Global Footwear Industry Overview
Global Footwear Industry Overview
Global Footwear Industry OverviewThe global footwear market is expected to reach $195 billion by 2015, reported by Global Industry Analysts, the volume of footwear sales exceeded 13 billion pairs by 2012. The growth of footwear market is predicted to rebound as consumer confidence builds in the post-recession economy. Footwear sales have been falling in developed countries and slowing in emerging countries due to lower income levels; and less spending on clothes and footwear. Consumers are more and more focusing on value for money, looking for those simple and hard-wearing shoes that last. Designer shoes have borne the brunt of this shift in consumption brought on by the economic downturn. Shoe manufacturers and retailers are since forced to compete on price and value. China exports more shoes than any other country, with production of almost 13 billion pairs, or 63% of overall production in 2010, reported by RNCOS. The sales within China have been driven by online shopping and rising demand for specific brands. China has been faced with national currency appreciation, as well as the rising costs on raw materials and production. Branded footwear is strong sellers in China. China’s footwear industry has recorded strong growth in consumption and exports, which is thought to continue at an annual volume growth rate of 7% for next few years. Exports are strong because on the domestic market, Chinese people buy less than 2.5 pairs of shoes each year, whereas the Western average is much higher. According to MarketLine, advanced emerging markets – Poland, Hungary, Brazil, South Africa, and Taiwan – will reach a combined value of almost $24,219 million in 2014, at an annually growth rate in excess of 4% over five years. Brazil’s footwear market will take the lead, generating revenues of over $9,960 million in 2009. India’s footwear market is expected to record strong growth in the years to come, according to RNCOS. The market, which has been impacted by an increasing presence of international companies, is predicted to record close to 10% annual growth from 2011 to 2014. The market is boosted by advantageous factors such as a skilled workforce combined with low labour costs. In production terms, India is second only to China. This market sector drives expansion in India’s leather exports.
Read more: