5 per cent decrease in volume. On the American continent, both the US and Canada experienced similar reductions in value, at 8.8 per cent and 7.2 per cent respectively. The UK continued to perform poorly, with a 6.1 per cent decrease in value.

Sales in Russia, part of the former Soviet bloc, dropped by 22.4 per cent in value and 17.8 per cent in pairs, while Ukraine showed a 21 per cent increase in value despite an 11 per cent drop in volume. Kazakhstan continued its positive trend with a 4.8 per cent increase in value and a 12.2 per cent rise in quantity.

As of the end of March, the number of active footwear companies in Italy decreased to 3,490, reflecting a loss of 74 units (2.1 per cent) since December 2023, along with a 0.8 per cent decline in employees.

Fibre2Fashion News Desk (DP)