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Footwear Volume Ii

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Footwear Volume Ii EU MARKET SURVEY 2002 EU MARKET SURVEY EU MARKET SURVEY 2002 FOOTWEAR VOLUME II VOLUME II FOOTWEAR Mailing address: P.O. Box 30009, 3001 DA Rotterdam, The Netherlands Phone: +31 10 201 34 34 Fax: +31 10 411 40 81 E-mail: [email protected] Internet: http://www.cbi.nl CENTRE FOR THE PROMOTION OF IMPORTS FROM DEVELOPING COUNTRIES Office and showroom: WTC-Beursbuilding, 5th floor 37 Beursplein, Rotterdam, The Netherlands EU MARKET SURVEY 2002 FOOTWEAR Compiled for CBI by: Drs. Jan P. Servaas August 2002 DISCLAIMER The information provided in this market survey is believed to be accurate at the time of writing. It is, however, passed on to the reader without any responsibility on the part of CBI or the authors and it does not release the reader from the obligation to comply with all applicable legislation. Neither CBI nor the authors of this publication make any warranty, expressed or implied, concerning the accuracy of the information presented, and will not be liable for injury or claims pertaining to the use of this publication or the information contained therein. No obligation is assumed for updating or amending this publication for any reason, be it new or contrary information or changes in legislation, regulations or jurisdiction. Updated version of CBI’s Market survey “Footwear” published in September 2001. Photo courtesy: Jop Rijksbaron CONTENTS REPORT SUMMARY 6 1PRODUCT CHARACTERISTICS 8 1.1 Product groups 8 1.2 Products 8 1.3 Customs/statistical product classification 10 2 INTRODUCTION TO THE EU MARKET 11 3 CONSUMPTION OF FOOTWEAR 13 3.1 Market size 13 3.2 Market segmentation 16 3.3 Consumption patterns and trends 18 4PRODUCTION 21 4.1 Footwear production in the EU 21 4.2 EU Outward Processing Trade 24 5IMPORTS 26 5.1 Total imports 26 5.2 Imports by product group 33 5.3 The role of developing countries 38 6 EXPORTS 42 6.1 EU exports of footwear 42 7 TRADE STRUCTURE 45 7.1 EU trade channels 45 7.1.1 Manufacturers 45 7.1.2 Agents 46 7.1.3 Importers/wholesalers 46 7.1.4 Retailers 46 7.2 Distribution channels for developing countries 53 8 PRICES AND MARGINS 54 8.1 Margins 54 8.2 Prices 55 8.3 Sources of price information 55 9 OPPORTUNITIES FOR DEVELOPING COUNTRY EXPORTERS 56 APPENDICES 1 Detailed classification of footwear, by Harmonised System Code 58 2 Detailed import and export statistics of footwear by product type and area of origin into the EU, 1998-2000 61 3 Specification of imports of footwear by product type into major EU countries 1998-2000 64 4Trade associations 69 5Trade fair organisers 71 6Trade press 73 7 Business Support Organisations 75 8 Other useful addresses 76 9 List of developing countries 78 10 List of major buyers of footwear in The Netherlands 79 11 List of major buyers of footwear in the EU 87 12 Useful internet sites 89 5 REPORT SUMMARY Introduction Together with other CBI publications, like “Products” This survey profiles the market for footwear in the and the “Environmental Quick Scan Leather”, a fairly European Union (EU) and is an updated and extended complete overview is given to manufacturers/ version of the former CBI survey Footwear, published exporters in developing countries, who wish to sell to in July 1996. The emphasis of the survey lies on those the EU market. Seasonal fashion information on products, which are of importance to developing clothing and colours, which may be an indication for country suppliers. The major national markets within footwear fashion, can be obtained from CBI’s Fashion the EU for those products are highlighted. The survey Forecasts. Some of these sources of information are includes contact details of importers, trade associations, also available on the CBI web site. and other relevant organisations. Furthermore, statistical market information on consumption, production and Survey trade, and information on trade structure and prices and The survey “Footwear” includes outdoor footwear, margins is provided. sports and leisure footwear and indoor footwear for As an exporter, you need this information to formulate men, women and children. your own market and product strategies. In order to Consumption of footwear in the EU grew by assist you with this, CBI has also developed a matching 3.3 percent in the period 1998-2001 to € 53.2 billion EU Strategic Marketing Guide for Footwear. It offers a (US$ 47.9 bn). Based on preliminary figures, a further practical handbook for exporters engaged, or wishing to growth is expected for the next five years. The footwear engage, in exporting footwear to the EU. It aims to market has tended to be characterised by cheap, facilitate exporters in formulating their own market and mass-produced items, but in recent years there has been product strategies through the provision of practical some movement away from such products towards information and a methodology of analysis and higher quality, more individual footwear. ready-to-fill-in frameworks. Germany is still the most important country in footwear As mentioned above, statistical market information on consumption in the EU, despite a smaller growth than consumption, production and trade, and information on the EU average. Germany is followed by Italy, UK, trade structure and prices and margins, which is France, and Spain and at a distance by The Netherlands. required for the ready-to-fill-in frameworks, can be The five first mentioned leading countries account for found in this EU Market Survey. 