A third of the world’s economies will fall into recession this year, the International Monetary Fund’s head said. Countries across the globe have been hammered by high inflation and interest rates, as well as the ongoing fallout from the war in Ukraine and China’s difficult exit from its zero-COVID strategy, ensuring that 2023 will be “tougher” than 2022. Among the G7 group of rich economies, Britain will likely face the worst recession and then experience the weakest recovery, economists polled by the Financial Times said. As Bloomberg put it, “upbeat forecasts are hard to find.”
Humanitarian needs are soaring around the world, and some of the reasons are what you’d expect: Worsening public health; the global effects of the Ukraine war; mismanaged migration. One that doesn’t get enough attention? Debt.
Countries are spending ever-rising portions of their budgets to service loans, leaving little to invest in preventing crises from spiraling, laying the groundwork for increasingly lengthy emergencies.
The global debt crisis isn’t some distant risk beyond the horizon. Dozens of countries — home to half the world’s poorest people — need urgent debt relief. Near the top of the list is flood-besieged Pakistan, where a disaster-debt cycle is spinning in real time. The country spending the most to repay its public debt is Somalia, which is already facing famine amid an unprecedented drought.
2023 April, 5th update
The dumping of second-hand shoes: donated but resold for profit. A Singapore shoe recycling project will be subject to surprise inspections following a Reuters investigation that found footwear donated to the scheme was not been recycled, Singapore’s culture minister said Monday. Instead, the shoes were exported to Indonesia for resale. Indonesia also said this month it would tighten customs checks at small ports to crack down on the illegal import of second-hand shoes as a result of Reuters’ findings. (Read more)
2023 March, 23rd update
Brazil and Argentina united for the maintenance of the TEC. Representatives of the Brazilian Footwear Industry Association (Abicalçados) and the Argentine Chamber of Footwear Industry (CIC) met on the morning of March 7 to discuss bilateral trade in the sector. The highlight of the agenda was the importance of maintaining the tariff, Tarifa Externa do Mercosul (TEC) to prevent a possible “invasion” of Chinese products into both countries. [Brasil and Argentina unidos pela manutenção da TEC – Abicalçados]. (Read more)
2023 March, 16th update
The development of the Egyptian leather and leather products industry. Egyptian exports of leather products to the African market increased by about 64% in 2022, to $5 million from $3 million the previous year. One report states that leather tanning accounted for 90% of Egypt’s exports of leather products, with a 12% increase in 2022, amounting to $90 million. However, there are 17,600 shoe factories employing more than 230,000 people producing about 100 million pairs of shoes per year along with other leather goods. [Opportunities in leather – Egypt – Al-Ahram Weekly]. (Read more)
In Italy, fashion tends to regroup supply chains. In Tuscany, fashion contractors internalize subcontracting. From leather goods to buckle finishes, different manufacturers reorganize factories, writes ilSole24ore. The problem of the fashion and leather sector in Italy is the lack of manpower. For this reason, brands acquire strategic suppliers, i.e. those who havegreater expertise and internalize the productions that were once outsourced. (Read more)
Leather shoes equal Sri Lanka? Sri Lanka’s exports of leather products and footwear were worth $49.8 million in 2022, leatherbiz informs. According to the Sri Lanka Export Development Board (EDB), there are seven tanneries operating in the country and the footwear industry directly employs about 20,000 people and indirectly includes 10 large exporting companies, 30 medium-sized companies and about 3000 small producers. It is able to produce up to 15 million pairs of leather shoes per year. (Read more)
2023 March, 9th update
Mexican imports of Brazilian footwear down 17%. As published by mx.fashionnetwork.com and in contrast to the results of the 2022 financial year, the Mexican market slowed down by double digits purchases of Made in Brazil footwear in January, as confirmed by the Brazilian Association of Footwear Industries (Abicalçados ). , in its latest report on foreign trade. [Inversión mexicana por US$2.3 millones en calzado brasileño – América Retail]. (Read more)
About 400 Turkish footwear factories were destroyed in February’s earthquakes. Some 400 footwear factories were destroyed in the cluster of Antakya during the two earthquakes, with respective magnitudes of 7.8 and 7.7, that hit southern Turkey and northwestern Syria on Feb. 6. 2023, according to Berke Içten, the chairman of the association of Turkish footwear manufacturers, TASD , Türkiye Ayakkabı Sanayicileri Derneği. [About 400…- Shoe Intelligence – EDM Publications]. (Read more)
The footwear sector of Bucaramanga is reactivated thanks to the opening of borders. The opening of the common border between Colombia and Venezuela has begun to generate benefits for the neighboring country’s trade sectors. One of them is the footwear industry. This is reported by digital media such as Blu Radio. The station reported that it will need to hire more than 2,000 workers at shoe factories in Bucaramanga, Colombia. [Se reactiva industria de calzado en Colombia– Venezuela News]. (Read more)
2023 March, 3rd update
Indian leather shines abroad, witnesses’ exports boom. As international footwear brands look to source their production needs, and with many also looking to diversify outside of China, the world’s current largest producer and exporter of leather, experts believe that Agra would fit the bill. Agra is home to a number of such small-scale units that contribute significantly to the nation’s overall production and add greatly to India’s leather footwear exports. [Read more at: economictimes.indiatimes.com]. (Read more)
African exports of intermediate goods to Latin America doubled in Q2 2022. Trade in intermediate goods — inputs used to make products — increased between Africa and other regions in the second quarter of last year, according to the World Trade Organization. [Exports of intermediate goods post sustained growth in … – wto.org]. (Read more)
Focus on Asia’s fashion capitals for Italian brands. Over 70 Italian footwear and leather goods brands traveled to Asia at the beginning of February to participate in events in Seoul and Tokyo (APLF@APLFHK). Italian companies used the events to show Asian buyers their collections for autumn-winter 2023-2024. The Italian Fashion Days took place in Seoul from 1 to 3 February, followed by Shoes From Italy and Moda Italia in Tokyo from 7 to 9 February. (Read more)
U.S. footwear industry sales are expected to stabilize over the next three years following years of pandemic-fueled volatility. The NPD Group said Thursday. According to the market research company’s latest “Future of Footwear” forecast, sales revenue will grow slightly, at a rate of 1% through 2025, with unit sales beginning to improve in 2024. Consumers will look to maximize versatility with their upcoming footwear purchases, as shoes good for “casual everyday use” will top the reasons for purchase in the first half of 2023, the forecast noted. [NPD: 2023 Will Be a ‘Reset’ Year for Footwear Industry + Sales Volatility to Level Out in Next Few Years– FN]. (Read more)
An increase of more than 100% in imports worries the Brazilian footwear industry. The Brazilian Association of Footwear Industries (Abicalçados) is concerned about the latest data on Brazilian footwear imports. According to the entity, in January, footwear imports reached the value of US$ 49 million, 104% more than in the same month of last year. Representing more than 80% of imports, three Asian countries make up the list: China, Vietnam, and Indonesia. [Aumento de mais de 100% nas importações preocupa … – expansao.co ]. (Read more)
