Footwear: All sectors under pressure

The domestic footwear industry has continued in a similar vein to 2016: that is a lot of uncertainty about future demand and what impact the ongoing political and economic instability will have on consumer behaviour.

Different sectors of the footwear market have experienced varied trading conditions, with the civilian footwear sector (fashion) suffering the largest loss of volumes over the past 12 months. This is attributed to the abovementioned macro-economic factors.

Safety footwear manufacturers have reported steady volumes, but the larger manufacturers are wary of the recent decline in construction activity in the country.

The school shoe sector continues to produce consistent volumes. However, over the past few years, there has been little growth in the demand for leather school shoes and an unprecedented growth in synthetic school shoe volumes. The lack of disposable income and significant price difference between leather and synthetic shoes are described as the main reasons for the change in consumer behaviour.

The second half of each year is usually the busier part of the year for most shoe manufacturers, and although trading conditions continue to be tough, most of the industry remains optimistic about what the next 6 months will hold.

We remain hopeful.

 

This report was presented at the Skin, Hide & Leather Council (SHALC) AGM, at the Intercontinental Hotel, OR Tambo Airport, May 26