The Italian footwear industry has faced significant setbacks during the first nine months of 2024, with major declines reported across several key indicators, warning of challenging times for this iconic sector.
According to the Centro Studi di Confindustria Accessori Moda, the sector is projected to close the year with revenues down by 9.3%, totaling €13.2 billion, which translates to almost €1.4 billion less than the previous year. This alarming trend was highlighted by Giovanna Ceolini, president of Assocalzaturifici, who noted, "Nel terzo trimestre dell’anno non si è verificata nessuna inversione di tendenza nella congiuntura del comparto." Her comments underline the lack of improvement during the third quarter of the year, reflecting wider systemic issues impacting the industry.
The drop in industry performance has been stark, with exports decreasing by 9.2% and production activity plunging by 18.9% according to the Istat industrial production index. These figures highlight the intense struggles the industry has faced as it attempts to recover from the effects of COVID-19. While 2023 saw relative stability, 2024 has proven more difficult, with many businesses reporting declines exceeding 20% compared to previous years.
The external market dynamics have also played a significant role. While sales within the European Union have been somewhat resilient, showing only minor declines — with France down by 2% and Germany down by 6.2% — the extra-EU market has been substantially more challenging, suffering from a significant drop of 15.3%. The recent international turmoil, exacerbated by the war between Russia and Ukraine and turbulence in the Middle East, has compounded these issues, directly impacting exports.
Ceolini also pointed out how the struggles of luxury brands which had previously supported sector growth have also been detrimental. The report confirms the trend across various product categories, indicating all sectors have faced declines, save for rubber-soled shoes, whose exports surged by 8.2% by volume and 1.3% by value. This segment stands out as the sole bright spot amid widespread contraction.
For more traditional Italian footwear, crafted from leather — which constitutes approximately 65% of foreign sales value — the drop has been severe, with quantities and value declining by 7.1% and 8.2%, respectively. These statistics raise concerns about the future viability of certain production lines, especially as international demand shifts.
Data from the first nine months also revealed alarmingly negative trends concerning business demographics. A total of 144 footwear companies ceased operations, marking a 4% drop, as the industry navigated this period characterized by financial hardship. Compounding this distress is the reported loss of 2,619 jobs, which equates to 3.6% of the workforce. This decline not only affects families but also signals broader economic ramifications for various communities across Italy.
The shift toward government support systems has been notable, as evidenced by the increased requests for wage integration schemes, particularly within the leather goods supply chain. The number of authorized hours for Cassa integrazione, or wage supplementation, rose to 26 million, reflecting a staggering 139.4% increase compared to the same timeframe last year. Notably, this figure is more than four times higher than the levels recorded during the same period before the pandemic hit. This reliance on state support underlines the precarious state of many companies within the sector.
While some markets provided sporadic positive signals — including China, where exports increased by 1.7% by value and 19% by quantity, and the Emirates with rises of 26.3% — these success stories were overshadowed by significant losses elsewhere. For example, Switzerland has seen staggering drops of up to 51.3% by value, attributed to strategic shifts among luxury brands toward direct shipping rather than utilizing Swiss logistics.
Overall, the Italian footwear industry finds itself at a crossroads, facing significant hurdles as we progress through 2024. A prolonged period of unfavorable economic conditions, shifting consumer trends, and diminished international competitiveness could threaten the very essence of what has made Italian footwear synonymous with quality and craftsmanship.
Business leaders, analysts, and consumers alike will need to remain vigilant as the sector navigates these challenging waters, adapting to change and seeking new opportunities, all of which will be necessary to regain its footing and protect the legacy of Italian footwear.