Footwear Industry Footwear Industry - empirica

Footwear
5.2 Policy implications
This section highlights policy implications arising from the survey, the qualitative analysis
and the case studies presented in the previous chapters of this study. These issues were
also discussed at the workshop on “ICT and e-Business in the Footwear Industries” which
was organised by e-Business W@tch on 22 September 2006. 90 Conclusions from this
workshop are also reflected in the following paragraphs.
General policy implications
e-Business developments can have implications for several policy areas. Relevant
considerations made in this context can be grouped around two overall objectives which
are paradoxically, to some extent, antagonistic:
Promote ICT adoption. Policy may have an interest in accelerating the adoption
of ICT and e-business activity among companies in the footwear industry,
particularly among this sector’s SMEs. This is based on the assumption that ICT is
a driver of productivity and competitiveness.
Counteract ICT induced market failure. At the same time, policy will have to
consider intervention if e-business activity causes undesirable effects on the
aggregate level, i.e. market failure.
Policy implications for the footwear industry
According to the findings of the e-Business Survey 2006, the adoption of ICT in the
footwear industry is quite limited, compared to other manufacturing sectors studied. This
seems to apply not only to this sector’s SMEs, but also to its large firms. Furthermore,
findings reveal that ICT use in this sector relies on less standardised practices and,
perhaps more importantly, that most of the sector’s companies do not see ICT as a
priority. Findings of the survey also suggest that, although footwear is an innovating
sector in terms of product innovation in general, ICT-related process innovation in this
industry is less common than in other sectors studied this year by e-Business W@tch.
Numerous factors could explain the limited use of ICT and e-business, which comes as a
result of the economic and competitive evolution in the footwear industry over the past
decades. Presently, there are different and, at the same time, conflicting driving forces
to explain the limited e-business adoption in this industry:
on the one hand, there is a lack of “pull” potential from distribution chains and
business partners;
on the other hand, there is strong competitive pressure (even in terms of survival).
Sector’s firms are more focused on other concerns -such as seasonal fluctuations,
slowly growing and unstable demand, and fierce international competition from low
cost countries- which should normally spur the use of ICT but, conversely, are also
diverting resources to other goals.
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See www.ebusiness-watch.org/events/Footwear_WS06.html
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