33rd International Footwear Conference - 14th November 2014, Agra, India - Council For Leather ...
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special feature
33rd International Footwear Conference
14th November 2014, Agra, India
14th November 2014 - Agra, India
12 december 2014 • Leather News India
PREAMBLE
The Council for Leather Exports
(CLE) organized and hosted the 33rd
International Footwear Conference
(IFC) of the Confederation of Interna-
tional Footwear Associations (CIFA)
on November 14 2014, in Agra.
The International Footwear Confer-
ence is a prestigious event at which
CIFA Member Footwear Associations
meet annually and share information
on the status of the Footwear Indus-
try in their respective countries. In
addition experts were invited from
leading global footwear markets like
USA, and EU countries to the 33rd From left to right : Shri R. Ramesh Kumar, IAS, Executive Director, CLE ; Shri M.
IFC, November 14, 2014, Agra-India. Rafeeque Ahmed, President, CIFA ; Shri Mukhtarul Amin, Chairman, FDDI and
Shri Rajendra K. Jalan, Chairman, CLE
Twelve Footwear Associations from
Asian Footwear Producing countries
including China, Vietnam, India, Hong
Kong, Indonesia, Japan, Malaysia,
Philippines, South Korea, Thailand,
and Taiwan have formed the Confed-
eration of International Footwear As-
sociations (CIFA), with the common
objective of networking and infor-
mation exchange. Prime activities of
CIFA comprise organizing the annual
Shri Rajendra K. Jalan, Chairman, CLE (centre) responding to a query. Others
International Footwear Conference,
on dais are : Shri Tapan Nandi, the Regional Chairman (East), CLE ; Shri Puran
and holding an annual International Dawar, President, AFMEC ; Shri M. Rafeeque Ahmed, President, CIFA ; Shri R.
Footwear Design Competition to Ramesh Kumar, IAS, Executive Director, CLE
promote design talent among Asian
footwear producing countries.
The 33rd IFC comprised of Coun-
try Presentations by CIFA member-
associations, consisting of a compre-
hensive report on the status of the
Footwear Industry in the member-
country covering Production, Product
and Market aspects. Besides, at the
33rd IFC for the first time, CIFA mem-
ber-associations also presented the
‘Vision 2019 for the Footwear Indus-
try’ of their respective country.
Held in the charming ambience of
the ITC-Mughal, Agra the 33rd IFC Chairman, CLE clarifying a point. Shri Subash Kapoor,
presented a rare and historic oppor- Regional Chairman (North) is at extreme right
tunity for getting inputs regarding
Journalists representing the major IAS, Executive Director, CLE; Mr Puran
footwear sectors of several compet-
press houses like Zee Network, Amar Dawar, President, AFMEC; Mr Sub-
ing Asian countries; as also for net-
Ujala, NDTV, Hindustan Times, PTI, hash Kapoor, Regional Chairman(NR),
working with delegates from these
Dainik Jagran, Indian Express to name CLE and Mr Tapan Nandi, Regional
countries.
a few. Chairman (ER), CLE.
PRESS MEET
The Council for Leather Exports was The ED, CLE welcomed the gath-
A Press Meet was organized on represented by Mr Rajendra Kumar ering and gave an introductory brief
13th November 2014, to apprise the Jalan, Chairman, CLE; Mr M Rafeeque about the Conference. Mr Puran
Press of the highlights of the 33rd IFC Ahmed, Chairman, CIFA and Conve- Sawar, President, AFMEC also wel-
to be held in Agra. The Press Confer- nor, 33rd IFC; Mr R Ramesh Kumar, comed the Media Personnel and
ence was attended by close to 50
Leather News India • december 2014 13
special feature
spoke on the Agra Footwear industry tunity for India to project itself as a the ‘heart’ of the shoe making in the
and the Growth opportunities. The ‘Manufacturing Base.’ country. He outlined the programme
Chairman, CLE Mr Rajendra Kumar and also gave a brief profile of the Ex-
Jalan in his address highlighted the Mr R Ramesh Kumar, ED, CLE then perts who had been invited. He also
salient details of the Indian Leather addressed the gathering and in- spoke in brief about the importance
industry and the huge opportunity formed that Agra was an apt venue of this conference and gave insights
for Footwear in the global market. for the Conference and this IFC pre- into the composition and objectives
He also emphasized on the growing sented us with a great opportunity of visit of the Chinese delegation to
Domestic Market. He also pointed for Trade Development. this Conference.
out that the Leather Sector has been Mr M Rafeeque Ahmed, Chairman, This was followed by an interac-
identified as a Focus Sector by the CIFA and Convenor, 33 IFC provided tive question answer session and the
Government and especially in view of information about the IFC and CIFA discussion largely centred around the
the Prime Minister’s “Make in India” organizations. He said that Agra was “Vision 2019” and on Skill Develop-
initiative, Leather Sector has been chosen as the venue because it was ment, Raw Material availability, Infra-
given priority. Talking about the IFC, not only a historical city but was also structure and Capacity Building.
he said that this was a good oppor-
The events as they unfolded at the 33rd IFC are recapitulated
RECEPTION AT HOTEL ITC MUGHAL IN AGRA
The delegates and guests were received with traditional honours at the ITC Mughal Hotel in Agra on their arrival
on 13th November 2014.
14 december 2014 • Leather News India
INTRODUCTION OF THE OVERSEAS DELEGATES
At a lunch get-together on 13th November 2014, the Overseas Delegates were introduced to the Committee Mem-
bers of the Council for Leather Exports and Members of the Agra Footwear Industry.
Shri Subash Kapoor, Regional Chairman (North), CLE (2nd from left) ; Shri Puran Dawar, President, AFMEC and Shri M.
Rafeeque Ahmed, President, CIFA with the delegates
Leather News India • december 2014 15
special feature
Visit to ‘TAJ MAHAL’ and ‘KALAKRITHI’
After an informal lunch the delegates were taken to visit the “Taj Mahal” which was followed by the ‘Kalakrithi”
show – a light and Sound show on the Legend of the Taj. The delegates were mesmerized by the grandeur of the
Taj and were enthralled with the Cultural Dance and Drama show at the “Kalakrithi Cultural Centre.”
16 december 2014 • Leather News India
WELCOME DINNER
A Welcome Dinner was hosted in honour of the Overseas Delegates on 13th November 2014.