Global consumer spends in fashion products likely to decline 41% according to PwC. In the next six months, global consumers are planning to reduce their spending in luxury or premium products across a variety of retail categories, including fashion, which is forecast to see a 41 per cent decrease in spending, according to the PwC Global Consumer Insights Survey 2023. Consumers’ behaviours, technological preferences and expectations continue to evolve. How can companies meet them where they want to be? (Read more)
2023 February, 24th update
South Korea is the world’s 10th-biggest economy and is leading an oriental fashion revolution. But the won has long been treated like an emerging-market currency. The government is trying to change that — and join currencies like the U.S. dollar, euro, and yen — by loosening trading restrictions. The new measures will double the hours of open trading and let international investors deal directly with local brokerages that might offer better rates. South Koreans are the world’s biggest spenders on luxury goods and the country is the first and the biggest foreign investor in the RMG and textile sector in Bangladesh. (Read more)
Leather handbags market 2023-2027. According to Technavio, the global leather handbags market size is estimated to grow by USD 8.5 billion from 2022 to 2027. The market is estimated to grow at a CAGR of 4.84%. Moreover, the growth momentum will accelerate. APAC (North America, Europe, South America, and Middle East and Africa) will account for 32% of the market’s growth during the forecast period. (Read more)
Italians and Chinese invited to open Joint Ventures in Pakistan. Italian and Chinese manufacturers have shown interest in technology transfers and joint ventures (JVs) in the footwear sector, reports The News (‘Italian, Chinese show interest for JVs in footwear industry’), commenting on the 8th edition of the Pakistan Mega Leather Show that ended in Lahore. (Read more)
ASEAN to lower the supply chain’s exposure to China. South-east Asia has been emerging for some time as the natural next stop for manufacturing reliant on low labour costs. As manufacturing cost remains around 50%-60% lower than in China, the region is popping up as a viable alternative for a lot of companies. [Supply chain diversification a boost for ASEAN economies– The Loadstar]. (Read more)
2023 February, 14th update
Ecuador negotiates its trade opening with China: tariffs on Chinese shoe components will drop. After ten months of negotiations involving representatives of the government and the business community, Ecuador will sign a trade agreement with China that includes protection for sensitive products. Within the framework of the agreement, which has the approval of the productive sectors, the footwear industry is one of the protected industries. [Acuerdo con China excluye a cerca de 800 productos de alta sensibilidad; e incluye desgravaciones con plazos de hasta 20 años para sectores de sensibilidad media – El Universo]. (Read more)
Consequences of the earthquake in Türkiye on the fashion industry. Türkiye, a major fashion sourcing destination for global brands and retailers, has experienced two 7+ magnitude earthquakes today (6 February). The Istanbul Apparel Exporters Association (IHKIB) is trying to determine the potential “effects” on the apparel sector. [Türkiye earthquake – how is the fashion supply chain impacted?– Just Style]. (Read more)
2023 February, 10th update
The funds’ growing financing of African debt is boosting investment in manufacturing assets. African startups have seen a big jump in venture funding through debt financing as opposed to traditional equity tools. Venture capital debt funding to African startups doubled to $1.5 billion across 71 deals in 2022, according to the latest funding report by Partech, a Paris-based startup investor. [Debt funding is on the rise at African startups – Semafor]. (Read more)
Colombia, footwear and leather SMEs will seek new exports to 8 countries. Within the framework of ILFS + EICI, organized by Acicam, the Ministry of Commerce, Industry and Tourism, through ProColombia, invited a delegation of 37 companies from Latin America and the Caribbean, to meet with about 150 Colombian exhibitors. [Mipymes de calzado y cuero buscarán nuevas exportaciones … – El Nuevo Siglo]. (Read more)
2023 January, 31st update
Indian leather sector revenue to decline 7-8% in Financial Year 23/24. Indian leather apparel and accessories sector’s revenue is expected to decline by 7-8 per cent in fiscal 2024 (FY24), mainly due to slowdown in consumer demand in the US and Europe, according to CRISIL Ratings. In the current fiscal, the leather apparel and accessories sector’s revenue is expected to be flattish, after a strong performance in the previous fiscal. [Leather apparel, accessories firms … – The Economic Times]. (Read more)
Pakistan Stock Exchange: very negative performance of tanneries and continuous electricity blackouts. Pakistan Stock Exchange (PSX) remained under severe pressure during the week, due to heavy selling on investor concerns over prevailing economic and political situation in the country, while power outages affect millions of people (Reuters). Least favorite sectors were Cement (down 8.7%), Leather and Tanneries (down 7.9%) and Electrical Goods (down 7.4%). [PSX remains under severe pressure– Business Recorder]. (Read more)
US business study shows negative impact of tariffs on China. A study Impacts of Section 301 Tariffs on Imports from China: Case Studies of Apparel, Footwear, Travel Goods and Furniture has called out the ‘detrimental economic impacts’ of the massive tariffs imposed on consumer goods from China, saying that the trade war has led to higher costs and prices for American companies and families. It also said that shifting away from China as a source of goods was costly and ‘not always successful’. [Joint Industry Study Flags Negative Impacts of Section 301 … – AAFA]. (Read more)
Mexico could reach 36 million pairs of footwear exported in 2022. According to the first estimates of the Guanajuato Shoe Chamber (Ciceg), Mexico may have added36 million pairs of shoes exported during the year 2022, exceeding the volumes of 2021 which, as announced by FashionNetwork.com, had closed with about 29 million pairs. It would be the nearshoring effect, after the progressive abandonment of Asia by the footwear brands [México podría haber alcanzado los 36 millones de pares de … – fashionnetwork.com]. (Read more)
2023 January, 26th update
Cambodia footwear to slide in 2023. Cambodian garment exports are expected to slide during the first half of 2023, with footwear orders falling by potentially as much as 30%. [Cambodia footwear, garment exports to slide in 2023 – Just Style]. (Read more)
Shoe prices in the US begin to decline as inflation declines. Footwear prices were up 4.6% in 2022, but there could be relief on the way for consumers. Prices continued to fall in December as inflation shows more signs of waning. Footwear retail price increases also slowed in December, and were up 0.8% compared to last December, the slowest growth in 21 months, FN reports. (Read more)
A gloomy economic picture. Growing protectionism and worsening international cooperation could badly damage the world economy, the International Monetary Fund said. Its report, released on the eve of the Davos summit — a paean to free trade and global integration — argues that poorer countries would be hit harder than rich ones. The projections add to continued gloom over economic prospects worldwide, with economists still predicting a recession as likely, despite signs of slowing inflation and hopes that China’s abandonment of zero-COVID could boost growth. [Confronting Fragmentation Where It Matters Most: Trade, Debt … – IMF]. (Read more)
2023 January, 19th update
The global economy is on a “razor’s edge” and may fall into recession this year, the World Bank said. The international institution downgraded its projections for global growth, following in the footsteps of the International Monetary Fund, which voiced similar worries. “Our worst-case scenario is now our baseline scenario,” a World Bank economist told the Financial Times. (Read more)
