Italian footwear industry is facing headwinds this year

The Italian footwear sector experienced a challenging start to 2024, with significant declines in exports and turnover during the first quarter. According to a report by the Confindustria Moda Study Center for Assocalzaturifici, Italy's national shoemakers association, exports fell 9.7 percent in value and 10.3 percent in volume, while overall turnover decreased by 10.1 percent.

Giovanna Ceolini, president of Assocalzaturifici, said in a statement that the slowdown which began in the latter half of 2023 has intensified, with a sharp reduction in orders and production activity. The industrial production index for the sector dropped 20.5 percent in the first three months of 2024. "The slowdown that began in the second half of last year has continued for the footwear industry at the start of 2024," Ms Ceolini said, "and has now become even more marked, with a strong reduction in orders and production activity (the ISTAT index of industrial production in the first three months shows -20.5 percent).

"The second quarter is expected to see a drop in turnover of around -7.4 percent in April-June 2023."

A survey conducted among industry members revealed that 68 percent of respondents experienced a decline in turnover, with 18 percent reporting contractions exceeding 20 percent. The outlook remains pessimistic, with over 80 percent of entrepreneurs not expecting a recovery before 2025.

Most respondents saw fall in revenue

Exports, which account for 85 percent of national production, saw a particularly steep decline in March, with both value and volume falling by approximately 20 percent. All product categories experienced negative growth, with leather footwear, representing 65 percent of foreign sales value, declining 8.6 percent in volume.

While EU markets fared slightly better than non-EU destinations, notable shifts occurred in key export regions. Switzerland, traditionally a major logistics hub for fashion multinationals, saw exports halve. However, direct shipments to final markets such as the Far East and Middle East increased.

The sector's struggles mirror those of other fashion supply chains, including fabrics, yarns, and tanneries. With no immediate signs of recovery, the industry has pushed back expectations for renewed momentum to 2025, reflecting a cautious outlook for the Italian luxury goods sector.