The tear that passed was slightly negative for Germany’s footwear industry. The segment in the country lost 2.7% in 2019. Now there are additional challenges: but while the period appears to be difficult, the segment trust there will be a recovery in the future. That’s the summary of what said by Carl-August Seibel, president of the German association for footwear and leather goods, in Düsseldorf during Gallery Shoes.
Footwear loses 2.7%
Seibel reported that German footwear manufacturers lost 2.7% in 2019, in comparison to the previous year. Total revenue stopped at 2.89 billion euro. Sales within Germany lost 1.8%, while foreign revenue dropped by 6.8%. “Luckily this performance has had no impact on the overall number of jobs, which increased by 2% during 2019, equal to 15.708 employees – commented Saibel in a note -. Qualified workers don’t risk to lose its job even during a difficult time, because German manufacturer know they are hard to find”.
Unknown outcome of Coronavirus
Seibel also commented on the current Coronavirus situation, stating that its impact on the German industry cannot yet be evaluated with accuracy: “We will need at least one or two more weeks to be able to draw more precise evaluations”. Of course, it can already be perceived how this health emergency is “causing an increase in prices that cannot simply be put onto the consumer”. With regards to challenges ahead, the manager also mentioned the relationship between production and sustainability. According to Seibel, a balance must be reached via innovation: “Companies need to face growing labor costs, as well as that related to sustainable products, which is also increasing”.
Optimism
Even during a situation of global uncertainty, German footwear manufacturers remains overall positive for 2020. Why? “The US economy is in good shape. The markets in Asia, Africa and Middle East will continue to grow and there is strong consumer trust, thanks to the great occupation levels in Germany. Last, even with reduced purchases from the Coronavirus, the lack of winter will bring a recovery”.
Image taken from hdsl.eu
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