World Footwear Congress, BR – Rio de Janeiro

A joint look into the future of the shoe industry – Counting some 500 participants from 29 countries the 4th World Footwear Congress held on 7 and 8 November in Rio de Janeiro was a success. At the focus of the lectures and discussions were not only economic prospects but also, more specifically, the demand for more innovations and the dispute about import duties.


“The shoe sector is currently facing far-reaching challenges. Familiar models for production, procurement and trade are changing at an ever quickening speed – driven by the growth of threshold countries, economic problems on traditional markets, rising costs and fluctuating exchange rates,” said Francisco Santos, Founder and President of co-organiser Couromoda in his remarks to open the event. Nevertheless, future prospects are quite positive, as Corporate Consultant Steve Lee stated in his lecture. Proving a key stimulator to increasing shoe consumption is continued population growth. World population is set to grow to 8 billion people by 2024. In parallel with population growth the world’s gross domestic product is also rising – from today’s US$ 65,000 b to US$ 105,000 b. At the same time, the total number of shoes produced is also growing. Currently standing at some 20 b pairs per year, the figure in 13 years’ time will be some 30 b pairs. It therefore follows that per capita consumption of shoes will rise. According to Steve Lee, the current figure stands at 3.0 pairs per head. By 2024 the figure will be 3.7. Consumption in China is rising from the current figure of 2.0 to 3.5 pairs – which means China will account for a large proportion of the growth. “In addition to the country’s domination in shoe production and export it will also see increased domestic demand over the next few years,” says Steve Lee.

Peter Geisler then took a look into the future from the practical perspective of a shoe manufacturer. The Swede is the 5th generation in a line of Presidents at safety shoe manufacturer Arbesko. “The future holds great opportunities, especially in China,” the economist explained. However, it was important, he said, to prevent shoes becoming common-all-garden, everyday items which would be subject to a price undercutting war. “As an industry we must become much more innovative!” However, creative minds are not only key to future success in the shoe industry but also in shoe retail. Ultimately, consumer purchasing behaviour has changed considerably, as noted by Thomas Bata, CEO of the Bata Group: “Customers are less loyal, less predictable and have less time than they did in the past.” Traditional shoe retail, he said, must enthuse customers with innovations and generate customer loyalty. This advice was faithfully followed by William Wong. Under the title ‘Italia Fashion Galleria’ this Chinese businessman offers in his stores only shoes and accessories produced in Italy, thereby filling the gap in the market between international luxury brands and Chinese chain stores in the low-priced segment.

China is and remains the dominant force in the global shoe industry. For this reason participants at the World Footwear Congress followed the presentation by Zhang Shuhua, Honorary President of China Leather Industries Association, with particular attention. By her accounts, production in 2010 stood at 13 b pairs worth US$ 33.7 b. Of these 9.93 b pairs were exported to 213 countries. However, the expert explained, the current staffing situation, in particular, was undergoing profound change. It was, she said, becoming increasingly difficult for manufacturers to find sufficient workers. Over 6 million people work in the Chinese shoe industry in more than 20,000 companies. This scarcity of labour has led to rising wages and in 2010 this increase stood at between 10% und 20% depending on region. As a reaction to this development the shoe industry has shifted away from the eastern coastal regions into the country’s interior where workers are available in sufficient number. The average worker’s wage in the east stands at US$ 300 a month while in the interior at US$ 100 to US$ 150 per month. The remarks by the expert were attentively followed but also critically received. For instance, the artificially low value of the currency as well as state support for companies were criticised as attacks on fair competition.

Against the background of this criticism a broad discussion on duties and import restrictions was held. For instance, Cleto Sagripanti, President of the Association of Italian Shoe Manufacturers, made a plea for “fair” market conditions and for duties to be discontinued. At the same time however, it has been, and still is, the Italian association that is requesting for Europe-wide penalties on shoe imports from China and Vietnam – as these states, say the association, provide unacceptably high levels of support for their companies. A similar measure was also demanded by representatives from the Mexican and Brazilian shoe industries that see their domestic sector being jeopardised by China. Conversely, Matt Priest from Footwear Distributors and Retailers of America held the opposite view. In the interest of the consumer he demanded import restrictions be dispensed with.
However, participants agreed that in the coming years it would be necessary to lay down joint ground rules that are shared and respected by all.

Text: Helge Neumann
Photos: Helge Neumann

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