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Italian Footwear Sector: Economic Impact and Counterfeiting

Italian footwear: 14 billion turnover, but up to 250 million lost each year to counterfeiting
11/12/2024 News Download PDF
  • Over the past decade, the Italian footwear sector has seen decreases in the number of businesses (-23.9%), production volumes (-42.1%), and employment levels (-10%).
  • However, the sector’s revenue has grown to €14 billion, driven primarily by large enterprises (+58.8%), while revenues have declined by -6.6% for micro businesses and -9.4% for small businesses compared to 2012.
  • The Marche region, home to 34.5% of the sector’s enterprises, has been hit hardest. Despite a +6.3% increase in sales revenue between 2022 and 2023, it estimates annual economic losses of €60 million due to counterfeiting.
  • Footwear ranks among the most counterfeited Italian products worldwide, with an estimated illegal turnover of €250 million annually. Approximately 65% of counterfeit sales occur online.
  • The damages caused by counterfeiting include a -10% reduction in R&D investments by Italian footwear companies in 2023 and the loss of approximately 4,000 jobs annually.

The Italian footwear industry remains a cornerstone of the country’s manufacturing excellence, with exports reaching €12.8 billion in 2023 (+61.1% compared to 2012), France is the leading trade partner. However, the sector is undergoing a structural transition marked by two contrasting trends: the growing phenomenon of counterfeiting, worth €250 million annually, and a significant decline in the number of companies and production volumes, particularly among small and micro enterprises. In contrast, large companies are growing in revenue (+58.8% since 2012) and employment (+6% average annual growth). The overall stability in sector revenue is attributed to an increase in average sales prices, supported by a strategic shift toward more profitable market segments.

These findings are part of the report “Italian Footwear Sector: Economic Impact and Counterfeiting” by Rome Business School, authored by Valerio Mancini (Director of the Rome Business School Divulgative Research Center), Francesco Baldi (Professor of the International Master in Finance), and Massimiliano Parco (Economist, Center for European Research).

A Sector in Transformation

Over the last decade, the number of active businesses in the footwear sector has decreased by 23.9%, and footwear production has dropped by 42.1% compared to 2012 (compared to just a 1.7% decline in the broader manufacturing sector). However, sector revenue has grown by +17.6% from 2022 to 2024, rising from €11.9 billion to €14 billion. Although micro (-6.6%) and small (-9.4%) businesses and their revenues have sharply declined compared to 2012, large enterprises stand out across all metrics. Their numbers have grown by 4.5% annually, revenues have expanded even faster (+4.7%), and employment has risen by more than 6% annually.

According to Francesco Baldi,

The apparent stability in revenue is not due to increased production capacity but rather to rising average sales prices, supported by a strategic shift toward more profitable market segments such as luxury and high-end products. These segments not only guarantee higher profit margins but also allow Italian companies to showcase the craftsmanship and distinctive quality of ‘Made in Italy,’ consolidating their presence in foreign markets.”

As of late 2022, the Italian footwear industry employed 73,354 workers, down 10% from 2012 levels. This decline is most pronounced in micro (-29.5%) and small (-21.6%) enterprises. In stark contrast, large enterprises nearly doubled their workforce (+82.9%), growing from 8,232 employees in 2012 to 15,060 in 2022, confirming their critical role in maintaining sector employment. The top 20 Italian footwear companies generated total revenues of over €5.4 billion in 2023, with only 8 reporting increases, and only 4 seeing declines in employment between 2022 and 2023. Total employment in these 20 companies reached 11,029, up 3.3% from 2022.

In 2023, the sector’s export value reached €12.8 billion, a 61.1% increase since 2012, with an average annual growth rate of 4.4%. However, between 2022 and 2023, growth stagnated slightly, with a marginal annual decline (-0.5%). Between 2012 and 2023, France remained the leading trade partner, with export volumes doubling (+97.2%) over the period, followed by Switzerland, which rose in ranking, and the United States, holding the third spot. Noteworthy growth was observed in exports to China (+346.5%) and Poland (+266.4%), reflecting booming demand for luxury goods in emerging markets. In contrast, mature markets like Germany (-1.3%), the United Kingdom (-2.2%), and the Netherlands (-0.2%) experienced declines. Imports also increased: +€5.3 billion, with over €1.5 billion growth since 2012.

The Marche region remains the undisputed leader in Italian footwear production. By the end of 2022, Fermo Province hosted 1,533 footwear manufacturing companies (23.1% of all Italian footwear companies). Other major hubs include Macerata Province (648 companies; 9.8%), Florence (438; 6.6%), Naples (424; 6.4%), and Pisa (364; 5.5%). Overall, the Marche region accounts for 34.5% of Italy’s footwear sector enterprises. The top 20 Marche-based footwear companies saw a 6.3% revenue increase between 2022 and 2023, bucking the trend of the top 20 Italian companies (-0.8%).

Massimiliano Parco concludes,

The analysis highlights the importance of a strategic approach focused on intangible resources such as branding, design, and know-how. It underscores the need for more efficient organizational and business management models while supporting micro and small enterprises by improving access to funding, training, and international markets.

The Impact of Counterfeiting

Italian footwear accounts for about 13% of Italy’s fashion manufacturing exports, generating annual revenues exceeding €14 billion. However, Italian shoes are among the most counterfeited products globally, with an estimated illegal turnover of €250 million annually in the footwear sector alone (Assocalzaturifici, 2023). The Marche region is the most affected (over 3.2 million counterfeit items over the past five years), representing 31% of total losses, followed by Veneto (29%), Campania (22%), Lombardy (16%), and Tuscany (12%).

About 65% of counterfeit shoe sales occur online, making it the most exploited channel by counterfeiters, leading to an estimated €150 million annual loss due to the non-purchase of authentic products (EUIPO, 2023). Traditional markets, street vendors, and door-to-door sales account for 30% of counterfeit sales, with tourist cities like Venice, Florence, and Rome serving as key distribution points. Valerio Mancini explains,

The spread of counterfeit products undermines consumer trust in Italian brands, devalues authentic footwear, and reduces exports, causing an annual decline of around 15% due to unfair competition from counterfeits.

Online platforms like Alibaba and Amazon Marketplace, along with social media like Instagram and Facebook, enable counterfeiters to reach a vast audience, exploiting regulatory gaps and seller anonymity. Beyond the direct economic impact, counterfeiting hampers revenue and innovation investment, uses uncertified materials that reduce product durability, and poses health and environmental risks. Finally, counterfeiting threatens the global reputation of ‘Made in Italy’, eroding trust in Italian brands and their competitiveness in global markets.

To safeguard the Italian footwear sector, an integrated approach combining technological innovation, supportive policies, and awareness campaigns is crucial. With over 75,000 people employed, the sector’s continuity and success will largely depend on its ability to blend tradition with process and product innovation, preserve product quality, and strengthen anti-counterfeiting efforts,” concludes Valerio Mancini.