Leather News India • december 2014 17
special feature
33rd International Footwear Conference
Sessions on Country Presentations and Presentations by Experts
on 14th November 2014
INAUGURATION
The stage was set for the 33rd Inter-
national Footwear Conference with a
brief “Inauguration.” The Master of
Ceremonies invited Mr M Rafeeque
Ahmed, Chairman, CIFA & Convenor,
33rd IFC, Mr Frank Kung, Secretary
General, CIFA, Mr Rajendra Kumar
Jalan, Chairman, CLE, Ms Nie Yumei,
Executive Deputy Secretary General,
China Leather Industry Association,
Beijing, China, Mr Liu Suilong, Chair-
man, The Association of Guangdong
Shoe Manufacturers, Guangdong,
China, Mr Tan Wing Mun, Vice Chair-
man, Hong Kong Footwear Associa-
tion, Mr Eddy Widjanarko, Chairman,
Indonesian Footwear Association,
Mr Naoki Tokuda, Japan Footwear Shri Rajendra K. Jalan, Chairman, CLE delivering welcome address
Federation, Mr Chang Yong Noh,
General Manager, Korean Footwear said that the recession was ending working for Regional and bilateral
Industries Association, Ms Maggie the resurgence of the industry was Trade blocks and the Asian countries
Chan Mei Keen, Executive Officer, imminent. too had proactively forged new part-
Malaysian Footwear Manufacturers nerships between ASEAN and it FTA
The WTO had indicated positive partners. He emphasized that Re-
Association, Mr Roger S Py Jr., Vice
growth, Shri Jalan added and in- gional Trade Agreements would play
President, External Affairs, Fillipino
formed that Asia had also registered a greater role and the Footwear Trade
Chinese Footwear and Allied Indus-
an impressive growth and was on the needed to leverage this to grow and
tries Association, Mr Lai Chi Chien,
right track. The Chairman of the CLE said that attention to Joint Ventures,
Secretary General, Taiwan Footwear
said that increasingly countries were Technical Collaboration, Skill Devel-
Manufacturers Association, Mr Ming
Pant Chaya, Chairman, the Footwear
Industry Club, The Federation of Thai
Industry, Mr Diep Thanh Kiet, Vice
Chairman, Vietnam Leather and Foot-
wear Association and Mr Nasir Khan,
Leather Goods and Footwear Manu-
facturers and Exporters Association
of Bangladesh to the dais for the In-
auguration.
Mr Rajendra Kumar Jalan, Chair-
man, CLE in his Welcome Address,
warmly welcomed all the delegates
to Agra for the 33rd International
Footwear Conference. He said that
Agra was not only a historical city but
was also a ‘shoe city.’ He deemed it
a pleasure to be part of the IFC and
with the presence of the renowned
Asian Giants present it would be a
good opportunity to learn about each
other’s work and the progress made,
he opined. Mr Jalan stated that ‘Ser-
vices’ are dependent on goods – di-
rectly or indirectly and that Trade
could not happen in isolation. He also
18 december 2014 • Leather News India
opment and Environmental Man-
agement was the way to go forward.
Talking about the Indian Footwear
Market, he said that it was a huge
market and was expected to post a
huge growth with the per capita con-
sumption likely to move up from the
current two pairs to three to three
and a half pairs in the near future. He
said that the huge volume required
by the Domestic Footwear market is a
good opportunity for the Asian Coun-
tries to service. He also stressed that
the Government of India had recently
included ‘Leather’ as one of the key
industries in their ambitious ‘Make in
India’ initiative which gave manufac-
turers around the globe to plug into Mr M Rafeeque Ahmed, Chairman, CIFA delivering Opening Remarks
our manufacturing system and gain
access to a large and young skilled as well as long term, he added. Trac- conducting the ‘International foot-
manpower base. He also expressed ing the history of CIFA, he said that it wear Design Competition (IFDC)’ to
his happiness at the presence of was in 1971 that the “Asian Rubber encourage Design talent and all the
the Association of Guangdong Shoe Footwear Congress” was held which major manufacturers participated in
Manufacturers, Guangdong, China was the first Asian partnership and this. He also opined that we should
who, he informed, were scouting for once footwear Trade flourished regu- blend ’Tradition’ with ‘technical
collaborations and partnership and lar meetings were held. India joined Knowhow’ to get the best results. In
opined that evaluation of such possi- this group in 200, he informed. He conclusion, he quickly introduced the
bilities to manufacture in India would stated that CIFA, in its present form three Technical Experts and extended
be a win-win situation for all. was born in Hong Kong. He empha- a warm welcome to all, once again.
sized that ‘Fashion and Design’ play
Mr M Rafeeque Ahmed, Chairman, an important role in the Footwear Mr Frank Z Kung, Secretary Gen-
CIFA & Convenor of the 33rd Inter- Trade and we in Asia need to develop eral, Confederation of International
national Footwear Conference in his this to move up the value chain and Footwear Association (CIFA) in his
“Opening Remarks” welcomed all the stated that in this connection IFC was address said that it was a great plea-
CIFA members and delegates warmly
to the Conference. He said that India
was proud to host this event and was
thankful to CIFA to give it a chance to
host it for a second time after the first
time being in 2007. He quoted a Rus-
sian Proverb that “Guests need not
thank but the Host should Thank the
Guest” and in keeping with that, he
said that we were honoured by the
presence of all the delegates from the
various countries. He stated that Asia
today was the ‘Powerhouse’ of Foot-
wear Manufacturing and contributed
to 86% of the global footwear exports.
It was the ‘largest producer’ as well as
the ‘largest consumer’ and this con-
ference would provide a platform to
Mr Frank Z Kung, Secretary General, Confederation of International Footwear
outline growth objectives in the short
Association (CIFA) speaking at the inaugural session
Leather News India • december 2014 19
special feature
sure and privilege to be present at
the 33rd IFC in Agra. He thanked Mr
M Rafeeque Ahmed, Chairman, CIFA
& , Convenor of the 33rd IFC and his
amazing team at CLE, India for their
efforts in presenting this conference
and thanked them all for the won-
derful arrangements for the Confer-
ence. He emphasized that the Pur-
pose of IFC was to provide a platform
for ‘Global exposure’ in the area of
footwear, exchange of business in-
formation amongst members, discuss
Business collaboration and provide
opportunities for technical tie-ups to
work towards a better shoe industry
tomorrow.
Mr Kung said that CIFA stood for
Lighting of lamp by dignitaries
Co-operation, Information, Facilita-
tion and Appreciation. Outlining the
at the 33rd IFC in Agra to write a new In keeping with the Tradition of In-
format of the Conference, he said
chapter in IFC’s history. He sincerely dia, celestial blessings were invoked
that each member country would
thanked the CLE and the Govern- and the 33rd IFC was inaugurated by
present their reports and also briefly
ment of India for their support to the “Lighting of the Lamp” by all the dig-
described the International Footwear
33rd IFC and for making it an event nitaries present on the dais accompa-
Design Competition held every year
that would be remembered for a long nied by a divine invocation chant sig-
which attracted participation from all
time. He concluded by wishing all nifying that ‘may all our endeavours
major members of the CIFA. He de-
participants great success in the 33rd be successful.’
scribed India as a ‘beautiful country’
IFC.
and opined that we were all meeting
Country Presentations & presentation by Experts
China Leather Industry Association, Beijing, China
• Vision for future
She highlighted the Key indicators
in 2013 as being Production with an
estimated 14 billion pairs; Exports
being 10.58 billion pairs with an es-
timated value of $48.15 billion; Im-
ports being 55 million pairs with an
estimated value of $1.71 billion and
Consumption being 3.7 billion pairs
with an estimated value of RMB370
billion.
