While European footwear manufacturers still dominate the high-priced market, Chinese dominance of lower priced footwear market has risen
Los Angeles, CA (PRWEB) June 07, 2012
The global recession caused output volumes and consumer spending across a range of products, including footwear, to weaken in 2009. Spending is expected to be moderate in 2012, as industry revenue for the Global Footwear Manufacturing industry increases by 2.2% in the current year to total $122.9 billion, up from $107.4 billion in 2007 (constant 2012 dollars). This represents annualized growth of 2.7% in the past five years. As consumer spending power in the United States, Europe and other parts of the world steadies, demand for basic, non-discretionary footwear will continue to remain low, according to IBISWorld industry analyst Alen Allday. Over the five years through 2017, industry revenue is forecast to increase.
Demand for mid-priced and high-priced European manufactured footwear is expected to remain steady as consumers tighten their spending in the face of difficult economic conditions. Demand from developing countries such as China, India, Russia and parts of the Middle East for mid-end and low-priced manufactured footwear is expected to increase slightly in 2012, Allday says. International trade is expected to continue to increase at a low rate in 2012 as the supply chain in the Global Footwear Manufacturing industry becomes increasingly globalized, and as developed countries continue to outsource production to low labor-cost countries. Total global trade in manufactured footwear should rise by 1.0% in 2012. This rate compares with an expected annualized rate of 4.2% per annum in the five years through 2012.
Footwear manufacturers in Europe still dominate the high-priced, higher value-added end of the market. However, Chinese dominance has risen over the past five years, especially in the international trade of lower priced footwear. In 2012, China is estimated to account for 63% of production, 40.5% of global exports and 55% of industry revenue. Rising wages in China present an opportunity for other countries in Asia, Africa and the Middle East to enter the industry as cheap alternatives to China, both as a source of production and as a source of low-priced imports. Output and exports from China will be constrained in 2012, following several years of strong growth. This will occur as demand from the United States and Europe stabilizes. For more information, visit IBISWorld’s Global Footwear Manufacturing industry report page.
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IBISWorld industry Report Key Topics
Operators in the industry manufacture a wide range of footwear for men, women and children. These firms manufacture rubber and plastic footwear, plastics, or fabric uppers and rubber and plastics protective footwear. Firms in this industry also manufacture house slippers and slipper socks. Operators may manufacture men's or women's footwear designed for dress, street and work.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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