81 percent of EU footwear consumption. In many EU countries, the demand for formal Market research (dress shoes) footwear is declining in favour of casual This EU Market Survey and the EU Strategic and leisure/sportswear, which implies higher increasing Marketing Guide serve as a basis for further market sales in terms of volume rather than in terms of value. research: after you have read this survey and filled in Footwear production in the EU decreased from the frameworks in the strategic marketing guide it is 1,081 million pairs in 1997 to 910 million in 2000. important to further research your target markets, sales It sank for the first time below the one billion pair level channels and potential customers. in 1999 and continued its fall with 5 percent in 2000 as Market research depends on secondary data (data that it relocated to other, and especially former Eastern bloc, have been compiled and published earlier) and primary countries. Italy remained the EU’s leading footwear data (information that you collect yourself). producer with almost 43 percent of total EU production, An example of secondary data is this EU Market followed by Spain (22%), Portugal (12%) and France Survey. Primary data are needed when secondary data (11%). Around 280,000 employees worked in the EU fall short of your needs, for example when researching footwear industry in 2000, while this number was still your specific type of consumer about the acceptance of 325,000 in 1995. The footwear industry is relatively your specific product. Sources of information are labour-intensive, added to which increasing costs and among others (statistical) databanks, newspapers and competition from cheap imports have pressed magazines, market reports, (annual) reports from manufacturers to specialise in niches (luxury, safety or branch associations, but also shops in target countries, orthopaedic footwear) or to shift production to abroad products or catalogues from your competitors, and via the outward processing route. The footwear conversations with suppliers, specialists, colleagues and manufacturing industry in two countries, Italy and even competitors. After you received/collected your The Netherlands showed (limited) positive developments, information you should analyse it. In order to judge the but at the other end of the scale, significant reductions attractiveness of the market, sales channel or customer, had been recorded by many other EU producers. you should use/develop a classification or score system. For example, UK footwear production plummeted For more detailed information on market research, nearly 46 percent, followed by Belgium 25%, France reference is made to CBI’s Export Planner (2000). 13%, Germany 9% and Spain 4%. 6 EU imports of footwear amounted to € 19.4 billion The EU member states exported US$ 16.5 billion (US$ 17.9 bn) in 2000. Germany remained the leading (€ 17.9 bn) in 2000, representing a fall in value of importer, with an import share of 22 percent in terms of almost 10 percent in the period 1998-2000. In terms of value, followed by UK (17%), France (15%), Italy volume, EU exports decreased from 967 million pairs (13%) and The Netherlands (8%). Belgium ranked in 1998 to 936 million in 2000. The fall in EU exports sixth, followed by Austria. was the result of lower exports to countries outside the EU imports of footwear decreased by 4.4 percent in the EU: in value (- 12%) and in volume (- 7%). period 1999-2000. Developments in import of footwear The leading EU exporter is Italy with 43 percent of vary strongly per country. EU countries can be divided, total EU exports, at a distance followed by Spain, by developments in value of imports during this period, Belgium, Portugal, Germany, France and into very strongly decreased imports (falling more than The Netherlands. The main destinations outside the EU 10%) in Portugal, Finland, Germany and Belgium and were the USA (13 percent of total exports and booming imports (rising more than 10%) in Spain. 35 percent of extra-EU exports in 2000, followed by Between these extremes, imports in Italy, France, Switzerland, Japan and Russia). The Netherlands, Denmark and Ireland grew, while imports in the other EU countries fell. Specialised retailers (footwear multiples and EU imports from developing countries increased in independent footwear retailers) accounted for terms of volume (+ 19%) but against lower prices 65 percent of total retail sales in 2001.
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