Interview with Álvaro Sánchez Concellón

We are on the verge of a new edition of Futurmoda, how do you assess the health of the Spanish industry?

The Spanish industry and, in particular, the footwear components industry, is going through a moment of reconversion and adjustment, marked by more irregular demand, cost pressures (raw materials, labour, energy, financing and logistics or transport), lack of generational turnover and loss of competitiveness, in a geopolitical context that is forcing us to rethink markets and supply chains. Taking into account the weakness of our natural market – the national and European market -, this reconversion is not synonymous with weakness, but rather with a structural transformation. This means that businesses willing and able to adapt to changes and seize the opportunities that may emerge at a given moment have to be much more selective in their action plans at industrial and commercial level, so greater agility and decision-making capacity is required.

Our strength remains clear: specialisation, design, quality, speed and high responsiveness, as well as a technical capacity that many competitors cannot match, while also applying strict responsibility for environmental compliance (sustainability, safety and traceability of products), which are created by the Spanish footwear components industry and marketed worldwide.

If we add to this the tendency of many brands to shorten supply chains and look for suppliers closer to home, Spain has a real competitive advantage to grow by adding a lot of value. The challenge is to do it, not just say it: therefore, businesses must invest in high technology and more modern capital goods, in talent, digitisation and sustainability in order to be able to create products of greater value and, above all, that are manufactured in our territory. In this sense, it is very important to have an Industry Law that accelerates the current manufacturing ecosystem, encouraging investment in digitisation, innovation and talent to ensure an industry with a greater future.

Could the EU’s recent agreements with Mercosur and India damage the sector or offer an opportunity?

As an industrial and commercial sector we look at them pragmatically: they can be an opportunity, but only if all players are following the same rules. Opening up markets can facilitate our companies’ exports, industrial collaboration and access to certain products and raw materials under better conditions. However, the risk for our SMEs arises when we cannot compete on equal terms, i.e. when there are companies and products that do not internalise the same labour, environmental, energy or physical and chemical compliance costs required by Europe.

That is why the key is not saying ‘yes or no’ to agreements, but when they are signed and how they are implemented. Equivalent and verifiable clauses must be established in both markets, in compliance with the same standards of safety and quality, labour, trade and intellectual property, as set by international trade regulations.

There is also a need for clear rules of origin and effective customs control to avoid triangulation operations and alliances that mask the proper reciprocity of bilateral relations. To this end, industrial and commercial defence instruments must be put in place to prevent unfair competition.

In the Spanish components sector, we will not win on price; we will win on quality, innovation, speed, service and regulatory security. And in this sense, if the framework is fair, these agreements can pave the way for great opportunities.

However, analysing the qualitative and quantitative data, both markets – India and Mercosur (which includes Argentina, Brazil, Uruguay and Paraguay) – can be very attractive in terms of size and presumed consumption capacity, but also very competitive in terms of their high output, which we cannot match. Let’s not forget that India, besides being the most populated country in the world, is the second largest footwear producer in the world with 3 billion pairs per year (12.6% of the world total) and that Brazil is fifth with 930 million pairs (3.9%), while Spain produces only 71 million pairs, or 0.3% worldwide.

How is the Association working towards its Sustainability goal?

At AEC we work on sustainability on three very concrete levels:

• Regulatory compliance and anticipation: we help companies adapt to the new European requirements of eco-design, traceability and digital product passport, promoting ESG Sustainable Business Management in the industry and its enterprises through a roadmap. The idea is that no company arrives late because of a lack of information or methodology. This is why we work closely with our technology institute INESCOP and with certifying bodies such as SGS, TÜV SÜD and EUROFINS, which certify companies in compliance with environmental regulations, as well as IMPLICA, a multi-sector consortium for commercial and industrial packaging, which helps companies comply with the law (RD 1055/2022) on Extended Producer Responsibility.
• Measurement and evidence: we promote the practice that sustainability translates into measurable data, such as the calculation of carbon footprints and the use of materials that reduce water and chemical consumption. Therefore, in our industry, the dialogue with brands is no longer about ‘promises’ but about setting targets and demonstrating them through indicators and certifications.
• Projects, initiatives and training: we promote technical training, practical guides and collaborative projects to advance eco-design, circularity, waste reduction, substitution of non-sustainable substances and energy efficiency.

Our goal is for sustainability to be an industrial competitive advantage, not an administrative cost: ensuring a lower environmental impact, better positioning and access to more discerning and responsible customers.

Technological and digital development: what is the scope for implementation?

The scope remains wide, not to say enormous, as technology, both tangible and intangible, continues to advance exponentially, especially since the footwear components sector is mostly made up of SMEs and micro-enterprises, in which very different realities coexist. I would say that there are three major ‘areas’ where there is still much to be done:

• Digitisation of connected and efficient factories: this involves collecting production data, integration between ERP, production and sales, predictive maintenance, digital quality control, selective automation and data-driven energy efficiency. Here the impact can be seen on time, waste and productivity.
• Traceable and manageable product: digitisation of data sheets, batches, composition and physical and chemical conformity of products, which must now also be recyclable and sustainable with demonstrable transparency, which is only guaranteed by the documentation provided to customers and consumers. Therefore, traceability is no longer an option but an obligation and a requirement to comply with regulations and work with many brands.
• Digital customer relationship: advanced B2B catalogues, sample, design, colour, texture, finish and material management with digital tools enabling faster prototyping, including 3D industrial design, the use of virtual reality and artificial intelligence in product creation and development processes, to anticipate demand and establish a better connection with customers.

The technology is already available; the bottleneck is often the technical and investment capacity of companies, as well as systems integration and talent. Here, the Association has a clear role: to facilitate realistic pathways, promote training programmes and shared projects so that digitisation and sustainability are applicable and not never-ending projects.