The latest report on the footwear and footwear components sector, prepared by the Spanish Association of Footwear Components Companies (AEC), points to the fact that we are going through a situation of uncertainty. Its major problems are generated by the fall in consumption and production activity, to which we must add other problems such as the increase in absenteeism in companies, which have shot up by an average of 10%, reaching 30% in some cases.
The
export
The export of footwear becomes an option to mitigate these problems, since it allows diversifying the customer portfolio and maintaining an active work throughout the year, adapting to the fluctuations of fashion, which is divided into spring/summer and autumn/winter seasons.
At Cambrillones Jover, internationalization is a very important line of business as we have managed to expand our presence in international markets thanks to an internationalization strategy. internationalization strategy well planned and executed.
However, the main problems faced by the footwear components sector are the industrial, economic and commercial industrial, economic and commercial deficit which has been dragging on since January 2020, close to 25%, caused by the fall in consumption and the economic slowdown resulting from the serious situation generated worldwide by the pandemic, wars and geopolitical tensions.
The importance of footwear exports for Spanish companies
In recent years, exports have taken on a leading role in the Spanish economy. The ability to access international markets has enabled many companies to expand their operations and to expand their operations, increase their revenues y reduce their dependence on the local market.
Export benefits
- Diversification of the customer portfolio. By exporting, companies can access a wider and more varied customer base. and varied customer base.. This reduces the risk associated with dependence on a single market and allows companies to stabilize their revenues. Diversification of the client portfolio is essential to mitigate risks and ensure a steady source of revenue.
- Maintaining active work throughout the year. Fashion is a highly seasonal industry, with peaks in demand at certain times of the year. Exporting to different markets, each with its own fashion seasons, allows footwear companies to maintain a constant level of demand throughout the year. to maintain a constant level of activity and of activity and production.
- Increased competitiveness. When entering international markets, companies are forced to improve their products and processes to compete with other global competitors. This drives innovation and continuous improvement. International competition requires companies to be at the forefront of design, quality and technology.
Export challenges
Despite the benefits, exporting also presents certain challenges that companies must overcome:
- Market knowledgeIt is essential to understand the characteristics and demands characteristics and demands of foreign markets. This includes cultural aspects, consumer preferences and local regulations.
- Logistics and distribution: managing international international logistics can be complex and costly. Companies must ensure they have an efficient and reliable supply chain.
- Global competitionIn international markets, Spanish companies must compete with brands from all over the world. This requires effective marketing strategies y a differentiated value proposition.
Footwear components sector: hit hard since the pandemic
The footwear components sector, which represents more than 1,200 companies, mostly SMEs and micro-SMEs, and nearly 21,000 direct and indirect workers, was hit hard by the pandemic, as throughout 2020, the footwear components sector has been heavily affected by the pandemic, with a drop in consumption and the and the stoppage of business operations and manufacturing.
This has been exacerbated by the rising costs of raw materials and energy, and shortages of essential supplies such as plastics, metals and wood, the prices of which have risen significantly. In addition, transportation costs have skyrocketed, driving up ocean freight rates by 500%. ocean freight rates by 500%.. This situation has forced the industry to to cancel orders and face and to face difficulties in passing on these increases in final prices.
However, the footwear sector and, especially, the footwear sector, is one of the most dynamic in terms of exports. With a tradition of craftsmanship and high quality products, Spanish footwear companies have managed to position themselves in demanding international markets. Countries such as Italy, France and the United States are some of the main export destinations for Spanish footwear.
With an increase of 13.2% to 2 billion euros, men’s footwear drove the growth of footwear sales in Spain in 2022. Meanwhile, women’s footwear reached €3.2 billion in retail sales, up 12.1%, and children’s footwear reached €800 million, 9.7% more than in 2021.
Internationalization strategies
Footwear companies have adopted various strategies to achieve successful internationalization:
- Participation in international trade fairs. Trade fairs are an excellent platform for showcasing products and establishing contacts with distributors and retailers around the world. These events allow companies to showcase their products, learn about the latest trends and establish business relationships.
- Adaptation to local preferences. Knowing and adapting to local market preferences and trends is crucial. Spanish footwear companies have been successful in adapting their designs and materials to the tastes of consumers in different countries. Customizing products to local preferences can be a decisive factor for success in a new market.
- Strategic alliances. Forming alliances with local companies or distributors can facilitate market access and provide a better understanding of the business environment. Strategic alliances enable knowledge sharing, cost reduction and increased operational efficiency.
The future of exports in the footwear sector
As globalization advances, exports will continue to be a crucial line of business for Spanish companies. In the footwear components sector, the ability to adapt quickly to global trends and to constantly innovate will be key to remaining competitive. Internationalization not only provides financial stability, but also opens up new opportunities for growth and development.
For Cambrillones Joverinternationalization is fundamental to diversify our client portfolio and maintain an active operation throughout the year. Fashion is highly influenced by the seasons, and exporting allows us to compensate for seasonal variability, ensuring that we always have a constant demand.
Our experience – Jover
At Cambrillones Joverwe have experienced first hand the benefits of exporting. Our company has managed to expand its presence in international markets thanks to a well-planned and executed internationalization strategy. We have participated in international trade fairs, adapted our products to local preferences and formed strategic alliances with distributors in different countries. These efforts have allowed us not only to increase our sales, but also to strengthen our brand and reputation globally.
The impact of seasonality on fashion
Fashion is a highly seasonal industry, and exporting has allowed us to mitigate the effects of seasonality. By diversifying our customer base and expanding into different markets, we have been able to maintain steady production and a stable revenue stream throughout the year. This is especially important in an industry where trends and consumer demands change rapidly.
Footwear exports are a fundamental pillar for Spanish companies, especially in our components sector. Taking advantage of the opportunities offered by international markets allows companies to grow, innovate and stay relevant in an ever-changing global environment. In Grupo Jover we offer a multitude of complementary products to the footwear industry, but we also have a workshop specialized in other types of designs and manufacturing of tools for sectors such as agriculture, food or the toy sector.
