China Leather Shoes Industry Report, 2015-2018: Market Research and Forecast report

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In 2014, the output of leather shoes in China totaled 4.4988 billion pairs, down 8.7% year over year, a decline that mainly arose out of economic slowdown and weak demand for leather shoes. Meanwhile, shoe makers’ high inventory further dampened enthusiasm for shoe production. Regionally, China’s leather shoe production bases are primarily concentrated in the southern coastal provinces like Fujian, Zhejiang, and Guangdong, which accounted for a combined over 70% of the total shoe production nationwide.

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Given a rapid growth in labor costs, the shoe production bases in southern coastal regions are shifting to Sichuan, Chongqing, Jiangxi, Anhui, Hunan, etc. Among them, Chongqing has ranked 10th with fast-growing output of leather shoes, which registered a CAGR of 24.9% during 2009-2014.

China exported 964.97 million pairs of leather shoes in 2014, rising 11.5% from a year earlier and accounting for 21.4% of leather shoe production. In 2009-2014, China’s leather shoe import volume and value posted a CAGR of 19.1% and 25.9% respectively, far exceeding 1.8% and 10.5% for export volume and value in the same period.

In 2014, China exported leather shoes at USD14.25/pair, in contrast to USD43.30/pair for imported shoes. China’s leather shoes were exported through OEM, and most were low and mid-end products.

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A lack of demand and a rise in labor costs and store rents left the Chinese leather shoe enterprises to slow expansion of retail stores. During 2008-2012, Daphne increased an additional 810 retail stores every year, and the figures fell to respectively -179 and 55 in 2013-2014.

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Unlike the slowdown in retail stores, some leather shoe makers have kept their e-commerce revenue surging since e-commerce development in 2011. In 2014, St&Sat’s revenue from e-commerce business increased by 45.7% to RMB240.31 million, making up 13.7% of the total, an increase of 4.8 percentage points. In addition, others have aggressively mapped out layout, expanding their e-commerce market. For example, Fuguiniao increased investment in O2O and Wechat platform in an effort to expand e-commerce business; Le Saunda changed CNE into an online brand, gradually closing down the expired stores.

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