The future of footwear amid economic fragmentation and the digital revolution

As half of a world convention organised beneath the auspices of the FAIST programme (Agile, Intelligent, Sustainable, and Technological Factory) and promoted by APICCAPS* and CTCP**, Vasco Rodrigues, a professor at Portugal’s Catholic University, offered an summary of the international footwear business, charting its historical past, analyzing its current, and outlining its future prospects.

In his view, China’s entry into the WTO in 2001 was a real turning level for the sector. In the first 5 years of membership, China’s exports greater than doubled and continued to develop markedly, though the tempo has slowed since 2015. This prompted main worldwide producers to diversify their provide chains, relocating manufacturing to Asia and exporting from China.

An overwhelming majority of manufacturing takes place in Asia

Today, 90% of the 24 billion pairs of sneakers produced worldwide come from Asia. The important producers are China, adopted by India (whose exports are nearly non-existent), Vietnam, Indonesia, and Pakistan. Notably, every of these nations manufactures extra sneakers than Europe as a complete, which accounts for simply 2.3% of international output.

In phrases of footwear consumption, Asia as soon as once more leads. Europeans purchase 4 pairs of sneakers per particular person a yr, North Americans 5, and Africans only one pair, making Africa the least tapped continental market. Trade flows present that Asia is the principal hub of the international footwear commerce.

Comfort and know-how, two important components in footwear

However, shifts in client preferences and distribution channels have led to important adjustments in the market. Vasco Rodrigues cites, for instance, the rise of e-commerce and the declining significance of unbiased shoe boutiques, eclipsed by main retail chains. Professor Rodrigues notes: “Thanks to e-commerce, we can reach the whole world, but not all companies have the structure and capabilities required to engage in this type of business.”

Several components might reshape the international footwear business, starting with demographics, in accordance with Vasco Rodrigues. United Nations information point out that Asia and Africa are the two most populous areas, and Europe is the solely continent the place a inhabitants decline is anticipated. The image is extra nuanced at nation stage.

An unstable worldwide surroundings

While client preferences are more durable to foretell, a number of key determinants have been recognized, akin to consolation, shoppers’ sensitivity to sustainability, and their stage of belief in the product. Technology can also be seen as a driving pressure that would form the sector’s future.

On the economic entrance, the convention famous that the business goes via a interval of fragmentation and the re-formation of blocs. “The trajectory of the US is highly unpredictable, and projections point to uneven global economic growth,” stresses Rodrigues. He notes that development in Europe is more likely to be comparatively gradual in contrast with different areas, and that the danger of a disaster in China stays a priority.

*Portuguese Footwear, Components and Leather Goods Manufacturers’ Association.
** Portuguese Footwear Technology Centre.

FashionNetwork.com with World Footwear