Vietnam’s footwear industry likely faces added woes

(Original Source: SGT) – Posted 4 July 08

03 July 2008

The Association of Footwear Producers of Italy as an EC member will likely ask the commission to extend the anti-dumping tariff deadline.

VietNamNet Bridge – Vietnam’s footwear industry, yet to relieve from the European Commission (EC) decision to strip it off the preferential tariffs, will likely face the added woes of extended anti-dumping tariff imposed on shoes with leather upper parts, an industry source said. Read further Story

The Association of Footwear Producers of Italy as an EC member will likely ask the commission to extend the anti-dumping tariff deadline, according to the Vietnam Leather and Footwear Association, or Lefaso.

Lefaso chairman Nguyen Duc Thuan said that the anti-dumping tariff had been applied since 2006, and would be automatically removed on October 7 in case the EC receives no appeal from any of its 27 members by July 7 this year. He said that the Italian was preparing a formal appeal.

If the appeal is submitted, it is possible that the EC will reinvestigate Vietnam’s leather footwear products for 15 more months. And if this unwanted case occurs, it means that the country’s leather and footwear industry will continue facing the anti-dumping tariff for at least 15, more months, Thuan told the Daily.

On June 13, the country’s leather and footwear enterprises received unwanted news when the EC decided to remove Vietnamese-made footwear from its Generalized System of Preferences (GSP) which will probably be implemented since early next year.

The removal of GSP for Vietnam is said to cause difficulty and negative impacts on domestic leather and footwear enterprises as their products win have to compete harsher with items from other exporting countries.

However, Thuan expressed his optimism, saying that the anti-dumping tariff might not be extended and recommended enterprises to keep calm. He added that Lefaso and officials of the Ministry of Industry and Trade have been in talks with EC officials to have the anti-dumping tariff removed as soon as possible.

Meanwhile, local makers are also seeking the Government’s approval for slashing import tariffs on shoe materials and accessories to as to bolster local enterprises’ competitiveness.

Diep Thanh Kiet, vice chairman of HCMC Shoes and Leather Association, told the Daily that the association last week had sent a petition to the Ministry of Industry and Trade to ask for a reduction of the import tariff on finished leather materials to 5% from 10%.

If the petition to halve the tariff is approved, it will help the city’s leather and shoes enterprises to overcome the hardship, especially when the GSP is removed early next year and in case the anti-dumping tariff is extended, according to Kiet.

“The reduction of import tariff on leather materials will make the country’s footwear and leather industry more competitive with the rivals in the region as well as in the world in the future,” Kiet said.

At the moment, Vietnam’s footwear industry is heavily reliant on outside materials, as some 75% of its demand for material is imported from other countries.

Last year, the industry obtained total export revenue of some US$3.9 billion, with the European market along contributing some 54%.

The country expected to reach total export turnover of US$4.5 billion in 2008, an increase of 17% compared to last year, and also expected to attain an export turnover of some US$6.2 billion by 2010.

Vi-Ga Footwear bags Best SME Award 2007

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July 01, 2008 (India)

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Vi-Ga, one of the fastest growing footwear company has won the Best SME Award 2007 organized by the Indian Chamber of Small and Medium Business Limited. This Award, which is the highest honour in the SME Chamber, has been conferred on Mr. Vinayak Mahtani, CEO, Vi-Ga for his tremendous contribution to the SMEs.

Vi-Ga was awarded the trophy of the National level SMS Excellence Award 2007, by the Small & Medium Business Development Chamber of India on the occasion of 6th international conference on SME Financing, Better Banking Regulation and Integration of SMEs.

Dr. C. Rangarajan, Chairman, Economic Advisory Council to Prime Minister while handing over the award said, “Vi-Ga has firmly established itself as a leading player in the retail footwear category in the country. Vi-Ga has built an incredibly successful business from scratch, one which has had a truly transformational impact on our industry, on the customers it serves and on India’s economy.

Mr. Mahtani’s brave and ambitious strategies will continue to resonate across the country, our industry and the business community globally, becoming a benchmark for emerging footwear markets worldwide. We congratulate Vinayak Mahtani, on what has been an immense personal contribution to the vitality of the Footwear world.”

On the receiving the award Mr. Vinayak Mahtani said, “This is a tremendous honour and I would like to thank the Chamber of India for considering us worthy of this award. This award is a tribute to the SME integration in India, Vi-Ga’s vision and the emergence of Retail boom on the Indian horizon. It has been a privilege for me personally and Vi-Ga to have been a part of this revolution that has delivered affordable services for all and has contributed to the lives of millions across India.”

