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APRIL 2008
Institutional investor takes over Charles Jourdan
French footwear brand Charles Jourdan is assured of survival for the time being. Costa Rica-based investment fund Finzurich has been given the green light to take over the company by the commercial court in Romans conditional on a commitment to invest 15 million Euro in the company and to take on its 130 employees. Last year, for the third time within five years, Charles Jourdan had to file a petition in bankruptcy.
Braccialini branches into footwear
Italian leather goods brand Braccialini has licensed Italian shoe producer Andrea Pfister to manufacture and market footwear, the collections being timed to hit the market for the 2008/09 Autumn/Winter season. Last year, sales by the leather goods producer, which belongs to the Mariella Burani fashion company, totalled 53 million Euro. Besides footwear, Braccialini also has eyewear, umbrellas and jewellery produced under licence.
Adidas profits soar
After strong profit growth in 2007, the world´s second largest sports goods manufacturer Adidas intends achieving further growth in the current year. It is looking to the European Football Championships this summer in Austria and Switzerland for an additional boost to earnings.
On Wednesday, CEO Herbert Hainer voiced his confidence that Adidas would surpass the 1.2 billion Euro sales figure targeted hitherto. At Reebok, hard hit by the difficult situation in the US market, a new person at the helm would inject fresh impetus. "The integration of Reebok has been completed as has also the reorganization of staff", said Hainer.
On the whole, thanks to the Football Championships in Europe and the Olympic Games in China, group sales in the current year look set for single-digit growth in currency-adjusted terms. At the same time the expensive marketing campaigns linked to the sporting events and the expansion of the firm´s own retail business will put up costs.
In addition, the group has announced a share repurchase programme that can swallow up as much as 420 million Euro. Even so Adidas is aiming to achieve a growth of "at least 15 percent" in the current year.
Last year the group was able to increase profits by 14.2 percent to 551 million Euro thanks to cost synergies from the Reebok takeover and growth with the core brand Adidas. Group sales rose by two percent to 10 299 billion Euro. The group grew in all regions except North America. The weakness in North America affected Reebok in particular, its sales falling by six percent in Euro for the full year. Adidas bought up Reebok in 2006 for more than three billion Euro and has since been trying to revive the brand?s popularity with customers by introducing new products. It will also strive to give a more sporty focus to the brand, which was very lifestyle oriented. From April Uli Becker (44) will be the new CEO at Reebok.
Hussein Chalayan becomes creative director at Puma
Designer Hussein Chalayan is the new creative director at sports goods group Puma in Herzogenraurach. In a countermove Puma acquires a majority share in London-based fashion company Hussein Chalayan and the eponymous brand. With immediate effect the 37-year-old assumes responsibility for designing textiles, footwear and accessories in all Puma´s sports fashion collections. He will in future also be creatively active for his own label.
Sales collapse at K-Swiss
American sports footwear brand K-Swiss earned 410.4 million dollars in 2007, a 19 percent drop in sales. While sales abroad rose 14 percent, they fell over 36 percent on the home market. For this year K-Swiss expects a further slump of between 70 and 100 million dollars. Net profit in 2007 shrank by 49 percent to 39 million dollars.
MARCH 2008
Harmont & Blaine Shoes
The shoe-producer Giano has gained the licence to produce and sell shoes for the menswear brand Harmont & Blaine. Leather goods and baggage will in future be distributed by Rossi.
PLW - Leather and More – Exhibition
On 8th and 9th of April 2008 the traditional leather and shoe town Pirmasens will be the venue for the shoe branch. Two weeks before Lineapelle in Bologna takes place the fair in Pirmasens will host the PLW Leather & More exhibition. The exhibitors, including many commercial agents with an international-oriented range of products, show the latest developments in leather, upper- and lining material, sole and sole material, orthopaedic shoe techniques and shoe components e.g. covers, heels and shoe jewellery.
For the first time besides fashion a technical forum will be integrated in the event.
New Campaign for Italian Shoes
The new campaign of the Italian shoe-industry-association Anci is called "Golden Italy". The aim is to promote Italian shoes on an international basis. The motives will be placed as posters at the Milan, Duesseldorf, Moscow and Tokyo airports. Furthermore they will be published as advertisements in different fashion-magazines. The sign "made in Italy" thereas will stand for as a guarantee for excellent manufacturing and creativity.
Leather Training
The Lederinstitute Gerberschule Reutlingen will be holding carrying out a training about leather from 14th to 18th of April. The aim of this training will be to give an overview about leather-production, properties and applications of the different kinds of leather to the employees in the divisions of leather-handling, leather-trade and retail.
Further information concerning this event as well as registration-forms can obtained by the Lederinstitut Gerberschule Reutlingen, Edeltraut Keine, Erwin-Seiz-Straße 9, 72764 Reutlingen, Telephone 07121/162327, Fax: 07121/162311, E-Mail: lgr@lgr-reutlingen.de.
The Season´s-Start for Bag Fashion
The new bag-fashion autumn/winter 2008-09 is the focus of the I.L.M – International Leather-goods Fair - Winter Styles, which takes place from 7th till 9th of March at the Offenbach exhibition. 210 exhibitors from 15 countries will be represented with fashionable leather-accessories and bags.
Number of Shoemakers is Decreasing
The central association of the German Shoemaker Handcraft (ZDS) reports that the number of shoemaking companies in Germany is further decreasing. According to the report of the German Chamber of Crafts there were 3492 registered companies on 30th of June 2007. This was 71 fewer than 6 months earlier. The fact that during the period mentioned 93 companies were grounded in Germany is also important for the ZDS which shows that this handcraft is interesting for founders of new businesses.
Scholl Footwear introduces Mens Shoes for the first time
The shoe-producer Scholl Footwear expands its range of products by a complete collection of man´s shoes in the autumn/winter 2008/09 season. Besides models with a sportive design, half-high bootees and cord-shoes will be presented.
Boss: Strong Growth With Shoes
The division shoe and leather accessories of Hugo Boss grew 2007 above average by 16% to 176 million Euros.
Barbara Bui Grows with Shoes
The French fashion-brand Barbara Bui had a special strong growth of shoes and bags in 2007. The turnover grew by 29%.
Tod´ Continues to Grow
The Italian luxury-concern Tod´s has increased its turnover in 2007 by 14,7% to 657 million Euros. Leather goods and accessories contributed 139 million Euros.
Stonefly Expands to Germany
The Italian shoe-producer Stonefly is going to triple the number of retail outlets, in which the brand is distributed, in Germany within the next three years. The number of sold shoes shall be increased by 30% compared to 2006. Furthermore the degree of popularity shall be raised by a qualitative first-class distribution.
Today Stonefly is represented in more than 40 countries worldwide. Export contributes 50% to the overall turnover. 30% are gained in Europe, 20% in the rest of the world. In Germany the rate of woman´s shoes is 60%.
FEBRUARY 2008
Burberry expands footwear range
British brand Burberry is planning a marked extension of its footwear range in the luxury sector following the prior successful launch of its handbags in the 2000 to 17 000 Euro price range.
New dates for summer Ispo
The summer Ispo has been rescheduled by one week to run from 6 to 8 July instead of from 29 June to 1 July in order to avoid a clash with the European Football Championship final on 29 June. The fair will also revert to its old name "ispo summer" after last year´s switch to "ispo sport & style".
Midec and Salon de la Maroquinerie merge
French footwear fair Midec and leather goods fair Salon de la Maroquinerie will in future be staged jointly under the name Salon des Accessoires de la Mode. From September 2008 onwards the new footwear and leather goods fair will be located at the Porte de Versailles site.
Flash Orders: promising debut
The first leather goods flash order event held on 18 and 19 January at the Offenbach Fair Center received roughly 420 specialist visitors daily. According to statements by the organizers, the new exhibition format, supplementing the international leather goods (ILM) fairs as a small forum for intermediate orders, thus had "an auspicious start" which far exceeded the expectations of the almost 60 participating leather goods suppliers. With updates such as previews of fashionable handbags and leather accessories for travel/outdoors, school/sports and business the event drew buyers from the whole of the Federal Republic and neighbouring countries (Austria, Switzerland, The Netherlands, and a number of East European states). Ordering covered all sectors on offer. In the case of fashionable bags interest focussed on midsummer novelties and initial autumn ideas. The event ran simultaneously with the Assima trade group´s January sample exhibition in the Offenbach Fair Center. I.L.M Winter Styles with around 220 exhibitors is scheduled to be held there from 7 until 9 March and is expected to attract some 5000 visitors.
Micam shuns further growth
The organizers of the Milan Footwear Fair Micam to run from 26 to 29 February are expecting a total of 1665 exhibitors, 526 of them from abroad. Because Easter falls early this year the dates have been brought forward a few weeks. In addition, Micam will for the first time be open only on workdays, namely from Tuesday to Friday, to comply with the wishes of a large proportion of the visitors, according to the organizers, the Italian Footwear Manufacturers Association Anci. This is particularly intended to make it easier for foreign buyers, whose numbers have shown above-average growth in the past, to visit the fair. For last year´s spring event 42 879 visitors turned up, 2.9 percent more than in the year before. Although there is a waiting list for exhibitors, Anci has no plans to enlarge Micam.
