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CBI MARKET SURVEY: THE FOOTWEAR MARKET IN THE UNITED KINGDOM Source: CBI Market Information Database URL: www.cbi.eu Contact: [email protected] www.cbi.eu/disclaimer Page 1 of 18 CBI MARKET SURVEY THE FOOTWEAR MARKET IN THE UNITED KINGDOM Publication date: May 2010 Report summary This CBI market survey discusses the following highlights for the footwear market in the United Kingdom (UK): The UK consumption of footwear was € 7.9 billion in 2008, or 331 million pairs, down 0.2% per annum on average, while production fell by an annual average of 6.3% to € 217 million, or 11 million pairs. In 2008, the UK imported footwear valued at € 3.3 billion, or 415 million pairs. Since 2004, values were down by 1.2%, but volumes were up by an average annual rate of 3.5%. More than 59% of imports by value (€ 1.9 billion) came from developing countries (82% by volume or 342 million pairs). The share of imports by developing countries is up from 46% in 2004 in value (€ 1.6 billion), and up from 69% (251 million pairs) in volume terms. The UK has one of the highest shares of developing country imports of all EU countries. It is also an important gateway into the Irish market. This survey provides exporters of footwear with sector-specific market information related to gaining access to the UK. By focusing on a specific country, this survey provides additional information, complementary to the more general information and data provided in the CBI market survey ‘The footwear market in the EU’, which covers the EU market in general. That survey also contains an overview and explanation of the selected products dealt with, some general remarks on the statistics used, as well as information on other available documents for this sector. It can be downloaded from http://www.cbi.eu/marketinfo 1 Market description: consumption and production Consumption Total market size The footwear market in the United Kingdom was valued at € 7.9 billion in 2008 in terms of retail sales, registering an average annual decrease of 0.2% since 2004, being below the EU average of 0.3% over the same period. By value, the UK accounted for 16% of all footwear sales in the EU, being the third largest EU market for footwear. This was below Germany and France, and well ahead of the next largest country, Italy. The UK lags behind France in volume, but on a per capita basis UK consumption is higher than Germany. Table 1.1 Consumption of footwear in the UK, 2004-2008, € million / millions of pairs 2004 2006 2008 Population (million) Consumption per capita value volume value volume value volume 7,993 329 7,986 333 7,946 331 61.4 129 Source: Keynote, Mintel (2010) By volume, British people bought 331 million pairs in 2008, which meant 5.4 pairs per capita, spending € 129 per year, being well-above the EU average of € 100 per capita (4.2 pairs). By value expenditure per capita, the UK continues to be one of the main consumers of footwear in the EU. Consumption has grown over the period between 2004 and 2007, but was restrained by the end of 2007 due to the intensified competition. Clothing retailers, supermarkets, department stores have created a ‘grap-and-go’ approach to buying cheap footwear along with the other shopping. Especially in the time of recession, this self-service approach has been successful.

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CBI MARKET SURVEY: THE FOOTWEAR MARKET IN THE UNITED KINGDOM

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Page 1 of 18

CBI MARKET SURVEY

THE FOOTWEAR MARKET IN THE UNITED KINGDOM

Publication date: May 2010 Report summary This CBI market survey discusses the following highlights for the footwear market in the United Kingdom (UK): • The UK consumption of footwear was € 7.9 billion in 2008, or 331 million pairs, down 0.2%

per annum on average, while production fell by an annual average of 6.3% to € 217 million, or 11 million pairs.

• In 2008, the UK imported footwear valued at € 3.3 billion, or 415 million pairs. Since 2004, values were down by 1.2%, but volumes were up by an average annual rate of 3.5%.

• More than 59% of imports by value (€ 1.9 billion) came from developing countries (82% by volume or 342 million pairs). The share of imports by developing countries is up from 46% in 2004 in value (€ 1.6 billion), and up from 69% (251 million pairs) in volume terms. The UK has one of the highest shares of developing country imports of all EU countries. It is also an important gateway into the Irish market.