“We are delighted and honored to receive this prestigious award from Government of India. We would like to thank our customers for their strong support in a short span of three years and we will continue to focus on bringing high fashion, quality products throughout the region with the vision to provide international fashion at pocket friendly prices.” Added Mr Mahtani

In the quest for the unique and unusual Vi-Ga describes itself the finest for the fashion footwear at affordable prices for the entire family. All the buying for Vi-Ga happens internationally as well as nationally with designing teams in Dubai, Düsseldorf, Delhi & Singapore. A strong growing retail presence in North of India, Vi-Ga aims to provide “fashion footwear at affordable prices” to the fashion conscious patrons.

Vi-ga, ‘good shoes better prices’ is famous and enjoyed for its variety available in accessories like bags, wallets and footwear. Vi-Ga, has categorized its extensive range into sub-brands like Maharani, Page 3, Logo, Easy step, Fifth Avenue, Victory for ladies; Logo, Wall Street, Victory, Easy Step, Wanted for Men whereas Junior, Ms. Attitude, Mini,Victory for kids each catering to exclusive categories & designs.

Mr. Chandrakant Salunkhe, Chairman, SME Chamber of India said “ He is now extending his business plans to Indian retail on the pan India basis by opening 100 more stores in India by 2010. I just know he will do for this sector what he has done for the Indian Retail – and Indian consumers will be the big winners.”

CHINA: 100-store target for China Shoe

30 June 2008 | Source: just-style.com

Footwear maker China Shoe Holdings has provided more details of its retail expansion in China, where it hopes to open up to 100 stores in the Shanghai region this year followed by a nationwide roll-out programme next year.

As of today the company has opened nine stores under its CCR brand with six more underway, and two stores under the company’s Kanggies brand. Read more…

Skills & Low-cost Benefits Underpinning China Footwear Industry

July 1, 2008

Source: PR Minds/ For complete Report

With advantages of low production cost and technical skills, China is expected to remain the world’s largest producer and exporter of footwear, says RNCOS report.

According to “China Footwear Market Analysis”, a new market research report by RNCOS, the footwear production industry is now shifting towards Asian countries due to the huge availability of raw material and low cost of production in these countries, especially in China, the largest footwear producer.

As per the report, a large pool of skilled labor available at substantially low cost in China is proving advantageous, particularly for the labor-intensive industries such as footwear and leather goods manufacturing. Also, China is one of the lowest cost footwear producers among the major footwear producing countries, says the report. In addition to low-cost, the country also boasts of the largest technically-trained human resources in leather craft across the globe.

Apart from this, operating conditions in the Chinese footwear industry also distinguish it from other countries. The footwear industry is not restricted by ethical issues and red tape and gains from the protective political rule with rather compliant workforce and low labor unrest.

Supported by the technical skills and low cost benefits, China has gained a competitive edge over its competitors, becoming the largest exporter of footwear worldwide. And in the absence of a close competitor, the country is expected to retain its status of the largest footwear exporter in near future.

The research study “China Footwear Market Analysis” provides detailed analysis and data on the footwear industry of China to help client in identifying the opportunities to tap in the Chinese footwear industry. It presents a rational and objective forecast on per head disposable income and volume of footwear retail sales in the country. The forecast given in the report is based on a correlation between past market growth and growth of base drivers and gives a direction to clients in which the industry is likely to move.

Spencer`s goes for image makeover – Plans Footwear Range

Source:

June 30, 2008

According to a new report in Business Standard Spencer’s Retail is planning for private labels in fashion accessories as well as footwear brand Mark Nicolas for men and women

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Pradipta Mukherjee / Kolkata June 30, 2008

Spencer’s Retail, the Rs 800-crore retail arm of the RPG Group, will expand its range of fashion merchandise with the launch of private labels as well as foreign apparel brands, in an attempt to revamp its image as a fashion-centric brand instead of just a food retail chain.

“We have always been known as a food and retailing brand. We now intend to change our image and tap the fashion segment as well,” Samar Singh Sheikhawat, vice-president (marketing), Spencer’s Retail, said.

Currently, the sale of fashion merchandise makes up 10 per cent of the total revenues of Spencer’s Retail.

“We expect sale of fashion merchandise to contribute 25-30 per cent to the overall revenues by the end of March 2009, when the company will have a turnover of Rs 2,000 crore,” Sheikhawat said.

Spencer’s fashion offerings will be positioned as ‘affordable’, with prices in the range of Rs 199 to Rs 1,000.