Hope for Rohde
There is now hope for footwear producer Eric Rohde KG in Schwalmstadt, Hessen, bankrupt since March. "Exclusive and advanced" negotiations for a takeover by Four Square Investments GmbH in Frankfurt are currently in progress. Insolvency administrator Carsten Koch confirmed to the newspaper Handelsblatt that the negotiations are at an advanced stage. The aim of the transaction is to save the company. Footwear firm Rohde was founded in 1947 by Eric Rohde. Annual production is just short of six million pairs, and sales including Daniel Hechter licensed brand footwear are valued at close to 100 million Euro. In 2007 Rohde closed down his Austrian factory with about 100 employees. The headcount in Germany dropped from 500 to 400.
Müller & Meirer launch Porsche men´s shoes.
Porsche Design Group (Porsche Lizenz- und Handelsgesellschaft mbH & Co. KG) and Müller & Meirer Lederwarenfabrik GmbH headquartered in Kirn will in future extend their cooperation to the footwear sector. Together the two firms are to develop and produce high-quality men´s footwear under the Porsche Design brand. The first shoes will hit the market in 2010. In addition a contract extension for "soft luggage", which includes leather goods and travel luggage, has also been agreed. Müller & Meirer has been producing leather goods for Porsche Design for ten years.
Footwear and bags from Joop Jeans
In readiness for the Autumn/Winter season 2008/2009, denim line Joop Jeans is to launch an independent accessories collection comprising bags, 14 shoe styles for women and 5 for men. The collection will be rounded off by 8 belts for women and 15 for men. The focus will be on vegetable tanned leathers.
Rendezvous Lake Garda in January
The 69th Riva Footwear Exhibition from 12 to 15 January brought 11 238 specialist visitors to Lake Garda, 2 percent up on the previous year according to the organizers. 6480 or 58 percent of the visitors came from abroad. The focus at the stands of the 1125 exhibitors from 33 countries were the new collections for Autumn/Winter 2008/2009 and hence the respective importance of boots, bootees and oxford shoes in next winter´s ranges.
The next event, to run from 17 until 19 February, will be the first Middle East Riva Footwear Exhibition in the exhibition center in Sharjah (United Arab Emirates). This will be followed by the 70th Riva Footwear Exhibition on Lake Garda from 14 until 17 June.
OutDoor stays in Friedrichshafen
The Trade Fair OutDoor will continue to be held in Friedrichshafen. In a secret ballot under notarial supervision the majority of the 47 eligible members of the European Outdoor Group (EOG) voted for the exhibition site on Lake Constance and against Munich. The fair has been held in Friedrichshafen for 14 years. The agreement would have expired next year.
JANUARY 2008
Wave of bankruptcies of small Chinese shoe producers
Many small Chinese shoe producers are suffering from the anti dumping duties and general scepticism towards Chinese exports.
The national press quotes a report from the Chinese Association of Shoe Producers that states that approximately 1000 of these small producers have gone bankrupt lately.
Especially the South-Chinese province Canton near Hong-Kong, which is the centre of the worldwide shoe production with about 8000 shoe factories has been effected.
One of the main problems for the Chinese shoe industry is that there are protective anti-dumping duties for imports into the European Union that are meant to protect European producers. Furthermore the latest product recalls for Chinese products have also led to scepticism towards Chinese shoes.
The businesses of these small shoe producers are often taken over by larger shoe factories which are now more and more dominating the branch in China.
The actress Natalie Portman designs shoes without leather
Natalie Portman (26), a dedicated vegetarian, has now also designed shoes without leather. The actress will launch a shoe-collection that uses absolutely no animal products with the company Té Casa from New York. The "Natalie Portman Collection" should be available from February on. The shoes will be produced without leather, feathers or fur. Furthermore Portman will donate 5% of the profit for animal protection. Each pair of shoes will cost approx. 200$. A few years ago the actress already confessed that she didn´t wear leather and is a vegetarian.
Luciano Soprani Shoes
The Italian fashion boutique Luciano Soprani gave away a shoe-licence. From autumn/winter 2008/09 on, shoes will be produced and sold by Alta Dimensione.
High Number of Registrations for Modacalzado-Fair / Spanish shoe exports
More than 350 companies have now registered for the Madrilenian fairs Modacalzado and Iberpiel which will take place from 7th till 9th March. This is an increase compared to last year´s figures. The fair will be situated between the Micam Fair in Milan and the GDS Fair in Düsseldorf whereof the hosts expect more foreign visitors especially from overseas. In addition there will be an artistic supporting-program in association with the shoe-fair Elda taking place at the same time.
According to the Spanish Association of the Shoe Industry (FICE) the increasing number of registrations is also a sign that the Spanish shoe-export-business has stabilised. The Spanish shoe-exports for the first 7 months 2007 increased by 16,3% to 1211 Billion Euro. Altogether 66 Million pairs of shoes were sold abroad in this period which means an increase of 7,6% compared to 2006. One quarter of these exports go to France who is Spain´s most important partner, followed by Germany, Italy and Great Britain. The value of shoe-imports, however, decreased by 8,5% to 1022 Billion Euro. 218 Million pairs of shoes were imported between January and July, 160 Million of them from China.
Expensive running shoes without advantages
A report from the British Journal of Sports Medicine says that British scientists have done a study, to show if expensive running shoes offer better running-comfort. More than 40 men were willing to test cheap (40-50 £) middle-price (60-65 £) and expensive (70-75 £) shoes and have themselves measured during the testing. The researchers lead by Richard Clinghan diagnosed the pressure at different spots (under the ankle, under the forefoot and under the big toe) when the test persons were running.
"Price is irrelevant" is the result: Cheap and middle-price shoes absorb shocks as well as expensive models. Concerning the subjective running-comfort there are individual preferences, which actually do neither have relations to the price nor with the pressure proportions.
Declaration of Origin for shoe imports to the European Union
There is still no majority between the EU member countries regarding the declaration of origin for shoe imports to the European Union.
Most member countries consider a compulsory declaration of origin for products that are often composed of many separate parts as impracticable and cost intensive, due to global network productions and short-term changes of suppliers. Shoes are a good example of this.
The Italian shoe industry, however, demands an initiation of the Declaration or Origin from the European Commission in Brussels. In return they would waiver the protective duties against cheap shoe-imports from China and Vietnam. More and more Italian shoe enterprisers are expressing themselves against these protective duties. Beside Italy, all Mediterranean countries and Poland are pleading for the declaration. The German shoe-industry is still for a voluntarily declaration and under no circumstances will agree to a binding one.
Charles Jourdan is being liquidated
The commercial court of Romans has decided that the French shoe-producer Charles Jourdan SAS, founded in 1921, will be liquidated, after the last takeover-interests of the American Omnicent-Group did not come to a result. 197 employees at Romans will lose their jobs. The reason for Omnicent backing out was that the rights for the brand for Northern America were held by BBC International since last year and were not for sale.
Première Vision buys into Midec
Paris fabric fair Première Vision has acquired a 49 percent share in fair organizer Sepic, which had only recently been bought by British company Tarsus. Sepic organizes the footwear fair Midec and the accessories fair Mod´Amont.
New general manager at Nike
Since December Michaela Stitz has been Vice President and General Manager responsible for the sports goods company Nike in Germany, Austria, Switzerland and Slovenia. With the company since 1996, latterly as Commercial Director for Germany, she succeeds Hubertus Hoyt, who is moving to Nike headquarters in the USA.
Micam and Mipel: overlapping rather than parallel dates
Milan leather goods fair Mipel will not be fully in step with the changed dates for footwear fair Micam. Though next Spring Mipel (28 February to 2 March) will also be moved forward a few weeks it will continue to run from Thursday to Sunday, whereas Micam (26 to 29 February) will be a Tuesday to Friday event. In the autumn the two fairs will overlap for three days if Micam (17 to 20 September) runs from Wednesday to Saturday. Mipel will then be held from 18 to 21 September. The new staging slot arrangement is initially valid just for 2008.
Legero shoe factory wins award
The Legero shoe factory in Graz, Austria, was voted the "most dynamic company in Styria and hence the winning "Big Player" in "Austria´s Leading Companies" competition on 22 October. The competition, organized annually by financial newspaper Wirtschaftsblatt in collaboration with PriceWaterhouseCoopers and Austrian loan protection association KSV 1870, is not a popularity contest. The best in the three categories "Dynamic Small Enterprise", "Golden Middle Range" and "Big Player" are judged exclusively on the basis of economic criteria such as growth, earnings and liquidity.
Kallisté starting with bags
Italian footwear brand Kallisté is to launch handbags and has accordingly signed a three-year licensing agreement with French leather goods producer Lamarthe. The bags will be available through the label´s single-brand stores and shops which also stock Kallisté footwear.
Ground-breaking ceremony for Puma company headquarters
Sports goods manufacturer Puma is reinforcing its base in Germany: the ground-breaking ceremony for the new Puma Plaza headquarters early in November marked the start of the company´s third investment project in Herzogenaurach following the opening of its factory outlet in 2002 and the extension in 2005. In addition to a new administration centre for the Central European area, a new brand centre and a new concept and factory outlet store are to be erected.
The new company headquarters on the airport road in Herzogenaurach will cover a total area of 50 000 square metres and, when completed, will house about 700 employees. Completion of all three buildings is scheduled for the end of 2009. Total costs to completion are around 50 million Euro.