Pakistani association PFMA Says footwear exports are stuck at $156 million. Speaking to The Express Tribune in an exclusive interview, the Pakistan Footwear Manufacturer Association (PFMA) Chairman, Mansoor Ehsan, expressed fear over losing the Chinese footwear export market to the ongoing economic crisis in Pakistan. (Read more)
Council of Leather Exports disputes UK report linking Indian exporters to Russia’s war effort. CLE Chairman Sanjay Leekha told ThePrint that if certain Indian leather companies have seen an uptick in business from Russia, it does not reflect the industry as a whole. The Indian Council of Leather Exporters (CLE), has disputed a report by the UK newspaper The Guardian linking Indian leather companies to Russia’s war effort. (Read more)
Record participation of Brazilian footwear brands in Expo Riva Schuh. The Brazilian Footwear, a program to support exports of footwear maintained by the Brazilian Association of Footwear Industries (Abicalçados) in partnership with the Brazilian Agency for The Promotion of Exports and Investments (ApexBrasil), is preparing the participation of 57 Brazilian footwear brands in Expo Riva Schuh. (Read more)
2023 January, 10th update
A gloomy economic new year. Economists are making increasingly grim forecasts for the global economy next year, and beyond. The world likely faces a recession in 2023, according to the director of a British consultancy, while the chief economist of a major Spanish private bank warned of a “decade of very, very poor growth”. (Read more)
Luxury brands in 2023. Luxury brands brace for a 2023 slowdown, reports the Financial Times: “even the remarkably resilient luxury sector is not immune to economic turbulence, and amid the war in Ukraine, rises in energy prices and interest rates, and the threat of recession in the US and Europe, the fizz appears to be coming off the champagne”. But reopening in China could offset recessions in the US and Europe, is the analysis of FT. (Read more)
Consumer goods price rises slow down in Europe. Inflation across Europe may have peaked. Price rises in France, Germany, and Switzerland all unexpectedly slowed in December, driven in part by lower energy prices, while inflation in the eurozone is expected to drop below 10% when new figures are released on Friday. [German Inflation Slowed … – French Inflation Unexpectedly Slows… – Swiss Inflation Slows… – bloomberg]. (Read more)
2023 January, 5th update
Global Gateway: The EU strengthens cooperation with developing countries against BRI. EU to launch Global Gateway projects, challenging China’s Belt and Road. Officials finalize project details, amid reports that Beijing is slowing investment approvals. [EU to launch Global Gateway …– Politico]. (Read more)
The US breathes new life into AfCFTA. The United States’ Biden administration gave a big fillip to the Africa Continental Free Trade Agreement (AfCFTA) this week. The US Trade Representative Katherine Tai revealed in an interview on Monday at the Semafor Africa Summit that her agency was working on signing a memorandum of understanding with the AfCFTA countries to expand the U.S.-Africa trade relationship. (Read more)
2022 December, 27th update
Vietnam is the main beneficiary of the displacement of footwear production from China. China’s leather industry is stable in the January-October period. Footwear exports from Vietnam increased by 39.9% in 11 months. China’s industrial production and export are slowing. The buying PMI fell to 48 in November from 49.2 in October. Vietnam’s industrial production grew by 8.6% in 11 months, but slowed down due to decreasing demand, rising input costs and a shortage of material supply. [Source: Xinhua]. (Read more)
CNC: economic overview of the leather sector. How has the leather industry dealt with French Covid-19? What are the challenges that have emerged? How is the sector adapting to high inflation and changing consumption? So many issues on which the “DOSSIER ÉCONIMIQUE DE FILIÈRE FRANÇAISE DU CUIR POUR L’ANNÉE 2022″ of the Observatoire Economique du Conseil National du Cuir (CNC), invites us to think. (Read more)
Russia intends to import shoes and clothes from the North Korea. The Russian Embassy in North Korea has said that Russia is interested in importing clothing and shoes from the DPRK. (Source: Ekonomichna Pravda, referring to the Russian media outlet Kommersant, quoting the embassy). (Read more)
United Kingdom, clothing and footwear in contraction. The UK clothing and footwear market is expected to contract by 3.9% next year, with volumes down by more than 10.0%, according to new research. [Clothing and footwear market set to shrink in 2023 – Drapers]. (Read more)
Leathertech Bangladesh 2022, the interest is mainly for non-leather. Nearly 200 exhibitors from 10 countries took part in the three-day exhibitionto showcase their modern machinery, raw materials, chemicals and other services. The demand for machinery of non-leather footwear has increased sharply among local companies as the demand for synthetic products is rising among the young generation. [Non-leather footwear machinery becomes the focus at Leathertech – The Business Post – The Business Post]. (Read more)
Recession impacts Indonesian footwear industry. Next year, Indonesia will face a perfect storm in the form of a global economic slowdown, high inflation and geopolitical tensions. [Bank Indonesia strategy for perfect storm 2023 – The Jakarta Post]. According to the president of the Indonesian Footwear Association (Aprisindo), Eddy Widjanarko, the current economic conditions will impact the footwear industry . [Ketua CIFA Eddy Widjanarko Ungkap Tantangan Bisnis Persepatuan– iNews.id]. (Read more)
2022 December, 16th update
Global sanctions. The Global Sanctions Data Base update has been released. Gsdb Release 3: COVID-19, Russia, and Multilateral Sanctions, WIFO Working Papers, 2022, PDF download. The news and characteristics of sanctions in 2022 told by lavoce.info. (Read more)
Mckinsey Fashion Report: predictions for 2023. In 2023, the global fashion industry will need to weather inflation while finding opportunities in shifting consumer patterns, channel and digital marketing strategies, and manufacturing approaches. Download The State of Fashion 2023. (Read more)
Inflation Reduction Act, a law much criticized by Europeans. The confirmation of the Congress of the Inflation Reduction Act of 2022 (IRA) has fuelled fears of a transatlantic trade war in the EU. The plan – a huge fiscal, climate and health package in place from 2023 – provides subsidies of more than $369 billion to companies in the renewable sector. The law offers tax incentives to those who choose to buy products made in the USA (eg electric cars). This dissuades Americans from turning to European producers, who would be forced to produce on US territory. (Read more)
Deloitte study: global luxury goods market. As luxury goods companies recovered from the adverse impact of the COVID-19 pandemic, they are now presented with new opportunities arising from the ‘green transition’ and progress toward a circular economic model and responsible business. This along with the continuing digital revolution of the metaverse and Web3 is generating a lot of enthusiasm in the luxury industry and provides unparalleled opportunities for companies to be innovative and disruptive. [Global Powers of Luxury Goods 2022]. (Read more)
2022 December, 12th update
An inflation respite. Inflation has peaked in most countries, indicators suggest. Factory-gate prices, commodity prices, and expectations of future inflation have all dropped in recent weeks, the Financial Times reports. [Global inflation likely to have peaked, key data indicators … – FT]. (Read more)
The irresistible growth of the luxury market in China and India until 2030. Chinese shoppers will make up 40% of all luxury consumers by 2030. Gen Z and Gen Alpha luxury spending is expected to grow three times faster than other cohorts. India’s luxury market is forecasted to expand to 3.5 times today’s size by 2030. The global luxury market in 2023 will be more resilient to recession than during the 2009 financial crisis due to a larger consumer base and better balance across regions. All this in the Bain & Co. and Altagamma report, commented by Jing Daily. (Read more)
