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Italian footwear cos registered 38% drop in sales

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According to a study of the impact of Covid-19 on the footwear industry conducted by Confindustria Moda with the participation of 88 Assocalzaturifici (Italian Footwear Association) member companies, concluded that in the first quarter of 2020 Italian footwear companies registered an average drop in sales of -38.4%, with total losses estimated at 1.7 billion euros. 60% of the footwear companies sampled reported a -20% to -50% drop in sales in the first quarter of 2020 as compared to the first quarter of 2019, while an additional 20% of those surveyed saw their sales shrink by more than -50%.
The decline in orders was even more significant with 46% of the companies interviewed reported receiving -20% to -50% less orders in the first quarter of this year, while 37% saw their order portfolio cut by more than -50%. The average decrease in orders was -46.2%.
According to Assocalzaturifici Chairman Siro Badon, “The lockdown has had a significant impact on the sector. Unlike the textiles industry, we are unable to convert our production lines, and so we have registered a steeper drop in sales and orders than other companies in the fashion industry. We need bold structural measures by the government regulating credit, taxation and support for exports. These are the strategic resources required by companies in one of Italy’s most crucial industries.”
Relations with customers, cash shortages and cancellation of trade fairs were listed by the respondents as the main problems faced by companies during the sanitary emergency. The survey respondents would like to see the strategic priorities for government intervention focusing on policies aimed at guaranteeing liquidity, social security measures, appropriate fiscal policy and trade fairs.