She informed that Production con-
tinued to grow, but at a much lower
growth rate with the Output being
RMB 641.1b which was up 9.37% ver-
sus 13.01% in 2012. Elaborating, she
said that Central and Western China
Ms Nie Yumei, Executive Deputy Secretary General, China Leather Industry experienced higher growth rate than
Association, Beijing, China. coastal provinces as the Growth rates
of output in coastal provinces such as
The first presentation was made by • Chinese footwear industry 2013 Fujian, Zhejiang and Guangdong were
Ms Nie Yumei, Executive Deputy Sec- much lower than inner land provinc-
retary General, China Leather Indus- • Chinese footwear industry 20141h
es, with Henan, Hunan, Jiangxi and
try Association, Beijing, China. • Top department stores and leading Chongqing showed growth about
brands 20%. She added that the share of
She divided her presentation into
• Cost rise three coastal provinces continues to
five parts comprising
20 december 2014 • Leather News India
decline and in 2013, it declined 3 per- a new period of slow-down but add- economy would be in a long period of
centage point compared with 2012. ed that after a two-year slump the slow recovery and that the Produc-
This showed the industrial transfer leading sports brands were showing tion was projected to remain stable,
towards inland provinces from coast- signs of recovery. She stated that the with a low-single digit growth in vol-
al cities continued, she informed. Leather shoes experienced a difficult ume and double digit (just above
year and with the society consump- 10%) growth in output. She also add-
Ms Yumei stated that Footwear tion slowing down, overall costs con- ed that Exports were projected to be
exports still continued grow, but the tinued to rise, booming online sales, in the process of slow recovery along
rate fell below 10% as in 2013, 10.58 and department stores were gradual- with the recovery of world market de-
billion pairs were exported, with the ly losing its attractiveness and leather mand and that low to mid-single digit
value of 48.15billion US$, registering shoes brands offered much higher growth in volume and double-digit in
a rise of 5% and 8.5% respectively, discount. Talking about the outlook value, just above 10%, could still be
while the rates in 2012 were 2.0% and for the Chinese footwear industry expected. Further, she stated that Im-
12.7% respectively. She also informed she opined that if 2013 was a bitter ports were projected to growth faster
that the Share of leather shoes con- year, it seemed that 2014 would be than exports and since Consumption
tinued to decline both in terms of vol- much bitter. However, she said that was closely linked with income, the
ume and value. Share of traditional there was room for optimism as the Consumption would grow steadily,
target markets like the US, EU and trend is positively going up, though about low double digit overall in val-
Japan had also shrunk, she added and the growth rate of several indicators ue. She added that Labour cost and
to emphasize her point she gave a is smaller than the same period last raw material cost would continue to
graphical overview of the Top ten Ex- year. To buttress her point, she gave go upward and opined that the West-
port markets for China both in terms figures pertaining to growth rates of ern and Central provinces in China
of Volume and Value and added that the Top 5 chain department stores in would experience higher growth in
China’s exports to ASEAN countries China and the Market Share of the production and exports, benefiting
were rising. She stated that Asian top ten footwear brands. from the industrial transfer.
competitors becomes more competi-
tive in exports and provided statis- Ms Yumei then spoke about the The Association of Guangdong Shoe
tics of the growth rates of Indonesia ‘Rising Costs’ and attributed it to Manufacturers, Guangdong, China
(growth: 22.1% in the period 2009- the ‘labour costs’ which had seen The next presentation was by Mr
2013) and Vietnam (growth: 19.9% the monthly wages of migrant work- Liu Suilong, Chairman, The Associa-
in the period 2009 to 2013) as com- ers reaching RMB 2609 in 2013 tion of Guangdong Shoe Manufactur-
pared to that of China (growth: 16% which translated into a 13.9% rise, ers, Guangdong, China.
in the period 2009-2013). She also and there were signs that the actual
stated that the growth of imports had monthly income could reach RMB He prefaced his presentation by
also slowed down and the share of 2500-5000 in footwear manufactur- stating that since 2013, Footwear In-
leather shoes had dropped by 4% in ing sector. She also added that about dustry of Guangdong and China had
volume with the Import origins be- 24 provinces had raised the minimum been put in a tight spot due to many
coming more concentrated. wage standard, which was up 22% on factors, such as the traditional market
an average. She also touched upon downturn and RMB exchange fluc-
Turning her attention to ‘retailing the Material costs. Outlining the Vi- tuation. Moreover, the increasingly
and Consumption’, she informed that sion for the next five years, she said growing labor cost and raw mate-
the Footwear consumption entered that it was forecasted that the world rial procurement cost, the elevated
Europe and the United States trade
barriers and the orders transferred
to the Southeast Asian countries had
also increased the export difficulty of
Guangdong footwear enterprises, he
stated and opined that these were
the reasons as to why the Footwear
Industry of Guangdong and China was
facing a new era of industrial transfer
and upgrade.
Talking of Foreign Trade Export of
Footwear Industry of Guangdong, he
listed the Statistical data and said that
the national export value of footwear
was USD 50.764 billion and grew by
8.44% on the year-on-year basis, the
export volume was 10.577 billion
pairs and increased by 5.02% on the
A delegate clarifying a point year-on-year basis in 2013. Exports
Leather News India • december 2014 21special feature
als, e.g. leather, synthetic leather and
rubber, he stated that the change of
footwear materials directly affected
the sales price of finished shoes and
in recent years, the production cost
of footwear manufacturing enterpris-
es had grown greatly because of the
rise in material prices, the competi-
tive advantage of products had fallen
directly, and corporate profits had
declined year by year. Mr Suilong the
spoke eloquently on the Domestic
Market Development of Guangdong
Footwear Industry and stated that
China had become the largest foot-
wear consumption market all over
the world, with the sale volume in
the lady’s footwear market achieving
Mr Liu Suilong, Chairman, The Association of Guangdong Shoe Manufacturers, about RMB 350 billion and it was es-
Guangdong, China. timated that the market would con-
tinue to be developed rapidly in the
from Guangdong, Zhejiang and Fu- 12.97% of the gross export volume of next few years. He added that with
jian he stated, were the highest and China. He added that in January-May the growth of land and manpower
accounted for 73.87% of the gross 2014, Guangdong footwear industry’s cost, seeking for the largest benefit
footwear export value and 81.27% of main export market was USA, Hong of enterprises, Guangdong footwear
the gross export volume of China, of Kong, Malaysia, Britain and the Unit- had struggled for the brand develop-
which the footwear export value of ed Arab Emirates with USA and Hong ment in recent years and along with
Guangdong was USD 17.339 billion, Kong being still the two largest export the development of the consumer
accounting for 34.16% of the gross markets. market of China, the high-end domes-
export value of China, and its export tic footwear market would also have
volume was 3.791 billion pairs, ac- Mr Suilong then touched upon the the huge potential in the future. He
counting for 35.84% of the gross ex- Change of Labor cost and the pur- informed that many powerful brand
port volume of China. chasing cost of raw materials as well operation enterprises had actively ex-
as the Labor cost and Workers’ Re- panded in the Mainland China market
He stated that in 2013, Guangdong muneration, in which connection, he through different distribution chan-
footwear industry’s main export mar- stated that from 2003 to 2013, the nels and due to the wide and stable
kets were USA, Hong Kong, Britain, workers’ wages of China footwear customers, large numbers of brand
Malaysia and Germany with the larg- industry had been tripled, whereas operation enterprises preferred to
est export market being USA with an RMB exchange rate against the U.S. set up counter brand for the promo-
annual export amount of USD 5.589 dollar had appreciated by more than tion of brand products in famous de-
billion, accounting for 11% of Guang- 30%, plus other cost rise ensured partment stores.
