Footwear : global subsector study

Abstract

Over the past decade, footwear firms in virtually all industrial countries struggled to compete with low-cost producers especially from the Far East and Brazil. Footwear firms in industrial countries are trying to recapture their shares of the footwear markets also by adopting competitive production strategies such as producing high quality footwear, reorganizing their production processes through various techniques, and using microelectronic technology such as computer aided design and micro-computer based management systems to improve their product quality and save on labor costs. The intensified efforts by industrial country footwear manufacturers to regain their market shares provide both opportunities and challenges for firms in developing countries. These firms need to step up their efforts to improve their operational efficiency and production flexibility. Their main objectives should be to reduce work-in-process, turn out products of consistent quality, and guarantee timely deliveries to customers. To achieve this requires : a) improved access to raw materials; b) better infrastructure and customs procedures; c) improved quality control; d) improved inventory control and production scheduling; and e) appropriate training for staff and management. The challenge facing these firms is to become suppliers of high quality and fashionable products and to build relationships with buyers based on quality rather than on price alone.

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