30 Jul FDRA Releases Robust 2014 Footwear Sourcing Assessment at Footwear Sourcing Summit in New York
Today, the Footwear Distributors and Retailers of America (FDRA) published its annual Global Footwear Sourcing Assessment (link to report below). As in years past, the 2014 annual sourcing report is full of statistics and data vital to helping sourcing and supply chain professionals in the footwear industry understand sourcing shifts and upcoming challenges. The 23-page report covers major countries manufacturing footwear for U.S. consumers and the challenges and risks each pose to distributors as well as retailers now producing private label footwear.
The report was released to 100 footwear sourcing executives and directors at FDRA’s Sourcing Intelligence Summit at H.H. Brown’s showroom in New York. The two-day conference, the only of its kind for footwear, was focused on footwear compliance, supply chain and sourcing challenges and solutions.
“The 2014 Global Footwear Sourcing Assessment is more robust than reports we have done in the past because challenges are greater and evolving more quickly. Footwear sourcing managers and directors are asking FDRA for more support and information than in years past so we more than doubled the analysis from our 2013 report,” said FDRA President Matt Priest. “One of the interesting things we did this year was both a 10,000 foot view of footwear production at a global level AND a deep dive where we provide one page analysis for seven specific countries of interest to our members. These country profiles include information on surveys of members and quotes from executives to help explain what is happening in that country related to footwear.”
“FDRA’s 2014 Sourcing Assessment report is groundbreaking,” said Peter Hohensee, Senior Director of Product Development, Sourcing and Logistics at Rack Room Shoes. “This is in essence the sourcing guidebook for the industry. It provides a good overview of sourcing issues, but also goes in-depth to help provide a good foundation of knowledge for those looking for new sourcing options outside China.”
“FDRA’s monthly sourcing and compliance newsletter, import data reports and footwear commodity analysis has helped all our brands and sourcing teams clear away the clutter and get a better grasp on sourcing and compliance challenges and solutions. This report compliments FDRA sourcing services and adds some great insights that are vital to sourcing and compliance managers at both large and small companies,” said Desmond Wong, EVP Operations, the Topline Corporation (Steve Madden’s sourcing team).
FDRA Members Can Download A Copy of the 2014 Sourcing Assessment Here
(if you do not know your user name or password, please email Andy Polk)
Non-members can purchase a copy for just $299 by contacting FDRA at email@example.com
Key analysis from the 2014 Sourcing Assessment report include:
Footwear Costs Rose Slightly in 2013 – Average landed costs increased in 2013. Tariffs continue to push up costs on consumers significantly. Tariffs and rising costs in the supply chain are pushing companies to source more from inner China and in non-traditional footwear production countries to keep costs low.
China Market Share Continues to Drop – China continues to shed footwear production by volume as it supplied 81% of footwear imports in 2013. Vietnam is gaining the most from this drop.
Vietnam Shows it has Capacity – Just a few years ago some sourcing experts questioned if Vietnam were a real alternative to China for footwear production due to the lack of capacity. Questions have been answered as Vietnam continues to produce more and more footwear for U.S. consumers. Vietnam footwear exports were up 20% over 2013 and the country now produces 10% of all U.S. footwear imports.
Cambodia and Ethiopia Growing Significantly – Although from a small base, footwear exports continue to show strong growth out of emerging countries like Cambodia and Ethiopia. Imports grew 60% and 140% from these two countries respectively.