EFICA. Very good sales, concern for sewing and import of supplies for components
The Argentine footwear industry is experiencing a very particular situation in the face of a post-pandemic period where consumption and activity in the sector are recovering, but worrying factors appear when it comes to sustaining growth.
On the one hand, the reactivation of demand has reduced stocks in the commercial circuit, and replenishments and purchases are made difficult because the local industry, for various reasons, does not achieve greater productivity, and access to imported footwear is restricted due to the increased control of its entry.
Among the main reasons influencing the production of the supplier-manufacturer chain is the notable lack of labor in key sectors, such as sewing, and the normal supply of raw materials and imported components. On this, supplier sources point out the concern about the complexity involved in importing basic supplies, essential for the manufacture of footwear and its parts. They mention as an example the long payment terms to foreign suppliers (up to 180 days) and the complications of the import system. Added to this situation is the prevailing inflationary context, which generates permanent instability in costs and prices.
During his visit to EFICA, the new Minister of Productive Development, Daniel Scioli, highlighted the performance of the current footwear production, recalling that "in 2015, 125 million pairs of shoes were produced in Argentina, then with the previous government that number was halved, and last year it was possible to reach 107 million pairs. This year, with the purchase orders that producers already have for the next season, they estimate to exceed the 2015 mark”, he stated.
In conversations that he held during his visit to the fair, the minister committed his support to the footwear industry so that it can consolidate its growth, and work together to eliminate the obstacles that facilitate its activity.
The president of the CIC -Chamber of the Footwear Industry of Buenos Aires-, Alberto Sellaro, stated that "we had a record of visitors, over the weekend there were 3,200 and today (last day of the fair) we reached more than 600. We are very happy because the 200 exhibitors have worked very well, all the buyers who passed by the stands placed orders”.
The authorities of the institution highlighted the good levels of production in the sector and that the great attendance of merchants at the exhibition allows them to project a successful season, with the incorporation of work and new technologies to be more competitive and increase exports.
Within the framework of the exhibition, the CIC together with the Argentine Agency for Investment and International Trade of the Ministry of Foreign Affairs, International Trade and Worship organized the Round of International Footwear Buyers, which allowed for 100 business meetings between local manufacturers and buyers from neighboring countries (Chile, Uruguay, Paraguay) with important sales made.
RELATED ARTICLES:
- EFICA 106th: manufacturers renew expectations
- EFICA Fall-Winter 2023 launched for December