This survey provides exporters of footwear with sector-specific market information related to gaining access to the UK. By focusing on a specific country, this survey provides additional information, complementary to the more general information and data provided in the CBI market survey ‘The footwear market in the EU’, which covers the EU market in general. That survey also contains an overview and explanation of the selected products dealt with, some general remarks on the statistics used, as well as information on other available documents for this sector. It can be downloaded from http://www.cbi.eu/marketinfo 1 Market description: consumption and production Consumption Total market size The footwear market in the United Kingdom was valued at € 7.9 billion in 2008 in terms of retail sales, registering an average annual decrease of 0.2% since 2004, being below the EU average of 0.3% over the same period. By value, the UK accounted for 16% of all footwear sales in the EU, being the third largest EU market for footwear. This was below Germany and France, and well ahead of the next largest country, Italy. The UK lags behind France in volume, but on a per capita basis UK consumption is higher than Germany. Table 1.1 Consumption of footwear in the UK, 2004-2008, € million / millions of pairs

2004 2006 2008 Population (million)

Consumption per capita €

value volume value volume value volume 7,993 329 7,986 333 7,946 331 61.4 129

Source: Keynote, Mintel (2010) By volume, British people bought 331 million pairs in 2008, which meant 5.4 pairs per capita, spending € 129 per year, being well-above the EU average of € 100 per capita (4.2 pairs). By value expenditure per capita, the UK continues to be one of the main consumers of footwear in the EU. Consumption has grown over the period between 2004 and 2007, but was restrained by the end of 2007 due to the intensified competition. Clothing retailers, supermarkets, department stores have created a ‘grap-and-go’ approach to buying cheap footwear along with the other shopping. Especially in the time of recession, this self-service approach has been successful.

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CBI MARKET SURVEY: THE FOOTWEAR MARKET IN THE UNITED KINGDOM

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Growth in the UK was particularly strong up to 2007. However, 2008 was a difficult year as consumers stopped spending in the second half of that year due to the impact of the global economic recession that affected the UK quite badly. In addition, retailers faced difficulties in keeping low prices due to the devaluation of the Pound. In 2008, the Pound has declined by 30% against the US$. Different consumers are responding in different ways to the economic downturn. Some are buying less expensive footwear. Others are buying less but choosing to buy something that is comfortable, fits well and will last longer. Despite this, fashion continues to be an increasingly important aspect of buying footwear. British women regard footwear important, expressing their femininity and keenly follow the latest fashion trends.

Product groups • Casual footwear continues to increase in UK footwear sales and accounted in 2008 for 44%

of the market, or € 3.5 billion. The trend to more casual dress styles has seen a great increase in the sales of casual footwear.

• Sports footwear, which has decreased since 2006, now accounting for 23% of the market, or € 1.9 billion. Whereas volumes continued to rise due to discounted sales of (retro) sneakers or metallic sneakers. However, developments within the sports footwear segments were different per type – see further at the CBI market survey ‘The EU market for Sports footwear’.

• Formal footwear, with a decreasing share of the market, now accounting for 25% of the market, or € 2.0 billion.

• Evening footwear, an increasing segment, now accounting for 7.7% of the market, or € 612 million. Recent signs in the UK are of a fashion change to smarter types of dress clothing. This will result in increased demand for more formal or evening footwear.

According to Keynote, the UK market by volume was roughly sub-divided in 2008 as follows: • Boots (from above the ankle) - 20% (used to be 15% in the past) • Sports footwear - 18% • Specialist footwear - 12%

(flip-flops, indoor slippers, safety, waterproof footwear) • Town shoes - 50%

(Casual and formal footwear sometimes referred to as ‘Trotteurs’) Unbranded footwear is still well represented in the UK market. However, the International designer brands have been successful in the UK, as well as brands of UK designers (LK Bennet, Dune) that approach the fine segment with less expensive ranges. In casual footwear, the following brands are the most prevalent brands in footwear stores: Clarks, Kickers, Geox, Converse/Allstars, Red or Dead, Bronx, Base London, Blundstone, Boxfresh, Fred Perry, Fly London, Ikon, Kangaroos, Rockport, Crogs, Uggs, Diesel, Camper, Sketchers, Dr Martin, eFlag, Vans, Timberland, CAT, Nike, Adidas, Reebok and New Balance. Market outlook As unemployment is expected to rise and the recession continues, 2009 probably shows continued falling market values. The UK footwear market will contract by around 1% in value to € 7,883 million with volumes decreasing by a lesser extent to 328 million pairs. The great diversity in footwear being available in different retail outlets may encourage impulse buying. On the other hand, the attitude towards the ‘throw away fashion’ has changed and people tend to buy quality footwear that lasts longer. The economic recovery in the UK is very fragile in 2010. Growth in 2011 is likely to be very modest. Areas for further growth beyond 2010/2011 will be in young fashionable footwear at competitive prices and comfortable footwear for people of 50 years and older. They are expected to make up a larger proportion of the British population. Another impulse to the UK market is a further development of market niches such as footwear for pre-teens, ethnic groups, well-designed green footwear, ethical footwear and functional or wellness footwear.