To begin with, the fashion merchandise will be available only in Spencer’s large-format stores. It will allocate 25 per cent of the 25,000 to 70,000 sq ft space in such stores to fashion merchandise, up from 10 per cent now.

The company will introduce its private labels in apparels like Island Monks (casual wear for men and women), Mark Nicolas (formal wear), Scorez (sportswear), Detailz (basic wear), Asankhya (ethnic and fusion wear), Puddles (for children up to two years of age) and Little Devils (for children between 2 and 14 years).

Spencer’s will also launch private labels in fashion accessories under the brand U n I, comprising bag, junk jewellery, leather items, belts, etc, as well as footwear brand Mark Nicolas for men and women. It will also launch larger sizes for plus-sized adults.

The company is restructuring its marketing team to include more designers and people with experience in fashion merchandise retailing. “The designers will be selected from design schools in India, while the manufacturing will be handled by third-party contract manufacturers,” Sheikhawat said.

Going forward, Spencer’s also plans to host fashion shows of the stature of ‘Lakme Fashion Week’ or ‘Wills Fashion Week’.

Apart from its private labels, the firm is also looking at bringing two apparel brands from the UK and the US to India this year, one of which will be for children and the other for grown-ups. Both the brands will be allotted close to 2,500 sq ft each and will be retailed in a shop-in-shop environment inside Spencer’s large-format stores.

Reebok on expansion spree, to open 230 stores in FY’08

Source: PTI/ Economic Times/ Business Standard

New Delhi June 30, 2008

Link   Economic Times; Business Standard

Global sports wear brand Reebok today said it is on a major expansion in India which would see the company open one store in almost every two days, taking the total number of stores to 850 by the end of 2008-09.

“The company, which currently has 620 stores across the country, is going for a substantial increase in its distribution, which will see its sales going up by 30 per cent per annum,” Reebok India Managing Director Suvhinder Singh said.

“Besides consolidating our existing position in metros and tier I cities, we are also going for a major expansion in tier-II and tier-III and lower-tier cities, he added.

However, he refused to divulge any investment details.

“It is not the company’s policy to reveal investment and sales figures,” he said on the sidelines of the Pure & Play Retail Summit here today.

The company has grown six-time in the last five years and controls 53 per cent of Indian footwear market, Singh said, adding that they would be also bringing in new products.

“We want to maintain the current position and bring new innovation and formats in various segments. We are bringing out 20 new footwear models every quarter, besides a new apparel in every 45 days,” he said.

Reebok is also planning to open specialised junior stores for its young customers. As many as seven such stores will come up in Hyderabad, Mumbai and Delhi among other cities.

The company would be aggressive on its marketing strategy as it plans to expand its business in the country.

“As part of our marketing strategy we have roped in Bollywood stars and cricketers as means of communication platform as Indian customers have a tendency to associate with them,” he said, adding that the company wants to utilise this for expanding into smaller cities.

Koutons scouts for partners in Middle East to form JV

Posted 30 Jun, 2008,

Source :

Article in ET on 29 Jun, 2008,

NEW DELHI: Apparel chain Koutons Retail is scouting for partners to form a joint venture as it looks to expand in the Middle East with about 25 outlets in the region by 2009.

The company has earmarked Rs 40 crore for rolling out the stores, the first of which would come in Dubai this year. Koutons Retail is also gearing up to diversify its business with plans to launch a range of footwear collections for men and kids by October this year, besides increasing number of outlets in the domestic market.

“We are in discussion with three companies in the Middle East for rolling out our stores there. We are looking forward to establish joint ventures in the region, where we will keep the majority stake,” Koutons Retail India Ltd Chairman DSP Kohli said.

The designing, branding and production would be done by Koutons, while the local partner would be responsible for supply chain management and logistics, he added.

Without divulging the possible partners’ name, Kohli said: “We are planning to set up about 25 outlets by the end of next year in the region and it can entail an investment up to Rs 40 crore. The first store will be opened in Dubai this year.”

The stores would target the requirements of Indians living in the Middle East countries, he said. Besides Dubai, the company is also looking at other cities with considerable Indian population, like Abu Dhabi, Sharjah and Doha. It would also expand its footprint to Qatar and Iran, Kohli said.

The company would enter the Chinese market by the end of this year, besides plans to enter in the European market, he added.

The Gurgaon-based firm has also planned to launch its footwear range for men and kids by October in the current year. “We will come out with our footwear range for men and kids by October this year as part of our strategy to offer complete range of wardrobe and accessories to the customers under one roof,” Kohli said.

