Cheaper footwear imports make an impression — in C - footwearbiz: Lead

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Cheaper footwear imports make an impression — in China

20/01/2011
The China Leather Industry Association (CLIA) has reported that a Chinese consumer, Mr Zhang, recently made an enquiry about footwear prices in China. He said he had been surprised to find the same style of shoe bearing the name of the same major US-based sports and outdoor footwear brand in a local sportswear store at two different prices.

His in-store enquiry revealed that one pair, made in China, was selling at more than $200, while a similar pair, made in Vietnam, was priced at only $150.

According to the CLIA report, Mr Zhang was so intrigued that he approached an industry expert to ask the reason. The answer was that prices of Chinese-made goods are higher because production costs went up in 2010. The CLIA report said production costs rose by “at least 30% in China” last year, and that labour costs there, even at the lowest levels, are much higher than in rival manufacturing countries, including Vietnam, Bangladesh and Indonesia.

However, the industry expert explained that these countries will be unable to replace China in the global footwear manufacturing sector, at least in the short term, because of advantages China perceives itself to have in management, supporting industries and skill-levels.

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