Cost of raw materials and insufficient demand continues to worry the footwear industry

The cost of merchandise or raw materials, highlighted by 37% of our experts, tops the list of main difficulties for footwear businesses in the next six months in this survey edition, as in the previous one, although with a lower percentage of responses (minus 9 percentage points). While this concern is prevalent across different geographies, it is notably acute in Africa and South America, and particularly less significant in Europe.

Insufficient demand in international markets is the second most significant source of concern for footwear businesses, particularly in Europe, where it was mentioned by 75% of respondents. Competition in domestic markets follows, posing a challenge to 35% of our respondents, along with insufficient demand in domestic markets, cited by 30% of them. Financial difficulties, mentioned by 26% of respondents, are the fifth most important source of concern for footwear businesses.

Financial difficulties are more substantial in Africa and South America than elsewhere.

Taxes have moved up one position in this list since the last survey edition, but only 13% of the respondents mention them as a source of concern. Human resources related problems, on the contrary, are now, apparently, a less significant cause of concern, mentioned by 12% of
respondents (in comparison to 21% in the previous edition). Finally, issues such as the lack of adequate equipment or other technological problems, legal or administrative obstacles to international trade, climate concerns, and regulatory or administrative requirements, do not surpass 10% of responses.

Shift Towards Streamlined Production Lines is Anticipated

Influencer Marketing Evaluated as a Successful Tool for Footwear

In 2019 the World Footwear has created the World Footwear Experts Panel and is now conducting a Business Conditions Survey every semester. 

The objective of the World Footwear Experts Panel Survey is to collect information regarding the current business conditions within the worldwide footwear markets and disseminate this information to provide an accurate overview of the situation of the global footwear industry. The tenth edition of this online survey was conducted during the month of April 2024. 

We have obtained 115 valid answers, 32% from Africa, 30% from Asia, 21% from Europe, 8% from South America, 7% from South America and 2% from Oceania. About 45% of respondents are involved in footwear manufacturing (manufacturers) or footwear trade and distribution (traders) and the other 55% in other footwear-related activities, including education and research (16%), trade associations (10%), consultancy (4%) and other activities (25%).

Previous Editions of this Bulletin can be found HERE