After being seriously affected by the effects of the pandemic, in 2020, the Argentine footwear industry decreased its productions due to the closure of establishments and due to the forced reconversion and restructuring that many factories had to carry out to remain in force. In addition to the drastic drop in consumption.
These circumstances deepened with the health crisis and new life habits, where purchases prioritized basic necessities -food and health- over footwear and clothing.
As in the year 2021 progress was made with greater epidemiological control, via vaccination and social coexistence protocols, circulation gradually opened up, and the entire productive structure began to see a recovery, waiting for the reactivation of consumption.
Pandemic and imports
As the new government assumed at the end of 2019 defined its political course conditioned by a strong economic crisis, it had to unexpectedly face a second crisis: the pandemic, which put everyone on tenterhooks, with serious social and humanitarian consequences.
Within this framework and due to economic needs, the government ordered greater control of imports, which generated less entry of foreign manufactures, particularly footwear.
This situation renewed the expectations of local industries that still remained standing, due to less competition, and awaiting the restart of consumption.
New insights
Over time, the incipient recovery of purchasing power, favored local factories, which had to produce for basic consumption, with a limited supply of imported products.
Thus, a sustained growth of the national footwear industry was resumed averaging 2021, where the local production of large international footwear brands stands out -Adidas, Puma, Nike, Le Coq Sportif, Umbro, Under Armor, New Balance, Diadora, Penalty, etc.- that through important investments are consolidated in the market to meet a promising demand.
In-depth analysis of the sector
According to sources from industrial entities, the footwear sector in Argentina is currently made up of approximately 1,000 establishments, dominated by small and medium-sized factories, with a high percentage of informality.
It is estimated that the activity generates close to 20 thousand direct and indirect jobs, and there is little availability of specialized labor. The main industrial conglomerates are located in Buenos Aires -AMBA-, Córdoba and Rosario -Santa Fe-.
The total production for the year 2021 was calculated at 72.8 million pairs, which represented an increase of 12% compared to 2020, which was 65 million pairs.
The balance of the footwear trade balance continues to be negative, according to INDEC data, with figures from 2020, where exports were for US $ 4 million and imports for US $ 277 million. Within the latter, the increase in the entry of Brazilian footwear is significant, which in the first 11 months of 2021 11.8 million pairs were imported for a value of US $ 100.9 million, which represented an increase of 67.5% and 52,2% compared to the same period in 2020.
Regarding consumption, with 45.3 million inhabitants, in 2020 the fall deepened, reaching 1.9 pairs per person, while in 2021 there was a recovery of 2.1 pairs per year.
Finally, based on the measurements released by INDEC and the Institute of Fiscal Analysis -IARAF-, the controversy was generated regarding the strong increase in prices that the footwear item has had, over the average of other consumer goods. The Consumer Price Index indicates that footwear increased in the last 12 months -until October 2021- by 62.2%. Above an average of 52%.
