Currency issues weigh heavily on Italy’s shoe exports
The president of Italian footwear manufacturers association Assocalzaturifici has said the fluctuation of exchange rates over the past year has led to a ‘worrisome’ situation for footwear exports.
"We went from 1.29 in the dollar/euro ratio in 2012 to 1.33 in 2013, to reach 1.36 in 2014 and almost certainly in 2015," said Cleto Sangripanti. “For an industry like footwear, which exports 85% of its production, an increase in the exchange rate by than 5% is a loss of competitiveness that is non-depreciable with other factors.
“Our processes to revise business models are not enough, though they are creating results. We must return to a fair exchange rate that we can fix at around 1.18, or approximately 13% less than current levels. This is essential if we want to ensure that a wide range of made-in-Italy companies have the opportunity to continue to be featured as protagonists in foreign markets: I am referring to companies that are focusing on contemporary collections, or rather an affordable luxury that combines sophisticated manufacturing and design at an affordable price for the middle class in emerging countries."
Demand in European Union countries has again stagnated. The difficulties in Russia and the crisis with Ukraine have reduced orders from the markets of the Commonwealth of Independent States, with many down in the double digits in the first few months of the year.
Seven out of ten Italian shoes sold abroad are directed to an EU member state.
“We are facing a crisis comparable to that of 1997-1998. In this case, however, a number of factors converge, each of which ends up contributing to generate a negative situation that is unlikely to recover soon," he added. “The currency situation is worrisome along with all the other political factors. Especially the Marche districts, which are more exposed in this market, may face the full repercussions of the crisis in the second half. The poor performance of the Russian area is not offset by one that is very positive, in other areas such as the United States, which has recovered an interest for Italian footwear."