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Market segmentation Segmentation can be very useful in this market as there is a wide range of shoe-types, styles, colours that can be linked to different types of consumers. • Segmentation by user The most common way to segment the market is by user. As Figure 1.1 indicates, women’s footwear is the largest segment. Women’s footwear was valued at € 4.0 billion in 2008, decreased in value since 2006, but increased in volume (53% in 2008). Women have been the most buoyant segment over the last five years, and they have responded to lower prices by buying far more items. The ratio of working women was close to static, from 65.6% to 65.8%, of all British women between 2004 and 2008, which is high compared to the EU average of 59.1%. An increase took place in the older age group (55 to 64 years), while the ratio of the younger age group (15 to 24 years) decreased. There is a growing number of women in higher professional roles, which means higher levels of disposable income. Working women tend to reward themselves with a new pair of designer shoes as ‘little luxury’ as they did not go on holiday or bought a new car. While other women regarded new footwear to be an inexpensive way to update a style or new look. The rise in footwear offered in supermarkets, has enabled women to follow footwear trends more closely with more regular (impulsive) purchases at lower prices. Imitations of designs that are seen on the catwalk are being offered at a low to medium range price level. Most women are much more specific than men in the number of pairs of footwear they own. The major growth in women’s’ footwear in 2007/2008 was largely attributed to lambskin boots (Ugg-style), Cowboy boots, ballerinas, beaded sandals, gladiator style sandals, metallic sneakers and flip-flops and pumps. Other dynamic types of footwear sold in the UK were pumps (low, medium, high or wedged heels), sling back pumps and sandals, boots (knee, ankle, Oxford style), espadrilles, Mary-Jane’s, boot-sandals, retro-sneakers. Figure 1.1 UK footwear consumption by user % value 2008

Women50.2%

Men31.0%

Children18.8%

Source: Keynote (2010) Men’s footwear was valued at € 2.5 billion in 2008. The value share of men’s footwear has slightly increased over the period. Men often have very few pairs of shoes to suit a number of occasions, but spend more on a pair of shoes and wear them usually longer them women. Also for men, footwear has become more important for their look, particularly in the fine and luxury segments. For casual footwear, (retro-) sneakers, ankle boots, mountain-alike boots are important. The market leader C&J Clark, Shoe Zone (discount) and JD Sports, focussed on young men, have benefited from an increased demand for men’s footwear. The more buoyant end of the market

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has been the men’s fashion segment. As formal elements like jackets and even ties have become popular again, this has stimulated sales of smart leather shoes, Chelseas and loafers. Children’s footwear was valued at € 1.5 billion in 2008, a decreasing share from 19.5% in 2004 (by value). The children’s footwear segment has polarised between those with wealthy parents who have spent in line with designer styles, and the budget end of the market, where there has been fierce price competition. The lower birth rates will have the affect of restricting future growth in the children’s footwear segment. Sports retailers, supermarkets and on-line sellers have been particularly strong in children’s footwear. In general, the back-to-school period is the most important for children’s (school) footwear sales. • Segmentation by age group Footwear shoppers can be segmented according to their age. The following figure illustrates the development between 2005 and 2009 in how different age groups shop for footwear. Figure 1.2 gives a good illustration of how segmentation changes over time. For example, the increasing importance of 35-44 and 55-64 year old shoppers and the decreasing importance of 65+ year old shoppers provide a useful insight into how to target potential customers, or which styles of footwear offer the best growth prospects. Each age segment will have footwear styles, which are specific to that target group. However, some styles transcend different age groups. Younger consumers tend to be more receptive to new footwear styles and respond more quickly to changes in fashion, whereas older consumers tend to be more conservative in their tastes and regard comfort and quality most important. Figure 1.2 Proportion of footwear shoppers by age bracket (share in %)

0

2

4

6

8

10

12

14

16

18

20

15-24 25-34 35-44 45-54 55-64 65+

2005 2006 2007 2008 2009

Source: Verdict Research 2010 Market trends Here are some major trends and characteristics that influence demand for footwear in the UK: • Prices starting to increase despite the recession. The era of cheap fashion has gone as

far as it can go. Retailers have no more scope to reduce prices further. Other factors such as the weakness of the Pound and price increases from suppliers mean that prices have been cut by almost as much as they can. The trend to purchases from discount retailers and supermarkets will continue but this will also result in a homogenisation of the market and reduction of choice.