Turkish manufacturing capacity down to 75.9% in November: leather sector is decreasing more than textile. The capacity utilization rate in the Turkish manufacturing industry fell slowly in November, the country’s central bank announced. On the sectoral side, the highest capacity usage was in the manufacturing of wearing apparel with 81.5%, while the lowest was in leather and related products with 65.8%. (Source: dailysabah.com). (Read more)
Bangladesh & the EU: Towards a new level in relations to improve economic integration with the Indo-Pacific. Bangladesh and the European Union have shown interest to sign a partnership cooperation agreement (PCA) – says the Dhakatribune, to elevate their ties to the next level before celebrating 50 years of diplomatic relations. Indo-Pacific region is an extremely important region to the EU. Bangladesh Minister for Foreign Affairs Md Shahriar Alam said there is a huge scope of enhancing trade in this region. For this, There is room to remove barriers to trade in this region. (Read more)
2022 December, 2nd update
European industry is in emergency thanks to high gas prices and lavish new subsidies from American rivals. Germania e Francia uniscono le forze contro Biden nella battaglia sui sussidi per evitare una guerra commerciale transatlantica. Il capo dell’industria dell’UE Thierry Breton avverte che il nuovo pacchetto di sussidi di Biden rappresenta una “sfida esistenziale” per l’economia europea. [EU plans subsidy war chest as industry faces ‘existential’ threat from US – Politico.eu]. (Read more)
WB: Vietnam’s industrial production, retail sales slide in October. Vietnam’s industrial production and retail sales slid down in October due to stalled demand at home and abroad, according to the Vietnam Macro Monitoring report released by the World Bank in Hanoi on November 16. [WB: Vietnam’s industrial production, retail sales slide in October– vietnamplus.vn]. (Read more)
2022 November, 26th update
Signs of slowdown in footwear exports from Cambodia. The Phnom Penh Post comments on the customs data of exports of shoes and components for footwear: the export of the sector in the first 9 months of this year amounts to 1.325 billion dollars, up 32.69% compared to 998.238 million last year. However, it signals a slowdown in new orders in the third quarter and also other difficulties in production that will affect exports in the coming months. Among the reasons, post-Covid-19 global inflation and the rise in oil prices. [Footwear exports may slip in Q4 – Phnom Penh Post]. (Read more)
The slowdown in global economic growth is increasingly evident, according to global data from the Purchasing Managers Index (PMI). Global economic growth is facing a unique mix of headwinds, including Russia’s invasion of Ukraine, interest rate hikes to contain inflation, and lingering effects of the pandemic such as lockdowns in China and disruptions in supply chains. In turn, the latest IFM World Economic Outlook lowered the global growth forecast for next year to 2.7%, and countries representing more than 1/3 will contract this year and next. Moreover, the latest report prepared for the G20 confirms the gloomier outlook. (Read more)
2022 November, 18th update
Vietnam Manufacturing Growth at 13-Month Low. The S&P Global Vietnam Manufacturing PMI slipped to 50.6 in October 2022 from 52.5 in September. The latest result pointed to the 13th straight month of growth in factory activity but the softest in the sequence. New orders rose the least since October 2021, output growth was at a three-month low, and export orders moderated. [Source: Markit Economics]. (Read more)
2022 November, 3rd update
The different growth estimates of the footwear market. The global footwear market is expected to grow at a rapid pace in the coming years. However, estimates of the actual size of the market and forecasts of its growth rate vary greatly from one market research firm to another. Shoe Intelligence analyzes various surveys published in recent weeks. [Global footwear market to enjoy sustained growth in the coming years – shoeintelligence.com]. (Read more)
2022 October, 28th update
India’s industrial production is down by 0.8%: textiles and leather the sectors most affected. India’s textile and leather industries, with a negative growth of 12.2%, are among the hardest hit sectors according to the August Index of Industrial Production (IIP). Industrial production in India fell 0.8% in August. August’s IIP numbers were the lowest in 18 months. The previous low in IIP growth was a 3.2% contraction recorded in February 2021. By July 2022, the PII had increased by 2.2%. By August 2021, the IIP had increased by as much as 13%. (Read more at: economictimes.indiatimes). (Read more)
Vietnam’s exports to CPTPP nations rises by 38.7%. Vietnam’s export value to Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) member countries increased by 38.7% to 41 billion USD over the first eight months of 2022, the Government’s report shows, as reported by @VietnamPlus [https://link.gov.vn/fR9NmC32] . (Read more)
APICCAPS: There is no reshoring of footwear. Despite all the talk about reshoring from Asia and the approach to consumer markets, there is no indication of such a trend in the data, explains Joana Vaz Teixeira, publisher of World Footwear, an initiative of the Portuguese footwear association Apiccaps, in an interview with the @PublicationsEdm publishing group. [Data fails to show significant reshoring is underway – shoeintellignce.com]. (Read more)
Bangladesh’s BEPZA registers 30.41% growth in exports in FY 2021-22. Bangladesh Export Processing Zones Authority (BEPZA) has announced a significant rise in all indicators i.e. exports, investment, and employment in the recently ended fiscal (FY) 2021-22. Exports soared 30.41 per cent and investment increased over 20 per cent compared to the achievement of the previous year, which is an all-time high growth since the past 40 years. [Bangladesh Export Processing Zones Authority – BEPZA]. (Read more)
2022 October, 21st update
WTO anticipates sharp slowdown in world trade growth in 2023. Global trade is expected to lose momentum in the second half of 2022 with merchandise trade volumes predicted to decline in 2023, according to a new report from @wto, World Trade Organization, economists. The UN partner agency has cautioned against imposing trade restrictions which would ultimately result in slower growth and lower living standards. (Read more)
Pakistan tries the path of religious affinity to improve exports. President of the Federation of Chambers of Commerce and Industry (FPCCI) Irfan Iqbal Sheikh has called upon the government to focus its efforts on trade promotion with Islamic states as the Islamic Chamber collectively represents a GDP of $7 trillion. Among the products, textiles and leathergoods. [Trade with Islamic countries – Pakistan Observer]. (Read more)
Stock market indices in Brazil indicate that domestic footwear sales have benefited from rising transoceanic transport costs. In the third quarter of 2022, the stock prices of footwear companies and associated sectors monitored by Shoe Intelligence were on average virtually unchanged, falling by less than 3 percent when compared with the previous three months. [Stocks of Brazilian footwear manufacturers outperform in Q3 – Shoe Intelligence]. (Read more)
2022 October, 10th update
Indonesia’s emerging role for leather and footwear exports and IEU-CEPA to increase trade with the EU. In 2021, exports of leather and footwear products were valued at $6.15 billion. [Produk Alas Kaki Indonesia Semakin Mendunia – Minews ID]. The value of leather and footwear exports in June 2022 was $4.62 billion: +41.26% compared to the same period of 2021, according to data @1ndonesia_go_id. The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is being negotiated, writes @Bisniscom, with the aim of increasing trade and expanding direct investment. (Read more)
