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shoe industry

Page history last edited by PBworks 15 years, 9 months ago

 

 

Shoe Industry

 

for raw materials: see leather industry

 

Footwear

In 1996 65% of all leather was converted into 4539 million pairs of shoes with leather uppers. The remaining light bovine leather was used for the production of garments, furniture and travel goods FAO (1998).   The production of shoes with leather uppers grew by 30% between 1979 and 1996. During this period production rose in developing countries by 160% and their share of global output grew from 35% to 71%. The expansion in leather shoe production was greatest in the Far East and to a lesser degree in Latin America. Production declined in all developed regions.

 

Leading Footwear Producers

Asia is the dominant producing region in the world. Its contribution to world production has steadily increased from 51% in 1985 to 63% in 1993 and 77% in 1999 with China by far the first in the world (Price 1999).

 

 

Figure - Regional Share in the World Production of Leather Shoes (all Types)

 

 

A regional breakdown of footwear production around the world in 1998 is illustrated below. China dominates the production scene and is also the largest exporter and consumer of footwear in the world SATRA (1997-98).

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Regional breakdown of footwear  production around the world 1998

Source:SATRA


Table - Leading Footwear Producers and Traders in the World (1997)

Producers

Exporters

Importers

Country

Pairs (million)

Country

Pairs (million)

Country

Pairs (million)

China

5252

China

2996

USA

1462

India

680

Hong Kong

1259

Hong Kong*

1298

Indonesia

527

Italy

414

Japan

384

Brazil

520

Indonesia

227

Germany

345

Italy

460

Vietnam

176

UK

247

Thailand

276

Thailand

157

France

245

Turkey

270

Spain

152

Italy

158

Mexico

260

Brazil

142

CIS

145

Spain

208

Portugal

93

Belgium*

103

Vietnam

206

Taiwan

62

Netherlands

100

*These countries mainly re-export

Source: SATRA (1999)

 

Of the ten countries that were identified as the leading producers of footwear in 1998, China accounts for almost 50% of the world production. In Central and South America Brazil and Mexico are large producers for the region and it is expected for them to remain among the top ten world producers in the present decade. Italy was the fifth largest world producer in 1997 (fourth in 1998) and the main European producer.

 

It is expected that because of the very specific characteristics of its production system and those of its national chain Italy will maintain its position in the world’s footwear global chain.

 

In 1998 there was a slowdown in the worldwide global production of footwear, this being only 0.3 per cent higher than in 1997, markedly down from the average yearly increase of 4.2 per cent recorded in the previous three years. Asia increased production by 1.3% while the rest of the world saw relatively static or decreased production. China, the largest producer in the world (5520 million pairs) was followed by India with (685 million pairs) and Brazil (516 million pairs). Italy, Europe's star performer, produced 425 million pairs. Vietnam left the group, Indonesia lost ground and Pakistan was the newcomer.

 

 

Italy’s Footwear Industry

The strength of the Italian leather industry stems from its productive excellence in fashion-dominated markets and the traditional close cooperation between small units. The Italian footwear market is based on sophisticated demand, world-class suppliers, a deep personal commitment to the footwear industry and intense domestic rivalry. Competitive advantages come from the creation of an "irresistible force for innovation" in a concentrated geographical region, structured around "clusters of concentrated groups of rivals".

 

The footwear industry in Italy has demonstrated how a 'traditional' industry can be transformed and how competitive advantages can be upgraded. Footwear success cannot be restricted to style and design according to G. Maria Dalla Colletta In most cases, style has been accompanied by aggressive investment in advance technology manufacturing equipment to improve product lines within the limits of competitive costs.

 

For the Italian footwear industry to face present growing competition and maintain its national advantages many argue that Italian firms need greater scale to compete and the possibility of "right sizing", increasing size through mergers, has been suggested. G.Maria Dalla Colletta objects to this option on the bases that internal merging could eliminate effective competition and suggests three alternatives: to find a new form of supply chain; to improve research infrastructure for the national industry through contracts between associations, universities and institutes and promote mergers and acquisitions abroad. The latter, argues the author, would promote strong domestic rivalry among firms who compete globally and would create a powerful and sustainable competitive advantage.

 

 

World leading Footwear producers 2000

 

 

Trade

Leather and leather products are the most widely traded and universally used commodities in the world. Formal trade in these products was close to US$43 billion in 1994-96 and it is estimated that informal trade and business amount to equivalent values. The total value of trade (including leather shoes with leather uppers) is close to three times the value of the meat trade and more than three times that of the sugar trade as shown in Table 2.

 

 

 

 

 

 

 

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