Casual Footwear

China is the world's largest producer of casual footwear, exporting 6 billion pairs worth US$13 billion in 2003. Export growth is rising 15 to 30 percent per year.

Now, you can narrow the list of suppliers who best meet your needs in this booming industry, with in-depth profiles — available nowhere else — of China's leading manufacturers.

Plus you'll get a complete overview of the industry — from price trends to production capacities, export markets to research and design developments.

This is one-of-a-kind information you can use to evaluate new suppliers, benchmark current ones and find new sourcing opportunities to help your business grow in the year ahead.

What you'll get

Deep profiles of 15 leading manufacturers based on personal factory visits and exhaustive interviews with senior managers

Short profile tables of 55 additional suppliers with core sourcing information such as production capacities, output ratios and export capabilities

The results from Global Sources' latest casual footwear supplier survey that summarize makers' projections for the next 12 months

A comprehensive industry overview outlining current and future trends

Analysis of how footwear suppliers are coping with rising raw-material costs and other increases in operating expenses, and the effect of these on product prices

This report covers: comfort shoes, sandals and clogs, and casual boots

How you'll benefit

Understand the vital role that China's footwear export industry plays in the global market, and the implications of quota removal for both large and small suppliers

Discover which producers are investing substantially in R&D to enhance comfort and breathability, reduce shoe weight and increase durability

Find out what steps manufacturers are taking to upgrade quality and improve production techniques

Get insights into the latest trends for upper, midsole and outsole materials, including the growing popularity of phylon and TPR

Executive summary

Accounting for 60 percent of global output in the line, China is the world's largest producer of casual footwear. In 2003, the country exported 6 billion pairs, worth US$13 billion. Its main export markets are North America, the EU and Asia. The United States alone absorbs US$5 billion worth of China-made footwear each year.

China's casual footwear suppliers offer walking and comfort shoes, sandals and clogs, and casual boots. Walking and comfort shoes are the biggest line, making up 42 percent of export production. Sandals and clogs account for 32 percent and casual boots 26 percent. Only around one-third of China footwear suppliers produce boots.

Suppliers make uppers mostly from genuine leather, PU, PVC, nylon mesh, microfiber and canvas. Soles come in EVA, phylon, TPR, PU, PVC, Modal, Texon, cork and rubber.

China's casual footwear export industry has been growing steadily in recent years, and the trend will easily continue. Suppliers are registering 15 percent to 30 percent annual export growth.

In a Global Sources Supplier Survey featured in this report, almost all companies forecast increased sales in 2005. The EU was listed as a market with export growth potential by the majority of respondents. Over the past two years, China makers eager to increase orders from Europe have taken steps to meet the EU's restrictions on azo dyes and toxic glues.

Production capacity in the industry is also expanding. More than two-thirds of the 70 suppliers in this report have launched plans to boost production capacity by upgrading equipment, increasing factory size or building new plants.

Mainly due to rising material costs, but partly because of increased plant expenditure, nearly half of the companies interviewed plan to hike product prices in coming months to maintain profit margins. But to keep an edge over competing countries such as India, Vietnam and Indonesia, suppliers in China are minimizing price increases while improving quality and developing value-added designs.

R&D teams are focusing on improved comfort, lighter weight and more features. The largest makers have 100 R&D and design technicians and spend around US$2 million on R&D work each year, launching 1,000 new designs annually. The Products section of this report includes price guidelines for walking/comfort shoes, sandals and clogs, and casual boots. Moreover, the report features a 146- model Product Gallery with details of popular export models.

OEM is the core business of the industry. China suppliers produce casual footwear for such companies as Wal-Mart, Nautica, Nike, Converse, Diadora and Chiyoda. More and more, however, makers are increasing their in-house design capability, and as part of this are releasing in-house brands.

Industry overview

The world's largest producer of casual footwear, China has more than 4,000 manufacturers, about 400 of which export directly. The country accounts for 60 percent of world output in the line. Exports for 2003 reached US$13 billion and 6 billion pairs. Twenty-percent export growth has been sustained in each of the past three years, and a stronger increase of 25 percent to 30 percent is expected in 2005 after quotas in the EU are lifted.