The new buildings are sited around a central court, the Plaza proper. Besides the seven-storey administration centre for the Central European area, a new concept and factory outlet store with its own restaurant is to be built along with a brand centre. In the brand centre, currently still located in Nuremberg, the innovative sport lifestyle collections will then be displayed on a total 10 000 square metre area in the new ordering and presentation premises. A multimedia hall to accommodate 1 500 people is also being added.
Clarks starting with handbags
In Britain the world´s largest walking shoes manufacturer Clarks has been selling handbags for years. Now the firm is expanding its product portfolio in Germany too and launching a handbag collection. "The demand for handbags to match the season´s footwear models was so big that we decided to introduce handbags in Germany, Austria and Switzerland as well", says Robert Bendl, Sales Manager of the German marketing subsidiary. Initially the handbags will be available in Clarks stores and shop-in-shops. The collection will be differentiated into Casual and Smart.
Camel active expands via outlets
Life-style brand Camel active is seeking to expand further in the national and international specialist textile and footwear trade. By the end of 2008 it intends creating a total of 89 new textile-selling outlets and 140 footwear shop-in-shop facilities. In addition to its core market Germany, the brand is focussing primarily on eastern and south-eastern Europe, plus Benelux and Scandinavia.
"In the next two years we will pursue our well-structured expansion. We have done our homework and our now getting down to business", states Mark Schäfer, Head of Retail with premier licensee CMLC GmbH in Bielefeld.
Birkenstock owners take over US distribution partner
The owner troika of Birkenstock Orthopädie GmbH & Co. KG, Stephan, Alex and Christian Birkenstock, have bought up their long-standing distribution partner Birkenstock Distribution USA Inc. (BDUSA). As of now the company styles itself Birkenstock USA, LP, and will continue to be headquartered in Novato, California. "For us, as a world-leading producer of low-cork-footbed sandals, optimum positioning in the huge US market in particular is important. We are therefore very happy with our purchase of BDUSA", say the Birkenstock owners. "Our aim is to boost product availability and to further expand the brand with specialized dealers via the expansion of single-brand stores and shop-in-shop facilities".
Amazon opens footwear shop
Internet dealer Amazon recently extended its selling range to include footwear and handbags. Under www.amazon.de customers in Germany and Austria can target upwards of 5 000 branded products from more than 250 makers such as Aigle, Ara, Belmondo, Buffalo, CAT, Clarks, Der kleine Muck, Gant, Kickers, Malene Birger, Merrell, Romika, Scholl and Vans. All items can be searched by price, brand, style, colour, material and fastener. Hitherto the Amazon fashion range was confined to clothing and hardware in the Sport & Leisure category. Back in January Amazon opened a footwear shop in the USA.
?Our aim is to offer our customers the largest selection of footwear, enabling each individual to find exactly the right style in the right size?, commented senior manager Dirk Daniel. ?In addition to the popular big-name brands we also provide a wide choice for customers with exclusive tastes, as well as handbags which are hard to come by in the static trade"
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Simac and Tanning Tech together again in 2008
Footwear machinery fair Simac and tanning technology fair Tanning Tech will next year again be staged jointly with leather fair Lineapelle in Bologna from 28 to 30 October. The favourable outcome experienced this Spring had encouraged a repeat of the dual event, announced the organizer, Assomac. The shift to an autumn timeslot was explained by a host of events in this period and the Easter deadline.
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Bally footwear back in the running
Swiss traditional brand Bally is on the expansion course again in Germany. Crisis-stricken in the nineties, the firm was taken over in 1999 by Texas Pacific Group, an American holding company. Since then it has been moving towards repositioning itself as a global luxury brand. In 2004 Bally moved out of the red and is now profitable, growing steadily and hiring anew. For this year the company is reckoning on 15 to 20 percent growth, according to group head Franchini. Growth is particularly strong in Asia and Eastern Europe. Half of Bally´s sales is footwear, 40 percent accessories such as bags and travel luggage, and 10 percent apparel. Against this background the company can now invest more strongly in the creative sector. From being outsourced in the past, product development is now back in-house, facilitating control and direct contact with the designers. Accordingly the post of Design Head was filled for the first time in February, the choice falling on the American Brian Atwood, who had made a name for himself with Gianni Versace in Milan.
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More visitors at I.L.M.
Leather goods fair I.L.M. Summer Styles in Offenbach closed its doors on 30 September. In its 4-day run it attracted 6 100 visitors, an increase of seven percent. The number from abroad rose by an above-average 12 percent. The majority of the 238 exhibitors from 18 countries presenting new collections for Spring/Summer 2008 featuring fashionable bags, leather goods, travel luggage and last-minute topical items for the Christmas buying spree, were very satisfied with how the fair had gone. For the fair company the results confirm that the trade is banking on an ongoing boom in leather goods and that 2008 will see a sustained buoyant demand for fashionable bags in particular.
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Micam brings Spring event further forward
Milan footwear fair Micam has opted for a markedly earlier than normal timeslot for its Spring 2008 event. The fair will run from 26 to 29 February and not as customary in mid-March or at the end of March to follow GDS in Dusseldorf. Initially the fair had been timed for 28 February to 2 March. The reason given for the date swap by the Italian footwear manufacturers association and Micam organizer Anci was the danger of overlapping with the Easter holidays. On top of that, as from next year, the duration of Micam will alter. In Spring it will no longer run from Thursday to Sunday but from Tuesday to Friday, and in Autumn from Wednesday 17 till Saturday 20 September. Sunday as a Fair day had latterly been criticized for poor attendance. Whether or not leather goods fair Mipel, which normally parallels Micam, will also switch to the new dates was not certain at the time of going to press.
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Puma extends contract with Zeitz prematurely
Sports goods manufacturer Puma AG, a member of French luxury goods group PPR, has extended the contract of CEO Jochen Zeitz (44) prematurely for a further five years until 2012 ?with an eye to the company´s long-term development?. Supervisory board chairman François-Henri Pinault stated that with this decision ?the supervisory board has initiated successful collaboration between Puma and PPR with the aim not only of consolidating but also of further enhancing the position of Puma as one of the most sought-after sport lifestyle companies?. Zeitz has been Puma CEO since 1993.
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November 2007
Richter starts 2008 with "Fair Steps"
Next year Austrian children´s footwear manufacturer Richter is to launch an ecological children´s footwear collection labelled ?Fair Steps? for which complete freedom from harmful substances is guaranteed, stated managing director Alf Netek. In this way the company is seeking to allay the worries of many parents disconcerted not least by recent findings of harmful substances in children´s footwear. As with the fair trade philosophy the initiative is also aimed at respecting the rights of the workforce and ensuring the absence of harmful substances in production. ?Our Fair Steps initiative is not simply a logo but a quality certificate?, assures Netek. After the crisis precipitated by a subsidiary´s bankruptcy, Richter is ?over the sticky patch?, according to Netek. The group is fully financed up to the end of 2009. Early orders for Spring/Summer are roughly at last year´s level, and subsequent sales for the winter are up by 20 percent. Here demand for loafers is strong, highest in Great Britain and Russia. Sales in Germany had stagnated.
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Timberland announces store closures
Next year American firm Timberland is to shut down some 40 proprietary stores in USA, Europe and Asia. The brand will in future concentrate on smaller outlets with the focus on footwear. The new ?Footwear First? model is to be further tested and expanded. The stores due for closure currently generate yearly earnings of 40 million Euro. Timberland is hoping this move will boost its present operating profit of 4.2 million Euro. For this year the company calculates that sales will be down five percent on a year ago. Timberland operates a total of 240 stores worldwide. Added to these are 550 franchisee-run Timberland stores.
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OCTOBER 2007
Lineapelle shows leather trends
The Lineapelle fair is being held in Bologna from 17 to 19 October. 1500 exhibitors from 50 different countries will be exhibiting leather, synthetic materials and components for the footwear, leather goods and clothing industries to an expected 30 000 visitors. This time the Tanning Tech machinery fair will not be run in parallel with Lineapelle.
China´s leather sector again with two-digit growth
Despite all the discussion about, and the imposition of, anti-dumping punitive tariffs on leather street shoes, China in the first six months of the current year exported 10.7 billion US dollars worth of leather products, an increase of 11.2 percent versus the previous year. The lion´s share was accounted for by footwear (leather, rubber, plastic and textile shoes and other footwear items) : 9.85 billion dollars, an increase of 16.3 percent. Even with the leather street shoes subject to punitive tariffs China´s producers were able to up sales by 11.7 percent to 3.6 billion dollars. In contrast, China´s 110 million US dollars worth of footwear imports are very modest, even if up again by 16.9 percent. From this perspective the Chinese leather industry´s imports of primary products, which in the first six months of the year rose by 15.3 percent to 2.68 billion dollars, are rather more significant.
Statistics show that in 2005 China had more than 18000 large and medium-size shoe factories, of which 3880 with annual sales of 5 million yuan (600 000 US dollars).
