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We all know the conventional wisdom. Sooner rather than later all footwear will be manufactured in Asia. But some, obviously, haven't read the script so they don't know the role assigned to them - as ex-manufacturers of footwear.
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The return of Italian footwear manufacturers and the appearance of high quality Brazilian footwear at Fashion Access are interesting indicators that these manufacturing countries are aiming their top quality finished designs at the emerging Asian middle classes.
In the last 10 years the new Asian and Chinese middle classes have developed a taste for western style and products. This trend has been apparent for many years previously in Japan, especially among young, independent Japanese career women who adore brand labels such as Prada, Louis Vuitton and Chanel. This trend is now more widespread than ever in Asia and offers a multitude of opportunities for high quality shoes and leather goods in the Asian marketplace. |
A call to other Latin American footwear manufacturers
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Luxury shoes carry higher profit margins since they are targeted at well-defined niches with high disposable income. Brazil intends to air freight its shoes to Asia from Brazil so as to cut the time for the latest fashions to hit the high street.
Countries such as Mexico, Argentina and Colombia all have footwear manufacturers capable of producing the style, quality and design demanded by Asian consumers. The demand in China for imported shoes continues to grow according to the latest report from the China Leather Industry Association (CLIA): |
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Chinese Footwear Imports in 2007
USD1,000,000
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Item |
Unit |
2007 |
2006 |
Compared% |
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Volume |
Value |
Volume |
Value |
Volume |
Value |
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Leather shoes |
million pairs |
11 |
308 |
8 |
208 |
42 |
48 | Source: CLIA
At face value these figures indicate a sharp increase in the demand for leather shoes with a year-on-year increase of 42% - albeit that not all these imports were necessarily luxury shoes. As suggested earlier the increase in value (48%) was even greater.
Furthermore, the continued increase in the rate of the Chinese currency, the yuan, against the US dollar, is likely to continue. From July 2006 the yuan has risen from 8.28 to the US$ to a current level of just 7. This is a revaluation of 15.5%, making quality imports much cheaper for the Chinese who can now afford to be well heeled both literally and figuratively. | 
