Best value for money part 1

2 11 2009

ist2_3160238-happy-shoe-shopping

Best value for money part 1

Footwear has increasingly become a fashion statement among women and to a certain extent for men and children. Even though the economic recession and high anti-dumping duties on cheap imports from Asia slowed footwear sales 2007/2008 significantly the tides are turning. Casual footwear, evening footwear, sports footwear and niche footwear (such as Converse) are on the rise. In Eastern EU countries formal footwear are appealing to the growing middle class, more women are working and we’re seeing rapid expansions of shopping centres. By 2010 the footwear industry is expected to grow again, being stimulated by more footwear styles in the fine and luxury footwear segments, and the continuing changes in fashion.

Did we learn from our mistakes after a “live hard – consume more” global lifestyle (by most of the developed countries)? As the mature market that we are, yes we did. Consumers increasingly look for the best value for money after the economic recession and there is growing fatigue towards the fast throwaway fashion. Crucial sustainable success factors for footwear companies will be; design quality, product quality, competitive pricing and continuous customer communication.

People are looking for meaningful experiences and consumption.





It’s a woman’s world

7 10 2009

ist2_5404210-many-shoes

It’s a woman’s world

Women love shoes. It’s a fact that we all can agree on. The statistics backs it up too. According to the April 2008 CBI market survey on the footwear industry 53% of the market volume in Sweden and 55 % of the market value was made up of women’s shoes. It makes the business worth SEK 2567 million and that’s a lot of shoes. Just imagine all the varieties we have in that pile, from the cheapest of cheap to the most exclusive and everything in between. The entire micro cosmos of the market economy, supply and demand creating a vast jungle of styles, expressions, needs, desires and uniqueness.

We like that everyone can see the value of a rich tapestry of brands to express yourself through. There is just one glitch. It won’t work for long. Outsourcing is moving more and more of the production to cheap labour countries e.g. China, who has become the biggest producer of shoes in the world, supplying 41% of Sweden’s demand for shoes. We can all feel the wind of change concerning Co2 emissions. But the debate about raw materials, such as oil for example is growing, toxins in manufacturing is another hot subject. We all know for a fact that the shoe supply chain of today is not stable. What happens when transport prices get so high that production isn’t possible in China for us anymore? Can we reinvent a manufacturing industry here in Europe? How would it look? How can we be eco beyond our natural means? Again, we need to develop materials that don’t downcycle during the process and lose value. We can have a flourishing shoe industry with all the variety we so desire, but we must first build new business models to guarantee that we have somewhere nice to go to!