The apparel manufacturing company would source footwears from China as well as from the domestic market, he added. The company is planning to increase the number of its retail outlets to 1,800 by the end of current fiscal from the present 1,280.

“Our growth this year will mainly be driven by our expansion in the ladies and kids wear segment under Le Femme and Junior brand names,” he added.

Out of the current 1,280 stores, over 691 stores are exclusive shops, while the balance are Charlie Outlaw stores. Koutons Retail is targeting an over 50 per cent jump in its revenue in the current fiscal to Rs 1,250 crore from Rs 793 crore in 2007-08.

When asked if the spiralling inflation and the surge in cotton prices would lead to any hike in the prices of its products, Kohli said, “Right now we have enough stock, but if the rising prices do not cool down by next year, we might think of raising the prices of our various products then.”

The company had raised about Rs 100 crore through initial public offering (IPO) last year.

When the shoe fits the pocket

No woman who buys Jimmy Choo or Prada is buying comfort or taking care of the arches of her feet. Often, she is actually buying discomfort, given how high the heels can be. Admittedly, there are shoemakers-Manolo Blahnik and Christian Louboutin, for instance? Read

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Wear shoes that are even slightly tight, and you will be unable to stand. Try running in shoes that are not meant for that purpose, and your feet will hurt for weeks

Pursuits | Vir Sanghvi Posted: Fri, Jun 27 2008

After all my sneering about women and handbags in previous editions of this column, I now have to try and defend the male of the species. I’ve always found it extraordinary that women are prepared to pay as much for a handbag as the rest of us would pay for a small car. It isn’t that the bag itself is particularly expensive to make. Markups of 800% or more are routine. But clever marketers have persuaded women that an ‘it’ bag or a limited edition handbag are so desirable that the prices should bear no relation to the cost of manufacture.

For happy feet: Gucci shoes for men can cost as much as a Louis Vuitton purse. Photograph: Harikrishna Katragadda / Mint / Gucci Showroom, The Oberoi, New Delhi

Many women have pointed out to me that such sneers could easily be directed at men as well. Sure, we don’t use handbags. But we do wear shoes. And unscrupulous marketers are able to extract such high premiums from vain men that we seem almost as foolish as the women who pay thousands of dollars for bags.

I have usually retorted, in defence of men, that shoes are a complicated business. A handbag started out as a convenience but soon became an adornment. Shoes, on the other hand, are essentials. You can’t really leave the house barefoot. And because we wear shoes for most of the day, it is important that they fit perfectly. Wear shoes that are even slightly tight, and you will be unable to stand. Try running in shoes that are not meant for that purpose, and your feet will hurt for weeks.

So, I have argued, there is no parallel between bags and shoes. When a woman pays $5,000 (around Rs210,000) for a designer handbag, she is buying a status symbol. When a man splashes out on a $500 pair of shoes, he is buying a lifetime of comfort and investing in the future of his feet.

Well, yes and no.

Take the arguments that I offer on behalf of men and their shoes and turn them around to defend women and their Jimmy Choos. Suddenly, you begin to realize quite how hollow they are. No woman who buys Jimmy Choo or Prada is buying comfort or taking care of the arches of her feet. Often, she is actually buying discomfort, given how high the heels can be. Admittedly, there are shoemakers — Manolo Blahnik and Christian Louboutin, for instance — who do pay attention to the balance of a ballet pump and ensure that their shoes remain light on the feet. But rarely do women buy their shoes for comfort alone. Even with Blahnik and Louboutin fans, the primary motivation is fashion and, perhaps, snob value.

Sadly, the same is true of men. I am as willing as the next guy to admire a nice pair of Gucci loafers or to marvel at Prada’s ability to set fashion trends in footwear. But even I do not believe that somebody who shells out hundreds of dollars for Prada or Gucci is terribly concerned about comfort. We buy the shoes because they look nice.

And when we have to explain to ourselves how we can justify buying shoes that are three or four times more expensive than ordinary high-street brands, we swallow deeply and argue that, of course, for Prada, Gucci and the like, one has to pay a little bit more.

So, are we so very different from the women who crowd the Louis Vuitton boutiques looking for the latest limited edition bags of each season?

Regrettably: No, we’re not.

Are we being duped? Should we refuse to buy into the great fashion footwear scam?

Well, that’s an individual decision. And I don’t think that any absolute rules apply. Nobody is going to rot in hell for eternity because they bought a pair of Prada shoes on impulse. We’re all entitled to our luxuries.