• Interest in styling remains. This idea follows the popularity of the ‘It Bag’, which are must-have items of an expensive designer brand (Jimmy Choo, Mulberry, D&G, Louboutin, Fendi, Prada). Wearing these shoes give women a special look or ‘personality’. Despite the recession, interest in footwear styling remains, especially in the fine and luxury segments, for which younger working women are prepared to pay a premium.

• Back to functionality. Consumers have been moving more towards functional footwear and away from quality brands for fashion, design or style reasons. This is principally due to

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the declining credit positions of most consumers. After many years in which shoes have become lifestyle statements, consumers now confronted with larger and more pressing outgoings, are reverting to buying only when necessary.

• Green footwear surviving the downturn. Many commentators have thought that ‘green footwear’ or ‘environmental footwear’ would struggle in the downturn. This has proven not to be the case, partly because consumer values are changing. Taking care of the environment has become an extra dimension to their purchase. In addition, now green footwear have become better designed. For example, the Ethical Wares’ brand – http://www.ethicalwares.com – offers vegan footwear, i.e. made of non-animal materials, which are breathable and are made of recycled material. They offer boots, ballerinas and sneakers at affordable prices. Another example is http://www.beyondskin.co.uk offering trendy footwear, including a bridal footwear range. Other brands are: Holster, Ipanema, Riva, Powder, Made By and Jackie Brazil.

• Online sales continue to grow. Despite the economic downturn this sales channel has continued to grow, with new fashion-based websites continuing to open. Success stories have been dedicated sites such as http://www.mywardrobe.com, which only sells online and only sells the latest fashion clothing and footwear. One reason for the success of these websites is their use of well-known brand names to attract consumers to visit them. Another successful site is the footwear retail site http://www.javari.co.uk which is operated by Amazon.

• Seasonal trends - see http://www.purelondon.com/footwear were for the Spring/Summer season 2010 ‘Mixing street style with durability’ was an important theme. Trends can be also found at the fashion blog http://girldir.com and at the Annexes of the CBI market surveys covering the Italian and French footwear markets and Appendix E of the EU market survey.

Production Total production The value of footwear production in the UK was estimated to be € 217 million in 2008, representing an average annual decrease of 6.3% since 2004. This was the equivalent of 11 million pairs, with a decrease of 5.9% in volume. Overall EU production fell by 2.7% each year on average, so the UK reduction is quite marked. The UK was the tenth largest footwear producer in the EU in 2008, behind Poland and Slovakia. The UK accounted for just 1.2% of all EU footwear production. Significant falls in the early part of the review period were caused by the industry being very slow to react to the massive growth of low cost imports, particularly from China and Vietnam. The industry has become more competitive now, which has slowed down the rate of decline. Table 1.2 Production of footwear in the UK, 2004-2008, € million / millions of pairs

2004 2006 2008 Number of companies

2008

Number of employees

2008 value volume value volume value volume 269 14 241 12 217 11 121 3,408

Source: Keynote, ONS- National Statistics (2010) This fall in production is expected to continue in the future as lower cost imports continue to enter the market in large numbers. Manufacturers in the UK are resorting to advertising and, in the case of sports footwear, sponsorship. For example, Umbro has sponsored the English Football Association. This is in recognition that consumers primarily make their choice of footwear on the basis of brand name rather than retail outlet. The heart of the UK footwear industry is in the East Midlands of England, although there is not much remaining compared to decades ago. The principle exception to the gloomy conditions is C&J Clark, a manufacturer that was established in 1825, but continues to defy the general footwear industry trends. Its success is based upon its reputation for the quality manufacturing of comfortable shoes. They have a strong retail presence in the UK and increasingly have an international presence. Globally the company produces more than 40 million pairs of shoes and

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boots each year. However, UK production has reduced over the years in favour of outsourcing or building factories overseas. Some high quality production is still surviving, and some of the traditional leather footwear manufacturers are enjoying some success in export markets, capitalising on the skills and tradition of their reputation. Other manufacturers are specialising in footwear for problem feet, odd sizes, wedding shoes or nurse shoes. In terms of product groups, leather footwear dominated production value. According to Eurostat: • Nearly 73% of all production value (€ 158 million) or 65% of production volume was leather

footwear. The majority of this was outdoor footwear, of which 47% (€ 74 million) was men’s footwear, 36% (€ 57 million) women’s footwear and 17% (€ 27 million) children’s footwear.

