2018/07/31

Business News August 2018

TFL publishes every month business news with focus on the leather industry, on a worldwide basis.

Steitz Secura wins German Brand Award

Safety shoe manufacturer Steitz Secura has been awarded the renowned German Brand Award 2018. The enterprise from Rhineland-Palatinate has been elected in the category “Excellence in Brand Strategy, Management and Creation Brand Design”. Steitz Secura has radically changed its brand design which is now featuring a compelling cross-media presentation.

ISC: 10 years old

On 27th June, the International Shoe Competence Centre Pirmasens Ltd (ISC Germany) had reason to celebrate: The company located in Pirmasens turned ten. The ISC Germany stands for practice oriented transmission of specialist knowledge for the international shoe and leather industry. Besides a research and development centre including a sample shoe factory, the offer comprises consulting focusing on quality management, product and process optimisation as well as a knowledge database. The ISC is a non-profit organisation and 90 percent are owned by the neighbouring Prüf- und Forschungsinstitut Pirmasens e.V. (PFI). The federal association of the German shoe and leather goods industry (HDS/L) and the City of Pirmasens own 5 percent each.

Shoe market grows thanks to Sneakers and e-commerce

The shoe market in Germany continues to experience a stable growth: With a plus of 1.3 percent the turnover volume 2017 rose slightly to 9.8 billion Euros. Thus, the shoe market was slightly above the average annual development since 2011 (+1.1 %). This has been shown by the new “branch focus shoes” by IFH Cologne and BBE Trade Consulting. Especially the internet sale of sport shoes, pumps etc. makes the branch more dynamic. Thus, turnover gains in the online trade 2017 are 64 million above those of the total market, the stationary trade, however, experienced a loss in turnover. The specialist trade is still leader in the branch with 63.5 percent of the market shares but has lost seven percent since 2011 – a development that could possibly continue in the future.

New date for Moda made in Italy

The Moda Made in Italy has announced next year’s dates. The shoe fair will take place from 24th to 26th March and 6th to 8th October in the MOC Order Centre in Munich. While the event, organized by the Italian manufacturers association Assocalzaturifici, will take place in March as usual and simultaneously with the Essenz (also in Munich), it will shift its autumn date by a week. The organisers of the Essenz had recently announced to let their fair take place a week earlier from 22nd to 24th September. Thus, the two shoe fairs, that have so far taken place simultaneously, will have separate event dates. Germany is the second biggest foreign market for Italian shoe manufacturers after France. In 2017 roughly 34 million pairs of shoes worth more than a billion Euros were exported to Germany (+2.7% compared to 2016). In the first quarter of this year the exports to Germany rose in quantity by 3.2 percent and in value by 1.6 percent.

Inditex: online growth

The Zara mother Inditex achieves 12 percent of its turnover online in the countries where it operates online shops. This was announced by CEO Pablo Isla during his speech during the general meeting of the enterprise. The e-commerce turnover of the group rose by 41 percent in the fiscal year ending in February and thus amounted for ten percent of the total turnover of the enterprise. In total, Inditex is operating online shops in 49 markets. For the next years Isla announced investments in the sectors technology, logistics, branch network and online expansion. This year the enterprise wants to invest 1.5 billion Euros. In total Inditex is operating 7,475 businesses in 96 countries. The group turnover rose by 9 percent to 25.34 billion Euros. The net profit amounted to 3.37 billion Euros.

SABU gains turnover

The turnover of the SABU Schuh & Marketing Ltd in the first half year is clearly above previous year. The group of associated companies from Heilbronn was able to rise the central regulation volume by 4 percent to 175.4 million Euros till the 30th June (previous year 168.8 million Euros). The positive turnover development is mainly due to the organic growth of existing members of all business and turnover volumes. The first half year 2018 in the shoe specialist trade was characterised by weather and turnover extremes. Thus, the trade turnovers in the associated companies had developed very differently. In average, the SABU members recorded an accumulated minus in turnover of six percent and were thus in line with the branch trend. 750 companies with more than 1, 100 selling points belong to the SABU group. The retail trade turnover of the associated companies was nearing one billion Euros.

Another record quarter for Skechers

Shoe manufacturer Skeches USA has achieved another record turnover in the second quarter. The turnover rose by 10.6 percent to 1.134 billion US Dollars (975 million Euros). The growth was mainly driven by the international whole trade turnover with a plus of 24.9 percent. In total Skechers achieves meanwhile more than half (51.6 percent) of its turnover abroad. “With the resurrection of retro looks and Skechers D’Lites we’re the cause of one of the hottest trends in the shoe sector” says CEO Robert Greenberg. In the first six months of the year Skechers achieved a record turnover of 2.38 billion dollars (2.05 billion Euros /+13.6 percent). “Our biggest international markets – Canada, China, South Korea, Germany, India and Great Britain – achieve a two-digit turnover growth in the second quarter confirming our global strategy” says COO David Weinberg. in the US market, however, Skechers had to register a decline of seven percent in the wholesale trade.