China's casual footwear export industry produces walking and comfort shoes, sandals and clogs, and casual boots. Products are made mostly from genuine and synthetic leather, PU, PVC, nylon mesh and canvas. Besides offering prices lower than suppliers in their three main competing centers — India, Vietnam and Indonesia — China makers are improving quality and developing value-added designs to attract more orders.

The main markets of China footwear suppliers are North America with 48 percent of sales, the EU at 17 percent and Asia with 13 percent. The biggest individual destination country by far is the United States, which absorbs US$5 billion worth of Chinamade footwear annually. Japan is a distant second at US$900 million per year, followed by Russia at US$600 million and the United Kingdom and the United Arab Emirates with about US$200 million each.

A rise in European orders will fuel next year's predicted stronger growth. In a Global Sources Supplier Survey featured in this report, 76 percent of respondents see the EU as a growth market next year. The EU currently imposes quota restrictions on the import of footwear priced under US$10 per pair. However, when these restrictions are lifted January 2005 as part of the WTO's elimination of all textile quotas, more European buyers will switch orders to China to benefit from its low prices. In fact, most of China's casual footwear designs are in the under-US$10 category.

The bulk of China's casual footwear is manufactured in three main provinces: Guangdong, Fujian and Zhejiang. Guangdong produces 44 percent of the industry's exports, Fujian accounts for 23 percent and Zhejiang makes 15 percent. Other production hubs include Sichuan and Jiangsu provinces and Shanghai.

The China export industry mainly consists of locally owned private manufacturers, most of which do not export directly. The private makers tend to be quick to adapt to market changes and new design trends, and most of them now realize the importance of improving services to buyers in a highly competitive industry.

Some of the private manufacturers are operated by investors from Taiwan and Hong Kong. Most of these companies, which have injected advanced technology and export savvy into the local industry, are located in Guangdong and Fujian provinces.

The industry also has many private import/export companies that specialize in casual footwear exports. These companies focus on convenience, service and design variety for foreign buyers.

Samples of supplier profile

Aide Bao Shoes Development Co. Ltd
Established in 2002, Aide Bao specializes in men's footwear made of genuine leather, with 83 percent of output for export. Casual designs, which make up two-thirds of production, registered US$3.5 million in exports last year.

OEM orders account for 80 percent of production, with ODM work taking up the rest. Aide Bao's main markets are Russia, the Middle East, the United States and Japan. Russia's Carnaby absorbs 60 percent of export volume. Steve Madden of the United States is another major customer.

Based in Foshan city, Guangdong province, Aide Bao targets the midrange and high-end markets. Its headquarters and production facility are an hour's drive from the provincial capital of Guangzhou, where the company has a showroom for its latest designs.

Products
Aide Bao produces 360,000 pairs of men's casual leather footwear annually. Walking and casual shoes make up half of output, casual boots 35 percent and sandals 15 percent.

Prices of midrange models range from US$11 to US$17 per pair. High-end designs are priced US$30 to US$36. Despite the rising cost of raw materials, the company does not plan to increase product prices for at least the coming six months.

Uppers are generally made from cowhide, but sheepskin and oil leather designs are also produced. Midsoles are made from regenerated leather. TPR and rubber are used for outsoles.

Aide Bao pours about US$250,000 into R&D work each year. The company's 30-member R&D and design team puts the emphasis on staying abreast of the latest style trends in Europe and the United States. The company also develops its own innovative design concepts.

The company releases between 80 and 100 design series for each of the year's two design seasons. Each series consists of about nine different styles. The company regularly provides photographs and samples of its new styles to frequent buyers.

Manufacturing
Aide Bao's 12,000sqm main factory has about 800 workers. The plant consists of four workshops, one each for cutting, upper sewing, forming and sole injecting.

The company manufactures its own outsoles. The sole workshop is equipped with microinjection and twocolor disc injection molding machines from Taiwan. To design sole tread patterns, 3D Studio Max software is used. The workshop has a capacity of 200 pairs of injected outsoles per hour.

Sample of product gallery

Walking and comfort shoes Aide Bao Model: 8566-65 Minimum order: 2,000 pairs Packaging type: Carton Delivery time: 25 days Indicated price: US$15.00 Description: Men's model with cowhide suede upper; soft PU sole; pigskin lining; woven strap trim

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