Inescop predicts a 2013 negative on the positive national market in the foreign markets for footwear companies

2013-06-03
According to its report on the Footwear Industry: Analysis of Actions and Strategies 2012-2013, The deepening crisis negatively affected sales in Spain in 2012. More than half of those who keep them waiting have reduced. By contrast, in export performance was positive and better than expected. Predominated in 2012 related to internationalization strategies and enhancing the brand. Down, however, the domestic market oriented. In 2012 increased the proportion of companies that outsourced only in Spain. The expectations for 2013 are, once again, optimistic but pessimistic foreign markets in the domestic market. Firms with higher expected sales proportionally stand above the rest in their internationalization strategies in the adoption of new ICT, outsourcing in Spain, and the use of the online channel.

The Market Observatory Technological Institute for Footwear and Related Industries (INESCOP), with the support of the Ministry of Economy, Industry, Tourism and Employment, the Valencian Institute of Business Competitiveness (IVACE) and the European Regional Development Fund (ERDF), and collaboration of the Federation of Spanish Footwear Industries (FICE) has developed the Third Report of the Footwear Industry "Actions and Strategies Analysis 20122013".

On an annual basis, this complete analysis of the Observatory series of reports and supplements information in the Yearbook brings FICE Footwear. In addition, knowledge about the industry from a dynamic point of view so that sufficient longitudinal data, may explain trends and cyclical fluctuations, and allows the employer to know their position in relation to the whole sector.

Note that the information provided by a panel of 567 companies (from different geographical areas and with different types of products and business models), collected between January and February 2013 in an environment of worsening crisis in Spain. Its hard impact has been manifested in the negative results in sales for 2012 as compared to what the companies had hoped.

BEHAVIOR AND ACTIONS IN 2012

Sales

The deepening crisis negatively affected than expected sales in Spain.

In the domestic market, 54.3% of companies say they have reduced their sales and only half (31.7%) than they thought keep them (60.1%) have succeeded.

The average fall was at 7.7% vs. an expectation of 2.7%.

By contrast, in foreign markets has been positive behavior, and better than expected.

In the European Union, 31.5% of companies increased their sales and 46.2% kept them. The average variation was 4.4% (versus 1.1% expected).

ExtraUnión In European markets, 36.1% of companies increased their sales and 44.6% kept them. The average variation was 5.8% (versus 3.9% expected).

Outsourcing

Increased proportion of firms only outsourced Spain.

Increased the percentage of companies that outsourced only in Spain (from 51.8 in 2011 to 58.5% in 2012).

Brand

It increased the percentage of companies that sold only brand.

A 46.2% of the companies sold only with your brand (compared to 43.2% in 2011), and 42.3% did so under its own brand and others.

The average sales representing own brand of total billed pairs was 80.3% (percentage similar to the previous year).

Distribution channels

Online sales grew.

There has been an increase in sales through the online channel, as explained by the 65.2% of the companies surveyed.

Although most used channel remains shoe stores (86.3% of companies), we note the increase in the percentage of companies that sold in shops (from 24.8 in 2011 to 28.8% in 2012 ).

Factory price

There was greater restraint in factory prices.

Prices remained for 64.9% of companies (compared to 54.5% in 2011), and increased to 30.2% of them (compared to 39.8%).

Strategies

Highlighted strategies relating to internationalization and brand enhancement.

Predominance of new strategies related to internationalization and empowerment of the brand, with 58.6 and 57.1% of companies respectively. Down, however, the domestic market-oriented strategies (from 55.7 in 2011 to 44.2% in 2012).

Sales

Entrepreneurs are optimistic in foreign markets.

The most optimistic expectations concerning export: in the European Union, 39.3% of companies expect to increase their sales and maintain 56.7%. ExtraUnión In European markets, 45.2% of them expected 51.5% enlarge and maintain.

However, in the domestic market are more pessimistic forecasts. 22.0% of companies expected to reduce sales in Spain and 60.7% expect to maintain them.

Regarding the outlook for 2012, we note that it has reduced the percentage of firms with negative expectations (from 26.5 to 22.0%), and increased the percentage of firms with positive expectations (from 13 , 4 to 17.3%).

The average expected variation is 0.9% for the domestic market, 4.9% in the markets of the European Union and 4.2% in European extraUnión markets.

Distribution channels

Online sales will continue to rise.

A 60.2% of companies expect sales to continue to grow the online channel. In department stores / supermarkets and clothing stores most expect sales maintenance, as well as demonstrate almost 68% of companies using these channels.

Factory price

Increase the proportion of companies that expect to maintain prices and reduce waiting also.

Compared to what was expected for 2012, the proportion of companies planning to keep prices in 2013 (from 70.0 to 73.4%) and also reduce waiting (from 1.8 to 3.6 %), probably due to adjustments prolonging the crisis.

Provides stable employment.

A 90.0% of companies expect to maintain the size of its workforce, a percentage that rises in relation to what was expected for 2012 (79.9%). The expected increase 5.7% (compared to 10.0% the previous year) and 4.3% believe the reduced (compared to 10.2% who thought so in 2012).

By type of contract, it is expected greater stability among fixed discontinuous.

Characteristics of firms with higher expected sales

Firms with higher expected sales proportionally stand above the rest in their internationalization strategies (79.1% of companies out of a total of 58.6%) in the adoption of new ICT (54.4% on a 39 , 6%), in outsourcing in Spain (65.0% to 58.5%), and the use of the online channel (37.4% over 25.7%).

Next year it will request the cooperation of our panelists, essential for this task. We are aware of the effort involved and to the same extent moved our appreciation and encourage them to continue.

Market Observatory also offers personalized service studies "on demand" in response to the particular needs of the companies.

INESCOP is the Technological Institute for Footwear and Related Technical and Scientific supporting coming companies in the sector since 1971, in coordination with the Federation of Spanish Footwear Industries (FICE). It belongs to the Network of Technological Institutes of the Valencian Community (redit) and the Spanish Federation of Technology Centres (FEDIT).

FICE is the business organization that represents, since 1977, the general interests of the footwear sector in terms regional, national and international. Their duties are focused on boosting business competitiveness, enhancing their strengths and ensuring a future sector.

Source: Ediciones Sibila