1. PLW – PFI Congress in Pirmasens
Messe Pirmasens and the PFI (Testing & Research Institute) are staging a day-and-a-half congress at the 73rd PLW – Leather & More on 5 and 6 October in Pirmasens. The congress will focus on current themes from the shoe and leather branch and is aimed at persons engaged in development, design, production and planning
The themes:
- Leather – an innovative material for the end-user? (Dr. Wolf, BASF)
- Fit: The foot as specification for the shoe (Dr. Becker, Orthopaedic specialist)
- European test standards for leather and footwear (Dr. Markus Scherer, PFI)
- Mass customization (Christoph Berger, Adidas)
- Polyurethane systems for the footwear industry (Udo Wendel, Elastogran)
- Social and quality management systems for the footwear industry (Gerhard Schäuble, PFI)
- Novel tanning methods – novel leathers (Dr. Heinz-Peter Germann (Leather Institute, Tanning School Reutlingen
- Improving the fit of women´s boots (Dr. Monika Richter, PFI)
- Smart clothes – computers in clothing (Dr. Rupp, Institute for clothing physiology Hohenstein)
- Reach – Specifications and consequences for the leather and footwear industry (Dr. Alex Föller (Verband Tagewa)
- Current aspects of functional and development-compatible footwear for children (Peter Erren, Erren company)
-Chromium VI and formaldehyde in leather. Phantoms? (Dr. Gerhard Nickolaus, PFI)
Wortmann repeats double-digit growth
The Wortmann Group in Detmold, one of Europe´s leading footwear manufacturing and marketing firms, achieved a consolidated aggregate turnover of 625.3 million Euro in the business year 2005/2006 (31.05.) (previous year: 531.6 million Euro). This represents an increase of 17.6 percent and thus beats last year´s record result (up 14.6 percent). The export share of the European companies is up again to 46.1 percent (previous year: 43.1 percent). The Wortmann Group´s products are sold in more than 70 countries worldwide.
All markets and all companies within the Group contributed to this result. In Germany too Wortmann managed to achieve double-digit growth despite ongoing stagnation in the retail footwear trade. Sales by the Group´s European subsidiaries rose to exceed 20 million pairs in the fashion segment. With further offtake of more than 40 million pairs in the standard footwear sector the group continues to be one of Europe´s absolute top performers. The figures here reported include the sales by the European subsidiaries Wortmann (Tamaris), Wendel, Caprice and Shoe.com (s.Oliver, Comma) and those in Asia by Novi Footwear (Far East) Ltd., Hong Kong/Singapore. At 13.4 million Euro total investments were slightly above last year´s figure. The Group is represented by companies of its own in ten locations in Europe and a further twelve in the Far East. Globally the Group has more than 680 employees (previous year: 650). Besides these, more than 27 000 people worldwide produce footwear for the Wortmann Group.
ACLE and CIFF in Shanghai continue to forge ahead
"It would be nice if there was as much going on at our trade fairs in Europe." Comments such as these were frequently to be heard at the All China Leather Exhibition (ACLE), which ran from 5 to 7 September in Shanghai – again jointly with the events for finished products China International Footwear Fair (CIFF) and Moda Shanghai. The leading Chinese fair for the leather sector is still on the growth curve and made a further leap forward: more exhibitors, more visitors.
1260 exhibitors from 37 countries – from the exhibitor standpoint the triple fair is by far the most international trade fair for leather. This time round, with an exhibition area of 57 500 square metres, it occupied five halls of the Shanghai New International Expo Centre – one hall more yet again.
Massive blow against product pirates
The German customs in Hamburg delivered a massive blow against brand pirates with a record find of 16 0000 pairs of smuggled sports shoes. The goods confiscated in the port city were counterfeit Nike products, which were hidden behind low-price footwear in a total of 19 containers. "This is the largest number ever to be confiscated in Germany", announced the Customs Investigation Office in Hamburg on Friday. The find prevented a financial loss of 20 million Euro to the economy.
The US authorities too have thwarted an attempt to smuggle in fake Nike sports shoes manufactured in China. Six suspects have been indicted and goods valued at more than 16 million dollars (12.49 million Euro) confiscated, reported the authorities in Tucson in the US state of Arizona. According to the information they released 135 000 shoes of the Nike Air Jordan type were to be smuggled in inside 15 freight containers.
The smugglers are also claimed to have introduced 82 ship container loads of shoes and sportswear into the USA. "We estimate that the value of all the confiscated goods could total 86 million dollars", stated a special agent of the customs police in Arizona.
Moda made in Italy: high-style footwear fashion at the M,O,C,
From 6 to 8 October numerous European footwear brands are presenting their collections and highlights for Spring and Summer 2007 at the Moda made in Italy footwear fair at the M,O,C, event centre in Munich-Freimann. In halls 2 and 3 as well as in Atrium 3 more than 340 exhibitors from Germany, Italy, Spain, Portugal and France are looking to welcome the specialist public. One of the exhibitors is Gruppo SOC, of which the roughly 70 lessees of the M,O,C,Order Center are members.
China calls EU footwear tariffs
China refuses to accept the threatened extension of the EU punitive tariffs on footwear imports from the People´s Republic and Vietnam. The European Union (EU) should abandon its "disproportionate" assessment of footwear imports from China, demanded the Ministry of Trade in Peking. Europe ought to recognize that in China footwear is manufactured under market-economy conditions.
EU competition commissioner Peter Mandelson had proposed that the punitive tariffs provisionally imposed since April be extended for five years with effect from October. At present leather shoes from China are subject to a tariff of 16.5 percent, those from Vietnam to one of 10 percent. Brussels justifies the tariffs by reference to inadmissible subsidies that China and Vietnam granted their footwear producers.
Almost every second shoe comes from China
Shoes from China and Vietnam account for more than half of all imported footwear. As reported by the Federal Statistics Office in Wiesbaden, China was a clear leader with 101.9 million pairs of shoes delivered in the first 6 months of the year. This represented a 44.6 percent share of the total volume imported and a purchase value of 523.4 million Euro. Second place was held by Vietnam. Over the same period 36.5 million pairs of shoes came from that country, a share of 16 percent valued at 295.5 million Euro. In the Spring the EU Commission had imposed punitive tariffs on leather footwear produced in both China and Vietnam, accusing the two countries of price dumping.
Altogether, according to the information presented, 228.5 million pairs of shoes to a total value of 2.1 billion Euro were imported into Germany. Statistically speaking that is the equivalent of almost three pairs of imported shoes for each inhabitant. Besides footwear from China and Vietnam, Italian shoes were also in great demand. From this country came 21 million pairs. The 9.2 percent Italian share of the volume imported, while markedly lower than China´s, rated distinctly higher in value terms, namely 307.3 million Euro.
September 2007
More international buyers at Francal in Brazil
Brazilian footwear fair Francal in São Paulo, which ran from 7 to 13 July, hosted
53 000 visitors, five percent up on last time. In particular there were more buyers from abroad. The visitors came from a total of over 100 different countries. Roughly 1 100 exhibitors displayed their latest collections for the Spring/Summer 2008 season.
Brazil claims to be the world´s third biggest footwear exporter, with Latin American countries its main customers. In Europe Italy is the most important exporting country, but France, Germany, Portugal, Spain and The Netherlands feature among the top 15.
Lise Lindvig enters the German market
Successfully established in Scandinavia, Copenhagen-based young designer footwear brand Lise Lindvig is expanding its marketing activities internationally. Partner for the German-speaking countries is marketing company Bugs S. A., Luxemburg.
Bugs started activities for the Spring/Summer 2008 season at the Bread & Butter fair in Barcelona, and will also be represented at the GDS in Dusseldorf. With its individual design Lise Lindvig has so far been taken up in Germany by some 40 dealers in the top quality fashion sector. "By the end of 2008 we intend to increase this number to about 150 customers", explains Bugs spokesman Markus Struzyna. "We are aiming at individual fashion stores with a trendy footwear range and fashion-oriented footwear dealers with a hip brand environment". Lise Lindvig collections are available in 193 countries around the world.
Nike stays in Indonesia following labour protest
In the aftermath of workforce protests, American sports goods producer Nike has extended its footwear production contracts with two Indonesian footwear factories. The two factories will now supply Nike until July 2008 and July 2009 respectively. In July Nike had announced that cooperation with the firms PT Hardaya Aneka Shoes Industry and Nagasakti Paramashoes Industry would terminate at the year-end. The two companies together employ 14 000 workers. The Americans relented after intervention by the government and two protests by the workforce in front of the company HQ in Indonesia.
Nike sues Geox
Sports goods manufacturer Nike has sued footwear producer Geox for damages. The Americans accuse Geox of partially copying Nike´s successful Shox Turbo III creation in the design of its Calamity model. Nike demands that the model be withdrawn from the market immediately and the shoes destroyed. Geox chairman Mario Moretti Polegato believes they will achieve an out-of-court settlement: "We shall resolve this whole issue with a gentlemen´s agreement".
Own footwear collection for Paris Hilton
Paris Hilton intends launching her own footwear collection and has signed a licence agreement to that effect with the Anebi Footwear Group. The hotel heiress´ new collection includes stilettos, flat shoes and shoes with wedge heels. Paris Hilton Footwear will make their market debut early next year in the USA.
Pikolinos takes over Martinelli
Spanish footwear producer Pikolinos has acquired the Martinelli brand. The new management intends to gain shares on the international markets while retaining the product philosophy dating from Martinelli´s foundation in 1973. Martinelli produces women´s and men´s formal and sports footwear with strong emphasis on comfort. A key area in the collection are moccasins in different styles and materials. A highlight in Spain is the "Routier", a moccasin for women, men and children.
