The organisation of Micam, the footwear industry’s leading international trade fair scheduled from 20 to 23 September at the Milan Rho trade fair district, has now officially been confirmed and is going to take place regularly. A survey conducted by Assocalzaturifici shows that 80% of the interviewed companies feel directly penalised by the emergency, but footwear manufacturers are determined to restart. The event is seen as a relaunch tool for 75% of Italian and foreign companies.
In the first quarter of 2020, companies in the footwear sector experienced an average 38.4% drop in turnover with a total loss estimated at around 1.7 billion euro. Data comes from a survey relating to the impact of Covid-19, conducted by Confindustria Moda, which also involved 88 companies associated with Assocalzaturifici that responded in full lockdown.
In detail, it turned out that, compared to the same period of 2019, 60% of the sample footwear companies recorded a drop in turnover of between -20% and -50% in the first three months of 2020; moreover, a further 20% of the respondents reported a contraction above -50%. Orders dropped drastically: 46% of the interviewed companies indicated in the first quarter a tendency drop in order intake ranging from -20% to -50%; 37% suffered a setback above -50% with an average -46.2% decrease in orders.
For Siro Badon, president of Assocalzaturifici: “The lockdown has significantly affected our sector which, not being able to reconvert any production line, unlike textiles, has recorded the most important losses in turnover and orders compared to other companies in the fashion sector. We need strong and structural measures from the government on credits, taxation and export support. These are the strategic resources requested by the companies in one of the most crucial Made in Italy sectors”.
“MICAM is paramount to support an essential sector for the Made in Italy and our economy – adds Siro Badon, president of Assocalzaturifici and MICAM – Thanks to the most important international fair of the footwear sector, it is possibile to keep a connection between producers and buyers. Although alternative opportunities for business relationships have developed in recent months, the meeting at the fair stays the most important development opportunity in the market and the preferred way of proceeding with order negotiations. Our companies immediately adapted anti-contagion safety protocols, the same methodology can therefore also be applied to the trade fair sector to ensure that it runs safely. We must absolutely give reassurance to our companies that are already in great pain for the economic repercussions of this emergency. Without a horizon, you risk taking a dead end tunnel. And the confirmation of MICAM is the best answer to the market uncertainty”.
The difficulties of the current situation appear clearly from the respondents’ statements, whose majority (over 80%) reported to have been directly penalised by the ongoing emergency, which has led to a reduction in the order backlog for over 90% of cases, paralysing the production for more than 60% of companies and effectively blocking the possibility of showing new collections to possible buyers.
A dark coloured picture, which however does not stop companies, determined to restart and recover the market shares lost in this period. 48% foresee a resumption of commercial activities in September while the other 52% within the year.