On the sidelines of Micam, in Italy, Luís Onofre, leader of the shoe association APICCAPS, says that entrepreneurs are already anticipating some of the salary increases that should happen this year due to inflation, but calls for special attention to the commercial aspect , to avoid the assumption of final prices in the future, so that the factories do not encounter “a serious problem” later on.
How is the year going for shoes?
There is a huge demand from the big brands for production in Portugal. But not alone. Italy, Spain, Greece, everything is overflowing with work, the factories have nowhere else to go with so many orders. That’s a good thing, of course, but that doesn’t mean it will continue next year. I’m afraid the future may be complicated, especially with the continuation of the war and all these contingencies associated with the lack of material. I do not remember, in all my life, a lack of materials of this order. It’s going to be a disaster.
To what extent?
Under normal circumstances we would open the collection at the end of July, beginning of August, this year we are already in the middle of September and most collections have not yet been released. Which is a clear sign that they are not receiving the goods as usual. In this first semester, in the Luís Onofre stores, I probably had the best year ever. There came a time when there was no production [para repor stocks]. In July and August, a brutal drop in consumption was already noticeable. It improved a bit in September, but we’re running out of products to put in stores because the materials take a long time to arrive.
the increase of house brand (subcontracting) no risk?
I think the creation of its own brand and the house brand these are two strategies that complement each other perfectly. For me, it’s very positive that we have work, because it allows us to give our employees salary increases. That’s what needs to happen this year, although many of us are already doing that in advance. And I hope this is an incentive for young people to be attracted to footwear. The lack of labor is the biggest concern for the industry. If we don’t have young people in our companies soon, it will be a disaster.
Have you increased your employees?
I’m going to do it in the next month, I don’t know how much yet, but I think we all benefit from anticipating the increase from next year to this year.
And how much must footwear rise to cope with the rise in raw material costs?
I’ve been criticized for saying shoes should go up almost 30%, but in some cases and with some brands it’s gone up even more. The truth is that there are still entrepreneurs who think they can maintain current prices, but this can actually damage the credibility of our industry. There are still customers who come from China and come to Portugal in search of low prices. We need to change that chip once and for all. We need to show international customers that Portugal produces quality and that quality should be paid for at a fair price.
Is now the right time for companies to adjust prices as they present the new collection?
I have always been a proponent of price revisions when they are needed to respond to increases in raw materials and other costs. A company exists to make a profit, without a profit there is no point and today there are many companies who prefer not to raise their prices, just to exist, and that is an immediate danger. We cannot give definitive prices if we do not know whether the raw material will be twice as expensive in six months’ time. This can pose a serious problem for those who sign contracts with predetermined prices. Final prices cannot be given, they must be values that depend on the non-increase of raw materials.
How much have the prices of your shoes gone up?
It will be around 15 to 20%, but it all depends on the type of product. The main thing is to be attentive and not fall into the trap. I think there is a clear advantage of many industries and products that have increased without apparent justification and this is something that annoys me. There are cases where we get prices that are valid for a week. I can’t remember ever seeing anything like it.
Fear of bankruptcy and bankruptcy?
I’m an optimist, I don’t think so. We’ve been through so much, and much worse… Look at the full-scale relocation of multinationals to Asia in the early 2000s. It must have been the biggest shock we’ve experienced and survived. We have already been through several crises, we have an admirable resistance. I also think this is transient.
Ilídia Pinto is a journalist for Dinheiro Vivo
The journalist traveled to Milan at the invitation of APICCAPS
Source: DN