Global industrial production flat after the downturn. Arthur Friedman on the @SourcingJournal analyzes the Manufacturing conditions, that improved slightly in September and through the third quarter, as inflationary pressures eased. However, high energy prices and weakened consumer demand painted a cloudy outlook, according to S&P’s Global Purchasing Manufacturing Index (PMI) of key economies. [Global Production Outlook Bleak, But Steadying – SJ]. (Read more)
2022 October, 3rd update
Seizing growth opportunities in Bulgarian TCLF industries. Employers and unions called on the Bulgarian government to come up with an industrial strategy to make use of the growth opportunities for the country’s textile, clothing, leather, and footwear (TCLF) industries. Even as the TCLF industries employ 80,000 workers in Bulgaria, employment has gone down by 20 per cent in the past four years which is a concern. [Unions urge Bulgaria govt to apply growth strategy for TCLF industries – fibre2fashion]. (Read more)
Aymod claims that after Covid the global attention towards the Turkish footwear sector has grown. The news site of Aymod, the six-monthly footwear fair held in Istanbul, discussed the current situation and future challenges of the footwear industry in Turkey and on the world stage with Berke İÇTEN, who was recently appointed President of the Turkish Footwear Manufacturers’ Association (TASD). [Pandemi, Türk ayakkabı endüstrisinin dünya çapında daha fazla ilgi görmesine neden oldu – aymod.com]. (Read more)
2022 September, 26th update
Uncertainty of Vietnam’s leather-footwear sector due to lack of market information. The Vietnam Leather, Footwear and Handbag Association (LEFASO) recently said the country’s leather and footwear enterprises may face several challenges, including lack of market information, in the remaining months this year. [Lack of market info challenge for Vietnam’s leather, footwear firms – F2F]. (Read more)
US and Indo-Pacific countries start NON-TPP trade talks to rebalance value chains. The talks include Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam and the United States. NOT TPP 2.0: Three decades of ‘hyperglobalization’ had already made the old business model politically toxic.” “So the supply chain crisis revealed by COVID has fueled an even broader demand for a new approach that reverses the concentration of production of goods and services in too few companies and countries.” [US, Indo-Pacific countries launch new-generation trade talks – The Jakarta Post – The Jakarta Post]. (Read more)
2022 September, 23th update
Complete recovery of Brazilian exports. Observing the recovery after the Covid-19 pandemic, @Abicalcados announces that footwear exports have already increased by 35% compared to the pre-pandemic period. [Exportações de calçados já aumentaram 35% em relação à pré-pandemic – Abicalçados]. (Leggi di più)
Why manufacturers are decoupling supply chains to stay competitive. The topic is about the ongoing and persistent issue of global supply chain disruption. EY recently released a supply chain disruption report based on market research, which surveyed global manufacturing supply chain executives regarding their current and future plans for addressing the ongoing disruptions to their supply chains. [EY podcast]. (Read more)
2022 September, 13th update
FDRA (Footwear Distributors and Retailers of America) expectations for the reduction of tariffs on Chinese products are not fulfilled. US. companies have paid more than $150 billion in Trump tariffs on China-made goods since the Section 301duties first went into effect four years ago, according to trade statistics from U.S. Customs and Border Protection (CBP). What the Biden administration will do about duties is up for debate. [America’s Paying $140-Million-a-Day Tariff Bill – SJ]. (Read more)
2022 September, 5th update
Decoupling in the consumer market: American brands lose share in China and Chinese brands are opposed in the USA. Nike’s foothold in China appears to be slipping. Buoyed by a patriotism-fueled domestic boom, homegrown rival Li-Ning saw its brand value spike by 66 percent to $3.4 billion, the biggest gain recorded in a ranking of 100 most valuable Chinese brands this year. [Nike Rival Li-Ning is China’s Fastest-Growing Brand – SJ]. (Read more)
The impact of the war in Ukraine on the European fashion industry. As the war caused by the Russian invasion of Ukraine rages on, @globaldataplc explores the fallout on the European clothing market. [Six months on: Impact of the Ukraine-Russia war on Europe’s apparel market– Just Style]. (Read more)
2022 August, 25th update
Brazilian footwear exports grew 64.8% through July to $763.4 million. Abicalçados highlighted that Latin American markets have been instrumental in the growth of Brazilian exports, although the United States remains the main sales destination. [Exportações de calçados crescem 64,8% até julho, para US$ 763,4 milhões – Valor Econômico]. (Read more)
2022 August, 16th update
Cambodia, growing clothing and footwear exports. Cambodia’s garment, footwear and travel goods industry has seen a 40% rise in exports in the first half of this year, according to a report from the General Department of Customs. The Regional Comprehensive Economic Partnership (RCEP) Free Trade Agreement has contributed to this growth [Cambodia’s garment, footwear, travel goods exports up 40 pct in H1 of 2022 – Xinhua]. (Read more)
2022 August, 2nd update
Development project of the leather sector in Zimbabwe and Tanzania, in the SADC area. The final beneficiaries are around 2 500 workers of the leather tanning and leather product manufacturing companies in Tanzania and Zimbabwe. The initiative is sponsored through funding from Sadc (Southern African Development Community), ZimTrade and Solidaridad; it should stimulate job creation, reduce the environmental impact of leather processing, and create market links for leather products at national, regional and international levels. [Bulawayo launches leather industry support project– The Chronicle]. (Read more)
Pakistan is approaching insolvency, while exports and remittances in connection with Italy become a lifeline. @FT reports Pakistan’s worsening economic situation “Pakistan’s rupee collapses rapidly as fears of default intensify.” [Pakistan’s rupee falls fast as default fears intensify – FT]. A light in the dark: ” Exports to Italy and remittances to Pakistan has crossed $2b, mainly in the sectors of food processing, chemicals, construction and leather, recording the highest annual growth ever” [Times Pakistan’s earns $2b from Italy in exports and remittances in FY22 – Daily Times]. (Read more)
Indonesia: FGD Forum for The Competitiveness of Textiles and Footwear. Economic growth in Singapore, the United States, China, Japan and Korea as export destinations for apparel and footwear from Indonesia, experienced a slowdown. As a result, the demand for Indonesia’s export market weakens. This was stated by the Director of the Textile, Leather and Footwear Industry, Elis Masitoh at the Group Discussion Forum (FGD) held by the Directorate General of Textile, Leather and Footwear Industry, in Bandung. [Daya Saing Industri TPT dan Alas Kaki Harus Ditingkatkan – tubasmedia.com]. (Read more)
Global footwear market is suffering a bit, also due to the Russian war on Ukraine. Shoe Intelligence reports that in 22.Q2, footwear stocks declined significantly in line with global markets. In this context, a research by “Confindustria Moda” shows that sales of Italian footwear are slowing down due to the war in Ukraine, because for 9% of exporters, Russia, Ukraine and Belarus accounted for more than half of their revenues, for 11% between 20 and 50% and for 20% between 10 and 20%. On the contrary, @WTPfootwear informs that the production of footwear in Spain, not ballasted by CIS customers, has recovered well in the same period of 2022. (Read more)
2022 July, 27th update