dong’s total exports, and with the that the profit of footwear manu-
average unit export price being USD facturing enterprises had been basi- Mr Suilong pointed out that at
8.52; the second largest export mar- cally nibbled. He added that in recent present, there were more than 100
ket was Hong Kong, with an annual years, Guangdong footwear industry self-owned brands of footwear in
export amount of USD 1.458 billion, was in short supply with manpower Guangdong and in the next five years,
accounting for 2.9% of Guangdong’s resource, the worker’s pay had been the number of Guangdong footwear
total exports and with the average increased year after year and this vi- brand would be increased multiplica-
unit export price being USD 7.11. cious cycle of shortage of workers and tively. He said that the famous brand
Elaborating on the Footwear Export the rise of labor cost had become the retail system of Guangdong footwear
of Guangdong from Jan. to May. 2014 largest constraints for the develop- industry had gradually become ma-
he said that the national footwear ment of footwear manufacturing en- ture and taking BELLE as an example,
export value was USD 20.581 billion terprise. As the overall wage and wel- he said that its core brand BELLE was
and grew by 9.28% on the year-on- fare treatment level was heightened at the top of the sales of lady’s shoes
year basis, and the export volume is and some enterprises attracted work- for 12 consecutive years and became
4.404 billion pairs and decrease by ers through higher salaries, average the best brand in China’s footwear
0.17% on the year-on-year basis, of wage of on-post staff in Guangdong market. It also had other brands:
which the export value of Guangdong had stably increased year by year, but Teenmix, Tata, Staccato, Joy & Peace,
was USD 7.147 billion, accounting a large number of factories were still Mirabell, Millie’s, Senda, Innet, Basto
for 34.73% of the gross export value lacking of labor, he pointed out. and JipiJapa, he added and further-
of China and its export volume was more, BELLE operated 8 well-known
0.571 billion pairs, accounting for Talking about the Footwear materi- brands: Bata, BCBG, Elle, Clarks, Me-
22 december 2014 • Leather News Indiaphisto, Merrell and Caterpillar, he in- 11% from last year. ity will be improved, the product price
formed. He opined that through this- and gross export will continually grow.
multi-brand strategy, BELLE achieved • The ASEAN market becomes the
win-win cooperation with powerful largest export market of Guangdong • Guangdong powerful footwear
department stores and controlled footwear industry. enterprises will gradually go deep
the retail terminal and formed the into foreign terminal market.
Along with the maturity of China-
strong supply chain system and mar- ASEAN Free Trade Zone, the footwear The powerful footwear manufac-
keting system. He informed that in products gradually launch into the turing enterprises in Guangdong will
2013, BELLE income had exceeded ASEAN market. Specifically, there will set up factories through overseas in-
RMB 36.25 billion in footwear, a rise be a substantial increase in the ex- vestment; establish the R&D center,
of 10.3% year-on-year; with the net port to Malaysia, Singapore, Thailand logistics center and distribution cen-
profit being RMB 4.492 billion, with and Brunei, the volume of export to ter by means of acquisition, leasing,
year-on-year growth rate of 3.2%. Its these four countries will account for joint venture and cooperation, launch
distribution network covered over 75.3% of Guangdong’s total volume into the foreign terminal market. The
400 main cities in the mainland, he of export to ASEAN. footwear manufacturing enterprises
said and there were more than 400
will increase the export of the self-
footwear retail outlets and 2500 staff • Guangdong footwear industry owned brands with high added value
in Guangdong. Now BELLE was the undergoes the transformation from and maintain the export competitive
largest lady's shoes retailer in China, low-end processing and manufacture advantage. However, Guangdong
he stated. to the high-end product design and footwear manufacturing enterprises
production. will be challenged by many problems
Mr Liu then presented Vision for
the year 2019 as: Owning to the increased produc- within a short term, for example, the
tion and labor costs in China, the increased labor cost, the raw material
Footwear Industry would grow competitive advantage of low-end price markup, the strict environmen-
steadily in 5 years (2014-2019) shoes will no longer be obvious, tal protection requirement and so on.
In 2014, the global economy the orders for low-end shoes will be
“snatched” by the manufacturers in Industrial Integration is the trend
showed the signs of a mild recovery,
the great footwear consumption po- Cambodia and so on. In recent years, along with the in-
tential and manufacturing demand crease of labor cost and raw material
Meanwhile, the market share of cost as well as the fluctuation of in-
became a hot topic both in China and China footwear industry will be grad-
abroad. Professionals predicted that ternational market demand and the
ually reduced in USA, EU, etc. and decline of market share, the footwear
the gross output of China footwear will continue to decline. It will make
industry would breach RMB 700 bil- manufacturing enterprises have faced
domestic footwear manufacturers a keen competition. If the footwear
lion in 2014, up 7% from last year; it transform from the long-end process-
would continue to maintain a steady manufacturing enterprises do not
ing and manufacture to the high-end make improvement in the product
growth. product design and production, ex- development and design, self-owned
China footwear industry would cavate and focus on the fractionized brand and international market and
meet the satisfactory growth rate in fields, satisfy the consumer’s indi- still exist in the small and scattered
the foreseeable future. It was esti- vidual needs and stick to the road of form, they will hardly break through
mated that the annual growth rate of brand development. the development bottleneck of high
domestic footwear sales would reach Due to the above two factors, the production cost and low product add-
12% in 2014-2019. The gross output production and export of footwear ed value and gradually lose the indus-
of Guangdong footwear industry products will possibly decline in the try advantage, not to mention Guang-
would be RMB 20 billion in 2014, up American and EU market, but the qual- dong footwear industry in shortage
The participants
Leather News India • december 2014 23special feature
of land and labor. By selecting the orous development of Guangdong ceeded to give the Average wage
superior and eliminating the inferior, footwear industry under the new rates analysis by Industry section as
the successful enterprises will be the situation. also the Average daily Wages, aver-
powerful enterprises capable of inte- age number of work and average
grating advantageous resources; the Hong Kong Footwear Association, number of standard working days
industrial integration strategy will be Hong Kong of craftsmen and operatives ana-
an inevitable choice for enterprises to The next presentation was by Mr lyzed by industry section. He also
be bigger and stronger. Tan Wing Mun, Vice Chairman, Hong informed the audience of the total
Kong Footwear Association, Hong export productwise as well as Mar-
The footwear industry integration Kong. ketwise and also touched upon the
implies the seamless joint and mu- ‘Domestic Exports’ productwise and
tual cooperation of the upstream, He commenced his presentation marketwise as also the Re-Exports
midstream, downstream and the by showing the performance of Hong productwise and marketwise. In
quick and efficient of footwear indus- Kong’s Exports of Footwear which conclusion he presented the Imports
try chain. We will complete the sys- had registered a negative 10% rate of – Productwise and marketwise.
