Bags / Shoes & Accessories

Italian footwear exports and household spending increased in the first quarter of 2022 (January-March), but slowed from the second quarter. The rising energy and raw material prices caused by the conflict between Russia and Ukraine have cast a shadow over the prospects of the Italian shoe industry.

According to the data report provided by the Moda Research Center of the Italian Footwear Manufacturers Association (Assocalzaturifici), compared with the same period in 2021, the purchase of footwear by Italian households in the first three months of this year increased by 15.4%, and the expenditure increased by 20.6%. However, compared with the level before the epidemic, there is still a gap of about 10%. The report notes that tourist shopping to Italy remains well below 2019 levels, with a recovery in tourist numbers in 2021 and an encouraging start to 2022.

From January to March this year, the export value of Italian footwear increased by 21.4% year-on-year to 3 billion euros, and the export volume increased by 11.7% year-on-year to 58.7 million pairs. Compared to the first quarter of 2019, the export volume fell by 4.9%, but the average price of footwear increased by 8.7%.

Compared with the data for the first three months of 2021, Italian footwear sales in the EU market increased by 9%, and sales increased by 18%, entering an upward trend. Among them, the Netherlands increased by 37%, France increased by 22%, Spain increased by 20% and Germany increased by 16%.

In the same period, Italian footwear exports to non-EU countries increased by 18% year-on-year in volume and 25% in value. In particular, exports to the U.S. exceeded pre-pandemic levels in 2019, with a sharp increase of 70% in export value. A decade-long record of export growth to South Korea, which was interrupted in 2021, resumed in the first quarter of this year, with both export value and export volume increasing by 16%. Exports to China maintained a good performance in the first quarter, with the export value increasing by 28%.

However, the Russian-Ukrainian conflict that broke out on February 24 seriously affected the Italian shoe industry. Shoe-making companies that have gradually recovered from the epidemic are once again facing the crisis of the outbreak of the Russian-Ukrainian conflict. Siro Badon, chairman of the Italian Footwear Manufacturers Association, said: "Since March, the export of footwear products to conflict countries has been interrupted, and the traditional export to Footwear production areas in Russia and Ukraine, such as Marche and Romagna, were particularly affected, with many product orders and expiring delivery contracts cancelled.”

Exports of Italian footwear to Russia fell by 51% in March, while exports to Ukraine fell by 95%. From January to March, the value of exports to Russia fell by about 20% year-on-year, the value of exports to Ukraine fell by 48%, and the number of exports fell by 56.5%.

Siro Badon added: "In addition to the impact of the Russian-Ukrainian conflict, the Italian footwear industry will face sharp increases in energy prices and high raw material prices for several months. In addition, it will also face the threat of the spread of new mutant viruses."