The global footwear market has yet to recover from the severe COVID-19 pandemic. Global footwear market – explains fibre2fashion.com – was unprecedentedly dented during the COVID-19 pandemic years, as lockdown and new normal of Work from Home (WFH), and deeper penetration of e-commerce reduced need for people to step out. Around 14 per cent of the footwear market wiped out due to the effect, and the market is not expected to cross the 2019 level before 2023. (Read more)
Pakistan is benefiting from Chinese relocation. In an interview with @Shoe Intelligence, Ahmed Fawad Farooq, secretary general of the Pakistan Footwear Manufacturers Association (PEMA), has outlined how Pakistan is benefiting from a transfer of production out of China and is seeking to beef up its footwear industry to meet growing demand. (Read more)
2022 July, 15th update
The Russian footwear market could face a 15-20% slump in sales in value and a 25-30% drop in volume. Foresees it Anush Gasparyan, commercial director of the Russian consultancy Fashion Consulting Group. The average price of shoes is set to rise by 30 percent year-on-year, pushing consumers to focus on cheaper models. [Low-cost footwear to increase market share in Russia this year – Shoe Intelligence]. (Read more)
2022 July, 7th update
International trade will shrink in the transition from globalization to Friend (and Allied)-shoring. U.S. Treasury Secretary Janet Yellen has proposed friend-shoring as a means of isolating global supply chains from external disruptions or economic coercion. It is the decoupling that is likely to lead to short-term supply shocks and higher prices, developments not unlike those produced by the turbulence of recent years. In the long run, the outcome is likely to be lower economic growth due to loss of efficiency, higher costs and supply bottlenecks. [What ‘Friend-Shoring’ Means for Trade in a Less … – The Washington Post]. (Read more)
European manufacturing slows down. Growth in Europe’s two largest economies slowed sharply as manufacturers suffered from a dearth of demand, increasingly strained supply chains and surging prices. With the initial boost from a loosening of Covid-19 restrictions in Germany and France wearing off, gauges of activity fell more than expected in June. Manufacturing output contracted in both countries. This was reported by Bloomberg, commenting on the surveys of S&P Global. (Read more)
U.S. imports of footwear are increasing again, especially from Vietnam. Strong consumer demand continues to fuel high import growth rates. China remained the top footwear manufacturer for U.S. brands and retailers, but its rate of imports slowed in April. Increases were seen by all Top 10 footwear suppliers. Most notably, imports from No. 2 supplier Vietnam were back in the black. Rounding out the Top 10, Indonesia and Cambodia continued to see their shipments grow, as did India, Italy, Mexico, Brazil, Bangladesh and Germany. [Vietnam Footwear Shipments Back on Track – SJ]. (Read more)
2022 June, 29th update
USA, “Our sector” (consumption, clothing, etc…) worsens. The stock market is collapsing, inflation is rampant and scarcity is affecting supply chains, against the backdrop of Covid and the war in Ukraine. It is a terrible self-perpetuating cycle. The question for the apparel and footwear industry is: Will consumers continue to buy? Robert P. Antoshak’s answer in this article (Staring at an Economic Precipice? Just Wait, It Gets Worse) in the Sourcing Journal is that for a while they will, but not for long. (Read more)
2022 June, 23rd update
“Decoupling” supply chains could lead to a 5% decrease in global GDP, according to the WTO. The WTO chief warns against the economic cold war: Ngozi Okonjo-Iweala tells POLITICO that now is not the time to withdraw from global trade and warns that the division of supply chains for political reasons would be detrimental to the world economy. A recent study shows that dividing the world into two separate economic blocs could “lead to a 5% decrease in global real GDP in the long term,” she said. “This is a really staggering number”. (Read more)
Globalization is changing, offering new opportunities for the Mediterranean area. “Asia is losing weight in the role of the world’s factory; production and retail must be recalibrated. The Mediterranean will be the dock of long-haul maritime trade,” writes the Catholic-inspired newspaper Avvenire. The transport crisis, with the considerable increase in costs, pushes to redraw the maps of world trade”, writes Reuters. (Read more)
2022 June, 8th update
Geoeconomic fragmentation leads to reduced trade and disruption of value chains. Tensions over trade, technological standards and security have increased for many years, undermining growth and confidence in the current global economic system. This is confirmed by a research by the IMF. Only international cooperation can address urgent global issues such as remedying shortages of food and other products, removing barriers to growth, and saving our climate. [Why We Must Resist Geoeconomic Fragmentation—And How – IFM]. (Read more)
2022 May, 30th update
Footwear prices rise due to raw materials, but consumption resumes moderately. Footwear prices will increase by an average of 8.4% in the coming months, from +9.8% in Europe to +5.7% in North America, according to the World Footwear Business Condition Survey conducted by APICCAPS, Associação Portuguesa Ind. Calçado Componentes Artigos Pele Sucedaneos. Moderate recovery in consumption: North America +2.5%, Europe +5.2%, South America +7% and Asia +8.9%. (Read more)
Bolivia, a craftsman-industrial ecosystem disappears in La Llajta, 90% of shoe factories are closed. Before the pandemic there were at least 300 shoe factories, now only 30 are working. The artisans of the department seek their reactivation by awarding municipal contracts., because here the risk is not only of the disappearance of a way of working, but also of a way of life. [La Llajta ya no es centro calzadista de Bolivia; cerraron 90% de talleres – Opinión Bolivia]. (Read more)
The Egyptian government will exit 79 sectors in 3 years. The Egyptian government is expected to exit 79 sectors within three years and maintain investment in 45 sectors, writes Al-Masry Al-Youm in Egypt Independent. For manufacturing industries, the government plans to exit most industrial sectors, announcing that it will leave about 63 industrial areas in ten industrial sectors. Among the most important activities that the government plans to abandon completely according to the draft are leather and tannery products, clothing, furniture, industrial fibers and slaughterhouses. (Read more)
2022 May, 24th update
Q1 2022 footwear stock performances fell dramatically, except for India and Brazil. In the first quarter of 2022, shoemakers’ stock prices fell sharply, following the decline in global stock markets. However, the Indian and Brazilian companies monitored quarterly by ShoeIntelligence had very positive performances. (Read more)
Global footwear consumption grows by 6% in 2022. Apiccaps presents the document with the projections of the latest Business Condition Survey. World Footwear’s panel of experts believes that the largest growth (8.9%) is expected to be recorded in Asia, followed by South America (7%) and Africa (6.8%). In Europe the growth forecast is 5.2% and in North America 2.5%. (Read more)
2022 May, 18th update
Weak growth in Chinese exports, at the lowest since 2020 due to lockdowns, causes metal prices to fall. China’s exports growth has tumbled to a two-year low, as the curbs introduced to battle Covid has hit factory production, disrupted supply chains and weakened domestic demand too. “The weakest level since June 2020,” says SCMP. And metal prices fall (Global Market Headlines – Reuters). (Read more)
2022 May, 9th update
Recovering, the Brazilian footwear sector is expected to grow between 1.8% and 2.7% in 2022. Footwear production is expected to be between 820 million and 828 million pairs this year. The results will be driven by exports, which are expected to close 2022 with a growth of 8.4% to 10.2% compared to 2021 (between 134 and 136 million pairs). The screenings were announced at the Analysis of Scenarios, a digital event of Abicalçados. The Market Intelligence report by Priscila Linck and Marcos Lélis is available at the link on YouTube. (Read more)