tematic gathering and rational layout growth. To give a clearer picture, he
of each link in the process of enter- analyzed the Footwear exports vis- Indonesian Footwear Association,
prise development, such as develop- à-vis the Markets which had largely Indonesia
ment and design, brand operation, shown a declining trend and through Mr Eddy Widjanarko, Chairman,
exhibition trade, e-business, finan- categories such as Finished Footwear, Indonesian Footwear Association,
cial settlement, industrial exchange, Rubber or Plastic uppers, textile Up- Indonesia gave the next presenta-
international exhibition, storage and pers, leather Uppers and other Acces- tion wherein he split the Indonesian
logistics, etc., realize the industrial sories and parts which also followed Footwear Industry categorywise as
structure adjustment, promote the the same trend. He then proceeded Category A being for Branded
overall development of footwear in- to give the cost of the various leather sport shoes for export; Category B
dustry. types such as Calf Leather, Cow leath- being for Branded non-sport shoes
er, nubuck, Cow Suede, Patent Cow for export and Category C being for
In order to heighten the research, Leather, Crystal patent Cow leather, Local Brands mainly for local mar-
development and design ability and Goat leather, Hair Sheep Leather, Pig ket. He then proceeded to highlight
enhance the market share, some do- Lining, Goat lining and Sheep hair lin- Indonesian footwear exports and
mestic enterprises have begun to co- ing. imports in the period 2008-2013
operate with the advanced enterprise
which had shown an impressive
both at home and abroad, focus on Mr Mun then gave the details
growth. He also presented the ex-
the R&D of high-end products, accel- of the progress and business sta-
ports under the categories-Sports
erate the product brand construction, tus of the leading Brands in Hong
and non-Sports which again was
heighten the added value of product, Kong such as “Joy and Peace”,
very impressive in terms of rising
strengthen the core competitiveness; “Mirabell”, “Dr. Kong”, “Sabatina”,
growth. A detailed list of ‘Destina-
meanwhile, regulate the marketing “Staccato”and “Footspot” and also
tion Countries’ that were recipients
strategy, satisfy the customer’s in- talked about the leading Depart-
of Indonesia’s products was then
dividual needs, strive for more mar- mental Stores such as “Lane Craw-
highlighted.
ket share and greater profit margin ford”, “Sogo”, “Yata”, “Wingon”,
through high quality product and ser- “Sincere” and “Aeon.” He then pro- He then went on to enumerate the
vice. The industrial integrated devel-
opment strategy will become the fu-
ture development mode of footwear
manufacturing enterprises. BELLE is
a typical case of achieving great suc-
cess through industrial integration.
In the next few years, The Asso-
ciation of Guangdong Shoes Manu-
facturers will energetically promote
the integration of footwear industry,
make domestic and foreign foot-
wear manufacturing enterprises
complement advantages and share
resources in the field of R&D, design,
production, brand, channel, person-
nel, information, etc., help footwear
manufacturing enterprises and part-
ners to enhance international com-
petitiveness, and promote the vig- Mr Tan Wing Mun, Vice Chairman, Hong Kong Footwear Association, Hong Kong
24 december 2014 • Leather News India‘Vision 2019’ as being:
• Strengthening the industry struc-
ture through :
• Investments in supporting industry
• Machinery modernization toward
quality products , efficient produc-
tion
• Implementation of new Industrial
Law to reinforce the footwear in-
dustry
• New Law on Institute for Invest-
ment Financing
He then gave us a glimpse in the
variation of ‘Minimum Wages’ in dif-
ferent parts of Indonesia and gave us
Mr Eddy Widjanarko, Chairman, Indonesian Footwear Association, Indonesia an idea of where the Footwear Indus-
tries were clustered. He also listed
“challenges in the footwear industry” On the ‘Raw Material Issue’, he out the famous Indonesian footwear
and listed them as being: opined that: Brands as being: GinoMariani, Jalan
Sriwijaya, Pakalolo, Specs and Mario
• Significant dependence on foreign • Impact of dependence on imported Minardi.
brands raw material on competitiveness
Elaborating on footwear retail, he
• Efforts to introduce national • Impact of availability of raw mate- gave the details of the major Foot-
brands. rial to production process wear retailers like PT Sepatu Bata
• Supporting industry is in the devel- • Raw Material Center Tbk, PT Buccheri Indonesia, PT SA-
opment stage BANG MANDIRI ABADI, PT SUMBER
• Down streaming industry to supply KREASI FUMIKO and PT Teguh Murni
• Infrastructure need many improve- the industry just started. Perdana. He also gave us the details
ments on the major Departmental Stores
Mr Eddy then gave a detailed picture
• Support from financial institutions in Indonesia like Matahari, Rama-
of the Indonesian Tanneries Perfor-
yana, Carrefour, h-hypermart and
• Development of human resource mance for 2013 and then set out
Yogya.
competence the Indonesian footwear industry
The participants
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LEATHER NEWS INDIA
Leather News India • december 2014 25special feature
Expert presentation by Mr Massimo Donda, President, FEDERCALZATURE- Italian Shoe Trade Federation
Mr Massimo Donda spoke on “Italian Footwear Industry in the coming Decade.”
Mr Massimo Donda, President,
FEDERCALZATURE- Italian Shoe Trade
Federation
He introduced himself and informed
that his family was in shoe business
since 1887 when his great grandfa-
ther opened a first little shoe shop
and factory in Trieste, 127 years ago!
This was then taken up by his grand-
father and his father. He informed
that he was currently the President
of Federcalzature: Italian Shoe Trade
Federation and past president of
CEDDEC European Shoe Trade Con-
federation.
He commenced his presentation with
a description of the Italian Footwear
was worth on average 45.32 USD per operator could complain because
Industry in the coming Decade and
pair, while the Chinese footwear was she thought, that a particular string
presented:
worth on an average 3.87 USD per needed a reinforcement. This hap-
• Trends on shoe retail Italian market
pair and the Indian price was 12.61 pens regularly in an Italian factory, he
2015-2025
USD per pair which meant that the stated.
• Trends on shoe manufacturing Ital-
consumers all around the world were
ian market 2015-2025 Italy was leader in the capacity of
willing to pay for an Italian prod-
• Trends on Italian industrial shoe capturing and stimulating the micro
uct even though it was around 12
products 2015-2025 trend of the consumers on behalf of
times more. This begged the ques-
tion ”Why?” and he opined that the the retail sales network, he empha-
He informed that Italy produced 207 sized and said that Italy was a leader
added value of Italian footwear was
million pairs, whereas China 12,887 in the ability of producers to capture
recognized not only from the insid-
and India 2,209 and therefore market the trend during samples creation, as
ers but above all from consumers all
quotas in world production were 1% well as in the ability of creativity and
around the world.
