Sales turnover for the German shoe industry fell 3.8% to just under €3 billion in 2003, the country’s footwear industry association HDS (Hauptverband der Deutschen Schuhindustrie) has advised.
In a statement issued at the recent GDS footwear fair in Düsseldorf, the association reported a 6.2% decline in domestic sales during the year to €2.1 billion, while exports rose 2.2% to €900. In volume terms, sales were down by an estimated 6.2 million pairs on the year before, to 27 million pairs, while the number of footwear factories was reduced from 127 at the end of 2002 to 109 by December 31 ‘03 Employment in the sector fell from 15,777 to 13,696.
Predictably, “the flood of cheap imports from China and Far East” was identified as a major factor and this was seen as being accelerated by the accession of ten new countries to the EU on May 1. Footwear imports during the year rose 10.6% to 379.3 million pairs, with China accounting for 90 million pairs (56.9 million 2002) and Vietnam 78 million (64 million ’02).
According to the HDS, the average pair of mens leather shoes cost €56.00 to manufacture in Germany, compared with €7 to €8 in the Far East while the average hourly rate of €26 paid to a German footwear worker equated to a whole week’s wages in China.
The main export market remained Europe although increased quantities were exported to the demanding Japanese market (750,000 pairs) and the USA (5.4 million pairs). The new EU member countries were not seen as being a big market. Though 2.9 million pairs worth €65.4 million were exported to Czech Republic, Poland, Hungary and Lithuania, the HDS was skeptical about increased demand in the future with the possible exception of work shoes and boots, sales of which were seen as increasing with the adoption of EU Health and Safety regulations in those countries. The per capita consumption of shoes in Germany increased to 4.0 pairs from 3.6 pairs the year before. HDS president Dieter Rührschneck said he expected 2004 to be better than its predecessor, citing the 9.5% upturn in business seen in the last four months of 2003, with exports leading the way.
