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1. Footwear Market – China
September 2011

2. Executive Summary
 Footwear market in China is expected to grow from x units in 20‐‐ to y units in 20‐‐
 Annual z percentage production volume growth is projected for footwear market
Market  Increasing urbanization and rising income acts as major drivers boosting the footwear sales in
China
Drivers: Challenges:
‐ Huge Population and Urbanization ‐ Surging Cost of Raw Materials and
‐ Increasing Prosperity among Chinese Labour
Drivers & Populace ‐ Volatility in Currency
Challenges ‐ Rising Demand for Leather Footwear
‐ Growing Retail Industry
‐ Changing Lifestyle and Fashion Trends
 Chinese Manufacturers Moving towards High‐end Footwear
Trends  Manufacturing to Design Transformation
 Gaining Popularity of Functional Health Shoes
 Government Regulatory Organs
Government
 Industry Regulations
Initiatives
 National and Regional Industry Specific Standards
 Footwear market in China is intensely competitive
 There are certain dominant domestic brands in the market, such as, brand1, brand 2, brand 3,
Competition brand 4, brand 5, brand 6, brand 7, brand 8, brand 9 etc.
 International brands like brand 10, brand 11, brand 12 are also quite popular
FOOTWEAR MARKET IN CHINA 2011.PPT 2

3. •Market Overview
•Export‐Import
•Distribution and Sales
•Drivers & Challenges
•Trends
•Government Bodies and Regulations
•Competition
•Key Takeaways
FOOTWEAR MARKET IN CHINA 2011.PPT 3

4. China has become the world’s largest producer, chief
exporter and huge consumer of footwear
Overview of China’s Footwear Market Footwear Market Size and Growth
• China has secured the supreme position in the bn pairs
global footwear market 60 p% of the
World’s Total a3
 China is the largest shoe manufacturer and exporter 50 Shoe Output +c%
 In 20‐‐, according to the National Bureau of Statistics of 40
China (NBS), there were more than x domestic shoe 30 a2
manufactures providing employment to nearly y mn in 20
China a1
10
• China’s shoe industry is characterized as a typical 0
labor‐intensive industry 20‐‐ 20‐‐e 20‐‐e
 However, currently surging labour costs is one of the
major challenge for the Chinese footwear market Breakdown of the Total Cost of a Pair of Shoes
• Footwear market in China has grown at a higher
rate than the z% average annual GDP growth rate b5%
• Generally, retail price for a pair of shoe in China is b4% b1%
Part 1
five to seven times higher than the ex‐factory
price in order to secure profits Part 2
Part 3
Part 4 b3%
Part 5
b2%
FOOTWEAR MARKET IN CHINA 2011.PPT 4

5. Footwear manufacturers earn revenues by exporting their
products to various countries around the world
Growth in Total Imports Country‐wise Imports (20‐‐)
Country 1 re‐imports from Country
USD mn 16…read details in the next slide
1,500 +x% c9% c10% c1%
Country 1 Country 7
a5 c7% c8% Country 2 Country 8
a3
1,000 a4 c6% Country 4 Country 9
a2
a1 Country 5 Country 10
c5%
500 c2% Country 6 Others
c4%
0 c3%
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Growth in Total Exports Country‐wise Exports (20‐‐)
Country11 Country 14
+y% Country 12 Country 15
USD mn +z%
Country 13 Country 16
40,000 b5
b3 b4 e5%
30,000 b2 Region1 e4% e1% d1%
b1
Region 2 Others d7%
20,000
Region 3
e3% e2%
Region 4 d6%
10,000
Region 5
d4% d2%
d3%
0 d5%
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
FOOTWEAR MARKET IN CHINA 2011.PPT 5

6. Drivers & Challenges – Summary
Drivers
Huge Population and Urbanization
Challenges
Increasing Prosperity among the Surging Costs of Raw Materials and
Chinese Populace Labor
Rising Demand for Leather Footwear Volatility in Currency
Growing Retail Industry
Changing Lifestyle and Fashion Trends
FOOTWEAR MARKET IN CHINA 2011.PPT 6

7. Summary – Trends
Chinese Manufacturers
Moving Towards High‐
end Footwear
Trends
Increasing Popularity of Manufacturing to Design
Functional Health Shoes Transformation
FOOTWEAR MARKET IN CHINA 2011.PPT 7

8. Major Domestic Players in the Market (1/8)
Company Snapshot: Company 1
Corporate Information Financial Performance
Headquarters City 1, Province 1 Revenue Revenue Profit
USD mn USD mn
Profit / Loss
Founded 20‐‐
1,500 500
a3 a4 400
Products Type 1 footwear 1,000 a2 300
a1 200
500
Key People Person 1– Chairman, CEO 100
0 0
20‐‐ 20‐‐ 20‐‐ 20‐‐
Business Highlights
• Company 1, together with its subsidiaries, engages in the design, development, manufacture, trade, distribution, and
marketing of sporting goods in the country 1
 It offers its products through distribution network and retail outlets
• There are x distributors in overseas market who are operating more than y concept stores and z sales corners in
region 1, region 2, region 3 market and so on
• The company provides footwear under the brand name, brand 1 and also sell brand 2 products
 Number of company 1 stores reached p, a net increase of q company 1 stores
 Turnover increased by r% to USD s mn for Jan‐Jun 20‐‐
• In Jul 20‐‐, company 1 planned to invest USD t mn to build a production base in region 4 for type 2 shoes
FOOTWEAR MARKET IN CHINA 2011.PPT 8

9. Thank you for the attention
The Footwear Market ‐ China report is a part of Netscribes’ Consumer Goods Industry Series.
For more detailed information or customized research requirements please contact:
Jitendra Punjabi Gagan Uppal
Phone: +91 33 4064 6215 Phone: +91 22 4098 7530
E‐Mail: jitendra.punjabi@netscribes.com E‐Mail: gagan.uppal@netscribes.com
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FOOTWEAR MARKET IN CHINA 2011.PPT 9