2022 May, 4th update
The Russian financial crisis and creditors: an unprecedented situation. Reuters deals with the economic aspect with an analysis: while Russia faces a potential default, investors evaluate legal options. 30-day grace on $649 mln debt payments due April 4. U.S. Treasury banned use of frozen funds for debt payments. Moscow says Western sanctions blocked US$ payment. Litigation can be costly, lengthy. [Analysis: As Russia faces potential default, investors weigh legal options – Reuters]. (Read more)
FN interview with Steve Lamar, President, and CEO of the American Apparel & Footwear Association (AAFA). 2022 is proving to be another year of unprecedented challenges and opportunities for retailers and brands. Steve Lamar, CEO of AAFA, talks about inflation, supply chain, sustainability and metaverse with Footwear News (FN)“. (Read more)
2022 April, 27th update
Visit of a delegation from Uzbekistan to India opens up new trading opportunities in the leather sector with the CIS countries. To enhance India’s exports and exploring possibilities of bilateral trade concerning leather and leather products segment with the CIS countries (Commonwealth of Independent States: Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, and Uzbekistan), the Council for Leather Exports (CLE) had organized visit of Uzbekistan delegation to India mainly for Agra and Kanpur region. [Uzbekistan team keen for joint ventures with Indian leather cos – Times of India]. (Read more)
Japanese companies prefer Bangladesh to relocate. Referring to a survey entitled “2021 Jetro Survey on Business Condition of Japanese Companies operating in Asia and Oceania with a focus on Bangladesh”, the Foreign Trade Organization of Japan (JETRO) explains that about 65% of Japanese companies operating in Bangladesh plan to make good profits in 2022 as the coronavirus situation has improved, according to BSS. (Read more)
2022 April, 19th update
Poor slaughter globally in March and rising prices of beef and by-products. In March, world food prices rose by 12.6% and the FAO Meat and Slaughter By-Products Price Index averaged 120.0 points, up 5.5 points (4.8%) from February (the all-time high). Prices of beef slaughter products have risen as low slaughter has persisted in some key producing regions, while global demand has remained solid. (Read more)
Foreign companies make a beeline to Vietnam industrial zones. Many European and Asian headquartered multinational giants are rushing to invest in Vietnam’s industrial parks. In Hoang Mai I Industrial Park, in the north central Nghe An Province, HuaLi will build a footwear factory that will have an output of 25 million pairs of footwear a year, creating jobs for about 16,000 workers. In Nghe An’s WHA Industrial Park 1, HuaLi will build a factory to produce 13 million pairs of footwear a year.(Read more)
2022 April, 11th update
The potential of Bangladeshi leather export along the belt and road initiative. Bangladesh has a great deal of prospects to increase its leather exports to the countries of the Belt and Road Initiative (BRI). This article of the Dhaka Tribune argues that the leather sector could boost Bangladesh’s exports diversification strategy to reduce the country’s overdependence on the ready-made garments (RMG) sector. (Read more)
2022 April, 4th update
Brazil, export of footwear components is recovering and growing even compared to before the Coronavirus. Exports of footwear components – chemicals (adhesives), uppers, soles, insoles, synthetic laminates, etc. – increased by 37% in the first two months of the year, compared to the first two months of 2021 and increased by 13% compared to the first two months of 2019, that is, before the Covid-19 pandemic. [Exportações de componentes para calçados crescem 37% no bimestre – Assintecal]. (Read more)
2022 March, 29th update
The conflict in Ukraine is a major blow to the global economy that will hurt growth and raise prices. Beyond the suffering caused by the Russian invasion of Ukraine, an IMF analysis explains how the entire global economy will feel the effects of slower growth and faster inflation: rising commodity prices increase inflation; disrupted supply chains and refugee crises produce poverty; investment crisis causes capital outflows from emerging markets. (Read more)
Mexican shoe factories reorganize after Covid. The footwear sector is in a process of recovery, both in jobs and in factories. In January 2022, the shoe factories of Guanajuato recovered 8,000 of the 15,000 jobs lost at the most critical moment of the coronavirus pandemic. [México: la industria del calzado está saliendo del túnel – Puntodincontro]. (Read more)
2022 March, 23rd update
We are starting to obtain estimates of the economic impact of the Russian invasion of Ukrain. Shoe Intelligence writes it. The war hits the German shoe industry after a strong 2021. The Russian footwear market faces a perfect storm. Following the G7’s announcement regarding Russia sanctions, US imposes Russia import/export ban on luxury goods, including footwear, with extension to any transaction in USD for these goods. (Read more)
Adidas warns that Russian invasion of Ukraine could impact business in 2022 as it disrupts sales in the region. Adidas is one of many retailers expecting sales repercussions due to the impact of the conflict between Russia and Ukraine. The risk is to lose 1% of Adidas’ overall growth. [Adidas Warns That Russia Conflict Could Impact 2022 Business as it Halts Sales in the Region – FN]. (Read more)
Seven things worth knowing about the Portuguese footwear industry. There are small numbers that make the difference, such as the growth in exports of 0.24% in the last quarter of last year, the best ever in the history of the sector, writes The Expresso, also informing that a Hugo Boss plant will be established on the national territory. (Read more)
2022 March, 21st update
Impacts of the invasion of Ukraine on fashion supply chains. Rising commodity prices: negative impact of 2-3% on luxury. Shoe price in Russia +15-25% in 2022, due to increased production costs and depreciation of the ruble. The Russian government intends to allow repayments in rubles to counterparts in “hostile” countries. [Sources: Shoe Intelligence and CNBC]. (Read more)
Collateral economic damage of the war in Ukraine: the example of the leather sector of Jalandhar, India. According to The Tribune, in Punjab’s Jalandhar leather district, “raw materials become expensive and export orders are canceled.” Enterprises in the leather supply chain were hit hard after the start of attacks by the Russian army. The most affected are manufacturers of sporting goods, utensils, tanneries, and leather products. (Read more)
2022 March, 8th update
The Italian prime minister expects “vigorous growth” in the leather sector. The prime minister of Italy, Mario Draghi, paid an official visit to the leather manufacturing cluster at Santa Croce sull’Arno in Tuscany on February 24 as part of a wider tour of the region. He also visited a number of finished-product factories near Florence [Leather sector poised for “vigorous growth”, Italy’s prime minister insists – Footwearbiz]. (Read more)
2022 February, 26th update
Supply disruptions add to inflation and undermine recovery in Europe. With the COVID-19 Lockdowns, “consumers have reduced spending on services and bought more artifacts“ (IMF-Blog), accelerating the rebound in manufacturing production, but the logistical crisis of the “Supply Chain” (NY Times) and the tail end of the pandemic have put global trade even more in crisis. Europe risks another energy crisis (Bloomberg) due to the soaring cost of gas, driven by the Ukrainian crisis. Agenda against inflation. (Read more)