I.L.M. presents latest bag fashion
At the I.L.M Summer Styles international leather goods fair from 27 to 30 September in Offenbach new bags and leather accessories for Spring/Summer 2008 will be displayed. With Christmas business approaching the fair is also of interest for last-minute gift ideas in the travel, outdoor, school and business sectors or in small leather items.
Some 230 exhibitors from 15 countries will be at the fair and provide a buying and information platform for all trading sectors dealing in leather goods. Over 1000 collections will be on view. The exhibition program includes the latest fashion bag
lines, including a host of international lifestyle and designer labels and strongly positioned young fashion ranges besides new trend collections in small leather goods, travel and leisure bags, business and school items, umbrellas, gloves, belts and miscellaneous fashion accessories.
Hugo Boss expands footwear business
In the first half-year Hugo Boss AG boosted its sales of footwear and leather accessories by 20 percent to 89 million Euro. Altogether group sales in the first six months rose 11 percent to 794 million Euro.
Camel active marks its 30th anniversary
Thirty years after the launch of CAMEL BOOTS, life style brand Camel active is paying special homage to its own history: with a limited edition jacket in the legendary original 1977 design the firm journeys back to the time of its inception, when the introduction of Camel Boots and a matching textile collection laid the foundation stone for the sportswear brand´s success. True to the firm´s concept of offering trendy and functional leisurewear for venturesome men, further products from the casual wear sector were added to the range.
Geox reports further dynamic growth
Milan stock exchange quoted footwear producer Geox based in Montebelluna, northern Italy, maintained its dynamic growth rate throughout the first half of 2007. Aggregate sales were up 27 percent to 388.2 million Euro. Operating profit (Ebitda) rose 36 percent to 112.2 million Euro. At the same time net profit grew to 68.9 million Euro, 46 percent above last year´s figure.
Italy, with an offtake of 37.6 percent, is still the conglomerate´s main market. Largest export market with a 14 percent share of total sales is Germany, where sales jumped 18.6 percent to reach 54.36 million Euro. Sales increased even more strongly in Austria (+31.3 percent to 14.60 million Euro) and Switzerland (+41 percent to 10.08 million Euro). Geox exports to 68 countries in all. With ordering for the forthcoming Autumn/Winter sales season 2007 up 24 percent, chairman Mario Moretti Polegato also expects positive results for the year as a whole.
August 2007
New sales director at Nike
Bahri Kurter became the new sales director at Nike Deutschland with effect from 1 July. He takes over from Michaela Stitz, who is switching to Nike International. From 2003 Kurter was at Nike European Headquarters in Hilversum, Holland, with responsibility for the customers Intersport and Sport 2000.
Clarks relocates to Wiesbaden
After more than twenty years Clarks Shoes Vertrieb GmbH has vacated its location in Bingen am Rhein and on 2 July moved to a new office in Wiesbaden. Simultaneously the firm has opened a new showroom with a floorspace of more than 150 square metres.
Converse: sales up
American shoe producer Converse has seen 35 percent growth in its sales for the Autumn/Winter season 2007. Particularly in the expanded accessories and textile segment "immense sales increases" have been achieved, states Willy Umland, managing partner of All Star D.A.CH GmbH. The brand has also secured a footing in the high-class fashion sector, as best exemplified by the firm´s cooperation with American designer John Varvatos, who in 2004 launched his first footwear and premium textile collection for men and women.
Styl and Kabo in Brno
From 12 until 23 August the 30th International Fashion and Textile Fair Styl and the 30th International Footwear and Leather Goods Fair Kabo are to be held on the fair ground in Brno, Czech Republic. With close to 16 000 visitors and numerous well-known exhibitors from at home and abroad they constitute the most important trend show in Central Europe. Thirty-five percent of the exhibitors are from abroad. The supporting program includes seminars for producers, dealers and retailers, lectures on fashion trends, and fashion shows – some 30 fashion shows in three days.
Timberland reports profit down
American footwear and garment producer Timberland experienced a first-quarter earnings setback owing to restructuring activities and reduced sales. According to the firm´s communiqué net profit in the period under review was 9.3 million dollars as against 26.1 million dollars in the same period of the previous year.
Group turnover was down from 349.81 million dollars a year ago to 336.33 million, a 3.9 percent drop. The dip in earnings was attributable largely to declining sales in the children´s fashion and footwear segments.
Leather care seminar at Leather Institute Tannery School Reutlingen (LGR)
In association with leather care providers and servicing firms LGR is staging a one-day leather care seminar on 27 September. Attendees will be familiarized with the basics of cleaning and care for various types of leather. The attendance fee is 240 Euro. To register, contact LGR by telephone on 07121/162327 or by email at lgr@lgr-reutlingen.de.
Murphy & Nye starting with footwear
Italian sportswear provider Murphy & Nye is to launch a range of footwear and bags for the Spring/Summer 2008 season. The collection, for both women and men, consists of about 200 shoe styles and 20 bag styles. The goods will be available in Germany and Austria, among other countries, and be sold via proprietary stores, franchise shops and the specialist footwear trade. Product manager is Christina Joannidis. Produced in Italy, the footwear will range in price from 100 to upwards of 200 Euro.
Record year for Nike
US sports goods producer Nike reports new record results for the business year ending 31 May. Sales were up nine percent to 16.3 billion dollars (12.1 billion Euro). Net profit was also higher, increasing by seven percent to 1.5 billion dollars. In Europe, Near East and Africa sales rose nine percent to 4.7 billion dollars. In these areas footwear sales grew by a below-average six percent. Good results were also achieved in the "extrinsic" sector, which groups together brands such as Converse, Cole Haan and Nike Golf. Here sales were up by 16 percent to 2.3 billion dollars.
Prospects for the current year look good as well. Pre-ordering for the group as a whole for the period from June to November 2007 is reportedly twelve percent above the figure for the same period last year.
Outdoor in Friedrichshafen growing in every sector
OutDoor 2007 has improved significantly in every strategically important respect and made good progress on its way to becoming the worldwide leading fair in the outdoor branch. A total of 16 900 attendees from 70 countries meant that nine percent more specialists visited the international scene and branch rendezvous for open-air sports enthusiasts on Lake Constance. This 14th edition of the fair also established a new record in terms of exhibitors: 731 firms from 39 countries, an 80 percent foreign contingent, and a 7 percent increase in booked exhibition space in all eleven pavilions made an excellent showing.
PPR increases shareholding in Puma
French luxury goods group PPR has now acquired over 62 percent of the shares in sports goods manufacturer Puma AG in Herzogenaurach. PPR had extended its voluntary takeover bid and offered 330 Euro per share certificate.
H&M: men´s footwear too as from this autumn
Swedish textile retailer Hennes & Mauritz is satisfied with the performance of its footwear segment. At the start of this year the company had included footwear in its product range. From this autumn onwards the range will also include shoes for men.
Keds starting with men´s footwear
Following this year´s successful introduction of Keds Women footwear, Stride Rite Brand men´s shoes will be available from selected German footwear trade outlets from spring 2008 onwards. The hallmark of Keds sneakers are their authenticity and sportiness. This is reflected in the men´s collection for 2008 because the new models can be worn equally well together with a sports suit or casual Bermuda jeans. In USA the men´s classic "Triumph" and "Champion" lace-up and slip-on shoes have long been style icons.
Stiefelkönig enters the German market
Graz-based Austrian footwear retailer Stiefelkönig is entering the German market as an Italian Geox brand franchisee. In October Stiefelkönig is to open a 260 square metre shoe store in Erlangen, its first outlet in Germany. The company distributes Stiefelkönig, Delka and Turbo shoes through a total of some 160 stores in Austria, Slovenia, Croatia and Slovakia.
July 2007
Payless acquires Stride Rite
American footwear retailer Payless ShoeSource has bought shoe manufacturer Stride Rite Corporation for 800 million US dollars plus liabilities. In the USA Stride Rite is by its own telling market leader in high-quality children´s footwear and a provider of sports and leisure footwear for children and adults. Besides the Stride Rite brand the company also markets other brands including Keds, Grasshoppers, Robeez, Saucony and Tommy Hilfiger. Payless ShoeSource states that it is one of the leading retailers in the North American footwear market. Headquartered in Topeka, Kansas, the company earned about 2.7 billion dollars in 2006 with its 4 600 branches and 27 550 employees.
In future the companies will run their operative business under the aegis of the new holding Collective Brands Inc. The acquired company will continue to exist and be responsible within the planned new corporate structures for marketing the brands and licenses. Outside the North American continent distribution will be handled by autonomous companies operating purely as distributors or as licensees.
Groupe Royer takes over Stéphane Kélian
The rights to the French luxury footwear brand Stéphane Kélian have been acquired by footwear producer Groupe Royer in Fougères. Previously the company was a member of the Smalto fashion group. Groupe Royer will in future produce and market the brand itself. According to the communique Stéphane Kélian´s 100 employees are to be laid off.
WSA Show in Las Vegas
The WSA Show footwear fair in Las Vegas will in future run for just three instead of four days. The next event in the Las Vegas Convention Center will last from 30 July
to 1 August. The organizers are expecting more than 1600 exhibitors and 36 000 buyers. At the last spring event some 26.5% of the attendees came from abroad. Parallel thereto and lasting one day longer will be the designer and luxury fair The Collections at WSA in The Venetian Hotel. From 2008 onwards it is hoped that firms from the ancillary supply sector will also be present at the Footwear Innovation Expo and Conference in Las Vegas. The dates for 2008 are 19 to 21 February and 26 to 28 July.
