In the association's first-ever Annual Footwear Sourcing Forecast, the Footwear Distributors and Retailers of America (FDRA) found that the the average price of shoes has increased over 12 percent in 2011.

The organization said its analysis uses current statistical trends, import data and knowledge of the industry to provide companies with a view into the future of global footwear sourcing. It said in its statement, “The combined volatility of consumer demand and raw material costs has created enormous challenges for footwear sourcing in recent years.  After nearly a decade of relying on a China-first, and often China-only, model, U.S. footwear companies are faced with a changing reality of higher prices, shortages in labor, increased compliance costs and unstable consumer demand.”
 
Matt Priest, president of FDRA, said, “Creating certainty in the supply chain has been very difficult for many footwear companies over the past several years. FDRA's Footwear Sourcing Forecast is designed to help develop a clear line of sight for our members and the industry as a whole.  It is my hope that this annual report will become a guide to those developing sourcing strategies that better meet the needs of their consumers.”
 
Key findings from the Forecast include:
 

  • Footwear Costs Have Gone Up Significantly – With volume down 3.4 percent in 2011 and value up by 8.4 percent, the average price of shoes has increased over 12 percent in 2011.
  • China Still Dominates, But That Could Change – U.S. footwear imports from China accounted for 85.3 percent of all U.S. footwear imports in 2011, the lowest percentage in seven years.
  • Imports Will Continue to Grow – It is projected that imports will grow from $22.7 billion in 2011 to $25.2 billion in 2016.
  • Vietnam Stands to Gain From Chinese Decline – As the number two supplier of footwear to the U.S., Vietnam only provides just over 7 percent of footwear imports by volume.  It is anticipated that the Southeast Asia nation will move closer to 13 percent of U.S. imports by volume.
  • Additional Sources Will Emerge – Countries with strong growth have the potential to increase market share in the U.S.  Keep an eye on Cambodia, Bangladesh and Nicaragua.

“The U.S. footwear industry is one of the most innovative industries in the world. Delivering high quality, dynamic and fashionable footwear to consumers all over the world is what our members do best.  This Forecast will help them continue to be competitive, even in a challenging environment,” Priest said.

A copy of the Forecast be downloaded at: fdra.org/FDRA_FootwearForecast2012.pdf.

As the largest footwear trade association in the United States, FDRA accounts for approximately 80 percent of all footwear sales, representing the industry’s leading retailers, brands and buying agents. Its services include lobbying and advocacy for industry causes, educational programs and trade publications.