Italy’s footwear segment is suffering greater losses than the textile one, which was able to convert more easily. Research conducted by Confindustria Moda on 88 companies part of Assocalzaturifici, estimated a loss of 1.7 billion euro of revenue in the first quarter of 2020, equal to a 38.4% decrease.
Italy’s footwear in the first quarter
“The lockdown has had profound impacts on our segment – explains Assocalzaturifici’s president, Siro Badon (in picture to the right) -. As we were unable to convert production lines, as the textile segment did, we suffered greater losses with respect to both revenue and orders, in comparison to other businesses in the fashion industry. We need decisive and structural measures from the government with regards to credit, taxation and export support. These are the strategic resources that the companies of one of the most crucial made-in-Italy sectors need at this time.
Always according to this research, companies of the footwear segment listed the following challenges, as the greater ones they face at this time: client relations, lack of liquidity and the cancellation of fairs and tradeshows. The segment’s demands focus on the need for more liquidity, social security and fiscal changes.
About 9 of 10 footwear manufacturers have laid-off some employees for the time being, or are planning to do so. Over 7 out of 10 companies stated that this tool has been used for at least 80% of the employees. 61% of companies is utilizing remote working programs for about 10% of employees.
The present is bleak, but not nearly as much as the future. The segment foresees an average decrease of orders equal to -46.2%. About half of all companies that were part of the research, reported decreased between -20% and -50% in the first quarter of 2020, compared to that of 2019. 1/3 of them reported losses greater than -50%.