June 2007
C&A placing more emphasis on footwear
Germany´s leading textile retailer C&A continues to grow at a brisk pace. In the last financial year its Europe-wide sales rose by 8.4 percent to 5.65 billion Euro.
The management sees no imminent end to the growth story. This year the company has announced it will be offering more footwear in its stores. "Footwear represents a clear growth opportunity for us".
Children´s footwear: toxic substance in leather
Yet again testers have found chromium VI in children´s footwear. In a programme ("Markt XL") broadcast by German television station WDR, it was reported that, of 20 shoe pairs tested, five pairs ought not to have been sold because they contained more than the permitted concentration of poisonous chromium VI. For leather footwear the limit concentration is three milligrams of chromium VI per kilogram of leather. The shoes tested - 2 pairs of the Reno proprietary brand Young Spirit, a Palomino model from C&A, an S. Oliver shoe (bought at Shoe 4 You), and an Imac model (bought at Siemes) - contained between 8.2 and 13 milligrams.
Clarks: sales up, profit down
British footwear manufacturer C&J Clark International Ltd increased its sales in the financial year 2006/7 (31.1) by 5.6 percent to 927.7 million pounds (1.36 billion Euro). This increase is credited primarily to strong business abroad, especially in the USA. Because of the anti-dumping tariffs on leather footwear from China and Vietnam, however, the operating profit was down 1.8 percent to 80.9 million pounds (118.5 million Euro).
Expo Riva opens ordering season
From 16 to 19 June the 68th Riva Shoe Exhibition will be staged in Riva del Garda. The previous event in January, the fair for medium-price footwear, boasted 1100 exhibitors and drew more than 11000 visitors. The country in focus this year will be Brazil.
Footwear and leather goods fair in Brno
From 21 until 23 August the thirtieth repeat of the footwear and leather goods fair Kapo is being held in the Czech city of Brno. Kapo is the biggest contact and ordering platform of its kind for the Central Eastern European market and regularly provides a twice-yearly meeting point for 170 international exhibitors and 15 000 to 18 000 visitors.
Footwear spells growth for Boss
During the first quarter, fashion group Hugo Boss continued to grow in both sales and profit terms. According to a company communiqué earnings rose by nine percent to 500 million Euro, the strongest growth rates again being achieved in women´s wear, footwear and leather accessories and in Boss´ own retailing activities. Women´s line sales grew 42 percent during the first quarter, footwear and leather accessories 26 percent, and Boss retail sales 28 percent.
Jack Wolfskin grows by one-third
Jack Wolfskin, specialist supplier of functional clothing, footwear and equipment for outdoor sports, travel and leisure, increased sales last year by 33 percent to 129.6 million Euro. In Germany, the biggest market accounting for some 80 percent of total sales volume, offtake was up roughly 35 percent in 2006. However the expansion was not limited to Germany but included other European countries besides: in addition to Great Britain, Belgium and Finland, the two important markets Austria and Switzerland in particular reported significant sales increases of 58 and 32 percent respectively. Jack Wolfskin distributes its products via three channels: the specialist outdoor apparel trade, sportswear outlets and Jack Wolfskin franchise stores. Sales in Jack Wolfskin stores rose 40 percent last year. Currently there are 113 franchise stores in Germany with a further 21 in other European countries, 7 of them in Switzerland and 8 in Austria.
Lotto forges ahead
Italian sports footwear and sports garment manufacturer Lotto Sport Italia S. p. A expanded its sales in 2006 by eight percent to 277 million Euro. Growth was achieved in all markets but was particularly noteworthy in Eastern Europe. In Germany sales were up 9 percent with footwear accounting for 43 percent of the aggregate figure, apparel for 51 percent and accessories for 6 percent. The most important segments were football, tennis and running, which together made up 55 percent of the grand total. Sales in the leisure sector were up 11 percent, a strong improvement, thanks to the introduction of the Leggenda line, among other factors.
Leder & Schuh International AG expands by leaps and bounds
Austria´s footwear trade market leader, Leder & Schuh International AG, headquartered in Graz, continues to expand with its Humanic, Jello, Shoe 5 You, Corti and Dominici lines. At present 46 percent of the group´s business locations are outside Austria. At the balance sheet date in 2006 Leder & Schuh had 298 business locations as against 287 the year before. The number of employees was up from 2796 to 3082.
Prada makes more profit
Italian luxury goods group Prada with its Prada, Miu Miu, Car Shoe and Azzedine Alaia brands reports sales up 8.2 percent to 1.4 billion Euro in the financial year 2006/07 (31.1). Net profit rose 63 percent to 76 million Euro, the lion´s share (65 percent) coming from footwear and leather goods.
Shoes for the pope
A group of businessmen in the North Italian footwear town Vigevano made a gift of 15 001 pairs of shoes to pope Benedict XVI while he was there on a visit. Only one pair, however, is for the pontiff himself: the remainder will be sent directly to aid organizations selected by the Vatican for distribution to the needy around the world.
Trend reversal in the German footwear market
In the footwear market the economic signs are favourable: after the market volume for footwear in Germany bottomed out it grew about 2.8 percent to roughly 8.5 billion Euro in 2006. The negative trend of the last few years thus appears to have been halted, according to the current branch report "Footwear" by Corporate Consultants BBE in Cologne.
MAY 2007
Boss shoe sales up again
Fashion group Hugo Boss is looking to achieve further sales records in the years ahead with its women´s fashion, footwear and leather accessories. According to a statement in Metzingen by Bruno Sälzer, the group´s CEO, the intention is also to expand sales via Boss´ proprietary outlets. For 2007 he expects group sales to be up by between 8 and 10 percent on last year´s figure. The result before taxes will probably be 12 to 15 percent higher.
Sales of shoes and leather accessories rose by 28 percent to 151 million Euro.
Dosenbach-Ochsner made further progress in 2006
In 2006 Swiss Dosenbach-Ochsner group managed to repeat the previous year´s successful performance, increasing its shoe and sportswear sales by 9.8 percent to 687 million Swiss francs (421 million Euro). Sales space adjusted growth amounted to 2.2 percent. Last year the group, which comprises all Dosenbach, Ochsner Shoes, Ochsner Sport and Sport Lab branches, sold 9.6 million pairs of shoes in Switzerland, 11.6 percent more than the year before. The number of branches rose by 16 to 299 by the end of 2006. Over the same period the number of employees was up from 2900 to just under 3000.
Managing director Antoine Fölmli sees this result as confirmation of the group´s role as market leader in Switzerland´s footwear retail trade and sportsgoods chains.
Ecco posts record results
Danish footwear manufacturer Ecco Sko A/S reports record results for last year. Aggregate sales including accessories and leather grew 16.7 percent to 4.470 billion Danish kroner (600 million Euro). Net sales earnings in the footwear sector rose 18.9 percent. The growth was spread across all product groups: men´s, women´s, children´s, golf and performance shoes. Altogether the company sold some 14.8 million pairs of shoes, 14.5 percent above last year´s figure.
"Our results for 2006 are the natural outcome of the long-term initiatives introduced within the Ecco group over the last few years", opined COO Mikael Thinghuus. "Our success is closely linked to the fact that our main focus is on the end-product – the most comfortable shoes in the world. Despite the fire in our warehouse in Thailand and the stiff EU customs tariffs on leather footwear from China, which entailed both costs and problems for us, we managed to achieve our best result to date".
For the current year Ecco foresees continuing growth in all marketing regions and product sectors. This prediction is supported by the sales and number of orders received for the 2007 collection. Overall the company expects its net sales earnings to grow by at least ten percent. Ecco is planning significant investments in concept marketing, in expanding its retail trade network, and in marketing activities in the growth regions of Eastern Europe, the Near East, the USA and Asia.
There are also plans for sizable investments in the mature markets of Western and Central Europe, besides for ongoing improvements in product development, and in production plant and processes.
Environment and health medal for Meindl
Traditional shoemaker Meindl has been awarded the Bavarian environment, health and consumer protection medal. In an award ceremony at the Ministry for Environment and Health in Munich, Bavaria´s state secretary Dr. Werner Schnappauf honoured the two family firm directors Lars and Lukas Meindl for the commitment of Lukas Meindl GmbH & Co. KG to environmental and nature protection.
In his speech of praise Schnappauf singled out for mention three environmental initiatives pursued by the company. Topmost on the agenda were Meindl´s efforts on behalf of Germany´s only alpine national park, the Nationalpark Berchtesgaden, for which the firm has for years borne a sustained responsibility. The company´s commitment is associated in particular with the name of the senior head that undertook it and saw it grow: Alfons Meindl, who died last year. To instance what this commitment means, the company has for many years equipped the national park staff with climbing boots. The second initiative underlined by Schnappauf was Meindl´s sponsorship of the Bavarian Academy for Nature Protection and Landscape Conservation, which has already been running for ten years. This sponsorship makes possible important research projects devoted to "Sport and Nature Protection". The third initiative recalled by Schnappauf was the company´s in-house approach to environmental protection. Here Meindl has founded the "Meindl Environment committee", a constant source of new and creative ideas for responsible action in production and disposal aimed at ongoing improvement of environmental compatibility, waste reduction and energy saving in the manufacture of Meindl footwear. In his commendation the state secretary had this to say: "The firm manages impressively to combine the manufacture of high-quality, innovative products with nature protection and exemplary corporate ecology.
