Business News September 2018

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

Oldest shoe factory in France threatened by closure.

The oldest French shoe factory is threatened by closure. The executive board of the Compagnie Vosgienne de la Chaussure (CVC) located in Champigneulles had recently announced to suspend the wages for the 130 employees. On 31st July, the commercial court will examine the financial situation of the enterprise. According to the media the enterprise is experiencing monthly losses of 500,000 Euros. Roughly 350,000 pairs of ladies’ shoes are produced per year.

Puma on the rise

Sports goods manufacturer Puma from Herzogenaurach has reached a turnover of 1,049 billion Euros in the second quarter, a plus of 8 percent compared to previous year. “The second quarter has developed positively”, Chairman of the board Björn Gulden said. With constant exchange rates the proceeds have even risen by 15 percent. In the second quarter, the surplus has increased by 42 percent to 31 million Euros.

87 percent of all shoes come from Asia

2017 has been marked by a positive dynamic in the worldwide shoe industry. After two years of stagnation, production as well as exports grew again. The data derived from the World Footwear Yearbook 2018 that is being issued by the Portuguese shoe association “Association”. The growth was driven by a combination of factors: increasing consumption in the most important Asian production countries, increase in exports to industrial countries as well as an increase of average export prices.

In total, 23.5 billion pairs of shoes have been produced, two percent more than in previous year. This may not yet be the rapid growth speed as of the years between 2010 and 2014 (+ 15.4 percent), but it is a return to a positive dynamic. Geographically the production continued to focus mainly on Asia where 87 percent of all shoes are being made.

Every third shoe dealer sells online

Almost a third of all shoe trade companies – also thanks to the branch specific middle class oriented shoe platforms like schuhe.de or schuhe24.de – is active in the online business in some form. This is the result of a survey made by the federal association of the German shoe retail trade (BDSE). The dimension of the online selling activities, however, is highly different. Two thirds of the stationary companies that also sell on the internet, so far achieve only an online turnover share of less than five percent.

Fashion trade leading in the online trade

The branch structures in the online trade differ from the ones of the stationary trade. While Fast Moving Consumer Goods (FMCG) have the biggest share in the retail trade of the stationary trade with 42.5 percent, the biggest shares in the online trade are Fashion & Accessories (25.1 percent) and CE/electronics (24.8 percent).