The commercial director of Calzados Bestard, Mats Lindholm, has recognized that the outdoor market is currently affected by “the slowdown in consumption that is being experienced in all sectors and the general fear of what may happen in autumn”.
(7-7-2022). Calzados Bestard has managed to close the first semester with a turnover of around 3 million euros, 2.5% more than in the same period of 2021. These figures become more relevant if one takes into account that last year the company beat its historical income record.
Satisfaction in Calzados Bestard that, after billing a total of 7 million euros in 2021, in the first half of this 2022 they have managed to increase the figure for the same period last year by 2.5%.
In addition, the fall-winter 2022-2023 sell-in campaign that began last March also has a relevant level of orders to be delivered next fall, according to the company’s commercial director, Mats Lindholm, who points out that “many Programming was made when there was more joy in consumption than today”.
“The positive thing is that, after half a year, we have a good billing figure and we have abundant programming for the next campaign; the other side of the coin is the slowdown in consumption that is being experienced in all sectors and the general fear of what might happen in the fall”, says Lindholm.
growing every month
Despite the general delicate economic situation, Calzados Bestard has grown in sales every month of this year 2022 compared to the same months of 2021. Lindholm admits to having noticed that in May and June the demand was not as high as during the previous months, but consider different possible causes.
On the one hand, it states that May and June are usually slow months for its products.
On the other hand, he points out that after having made heavy purchases by retailers, they would have hoarded enough stock. To all this should be added the increasingly delicate economic situation that has led to a general drop in consumption.
Among the product lines that have boosted the sales of the Balearic brand during the semester, Lindholm highlights the canyoning boots. As he explains, there are only three other firms in the world specialized in this segment, with Calzados Bestard as the only Spanish company. This year, their competition hasn’t served as many boots as they used to and Bestard has taken more market share.
Lindholm points out that canyoning boots are characterized by their good grip on wet rock and for being prepared to withstand use in water, which leads to higher wear than standard mountain boots.
RELEVANT DEMAND FROM FRANCE, ITALY, USA AND AUSTRALIA
The firm receives most of the demand for canyoning from the countries with the greatest interest in this sport, such as France, Italy, the United States and Australia. In the latter country, Calzados Bestard also equips the whitewater rescue teams, which this year have required more boots due to the abundant floods experienced.
However, although the greatest increase in demand has been experienced in canyoning, the bulk of sales continue to be in hiking, as it is the specialty that has the largest number of users: “obviously, for the less technical ranges there is a greater volume of amateurs ”.
Scarcity and increased cost of the material
“We could have served a lot more, there are still quite a few orders left undelivered due to lack of material,” says Lindholm. The manager regrets that the problems of raw material supply persist, both in terms of the difficulty in supplying some materials and the constant price increases.
The director states that the delivery time for all the materials needed for production has increased, so “you have to order well in advance and it is not even certain that they will serve on the scheduled date.” In addition, prices are in a spiral of constant growth.
Calzados Bestard already made a non-linear price adjustment of 4.5% on average in January: “back then, we tried to raise as little as possible, below the average of the competition, with the hope that the rise would moderate Lindholm points out.
However, according to the executive, “the increase in prices has accelerated and we have had to make a new adjustment in June of between 3% and 4% on average”. In any case, the manager assures that “between the two rises, we are still below the average price increase that footwear has experienced”
Despite this situation, Lindholm highlights the benefits of national manufacturing: “we are more flexible, we can react more quickly to changes in demand, we have greater control over the production process and the result is more sustainable products”. The manager maintains that depending on factories abroad is a very high risk and asserts that “the companies with the most supply problems are those that import from Asia.”