• Around 2% (€ 5 million) of all production was indoor footwear, 70% of which was leather and the remainder rubber or plastic.

• The remainder, being 25% (€ 54 million) can be sub-divided by: o Footwear parts, 7% (€ 17 million) but 29% by volume o Textile footwear 16% (€ 33 million), or 31% by volume o Rubber or plastic footwear, 2% (€ 4 million), or 6% by volume.

There used to be sizeable levels of waterproof footwear production, but none has been recorded since 2004. The main production trend over the period – apart from the large decline in output – has been a shift in proportion from primarily leather footwear to higher levels of footwear parts and other types of material. Main and interesting players • The main manufacturer in the UK is C&J Clark (http://www.clarks.co.uk). It is still among the world’s largest producers and distributors of general footwear. It has been the largest designer, manufacturer, exporter, distributor and retailer of footwear since the British Shoe Corporation collapsed in the early 1990s. • Dr Martens is a manufacturer of leather footwear, being a well-known brand. They offer

fashionable boots and shoes (http://www.drmartens.com). • Browning Group, located in London, is a designer and manufacturer of fashionable footwear for women, men and children. They offer footwear for medium market segments

(http://www.browninggroup.co.uk). • Barker, located in Northampton, is a designer and producer of high quality leather footwear.

They offer casual and formal style. This is an old family company established in 1880 (http://www.barker-shoes.co.uk).

• Hotter, located in Skelmersdale, is a company established in 1959. This company is a manufacturer of very comfortable and high quality footwear. They offer casual and fashion footwear (http://www.hottershoes.com).

• John Lobb, located in London, is a designer and a producer of high quality leather footwear. They offer formal and casual footwear. They sell on line (http://www.johnlobb.com).

Trends in production The major trends in and characteristics of footwear production in the UK are: • Celebrity endorsement. Manufacturers have been struggling to maintain their market

presence. In order to maintain a brand’s visibility, some manufacturers have been using celebrity endorsement as a means of keeping their products in the public attention.

• Outsourcing. This has been a feature of this industry for many years but it continues to be important. Due to global inflation and the weak pound, production prices of current outsourcing countries (China, Vietnam, India) increased. So, there is a move to locations that are cheaper and/or closer to guarantee fast delivery and regular updates of footwear collections along with the seasonal changes in fashion.

• Joint ventures with Chinese companies. UK manufacturers who think there may also be an opportunity to sell their footwear products in the emerging Chinese market encourage this trend. Some manufacturers are also looking closely at possibilities in the emerging Indian market.

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Opportunities and threats + As UK consumers have become accustomed to such low prices for footwear, retailers are

always looking for new sources of supply in order to find comfortable footwear at competitive prices of a good design. This is an opportunity for developing country producers, provided sensible pricing strategies are used.

+ DC exporters can also benefit from the trend towards ethical fashion. Many consumers are becoming cynical towards big business, particularly with publicity about large retailers

using companies that exploit workers in developing countries. If you can prove that you are not doing so, and if you can offer a strong product range, and are able to communicate this clearly, you will have a good opportunity.

+ The trend to online sales can provide opportunities. Online retailers do not have the same issues as high street retailers in terms of stock holding and distribution. In many cases their suppliers hold stock on their behalf. This enables an online retailer to present a much wider range of products and will consequently be more receptive to new suppliers.

+/- The importance of fashion continues to grow. This is both an opportunity and a threat for exporters from developing countries. On the one hand, it creates a continuing demand

for new products. However, it also presents challenges. Unless a DC exporter has a strong design capability and can produce new styles very quickly, he will struggle to compete.

+/- Brands are playing a larger role in consumer’s purchasing decision when buying clothing and footwear. This makes it difficult for unbranded footwear from exporters of DCs to enter the UK market. However, some opportunities can be found in outsourced production for UK brand manufacturers.

- As the UK is outside of the Euro zone, currency movements impact on the perceived value of imports. The pound has been relatively weak since 2008. This will make UK imports more expensive.

Equally, any of these trends can be an opportunity for one exporter, but a threat to another. British buyers are not always loyal to particular overseas suppliers, so you may lose out to a supplier from your own country or neighbouring country. See chapter 7 of the EU survey “The footwear market in the EU” for more information on opportunities and threats. Useful sources • There are a number of commercial research organisations that regularly produce reports

on various sectors of the UK footwear market, but these can only be obtained at a cost. They include Verdict, who specialise in retailing (http://www.verdict.co.uk), Mintel (http://www.mintel.co.uk) and Keynote (http://www.keynote.co.uk).

