ShoeInfoNet

Modacalzado 2008 - Madrid
Spanish Leather Goods increase their presence on the International Market

The recovery that was witnessed within the leather goods foreign trade sector in the year 2006 continued throughout the year 2007. This much is reflected in the figures furnished by the Spanish Association of Manufacturers of Leather Goods, Travel Articles and Related Products (ASEFMA).

The Association's General Secretary, Fernando Gutièrrez, has stated that "in spite of the international economic climate, the sector has performed well". The figures furnished by the Association show that, during the first eleven months of the year 2007, exports were valued at 390.7 million euros, which represents an increase of 16% compared to the same period the previous year. With these figures, Gutiêrrez has gone as far as to say that "the crisis within the international leather goods market does not exist".

Out of the total volume of Spain's exports, 29% went to France. Thus, Spain's neighbour continues to be the country's main buyer, based on a value figure of 113.4 million euros. France is followed by Portugal, which reflects a value figure of 50.8 million euros and an increase of 17%, and the United Kingdom, a market that presented similar figures to those of the previous year, based on an estimated value of 20.3 million euros. Both the United Kingdom and Japan, Spain's fourth most important customer, account for 5.2% of Spanish exports.

ASEFMA's analysis of foreign trade activity also reveals strong growth under the heading of exports to Russia, the United Arab Emirates, Mexico and Italy. In the case of Russia, exports to this country increased by more than 56% last year, based on a value of 3.5 million euros. The United Arab Emirates achieved similar figures, with the number of Spanish leather goods exports to this country increasing by 47.4%. With regard to Mexico, exports to this country came to 18.35 million euros in the year 2007, a 34.8% increase compared to January-November 2006. For their part, exports to Italy increased by more than 46%, achieving a value figure of slightly more than 17 million euros.

With regard to the Asian continent, Hong Kong was the only destination that presented negative figures. The rest of the Far Eastern countries performed extremely favourably, especially South Korea, Taiwan and Singapore.

Furthermore, ASEFMA forecasts for the year 2008 indicate that exports will continue to grow. This outlook has been achieved thanks to the collaborative measures that the industry has implemented in conjunction with the Spanish Foreign Trade Institute (ICEX) over a number of years and the "positive promotional campaigns that have been carried out". Within this context, we might mention the National Plan for the Promotion of Leather Accessories and Goods, whose presentation will take place during the twenty-first edition of MODACALZADO + IBERPIEL. This promotional programme within the leather goods sector, which will apply to both the domestic and the international markets, enjoys the backing of the Spanish Ministry of Trade, Tourism and Industry, implemented through the auspices of the DDI, the State Company for the Development of Design and Innovation, and the Chamber of Trade, Industry and Tourism of Cadiz.

The Domestic Market

The favourable performance of the industry's exports has compensated, in part, for the slump in domestic demand. In this respect, Fernando Gutierrez recognises that various factors have led to the decrease in demand within Spain itself. On the one hand, we might point to changes within the distribution sector, based on the disappearance of traditional bag outlets, which have situated these items in other sales channels, such as footwear outlets. On the other, we might mention Spaniards' loss of purchasing power, a trend that will also affect the domestic market in the year 2008.

A Lower Rate of Growth with Regard to Imports

In the same way as with exports, imports also presented a favourable performance, although based on a somewhat lower rate of growth. Between the months of January and November 2007, imports achieved a total value of 849.6 million euros, which represents an 11.5% increase compared to the same period in the year 2006.

China continues to head the ranking, based on a value figure of 462 million euros, a 15.2% increase compared to the previous year. The Asian giant is gradually increasing its market share, accounting for more than half of all Spanish imports, specifically 54.5%. In second place comes Italy, based on a value figure of more than 88 million euros in 2007. This represents an increase of more than 24% compared to the same period the previous year. Furthermore, ASEFMA highlights the increases recorded in the cases of Portugal (+ 70%, based on a value figure of 8.2 million euros) and Turkey (+ 49% and a value figure of 5.7 million euros).

Conversely, the volume of imports from Germany, the Netherlands, Romania and Hong Kong decreased significantly.

According to the industry association, one of the reasons behind the ongoing yearly increase in imports from the Asian countries consists of the fact that Spanish producers have moved their production operations to these destinations, due to lower costs and more competitive production rates. With regard to this matter, ASEFMA acknowledges that the lack of competitiveness in terms of price is being resolved by means of delocalisation, although, according to Fernando Gutiérrez, the "exquisite handcrafted work, design and cutting of the models takes place in Spain, thus guaranteeing the quality of Spanish products and setting our leather goods apart from those produced by the rest of our competitors".

Press release
Iberpiel