Italy, 60.5% China and 10.4% India. innovation of producers of accesso-
According to these data, he said that Explaining, Mr Donda stated that ries, materials and leathers, in prod-
Italy was just a mosquito on the Chi- this was because Italy was the leader, ucts and in their processes.
nese red dragon or on the Indian since the past century, in the foot-
elephant. He added that we should wear field: in design, in brands, in the He further added that even in ad-
not forget that when we considered craft productive capacity of its staff men creativity, brand supervision
the turnover instead, Italy produced which was physically charged of the and not only in the uncontested cre-
10,376 million USD which was equal production. He added that in Italy it ative capacity of designers were the
to 10.1% and China produced (obvi- was absolutely normal for a factory Italians successful. This, he opined,
ously still more) 39,374 million USD worker to stand up from the convey- was because of being blessed with a
equal to 38.3%, which clearly depict- or to signal that according to his per- practical mind, creative talent, critical
ed the big disparity in prices. sonal experience this leather was not sensibility, personal genuine initia-
The participants qualitatively suitable for the product tive which he felt was innate in the
He stated that the Italian footwear that was being realized or an upper Italians at all employment levels, not
26 december 2014 • Leather News Indiaonly managerial levels, but also the this no longer niche market with and European luxury Brands.
merely executive ones. specific needs: consumers far from
• Continuation of the trend of ris-
technology, who look for human re-
He stressed that the creative ca- ing of the big international luxury
lations, shoe comfort , low prices,
pacity showed up endlessly in all the Brands market quotas, owners now
because certainly not all pension-
distributive-productive-creative sup- of the whole production chain:
ers are wealthy.
ply chain, in every single point of it, from the shops to the shoe indus-
in something which Japanese would • Entry of Chinese chains in the mar- tries, to the tanneries, all of their
call and well understand as "total ket and buying directly Italian play- property with supply chain syner-
quality" and added that all of this was ers and realizing their own flagship gies and high production standards
born, centuries ago, from the hand- stores for pure promotional aims control.
made capacity of craft workshops and own shop chains to allocate • Continuation of the trend of the
during the Italian Renaissance, which directly the footwear product, skip- rise of luxury sales, motivated by
have had their excellences in the big ping the importers and having like both the maintenance/growth in
painters, sculptors, artists and archi- this a direct relation with the cus- the western countries of this range
tects, known and famous in all the tomer; customer who has made big and growth both consumption,
world, like Michelangelo or Da Vinci, the Italian footwear industry, be- and consumers of this range in the
which had brought at all the levels ing certainly the most demanding emerging markets.
of education and professionalism an of the world in every price level of
education of what is " The beautiful shoe product. • Continuation of the slow return of
and well made”, recognized to Italy Italy to footwear production (re-
as Made in Italy (SLIDE 15) and under • Use of drones for deliver- shoring), today outsourced in other
the slogan of "Dolce vita" (sweet life) ies to the customer will help e-com- countries: mainly the Balcanic area,
from the title of a famous fifty’s film merce with lower costs of delivery to the Mediterranean area and East-
and he further added that this was the customer, but could also move European area, motivated by a rise
why he was talking to the audience at the shopping habits, from walking of labour costs in these countries
the 33rd IFC about the Italian trends around the city streets and shop- but also by improving productivity
in the next years. ping malls to try shoes comfortably at (shorter production supply chain)
home, in various sizes, brought by a to obtain a bigger market answer
Mr Massimo Donda then dwelt on "flying shop assistant", chatting with reactivity, and of the hopes for re-
the Trends in shoe retail in the Italian friends by social networks. duction labour costs in Italy: less
market - 2015-2025 taxes and more freedom of working
He also shared his thoughts on the hours and redundancy. (
He highlighted the following points: Trends in shoe manufacturing in the
Italian market - 2015-2025 and stated • Introduction of 3D printers will im-
• Continuation of the trend with a the following trends: ply a small revolution in heel facto-
further loss of market quotas on ry and sole factory allowing a cheap
behalf of the Made in Italy product • Continuation of the trend of clo- and effortless realization of the set
(too expensive for the impover- sure of small craft production re- of samples and a small personal-
ished Italian market) and a further alities that has not known how or ized productive series of few pairs
increase of the foreign import mar- couldn't reposition their self as helping the small, typically Italian,
ket quotas. “contractors” with the big Italian niche productions.
• Continuation of the trend with a
further loss of market quotas on
behalf of traditional distribution
(little shops), with a failed increase
of the chain distribution caused
by competitiveness of the e-com-
merce sales.
• Creation of Agreements of col-
laboration also in Italy between big
Italian and European e-commerce
players and the off-line distribution
to minimize costs of locked-up shoe
stock and to offer bigger proximity
service to evolved customers.
• Aging of the Italian population (in
Italy there is a higher number of
pensioners than in Japan) would
imply specializing of retailers on Chairman, CLE presenting a memento to Mr. Donda
Leather News India • december 2014 27special feature
• Italian shoe manufacturers will
slowly become from creators and
manufacturers of shoes to creators
of shoe brands. The brand has al-
ways more importance to diversify
the product from the competitors
and Italian entrepreneurs know
how to occupy every possible niche
market with the suitable brand, in
particular in medium-high range.
Trends in Italian industrial shoe
products - 2015-2025 was Mr Don-
da’s next focus wherein he said that:
• Continuation of the technology
development at high concentration
of innovation which permits mass
production, cutting back on the num-
Shri Md. Sadiq, Senior Principal Scientist, CLRI with
ber of handlers. Right now Quadwrap
Mr Frank Z Kung, Secretary General, CIFA
system takes advantage of four layers
wear background trained to realize wear distribution. (SLIDE 23)
of polyurethane to produce a pair of
computer apps for an easy customer
sneakers in just 3 minutes. Desma In conclusion, Mr Massimo Donda
use.
and Bayer argue that the time reduc- opined that the economic crisis which
tion is near to 90%, but that only two As time passes, 3D printers, like it was affecting Italy today: politically,
workers are needed to manage the happens in the entire electronic field, economically and socially would help
machine. A considerable evolution will lose value and print costs will them in the next decade. It could re-
/ revolution in relation to the 200 crumble, permitting all consumers to sult for the future, for Italy, a big op-
people chain called to produce 1,200 realize personally at home a big part portunity, and they should know how
pairs in 8 hours shift: the same num- of easy footwear products as slippers, to use it. He added that the experi-
ber of shoes, with Quadwrap technol- flip flop and rain boots. ence, the capacity and the know- how
ogy could be done in only 24 hours. accumulated in the economic boom
• There is also a remote years until 2008 (with sensibility and
• 3D printers (right now used chance that from object for foot capability necessarily gathered in the
in the children games industry www. protection during walking, footwear last years to survive against today’s
imaginarium.it) permits a very strong becomes in the future a new urban big economic crisis) would permit
customization of the product on PVC mode of transportation, if it doesn't Italy, putting together both aspects,
products in short time (for example: turn into just a niche product like Seg- to be ready, like in a post-war period,
Brazilian Melissa – Grendene Group way did. for a creative revival that would lead
or US Crocs). You can this way permit
them to a bright future.
the advanced customer to "create" The Rocketskates are "Roller-
his/her "custom made" shoe of it's blades" moved by 50 Watt, electric Mr Rajendra K Jalan, Chairman, CLE
proper taste and to play to be a real engines with 90 minutes autonomy presented a plaque to Mr Massimo
designer. for 20 miles per hour (cost 250,00 Donda.