Korean buys Fila
Fila Korea Ltd. has bought the Fila worldwide footwear and garment business from Sports Brands International Ltd. (SBI) for an undisclosed price. To date the brand rights were owned by SBI´s subsidiary Fila Luxembourg in the country of that name. Yoon-Soo Yoon, chairman of Fila Korea, acquired Fila Korea from SBI in a management buyout in 2005. He plans further expansion of the brand. "Fila is an international brand and in our view has fantastic potential".
Reebok sues Nike
In the USA Reebock has instituted legal proceedings against its rival Nike, alleging infringement of a US patent covering the manufacture of flexible soles for sports shoes. The suit has been filed with a local court in the US state of Texas, according to the American Adidas subsidiary Reebock. It concerns the patent on a technique for folding up sports shoes and making them easier to stow. Nike is accused of knowingly and intentionally developing shoes based on the Reebock technology. Eleven of the competitor´s shoe models are implicated.
APRIL 2007
Geox again successful
Footwear manufacturer Geox, which is quoted on the Milan stock exchange, made further successful progress in the financial year 2006. Aggregate sales increased 35% to 612.3 million Euro, and operating profit (Ebitda) was up 27% to 153.5 million Euro. Over the same period net profit grew 29% to 97.3 million Euro versus the previous year. The company´s main market is still Italy, which accounts for 40.7% of sales. Biggest export market with a 14.1% share of total sales is Germany, where turnover rose 42.7% to 81.02 million Euro.
Germany´s best employer : top rating for Gor
W. L. Gore & Associates, German subsidiary of the American technology firm, won second prize in the "medium size company" category in the Berlin-based competition to find "Germany´s Best Employer 2007". In the overall assessment Gore came third. Commenting on the company´s good repeat performance in the competition, Eduard Klein, member of the company management domiciled in Putzbrunn near Munich, opined that "this fine result shows how much at ease our associates (Gore´s term for its employees) feel in the company". Last year Gore came first in the same category and second overall. In this year´s competition the jury was especially appreciative of the associates´ teamwork orientation and ranked Gore ahead of all participating companies in that specific regard.
Micam brings spring fixture forward
Milan´s footwear fair Micam will next year precede GDS in Dusseldorf under the terms of an agreement between the two fair organizers. Micam intends to announce the exact dates in the course of this year´s fair.
Puma: sales up, profits down
Sports goods manufacturer and Adidas competitor Puma based in Herzogenaurach has seen a drop in earnings as a result of investments in the company´s own brand and increased costs of promotion for the 2006 football world championships. In the current year, despite the lack of major sports event, Puma intends a return to record figures. A profit hike of at least ten percent is being aimed at for 2007. Owing to investments net earnings in 2006 came to just 2632 million Euro, eight percent lower than the previous year´s figure. Driven by the football world championships in Germany sales increased by 33 % to 2.37 billion Euro. "We fared impressively better over the year than originally planned? was how managing director Jochen Zeitz summed matters up. He pointed out that, "all in all, 2006 was a milestone for both brand and company". For the first time Puma was able to kit out a football world champion team: Italy. Sales of football gear rose 50%. The company also made successful debuts in the golf, motorsport and jeans sectors. The number of employees worldwide increased by 2650 to 7742, of which 992 in Germany. This year 150 new employees are to be taken on in Germany.
Richter available exclusively from Salamander Austria
Ferdinand Richter GmbH is initially to supply children´s footwear on an exclusive basis to seven Salamander subsidiaries in Austria, which will accordingly be fitted out with Richter Concept Stores and no longer stock other children´s shoe brands. This was announced by Richter manager Alf Netek at the GDS. "This is true cooperation", enthused Netek. He considers it important for industry and trade to forge such partnerships. Up to 100 Richter styles will be sold in each Salamander outlet. Netek´s aim it to become exclusive children´s footwear supplier to other leading Salamander subsidiaries that sell shoes for children. In Austria there are at present 36 such shops but the number is set to increase to 50. Salamander manager Martin Gantner sees this cooperation as a quality offensive: "The high quality range suits our customers".
Switch of dates and halls for Modacalzado
This year´s Sipiel in Madrid, comprising the Modacalzado shoe fair and the Iberpiel Marroquinería leather goods fair, will run from 23 to 25 March, in other words one week earlier than the dates originally scheduled. The switch is intended to make it easier for international buyers to visit Madrid as Sipiel will be taking place exactly one week after Micam and Mipel in Milan, Italy. Because of the date shift this year´s Sipiel event has to move from the halls with even numbers to the campus side with uneven numbered halls. To date 557 firms have registered. The organizers are counting on a grand total in excess of 750 exhibitors.
U. S. Polo moves into footwear
American brand U. S. Polo is to launch footwear for the autumn/winter 2007/2008 season. Some 200 different models will be offered to the trade. Lifestyle Fashion Ltd. in Eindhoven, Holland, is responsible for the footwear business.
Vicini and Escada forge strategic partnership
Munich firm Escada AG will in future be supplied with footwear by Italy´s Vicini S.p.A. The two companies have announced the setting up of a strategic partnership. Under the terms agreed the Italians assume responsibility for the development and design of Escada footwear. In addition, Vicini will make the prototypes of the models and manufacture part of the product range for its own account. Creative management will remain in Escada hands. The existing Italian producers will continue to be part of Escada´s supplier network. Development and production operations will be run from Escada´s center of competence in Florence.
MARCH 2007
TowerBrook buys luxury footwear brand Jimmy Choo
US private equity company TowerBrook Capital Partners has acquired luxury footwear producer Jimmy Choo, paying185 million pounds (280 million Euro) for the purchase. Vendor is financial investor Lion Capital. Jimmy Choo has more than 60 outlets worldwide and its footwear is worn by many famous stars. TowerBrook also has interests in the sports brand Odlo.
Groupe Royer takes over Kickers
French licence brand specialist Groupe Royer has bought the footwear brand Kickers from children´s fashion manufacturer Groupe Zannier. Founded in 1970, the brand was taken over by Zannier in 1988 and in 2006 earned 61 million Euro. With this acquisition Groupe Royer now has an own brand for the first time. To date more than 30 licence brands have been created and marketed. The group´s portfolio includes the brands Converse, von Dutch, Airwalk, Keds and Barbie among others. Further takeovers are planned, states the group, which last year earned about 150 million Euro and sold 25 million pairs of shoes. Almost one-third of the earnings came from abroad.
Increased earnings for WWW
American footwear manufacturer Wolverine World Wide, owner of the brands Wolverine, Merrell, CAT Footwear, Hush Puppies and Sebago among others, increased its earnings in 2006 by 7.6 percent to 1.142 billion dollars. Net profit rose 12.3 percent to 83.6 million dollars (consolidated).
New owner for Yellow Cab
Dutch young fashion footwear brand Yellow Cab, which used to be part of the Royal Shoe Company which went bankrupt in December, has been sold to New Steps, a company owned by three former employees of the Stylmex Group (Wrangler Footwear), Erik van de Donk, Guido Sampon and Patrick van Dal. New Steps has acquired the rights for all markets except North America. As soon as the Yellow Cab brand has been repositioned, New Steps also intends to relaunch the other two Royal Shoe Company brands Bufflox and Koudenberg. Yellow Cab made its debut in 1991 and latterly sold about half a million pairs of shoes throughout Europe.
Gucci: strong growth with footwear
Italian luxury brand Gucci hiked its footwear sales last year by 22.2 percent to 280.8 million Euro. Accordingly this sector was the one with the highest growth within the company. Altogether footwear contributed 13 percent towards the brands total earnings of 2.101 billion Euro (up 16.8 percent).
Deichmann achieves further growth against the trend
In 2006 the Deichmann group continued to show marked growth. Earnings and numbers of shoe pairs sold increased markedly both at home and abroad. Against the trend in the footwear retail trade earnings in Germany rose 7.32 percent to 1.258 billion Euro. By now, according to a company statement, roughly every fifth shoe sold in Germany comes from Deichmann.
Internationally the Deichmann group sold 112 million pairs of shoes in 13 countries in 2006 (against 101 million pairs the year before). This works out at an increase of 10.35 percent (sales space adjusted 6.12 percent). Currency adjusted group earnings grew 10.5 percent (sales space adjusted 5.32 percent) to 2.71 billion Euro (2005: 2.49 billion Euro).
Market leader in Germany and in Europe, Deichmann is intent on achieving further expansion abroad. In 2006 the first shops were opened in Turkey and Slovenia. A communiqué by the company states that it has firm plans to inaugurate its first shops in Sweden, Rumania and Croatia in 2007. In these countries as well the company will appear under the Deichmann brand.The group as a whole will then be operating in 16 countries.The Elefanten and Gallus brands, available in Deichmann outlets since February 2006, have had the wind in their sails too. "The demand for Elefanten shoes markedly exceeded our expectations" was Heinrich Deichmann´s summing up. He announced that the research which had always been a hallmark of Elefanten footwear is to be continued under Deichmann´s auspices. "Re-introduction of the men´s footwear brand Gallus has also been a success".
