Italy's shoe industry recovery under threat
Although Italian footwear exports and household spending increased in the first quarter of 2022, analysts predict a slowdown in growth from the beginning of the second quarter. The reason is Russia's special operation in Ukraine, writes Wordfootwear.com
In the first three months of the year, Italian household purchases increased by 15,4% in volume and 20,6% in value compared to the same period in 2021, according to the fashion research center of the Italian footwear association Assocalzaturifici. But the gap in indicators compared to the pre-pandemic level is still about 10%. The number of purchases by tourists visiting Italy is still below the level of 2019, despite a partial recovery in tourism.
Exports in the first three months of 2022 also showed an increase of 21,4% in value and 11,7% in volume terms compared to the same period last year. Italy shipped 58,7 million pairs of shoes (down 4,9% compared to the first quarter of 2019) worth €3 billion, with average prices up 8,7%.
Italian footwear is on an upward trajectory in EU markets, up 9% in volume and 18% in value compared to the first three months of 2021. The main sales markets in value terms were the Netherlands (up 37%), France (up 22%), Spain (20%) and Germany (16%).
But performance in non-EU countries was even better in the first quarter of 2022, with sales up 18% in volume and 25% in value compared to the same period last year. Exports to the US topped pre-COVID 2019 levels, up 70% in value, and South Korea saw a return to growth (up 16% in both value and volume) after slowing down in 2021. Good results were also recorded in China, with a 28% increase in sales in value terms.
At the same time, the report notes the negative impact that the conflict between Russia and Ukraine has on the process of restoring the shoe industry in Italy. “The impact has been particularly acute in footwear regions that traditionally export to these regions (such as Marche and Romagna), where deliveries of ready-to-ship products have been canceled, orders from the portfolio have been canceled,” said Assocalzaturifici chairman Ciro Badon.
Exports to Russia in March decreased by 51%, and to Ukraine - by 95%. The cumulative figures indicate a drop in sales of approximately 20% in both value and number of pairs for Russia and a decrease in sales of 48% in value and 56,5% in volume for Ukraine compared to January-March 2021.
Other negative factors were the sharp rise in the cost of energy and the lack of a significant decline in commodity prices, which remained high for many months. Badon had already turned to the Italian government for help.
Although Italian footwear exports and household spending increased in the first quarter of 2022, analysts predict a slowdown in growth from the beginning of the second quarter. The reason is…
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