Domestic Shoe Market in China
- As reported in Consumer Daily, China consumes about 2 billion pairs of shoes per year, exceeding USA (1.6 billion pairs) and ranking first in the world; China imports large quantities of high-end shoes every year and this figure grows year after year; meanwhile, Chinese enterprises constantly launch high-end shoes to China's domestic market. All signs indicate that China has initially established its position as a strong shoe consumer. According to insiders, the annual consumption of China's domestic shoe market is expected to hit 3 billion pairs.
- China's domestic shoe market can be subdivided into four sectors: leather shoes, rubber shoes, cloth shoes and plastic shoes. In addition to gradual transformation in styles and materials for the four market sectors, the consumption structure of various types of shoes is also experiencing some change. As a whole, the demand for rubber shoes are rising again in recent years due to gradual diversification in functions and designs as well as constant improvement in comfort. On the other hand, urban demand for leather shoes has experienced some fallback and replacing such leather shoes is a love for leisure shoes. However, the demand for medium and high-end leather shoes worn at office or along with formal dress remains strong. Rural market is still focused on rubber shoes. However, with the trend of gradual urbanization in the consumption habits of rural residents, substantial growth in purchase of leather shoes can be expected.
- In 2003, based on statistic figures in China Retail White Paper, sales of leather shoes by large department stores in the country hit 32,227,300 pairs, increasing by 10.6% over previous year; sales of tourist/sports shoes hit 6,529,700 pairs, increasing by 57% over previous year.
- Competition in Mainland shoe market includes three arenas: imported brand products occupying the high-end market, mainly from USA and such European countries as Italy and Spain; brands of Sino-foreign joint ventures, which mainly come from Hong Kong and Taiwan and occupy the medium-end market with their robust capacity in funds and design; local brands, mostly soled in low-end market. Based on market survey in the first half of 2003 by China National Business Information Center, 85% of the shoe products from local shoemakers in Mainland shoe market are medium and low-end shoes, and most medium and high-end shoe products are imported brands. However, some local shoemakers with robust capacity such as Aokang and Kangnai are beginning to elbow into the medium and high-end market.
- In current Mainland shoe market, imported leather shoes fail to gain a large market share due to high price though they are superior to local products in material and workmanship. Therefore, local brands remain their mainstay position in market, including such famous local brands as Belle, Kangnai and Aokang. China Promotion Commission for Top Brand Strategy announced the first 13 Chinese famous shoe brands, of which, 7 are leather shoe brands such as Belle, Red Dragonfly, Golden Monkey, Kangnai, Shenda, Fuguiniao and Aokang; and 6 are tourist shoe brands such as Double Star, Athletic, Anta, Lining, Ebay and Xtep. As disclosed by China Leather Industry Association, in the selecting campaigns of "Best Real Leather in China", "Best Real Leather Shoe in China" and "Famous Real Shoe Brand in China" for 2004, Wenzhou brand Kangnai maintained its title as "Best Real Leather in China" while such brands as Aokang, Jierda, Dongyi, Red Dragonfly and Duoek won the title of "Best Real Leather Shoe in China", and such 6 brands as Yearcon, Feituo, Gelhow, Aolun, Huite and Bangsai won the title of "Famous Real Shoe Brand in China".
- In February 2003, Hong Kong Trade Development Council conducted market survey on leather shoe consumption in 4 major cities (Beijing, Chengdu, Guangzhou and Shanghai). As shown in the survey, per capita possession of leather shoes is 4.2 pairs and in the previous year, per capita spending on leather shoes is RMB 597 (1.9% of their income) and the purchase price per pair is RMB 328. In price distribution, RMB 200-399 accounts for 30%; RMB 400-599 accounts for 18%, and price below RMB 200 only accounts for 17%. This indicates a sharp increase in the purchasing power of Mainland consumers and a trend towards medium and high-end market in leather shoe consumption.
Source:
Hong Kong Trade Development Council
Date : December 2005
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