The Spanish footwear industry expects the final results corresponding to the year 2007 to be favourable, based on the progress of its foreign trade figures over the first eleven months of the year, a period in which exports increased in value by some 11 per cent compared to the year 2006, according to information furnished by the Spanish Footwear Industries Federation (FICE)

This favourable performance is even more significant when we take into account the difficult economic climate that characterised this period, based on lower international growth and some economic uncertainty in the main countries where Spain exports its products.

According to figures that the Spanish Footwear Federation has furnished to MODACALZADO + IBERPIEL, there were some 2,153 footwear companies in Spain last year, providing 32,080 jobs. In the year 2007, production came to 109 million pairs, based on a value of 2,000 million euros.

A favourable sales trend

Reflecting the trend that has been observed in recent years, we might highlight the increase in exports to Germany, the third largest buyer of Spanish footwear in terms of value, based on a 14% increase in sales value. We might also highlight the favourable performance of the Italian market, which featured significant increases of 20% in terms of value and 23% in terms of volume.

Portugal also presented strong rates of growth in terms of both value (14%) and volume (28%). The volume figure makes Portugal Spain's second most important customer in terms of number of pairs.

We might also highlight the significant progress that has been made in terms of demand in a number of traditionally important Spanish export markets such as Greece, Belgium, the Netherlands, Denmark and Ireland. Furthermore, the favourable performance of various Eastern European destinations also stands out: Poland (+ 50% in terms of volume and + 32% in terms of value); Hungary (+ 38% in volume and + 34% in value) and the Czech Republic (+ 94% in volume and + 19% in value). These exports were, nevertheless, based on a lower average price.

The progress of foreign trade last year was also reflected in various up-and-coming markets such as the following: Mexico (+ 10% in terms of value); Russia, which presented the highest rates of growth (+ 45% in terms of volume and + 46% in terms of value), in addition to one of the highest average export prices, based on a figure of 31.59 euros/pair; Turkey (+ 28%, both in terms of value and volume); and various Middle Eastern countries, such as the United Arab Emirates (+ 9% in volume and + 19% in value).

Unequal performance in distant markets

We might also highlight the favourable performance of the Chinese market, in its capacity as a destination for Spanish exports. Thus, up until November 2007 the Asian giant received some 205,517 pairs of Spanish footwear (+ 91%), based on a value figure of 5.5 million euros. Nevertheless, FICE believes that sales to this country are still low bearing in mind the enormous potential it presents. China has become Spain's third most important client in South-East Asia, behind Japan and Hong Kong.

Imports also increased, but by a lower margin

Throughout the year 2007, China consolidated its position as Spain's main supplier of footwear, although import growth was lower than in previous years. In this respect, out of the total volume of Spain's footwear imports, 72% came from China. Specifically, some 236 million pairs valued at 569 million euros came from this country, which is to say, 35% of the total value of imported footwear. The average import price came to 2.41 euros/pair. According to type of product, out of the total number of pairs imported from China between January and November 2007, only 15.84 million pairs consisted of leather footwear. This figure represents a decrease of 25.28% compared to the same period the previous year. Furthermore, Spain increased its imports from Vietnam, especially in terms of volume, acquiring 51% more pairs. It also increased its imports from Portugal (+ 52%), Hong Kong (+ 76% in terms of value and + 27% in terms of volume), France (+ 21%) and Morocco (+ 20%).

In addition to the strategies that have been applied to the foreign markets and that have had a favourable impact on the industry's foreign trade, FICE is putting the final touches to the broad measures that it will implement in order to boost the demand for Spanish footwear on the domestic market over the next few months. These are measures that it has implemented regularly over the last few years.

The last informative campaign entitled "Zapatos de Espaņa" ("Shoes from Spain") sought to promote Spanish footwear and secure its positioning on the domestic market, based on the strong image of its various brands.

Spanish footwear enjoys considerable international prestige and has become a veritable byword for fashion and design throughout the world. Spain is the second most important producer and exporter of footwear in the EU, based on a production figure of 109 million pairs in the year 2007. These shoes are sold in more than 140 countries. The strength of the Spanish footwear industry and the quality and innovation of its designs make it possible for Spanish shoes to feature in the best showcases on all five continents, based on the existence of self-owned shops in more than 94 cities in 40 countries.

THE FOOTWEAR INDUSTRY IN FIGURES

Press release
Modacalzado - Iberpiel 2008