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Tuesday, 28 July 2020 14:22

World footwear consumption declines by 22%: Survey

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World footwear COVID-19 survey conducted by the Portuguese Footwear, Components, Leather Goods Manufacturers’ Association (APICCAPS) in April found that the virus had already sent global footwear consumption down more than 22 percent. In Europe, consumption tumbled 27 percent year over year by April. In North America, it’s down 21 percent, and in Asia, footwear consumption had fallen 20 percent.

The same survey also found 42 percent of footwear manufacturers ramping up supply-chain diversification efforts while 39 percent are trying to shorten their supply chains. Footwear production and consumption is picking up in China, where recovery started sooner than it did in the West. Total footwear production in the country has returned to about 70 percent of the normal level now, said Li Yuzhong, President, China Leather Industry Association (CLIA).

Though in India exporters are optimistic about recovery in demand, they are aware there’s still a long way to go. The Indian Council for Leather Exports saw 60 per cent production in May and July and expects this to improve to 85 per cent in August and September.

Brazil manufacturers are similarly optimistic as production is starting to pick up after a painful March that saw production plunge around 30 percent, according to Letícia Sperb Masselli, Manager, Abicalçados-a Brazilian footwear program.

Manufacturers in Brazil are banding together to capitalize on their opportunity. The supply chain there has started to work more as a union to collectively appeal to buyers keen on minimizing their risk and reliance on Asia for sourcing.

With shoppers at home instead of in stores during prime buying time for spring and summer shoes, many companies are in the same over-inventoried boat. Valleverde, an Italian shoe brand managed to deliver more than 80 percent of its shoes to the clients and has only 20 percent of the Spring/Summer 2020 shoes in its warehouse.