USD) which permits to revolutionize
This leads to the birth of Italian the urban amble but also the foot-
computer programmers with a foot-
The participants
28 december 2014 • Leather News IndiaJapan Footwear Federation
Mr Naoki Tokuda, Japan Footwear
Federation was then invited to make
his country presentation. He started
his presentation with a graphic of the
GDP growth of the Japanese Economy
and said that in 2014 it was estimated
that the GDP would grow by 2.9%.
He proceeded to give the statistics
relating to the Domestic Production
and Imports which clearly reflected
the drop in Domestic production and
subsequent increase in Imports. He
also gave a detailed picture of the
‘Import Data’ clearly highlighting the
Countries from which the Import was
being made. Mr Tokuda then dwelt
on the various categories of foot- Mr Naoki Tokuda, Japan Footwear Federation
wear like Leather footwear, Canvas the Domestic Footwear Production Strap with Wedge Soles were some of
Shoes, Rubber Shoes, Plastic Shoes (inclusive of Leather Shoes, Rubber the Fashion Styles and Trends seen at
and Sandals and showed how their Shoes, Plastic Shoes, Slippers, Sneak- the Retail Stores, he informed.
Imports had increased significantly. ers etc.) would go down from 60 Mil-
He also pointed out how the ‘Transi- Tracing the history of the ‘Japanese
lion pairs to 49 Million pairs and the
tion of Imports’ was taking place and Footwear federation’, he said that it
number of workers involved in Foot-
demonstrated how year on year the was established in the year 1977 and
wear production would also decline
Imports from China had grown sub- comprised of 7 main footwear asso-
from 17300 to 14800 though there
stantially while the Imports from the ciations in the country and was the
would be a very substantial increase
rest of the countries had dropped sig- Largest organization of the footwear
in the Market Size for footwear in Ja-
nificantly. The Same Trend was high- industry in Japan. In conclusion, he
pan. He also highlighted the ‘change
lighted by him even when the Shoes pointed out that the Footwear as-
in Age’ and said that a vast majority of
were analysed Category wise. sociations which were amalgamated
the population would be in the 15 to
under the Japanese Footwear federa-
Talking about the Domestic Prod- 64 years age group. He also pointed
tion consisted of:
ucts and Imports, Mr Tokuda pointed out that there would be a decrease in
out that the quantity of import of the Labour Force. • Japan Rubber Footwear Manu-
footwear in 1987 was over 100 mil- facturers Association which com-
Mr Tokuda then gave an interest-
lion pairs and the quantity of import prised 17 companies involved in
ing analysis of the ‘Economic Ripple
of footwear in 1991 was over 200 the manufacture of Rubber shoes,
Effect due to the Tokyo Olympics.’ He
million pairs but hthe production sports shoes, canvas shoes makers.
also presented the Top Departmental
and Imports reversed the situation Stores in Japan as being: • Japan Shoe Manufacturers Associa-
of each other in 1993. However, he tion which comprised of 11 compa-
pointed out, that the quantity of im- • Isetan Department Store nies who were mainly large leather
port of footwear in 1994 was over • Mitsukoshi Department Store - man- shoes makers.
300 million pairs and rising steadily aged by Isetan Mitsukoshi Holdings • All Japan Leather Shoe Industry Fed-
with the result that the quantity of • Daimaru Department Store eration which comprised of over
import of footwear in 2013 was over 200 companies who were Medium
• Matsuzakaya Department Store -
700 million pairs. and small leather shoes makers.
managed by J. Front Retailings
Elaborating on the Footwear Market • Takashimaya Department Store - • Japan Chemical Shoes Industrial
in Japan, he stated that the Footwear managed by Takashimaya Compa- Association which comprised of
production had increased substan- ny, Limited 112 companies who dealt with
tially in the period from 2009-2013 Chemicals in shoes making.
He also informed that Chiyoda Co.,
while the population had remained • National Federation of Sandal Man-
Ltd., ABC-Mart, Inc. and G Foot Co,
largely static during this period with ufacturers Association which com-
Ltd. were the Big Three Footwear Re-
the consequence that the Per Capita prised of 59 companies who were
tail Chain Stores in Japan. Mr Tokuda
consumption of footwear had shown Sandal makers.
also made an interesting presenta-
a steady rise and was now at 5.6 pairs
tion of the Spring Summer 2014 Fash- • Japan Federation of Shoe-Whole-
per person which was reasonably
ion Trends and said that White Colour salers Organization which com-
high. He also gave a detailed break-up
Shoes and Pointed Toe Pumps were in prised of 130 companies.
of the Material and Labour Costs.
vogue in Japan. Slip on Shoes, Mesh • Japan Shoes Retailers Federation
Presenting the “Vision 2019” for Shoes, Seed through Shoes, Platform which comprised of over 300 com-
Japan, Mr Tokuda pointed out that Sandals, Flip Flop Design Sandal, Twist panies
Leather News India • december 2014 29special feature
Korean Footwear Industries Asso-
ciation, Korea
Mr Chang Yong Noh, General Man-
ager, Korean Footwear Industries As-
sociation was then invited to make
his country’s presentation.
He commenced his presentation
with a status review of the Korean
Footwear Industry wherein he pre-
sented the Footwear Annual Sales
Turnover; Number of Companies,
Number of Workers, Footwear Export
Data and the Footwear Import Data.
He said that there was an increase
of 2.85% in Dollar Terms with regard
to the Manufacture of Footwear and
a 1.02% increase Wholesale/retail
Mr Chang Yong Noh, General Manager, Korean Footwear Industries Association
Sale in the period from 2009-2013.
