IFLS+EICI: the business platform in the Colombian market
Through an interview with Germán González, president of the Colombian Association of Footwear, Leather, and its Manufactured Goods Industrialists -ACICAM- we have learned about the new ideas to be implemented in the entity, as well as market news and expectations for the next edition of the IFLS+EICI fair for suppliers and manufacturers, to be held in Bogotá in February.
Regarding the association he presides over, he mentioned his intention for it not to be just another chamber of commerce or tax but an investment, where members find the necessary support to grow in their activities. For example, he commented on "the search for financing in both state and private banks, with better rates and benefits, and greater access to funds to acquire technology and thus make possible this stage of industrialization and technological advancement."
He emphasized the importance of characterizing and educating companies, aiming to train and support them with customized plans.
"For 2024, our intention is to classify different types of companies and analyze their concerns and specific needs to define work modules that meet their requirements, involving the entire sector, including the government, banks, and unions. It is essential to educate on topics such as costs, prices, e-commerce, internationalization, etc., and systematize this activity."
"Currently in Colombia, we have an annual consumption of 125 million pairs, of which 55 million are locally produced and registered, with an informal manufacturing of around 25 million. This means that 80 million pairs are locally sourced. In addition, there are 7 to 8 million pairs entering through smuggling from China and Vietnam, plus 38/40 million pairs of imports. We have decreased from a penetration rate of 65% of imported products in past years to the current 35%. The national industry has gained ground, making it very attractive for supply of inputs."
Regarding consumption, the director reported a slight contraction of 3.4% in volume in the comparison between 2023 and 2022 (from January to November), which could recover in the first half of 2024 due to lower interest rates and new credit systems. Total spending on footwear in 2023 was 3.7 trillion pesos = US$ 940 million.
Regarding the entry of foreign footwear via e-commerce platforms, he noted that it is not relevant. The "paqueteo," as it is known in Colombia, does not have an impact as in other countries. "When you compare a Colombian product with a similar foreign one, there are no significant differences in the calculation, not to mention that here you can try it on and experience it in person."
He emphasized that production and consumption are important in his country, making it interesting for suppliers of inputs, components, and machinery, where the supply is limited compared to the demand. Also, for foreign manufacturers of finished products, there are opportunities to supply. "Participation in our fair is the gateway to the market."
The footwear and manufactured goods industry in Colombia, according to sector sources, consists of more than 6,000 establishments, mostly small and medium-sized, with 5% being larger factories. The main production centers are Cundinamarca (Bogotá), Santander (Bucaramanga), Norte de Santander (Cúcuta), Antioquia (Medellín), and Valle del Cauca (Cali). Between formal and informal production, there are 80 million pairs, of which 2.6 million are exported to Ecuador, the United States, Costa Rica, and other countries.
Exports of footwear in 2023 compared to 2022 increased by 1.8% in FOB value, surpassed by leather goods, which achieved an increase of 4.5%.
"The quality of Colombian footwear manufacturing is recognized in the international market, and we aim to supply other countries such as Nicaragua, Honduras, and Guatemala, with possibilities of reaching Europe. Currently, we have companies selling safety boots to Arab countries. We have very good projections internationally and are looking to sell to more and better markets."
"A few days before the start, we are very satisfied with the fair's call, as in addition to participants from all production centers in Colombia, we will have the presence of companies and institutions from Brazil, Mexico, Portugal, Spain, and Italy, among others. This way, we will maintain the international profile of the event."
The leader referred to the exhibition as an open space for anyone interested in trading in Colombia and the region. Therefore, it is not only for ACICAM affiliates but for all companies and industries belonging to the sector, whether national or international.
The presence of manufacturers from different production centers in the country, each with its characteristics and specialties, significantly enriches the diversity of the proposal.
Having integrated manufacturers and suppliers in the same event and location has generated much greater value and interest in the exhibition, thinking about visitors, who in this way come into contact with the entire offer and gain a more comprehensive view of the sector's evolution.
During the fair days, national exhibitors receive buyers from the country and the region, and international participants can access the Colombian market and connect with visitors from different countries.
"We want to make IFLS+EICI a global event, a forum for contacts, fashion, news, and business that positively impacts the sector."
"In Colombia, production and consumption are important, and as such, they offer very good buying and selling opportunities."
"As for attendance, as usual, we expect visitors from all over the country, with a good presence of internationals, especially from Latin America and other continents."
"We are working with national and international buyers, with market intelligence, through databases, to assist them in their searches at the fair and facilitate business. The fair is the driver of the sector in Colombia and the region, and we want it to be the main commercial showcase for the industry, not only for Colombia but for all of Latin America."
"We have set ourselves the task of integrating the fair into its environment, so we hope that people not only experience it but also live the city and have a new experience. For this, we have made agreements with the gastronomic circuit, hotels, and tourism so that visitors can enjoy different proposals and activities, and that the days of the fair are not only about going from the fair to the hotel and from the hotel to the fair."
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