Argentine Footwear Industry Faces Near-Terminal Crisis Amidst Plummeting Consumption

The Argentine footwear industry is experiencing a severe crisis, with one prominent manufacturer describing the situation as "almost terminal." Emmanuel Fernández, owner of the Kioshi sneaker factory, has reported a drastic reduction in his workforce and a significant drop in monthly production, directly attributing these challenges to a collapse in domestic consumption.

Factory Floor as a "Graveyard"

Fernández painted a grim picture of his factory, stating, "You come to our factory and it's a graveyard of machinery because most of it is off or only turned on once a week." He explained that rationing production is "totally inefficient" but a necessary measure to endure until consumer trends reverse and the government addresses the needs of Small and Medium-sized Enterprises (SMEs).

Workforce and Production Cuts

"We used to have almost 120 people, and today we are 15. It's terrible," Fernández stated during a streaming session. During the industry's peak in 2022-2023, Kioshi was producing close to 40,000 pairs of shoes monthly. This figure has plummeted to just 10,000 pairs, with average shoe prices ranging from $35,000 to $50,000 Argentine pesos. Nationally, footwear production has fallen from a historical average of 120 million pairs per year to 80 million in 2025. The first quarter of 2026 showed a further 25% decrease compared to the same period in 2024, according to data cited by Fernández from the Chamber of the Footwear Industry.

Consumption as the Primary Driver

While acknowledging a surge of imports in 2024, including many counterfeit products, Fernández emphasized that the core issue is not imports but the dramatic decline in purchasing power. "Argentina has gone from selling almost four pairs per capita to two, we are at the levels of Peru and Bolivia, and the truth is that [the fall] continues to deepen," he noted. He reported an increase in commercial establishments closing down, with many businesses unable to afford rent renewals and opting for other ventures.

"Many manufacturers are closing their workshops and renting them out for mechanical workshops or other things because they prefer the rent to not going bankrupt," Fernández added. He also observed that import levels for footwear have slightly decreased recently due to significant overstock that remains unsold, underscoring that consumption is the primary bottleneck.

Financial Strain on SMEs

Beyond the drop in consumer spending, SMEs like Kioshi face other significant hurdles. Fernández highlighted difficulties in accessing credit, describing the financial situation as "at its limit." The issue of payment collection has also worsened, with an increase in rejected checks from clients who are struggling to meet their obligations. "Sales are low, collections are worse," he said.

Competitive Disadvantage

Fernández also pointed out the unequal playing field between Argentine SMEs and international competitors, particularly from Asia. "We have had an enormous increase in energy costs that is very expensive for us, financial costs, everything has increased for us, against an imported product for which tariffs were recently lowered," he explained. While acknowledging that some Argentine factories possess comparable machinery and technology to Asian counterparts, he noted the lack of scale. He criticized the official narrative that blames a lack of competitiveness, arguing that the issue lies in a country's willingness to foster industrial development.

A History of Resilience and Decline

The Kioshi story began in 2016 when the international brand factory where Fernández worked decided to leave Argentina. A group of 19 former employees established their own plant. The initial years (2017-2019) were challenging, even during a previous administration, but some level of consumption existed, allowing for gradual weekly sales growth. The pandemic and the e-commerce boom led to a surge in sales, enabling the factory to expand to 120 employees. However, the subsequent decline in consumption forced the significant workforce reduction. "Every month we think it's the bottom, and the next month we are worse," Fernández lamented.

The "Cancelled Sales" Phenomenon

Adding to the industry's woes is a new phenomenon termed "cancelled sales." Fernández described how some consumers are purchasing items in 12 installments and then immediately canceling the transaction. This practice allows them to receive a full refund from the platform while effectively securing a short-term, interest-free loan through their credit card installments. Fernández reported experiencing 10 to 12 such operations in recent days, leading him to disable the 12-installment payment option. "People are not making it to the end of the month and are financing themselves with these things," he concluded.

Datos clave
| Aspecto | Detalle |
|—|—|
| Producción Mensual (Kioshi) | De 40.000 pares (pico 2022-2023) a 10.000 pares |
| Empleados (Kioshi) | Reducción del 90%, de 120 a 15 |
| Producción Nacional | Caída de 120 millones a 80 millones de pares anuales (2025) |
| Consumo per cápita | Reducción de 4 a 2 pares |

This situation is critical for FootballGames10 readers as it highlights the broader economic challenges impacting consumer spending in Argentina. A struggling manufacturing sector directly affects disposable income, which can influence demand for various goods and services, including those related to sports and leisure. The difficulties faced by SMEs also indicate a less robust economic environment, which can have ripple effects across the entire market.

Fuente: Clarin Deportes – https://www.clarin.com/economia/situacion-calzado-terminal-crudo-relato-empresario-pyme-recortar-90-personal_0_gDuWgVBTc3.html

Datos clave