LHCA: US Leather Export Balance 2021 and Outlook 2022. The Leather and Hide Council of America has shared data for leather exports in 2021. Cow hides values rebounded in 2021, after falling to their lowest levels in May 2020. The COVID-19 impact has decreased, but the leather industry continues to deal with weaker demand, the escalation of replacement products and logistical problems. Slaughter declining in 2022. LHCA Defends the image of leather: “Real Leather. Stay Different”. (Read more)
Kazakh fashion manufacturers, overprotected by subsidies in state tenders, are not competitive with private consumers. During the first three quarters of 2021, clothing and footwear produced in Kazakhstan accounted for only 10% of domestic sales, 4.6 percentage points less than in the same period of the previous year, according to estimates by the Kazakh Committee for Industrial Development. [Kazakh fashion manufacturers lose market share – Shoe Intelligence]. (Read more)
The Mexican Leather-Footwear sector will grow by 15%. Growth will be subordinated to the fight against illegality, warns Alejandro Gómez Tamez, executive chairman of the Chamber of Footwear Industry of the State of Guanajuato (CICEG). El Sol de Léon reports that data at the end of 2021 indicate a growth of 17.4% for the leather-footwear-leather goods supply chain, compared to 2020, still 21.3% lower than in 2019. (Read more)
Consumers and exports in textiles and leather at the base of the expansion of manufacturing in Indonesia. Manufacturing is expanding. The PMI index at 53.7 exceeded the PMI of ASEAN countries (52.7). Manufacturing exports account for 76.49% of the total. Footwear recorded the highest growth (+33.42%), in pairs, from 793.8 million to 1.05 billion. They drive foreign companies, which absorb most of the labor. PT Shoes Bata Tbk (BATA) plans for 2022: a mixture of local market and exports. (Read more)
2022 February, 23rd update
Bangladesh, footwear Industrial Park shaping up. A top footwear manufacturer is setting up a shoe industrial park, the first of its kind in Bangladesh, to supply import substitute raw materials and accessories to producers, boost exports and attract foreign investment. [First industrial park for shoes shaping up – The Daily Star]. The industrial zone sits on 35 acres of land that could house 24 factories. (Read more)
With the footwear business down 70%, in Agra Indian nationalism is in crisis. GD Ramani, President of Agra Shoe Factories Association, said the association of 5000 traders in the city feel that GST increase on shoes from 5 to 12 per cent has broken the backbone of the industry. [UP Polls: Agra shoe business down by 70 per cent but traders to vote for nationalism pitch – The New Indian Express]. (Read more)
The crisis of the Tunisian leather and footwear industry. The National Federation of Leather Goods and Footwear has recently called on the authorities to intervene urgently to come to the aid of the sector, while the Federation denounces the informal import, informal trade and sale of second hand shoes, while the landlords crush entrepreneurs operating legally under the helpless gaze of the authorities [Les rentiers signent l’arrêt de mort de l’industrie du cuir et chaussures en Tunisie – TN]. (Read more)
February 17th, 2022 update
OTE calls for the revision of trade agreements that disadvantage Tunisia. The Observatoire Tunisien de l’Economie (OTE), as reported by Footwearbiz, says that the worsening of trade deficits with China and Turkey is having a serious impact on the country’s leather and textile sectors. Worsening trade deficit with China and Turkey contributes to the hemorrhage of foreign exchange reserves and severely threatens local production according to OTE [bilaterals.org]. (Read more)
Turkish footwear exports exceed $1 billion for the first time in 2021. Turkish footwear exports +22.9% in 2021, for the first time at 1 billion dollars. Exports of leather and leather products reached $1.73 billion (TL23.6 billion), or 0.8% of total exports (Anadolu-AA data). Footwear’s share of leather and leather goods exports was 58.3%, according to Daily Sabah, and although the increase in footwear exports remained below average, the sector’s weight on total exports did not change. (Read more)
Bangladesh, companies discouraged due to “Covid Economy”. According to the “Business Confidence Index” survey, conducted by South Asian Network on Economic Modeling (SANEM), general business confidence between January-March falls compared to October-December 2021. There are 7 manufacturing sectors observed (+8 service sectors): RMG, textiles, leather goods and tannery, pharmaceutical and chemical, food industry, electronics, and mechanics. (Read more)
2022 February, 9th upload
Bursa Leather Specialization and Mixed OIZ (BURSA DİKOSAB) closed 2021 with growth, but aims to increase the tanning capacity of leathers to 500 tons. The OIZ will have an area of 355 hectares. DİKOSAB will expand the effluent treatment plant and open a solar power plant. Background: Footwearbiz data from Turkey shows leather sector export values of more than $1.75 billion in 2021, an increase of 29% over the previous year. (Read more)
The Union Budget would provide impetus to the domestic textile industry, according to FW, because despite increasing import duties for certain fabrics that can be produced domestically, exempting customs duties on the import of embellishments, finishes, fasteners, buttons, zippers, upholstery material, specific leather and packaging boxes needed by exporters of handicrafts, textiles, leather, leather clothing and footwear. (Read more)
2022 February, 3rd upload
Driven by a wind of recovery, writes Les Echos, the “cuir” sector saw its exports grow by 24% last year and by 9% compared to 2019. Many challenges will have to be faced, including training and recruitment. 2021 marked a clear recovery, particularly in exports. These have increased by 24% compared to 2020, a year strongly marked by the Covid-19 pandemic. And they are also up 9% compared to 2019. (Read more)
Brazil exported sqm. 172.3M leather, for $1.41B, in 2021. Compared to the previous year, the increases are 0.5% in volume and 44.9% in revenues. The data come from the Secretariat for Foreign Trade of the Ministry of Economy (Source: Exclusivo.com) and are presented in the document Exportações Brasileiras de Couros e Peles, by CICB – Centro das Indústrias de Curtumes do Brasil. (Read more)
Annual revenues for the U.S. sports footwear market grew by about 20% compared to 2020, although growth slowed to an average figure in the fourth quarter due to poor execution, supply chain delays, the end of stimulus payments and the lack of news in the market, according to The NPD Group. (Read more)
2022 January, 29th upload
Pakistan, thrown into crisis by the economic consequences of the pandemic, had been in talks with the International Monetary Fund (IMF) for several months to seek an easing of the terms and conditions of the aid package, but this month asked the IMF to postpone a board meeting set to consider the country’s sixth review because it has so far been unable to approve recommended fiscal tightening measures tied to the release of funds. Among those already enacted is the imposition of an import tax on textile and leather machinery imported into export processing zones. (Read more)
India’s small footwear manufacturers make up the largest slice of the industry, but footwear has become more expensive in the new year as a result of a higher goods and services tax rate and higher raw material prices. (Read more)
Vietnam, the second-largest player in U.S. footwear imports, thanks to a resurgence in purchases by U.S. consumers, should benefit from a huge rebound with significant growth in its overseas shoe shipments, which, however, is not as noticeable due to the continuing pandemic and the aftermath of last summer’s sudden lockdown. (Read more)
The executive president of Abicalçados, Haroldo Ferreira, emphasizes that the indices point to the consolidation of the recovery of Brazilian footwear manufacturers in the international market. “This year, exports have been the main responsible for the recovery of activity,” he assesses, emphasizing that the exchange rate and the increase in shipments to the United States have played a key role in the growth of shipments. (Read more)