Similarly the Number of Companies He then spoke on the “Korean yak and Treksta from M/s Treksta. He
involved in Footwear Manufacturing Sports, Outdoor and Dress Brand added that the Annual Sales Turnover
had shown an increase of 1.33% year Market” where he highlighted the of the ‘Outdoor Brand Market’ had
on year and the number of compa- Sports Brand Market in Korea, Out- risen substantially from US $ 2331
nies involved in Wholesale/Retail had door Brand Market in Korea and Million in 2010 to US $5428 Million
shown a 4.59% increase year on year the Dress Brand Market in Korea. in 2012, across all brands. Touching
during the period 2009-2013, he add- He listed the major Sports footwear on the ‘Dress Brand Market’ he said
ed. He also informed that while the brands in Korea as Fila from M/s Fila that the major Brands in this segment
number of workers involved in Foot- Korea; Lecaf from M/s HS Corp; Nike were: Kum Kang from M/s Kum Kang;
wear Manufacturing had shown a de- from M/s Nike Sports; Adidas from Esquire from M/s Esquire; Salvatore
cline of 1.74% the number of work- M/s Adidas Korea; Pro-specs from Ferragamo from M/s Ferragamao
ers involved in the Wholesale/Retail M/s LS Networks; EXR from M/s EXR- Korea and Elcanto from M/s elcanto
had shown an increase of 5.29% year KOREA; descente from M/s Descente and the Annual sales Turnover for the
on year during the period between Korea; Asics from M/s Asics Sports ‘Dress Brand Market’ had gone up
2009-2013. and Vitro from M/s Hak San. He also from US$ 658 Million in 2010 to US$
pointed out that the Total Sports 961 Million in 2012.
Presenting the Korean Footwear Brand Market in Korea had gone up
Export and Import data, Mr Noh in- Mr Noh then focused his atten-
from US$ 3339 Million in 2008 to
formed that in Korea, the Annual tion on the “Korean Retail Market”
US$3804 Million in 2012. Turning
Export of Footwear had shown an which he said comprised of Shoe
his attention to the “Outdoor Brand
impressive growth of 10.14% year on Multi Stores; Departmental Stores;
Market & Dress Brand” in Korea, Mr
year during the period from 2008- Hyper Markets and Supermarkets;
Noh informed that as far as the ‘Out-
2013 while the Annual Import of Home Shopping and Internet Shop-
door Brand Market’ was concerned
Footwear had shown only a marginal ping. Describing a ‘Shoe Multi Store
the major brands were: Kolon from
increase of 0.88% year on year during in Korea’ he gave the example of ‘M/s
M/s Kolon Ind; The North Face etc.
the period between 2008-2013. ABC MART Korea Co., Ltd’ which was
from M/s Young One; K2 from M/s
selling under the Brand Names of
K2 Korea; Blackyak from M/s Black-
The participants
30 december 2014 • Leather News India‘Hawkins’ and ‘Vans.’ It was estab- aptly priced footwear. He empha- from 43.372 Million Malaysian Ring-
lished in August 2002 and had a turn- sized that Korea had uncompetitive git in 2011 to 54.163 Million Malay-
over of US$ 333 Million in 2013; he price with regard to the subsidiary sian Ringgit in 2013 and had a share
stated and added that ABC Mart had material and the part components as of 11.42 % in the exports pie which
a total of 146 distributors. Other ex- compared with China and Southeast was a 6.95% increase over the year
amples he gave were of ‘Shoemaker’ Asia and hence this strategy was use- 2011. He added that the Exports of
with a turnover of US$ 138 Million in ful. He also added that efforts were Rubber/Plastic Footwear had decline
2013 with 192 distributors and ‘Les on to overcome this situation, and in value from 2233.086 Million Ma-
More’ brand with a turnover of US$ the related studies of developing up- laysian Ringgit in 2011 to 158.526
142 Million in 2013 with 78 distribu- to-date footwear material were cur- Million Malaysian Ringgit in 2013 yet
tors. He also listed out the major re- rently under way and the program to its percentage share of the total Ex-
tailers in Korea as being: Lotte Shop- shorten the production process was ports pie was 33.14% in 2013 which
ping Co. Ltd. with a Sales Turnover of also being developed. Mr Noh opined was a 6.36% rise as compared to
US$ 23.8 Billion in 2012; Shinsegae that since the manufacturing tech- 2011. Proceeding, she pointed out
Co. Ltd. with a Sales Turnover of nique of footwear in Korea was still that the Exports of Leather Footwear
US$ 2.1 Billion in 2012, Hyundai De- using the outstanding infrastructure, had also declined from 192.871 Mil-
partment Store Co. Ltd. with a Sales the Footwear industry in Korea could lion Malaysian Ringgit in 2011 to
Turnover of US$ 1.4 Billion in 2012; E see glory days once again by develop- 121.137 Million Malaysian Ringgit in
mart Inc. with a Sales Turnover of US$ ing an up-to-date automatic system 2013 and went on to give the figures
12 Billion in 2012; E. LAND retail with and use excellent material that could for the exports of Textile Footwear
a Sales Turnover of US$ 2.2 Billion in be helpful in overcoming the high and other footwear as well.
2012 and Samsung Tesco Co. Ltd with wage. He concluded his presentation
She then presented a pie-chart
a Sales Turnover of US$ 8.4 Billion in by extending a Warm invitation to all
clearly depicting the various types of
2012. He also gave the statistics of to be present at the next edition of
footwear exported and their share in
Sales Turnover accrued from Home IFC which was scheduled to be held
Malaysian footwear exports for the
Shopping and listed the major players in Busan Korea in 2015.
year 2013 which clearly shows that
as being: GS Home Shopping Inc with Malaysian Footwear Manufacturers the major exports were of Rubber/
a Sales Turnover of US$ 971 millIon Association, Malaysia Plastic Footwear followed by leather
in 2013; CJ O Shopping Co., LTD with Footwear. Ms Keen then presented
a Sales Turnover of US $ 1,026 mil- the Malaysian Footwear import data
lion; HYUNDAI Home Shopping with a Ms Maggie Chan Mei Keen, Ex- for the years 2011 to 2013 which
sales Turnover of US$ 723 million in ecutive Officer, Malaysian Footwear showed a substantial reduction in
2013 and LOTTE Home Shopping with Manufacturers Association was the 2013 when compared to 2011. Her
a Sales Turnover of US$ 638 million in next speaker who presented the data suggested that the major im-
2013. Mr Noh added that for Internet Country Report from Malaysia. ports were of Leather footwear fol-
sales in Korea the Major player was lowed by Rubber/plastic footwear.
eBay Auction Co., LTD with a Sales She commenced her presentation
with the Malaysian Footwear Exports Singapore, Indonesia, Thailand and
Turnover of US$ 630 Million in 2013. UAE were among the Top destina-
Data for The Year 2011 to 2013 and
Highlighting the General Statistics highlighted that the value of exports tions for Malaysian footwear Exports
of the Korean Footwear Industry, of Waterproof footwear had gone up while China, Vietnam and Indonesia
Mr Noh stated that the footwear
industry in Korea took the form of
the ‘International Division Produc-
tion’ which had the domestic-based
development headquarters and the
manufacturing base in Southeast
Asia. He added that since the higher
wages cause difficulty for OEM pro-
duction, the International Division
production was the system used for
overcoming this trouble. He informed
the audience that there was also
another manufacturing method in
which the sewing works were com-
pleted in Southeast Asia including
China and the complete product was
then assembled in Korea adding that
this system was competitive since it
was proper for the outdoor industry
of Korea in fashion and it could pro- Ms Maggie Chan Mei Keen, Executive Officer, Malaysian Footwear
vide customers with high quality and Manufacturers Association
Leather News India • december 2014 31You can also read