Speaking for myself, however, I find that I spend less and less money on shoes these days. This is not because shoes are unimportant. Quite the opposite in fact. It’s because they are too important a matter to be left to fashion.

A few years ago, I worked out that when it came to shoes, only three things mattered: the quality (leather and workmanship), the fit and the look. I found that with designer shoes, the look was always right but neither the quality nor the fit were necessarily what I was looking for. Often, the trendy brands would sacrifice a comfortable fit in the pursuit of a fashionable look. The leather was never bad. But rarely was it particularly special. And as for the workmanship, shorn of the marketing hype, designer shoes were essentially industrial goods, manufactured in huge factories in vast numbers.

So, I decided to work backwards. If I was looking for quality workmanship, where should I go? The obvious answer was to avoid the global labels with their mass production. I found a small Thai label called Ragazze which made fashionable shoes of high quality and still managed to sell them at one-fourth the price of the high-fashion labels.

Then, couple of years ago, I thought more about it. If the Thais could do it, then surely Indians could do it as well. Why didn’t I find somebody who would make my shoes for me by hand?

Fortunately, I rediscovered Joy, a label I remembered from my Bombay days. I’ve known Munna Jhaveri, its owner, for decades. Somehow, it never occurred to me to get him to make my shoes. But once I made that jump, it seemed entirely logical to put my feet in his hands.

So now, Munna makes all my shoes and sandals. They are made to my exact size (my feet are broader than average), I choose the leather, Munna and I work out the styles together, and Joy’s workmen produce world-class shoes in a fortnight to three weeks.

The best part? I wish I could say it came from the pleasure of encouraging traditional craftsmanship or of wearing shoes that fit as only custom-made footwear can.

Actually, the best part is the price. At a time when all the foreign labels are setting up shop in Mumbai and selling very ordinary, industrially manufactured shoes at upwards of Rs20,000 a pair, Munna makes me bespoke shoes at a fourth of their price.

That is one of the pleasures of living in India. You get world-class quality, without the hype and handmade to your requirements — at a very Indian price.

Write to Vir at pursuits@livemint.com

Footwear Exhibition in Pakistan

Footwear Exhibition in Pakistan

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Footwear exhibition

Date 28 June 08

Commerce Reporter

LAHORE: All is set for the opening of the Pakistan’s biggest footwear exhibition here at a local hotel from June 28 to 29.

Federal Minister for Commerce Chaudhry Ahmad Mukhtar will inaugurate the 10 th Pakistan International Exhibition.

The fair is organised on annual basis by Pakistan Footwear Manufacturers Association (PFMA) and sponsored by Trade Development Authority of Pakistan (TDAP). PFMA Chairman Nasir Anwer stated that many local and international firms are exhibiting their products.

As many as 70 top international buyers from Azerbaijan, Bangladesh, Canada, China, Germany, Greece, India, Italy, Kenya, Kuwait, Muscat, Malaysia, Poland, Saudi Arabia, Spain, UAE, UK, and Uzbekistan have confirmed their participation during the 2 days of the exhibition.

Not so happy feet

Source: Hindustantimes.com

Article in Hindustan times conveys why Foot need to be taken care of during Summers.

Complete story

Neha Sharma, Hindustan Times

Mumbai, June 28, 2008

Enough of patting sunscreen on your face. Believe it or not, your feet need it more. If you are one of those who frequently wear flip flops or open sandals, then you are at the risk of developing skin cancer. Dermatologists say that this part of the body is most susceptible because it is often ignored.

Dr Shehla Agarwal, consulting dermatologist, says that fear of tanning compels many to apply sun-block creams or lotions on their face and arms.

The feet remain unattended to. If they apply sunscreen to their feet, they immediately slip into sandals and the cream is wiped out.

“In winters, our feet are kept safe inside shoes. Then they are suddenly exposed to extreme sunlight in sum mer. Fair skin is more vulnerable to cancer,” says Agarwal.

Acral melanoma (cancer of feet and hand) though not very common, affects Indian skin too, she warns. It emerges like a bruise and is often ignored.

The bruise does not fade, it appears and disappears. Then the toe nail lifts up or separates from the skin or, there is a black streak on the nail.

That’s the danger sign. As far as possible, try to wear socks with footwear, advises Dr Anup Dhir, senior cosmetic surgeon, Apollo Hospital. “In the west, they have introduced UV radiation-free clothing,” he informs. “If possible, we can also adopt such clothes.”

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