In September Deichmann inaugurated its 1000th German branch in Hamburg. By the end of 2006 there were 1012 branches. On top of these there are 71 Roland shops. In 2006 Deichmann started a 12 million Euro investment project in Bottrop to expand one of its four German distribution centres and enlarge storage space from 17 000 to 28 000 square metres. Completion is scheduled for the first quarter 2007.
The company payroll in Germany in 2006 rose to 13 100 (2005 : 12 900). At the end of 2006 Deichmann employed some 25 000 people worldwide (2005 : 23 900) in 13 countries in a total of 2185 branches (2005 : 2066 branches). The second most important market is USA. For 2007 Deichmann is planning to open 62 new shops and to modernize some 100 branches. 30 shops are being closed for reasons of site optimization. Planned investments for 2007 in the German network of outlets total to some 34 million Euro.
Tod´s continues to grow
Italian luxury brand Tod´s improved its sales by 13.9 percent to 573 million Euro in 2006. With an increase of 13.6 percent to 357.5 million Euro footwear was the chief earner. The brand Tod´s with 326.4 million Euro (up 13.1 percent) contributed most to aggregate earnings, followed by Hogan with 155.5 million Euro (up 23.3 percent), the apparel brand Fay with 80.9 million Euro (up 7.4 percent) and the just recently acquired brand Roger Vivier with 6.5 million Euro (up 69.7 percent).
Hugo Boss: strong growth in footwear
In 2006 Hugo Boss sold significantly more footwear than in the previous year. Sales of footwear and accessories grew 28 percent to 151 million Euro. Footwear was thus the second strongest growth sector after women´s fashion. On aggregate Hugo Boss increased sales by 14 percent to almost 1.5 billion Euro. Earnings before tax came to 180 million Euro.
Collonil pulls off growth with nano products
Salzenbrodt GmbH & Co. KG in Berlin, maker of Collonil brand footwear and leather care products, reported an almost ten percent increase in sales last year, but gave no absolute figures. Besides moderate growth in Germany, the firm had managed primarily to expand its business abroad. In Russia alone Collonil sales were up 35 percent. The main earners were newly developed products, especially the nano family. Specializing chiefly in footwear and leather care, the company sees the furniture industry, particularly upholstery leather, as a new market.
Belmondo to introduce accessories
Belmondo, a subsidiary of Görtz in Hamburg, is all set to become a lifestyle brand. Following a one-year test phase in which accessories such as bags, belts, scarves and caps were sold in 19 selected Görtz and Görtz 17 subsidiaries with Belmondo shop-in-shops and in the Görtz internet shop, the collection is also to be offered to the retail trade at the start of the autumn/winter season.
Belmondo has been marketing women´s and men´s footwear since 1989. People at the Hamburg headquarters believe that Belmondo´s market and brand potential are not being fully exploited with just footwear. As accessories are thought likely grow in importance for customers in the future and the trend will be towards lifestyle and designer brands, the company intends to make use of the familiar image of its footwear brand to develop an accessories brand. To begin with mainly accessories for women will be on offer. Selling prices will range between 40 and 200 Euro.
Leather training course for newcomers
From 23 until 27 April 2007 the leather institute of the tanning school in Reutlingen will again be running a leather training course. The aim of this course is primarily to take newcomers in the leather retailing, processing and trading sectors through all the basics of leather production, and to familiarize them comprehensively with the properties and uses of the various types of leather. The manifold developments in leather production, i.e. new tanning agents, colorants and auxiliaries, plus those in terms of novel technologies and mechanical processing have transformed the former skilled handicraft into a modern industry. Within the context of these developments leather itself has acquired an in many ways novel and complex image. Its uses, too, not least under the influence of fashion considerations, have constantly changed. And last but not least, leather production and trade are being affected increasingly by statutory rules and regulations on which it is worthwhile to be updated. In its state-of-the-art training tannery the leather institute in Reutlingen can demonstrate all phases of leather manufacture in current production. Building on this foundation, the course moves on to deal comprehensively with the assessment of all types of leather by reference to a comprehensive collection of samples, and finally all modern methods of testing leather are presented.
For further details of the course and application forms contact Lederinstitut Gerberschule Reutlingen, Frau E. Keine, Erwin-Seiz-Strasse 9, 72764 Reutlingen, telephone : 07121/162327, E-mail: lgr@lgr-reutlingen.de.
Bundgaard and Highlander merge
Children´s footwear brand Bundgaard and comfort footwear brand Highlander have merged with effect from 1 February. Henceforward the two brands will be consolidated as Highlander-Bundgaard GmbH headquartered in Goch on the Lower Rhine. Danish Jaco Sko A/S, owner of the Bundgaard brand, acquires 60 percent of the Highlander shares from German Iesse GmbH. Iesse Schuh GmbH retains a financial interest in the Highlander brand but will now concentrate fully on the Haflinger brand, which belongs to the same company.
H&M expands its women´s footwear collection
The launch of an expanded women´s footwear collection by Swedish textile chain store firm Hennes & Mauritz is on schedule, announced H&M in its annual report. The launch is planned for this spring, initially in about 200 stores.
New licensee for Toni Gard shoes
The Dusseldorf fashion label Toni Gard has licensed a partner for shoes. Since December Italian producer Calzaturificio Gritti s.r.l. has been making the women´s shoes for the brand launched in 1965 by fashion designer Toni Lirsch.
Since 4 February the development and manufacturing operations of the Toni Gard company can be viewed at the municipal museum (Stadtmuseum) in Dusseldorf. A comprehensive exhibition, open until 29 April, takes the visitor on a visual tour of the company´s past.
La Perla to offer shoes
Italian fashion brand La Perla is to introduce shoes and to that end has signed a licensing agreement with footwear producer Baldan. The first collection will reach the market in readiness for the autumn/winter 2007/08 season. At the year-end bags will be added to the collection, the licensee here being Mandarina Duck producer Finduck.
Germany´s leather goods trade grew in 2006
Last year was a successful one for Germany´s leather goods trade. BLE, the German leather goods retail association, estimates that, following brisk business over the Christmas period, the branch rounded off the year with a sales increase of about three percent. And that came on the heels of a good performance in 2005, when sales were up some 5 percent.
A gratifying feature is the ongoing trend towards better quality items. While price is still important for the customer, it is no longer the prime consideration for many customers buying leather goods. For particularly hip or high-quality items customers willingly paid respectable prices.
For 2007 the leather trade is confident. Fashionable handbags, luggage and leisure goods continue to attract interest so that, despite the forecast dampening effect of higher value added tax (VAT), there could well be a slight rise in sales this year too.
Karstadt Kompakt becomes Hertie
British investor Dawnay Day intends resuscitating the name of one of Germany´s most tradition-steeped department stores for the 74 subsidiary sales outlets it took over from the KarstadtQuelle group in 2005. The renaming will take place on 1 March, Karstadt Kompakt´s management chairman Kay Hafner announced in Dusseldorf. The rights to the name Hertie were acquired with the purchase of the Karstadt branches.
February 2007
Amazon starts online shop in USA
American online trader Amazon is to start an online shop for shoes and bags initially confined to the USA. Some 250 brands are planned to be on offer at www.endless.com.
Merrew now with apparel
Shoe manufacturer Merrell,a member of the American Wolverine World Wide conglomerate, is launching a textile collection for the outdoor segment. It will be introduced at the Ispo sportsgoods fair in Munich in February and is scheduled to be in the shops from July onwards.
Award for Timberland
US company Timberland has received the German Innovation Trusts "Ei des Columbus" (Columbus egg) award for its innovative Precise Fit system. At the award ceremony the trust paid tribute to the system in question, a set of insoles that optimally matches every shoe to every shape of foot, describing it as an outstanding example of particularly successful innovation. This was Timberlands second award for the system. In July 2006 the technology was honoured by the Industrial Design Society of America with its IDEA Award in the consumer products category.
Since autumn 2006 customers have been able to alter the fit of their Timberland shoes individually. Each pair of shoes comes with a set of insoles of different thicknesses which snap into a removable platform. The thicker insoles reduce the available space inside the shoe, the thinner ones increase it.
Prada buys back Church´s shares
Milan-based luxury goods firm Prada fully owns British shoe brand Church´s again after buying back the 55 percent shareholding from Luxemburg investment company Equinox. Prada had sold the the shares only in 2003 to improve its financial position. Last year the shoe company´s sales were roughly 62 million Euro. The aim is to double the existing 26 Church´s shops within the next three years.
Nike launches on-line shop
An announcement that American sportsgoods group Nike intends to open its own on-line shop (www.nikestore.com) selling direct to customers in Europe has caused a stir in the sportsgoods trade in Germany. Initially Nike is proposing to offer some 1 000 items in 13 countries, all at a non-binding selling price. On top of that there will be a flat delivery charge of 6.96 Euro, so the goods will be more expensive than in stores, according to Nike. There will also be 4 two-week-long special offer sales a year, selling five percent of the collection at a 30 percent discount. The company´s sales projection for the next 18 months is seven million Euro, which amounts to about one percent of Nike´s business turnover in this region.
Strellson award licence for footwear and accessories
Swiss fashion and lifestyle company Strellson has awarded a license for footwear and accessories to Müller & Meirer Lederwarenfabrik GmbH in Kirn. In consequence Strellson´s product portfolio will be extended by the addition of footwear, bags, travel luggage and small leathergoods. Cooperation started on 1 January 2007, focussing on | |