• Production information can be obtained from UK National Statistics (http://www.statistics.gov.uk), as well as Eurostat.

• Details of other important trade associations can be found in chapter 6.

2 Trade channels for market entry Trade channels The distribution of footwear in the UK varies depending on the segment. In the economical and medium segments, the non-specialist distribution dominate the sales. The role of department stores is important for footwear and sales through supermarkets and discounters are increasing. Clothing retailers and online sellers continue to expand their footwear ranges as well - see Table 2.1. Many non-specialist buy direct from overseas suppliers. In addition to the traditional importers and wholesalers, these growing non-specialist channels would be interesting to contact. For example, if you make sports footwear, you may obtain better results by approaching sports retailers direct. In the specialist distribution, footwear buying groups can be contacted. Some independent retailers are using buying groups in order to improve their buying power. STAG is one of the largest footwear buying groups (http://www.stagbuyinggroup.com). Another is Associated Independent Stores, although they do not specialise exclusively in footwear (http://www.aistores.co.uk).

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Within the fine and luxury segments, footwear specialists remain most important. They are in many cases specialising and concentrating on higher quality designer footwear in order to offer some point of difference. Exporters need to appreciate this trend if they choose to use the wholesale sector to reach the market. For smaller exporters from developing countries, the wholesale sector that serves smaller outlets, or the use of an agent, who may also work for other manufacturers, would be the most appropriate channels. Many follow the option of producing on behalf of UK retailers or manufacturers, through outsourcing. For the wholesale sector, a list of suppliers can be found in the Wholesaler UK Directory -http://www.thewholesaler.co.uk. Here you can find footwear wholesalers. There are two main associations of commercial agents in the UK, the British Agents Register - http://www.agentsregister.com - and the Manufacturers’ Agents Association - http://www.themaa.co.uk. According to Eurostat, there were 1,802 agents involved in the sale of clothing, footwear or leather goods in 2007. Interesting footwear specialised importers and wholesalers include: • A2Z Footwear, located in Cardiff, imports, exports and distributes a range of footwear.

They offer fashionable and formal women, men and children’s footwear. They sell online (http://www.a2zfootwear.com).

• Benny, located in Northamptonshire, is a wholesaler of women, men and children’s footwear. They sell their products online (http://www.bennies.co.uk).

• Collers, located in Somerset, deals with branded footwear for the whole family. They have a shop on line (http://www.somersetfootwear.co.uk).

• A Wave Shoes, located in Olney, is a wholesaler of casual and formal footwear for men. They sell on line. (http://www.awaveshoes.co.uk).

• Edge Shoes is an importer and wholesaler of fashion footwear like boots, sandals. (http://www.edgeshoes.com).

Retail trade According to Mintel, there were 9,764 retail outlets involved in the sale of footwear and leather goods in 2007, down from over 10,000 in 2003. This indicates a reduction in the number of small specialists and a growing preference for shopping in department stores, the growing involvement of other non-specialists and the surge in online purchasing. As Table 2.1 indicates, footwear specialists continue to decline, while home shopping (includes Internet sellers), clothing specialists, department stores and sports specialist have experienced increases in share. As far as footwear specialist are concerned, the main trend has been a substantial decline of independent specialists, while major multiple specialists could keep up their relative position. Table 2.1 Retail distribution of footwear in the UK, 2004 – 2008 € million, % value

Outlet type 2004 2008 Footwear specialists 55 44 Major multiple specialists 39 39 Independent shops 16 5 Non-specialists 45 56 Sports specialists 15 16 Clothing specialists 8 9 Super/Hypermarkets 3 7 Home shopping (incl. Argos) 9 11 Department stores 7 8 Other 3 5 Total 100 100

Source: Keynote, Mintel (2010)

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The leading footwear multiple specialist is C&J Clark (http://www.clarks.co.uk), which holds a 9.8% share of the whole market. Clark’s have over 550 of their own outlets, but their products are stocked by a further 2,000 outlets. They have revamped their stores in 2008 which has proven to be successful. Shoe Zone, a budget specialist with a market share of 5.5%, expanded rapidly by the acquisition of Shoefayre in 2007 and Stead & Simpson in 2008 to have a total store portfolio of 570 outlets (http://www.shoezone.net). Stylo, is another footwear specialist (3.2% share), which has a number of different retail formats, including Barratts and PriceLess and operate around 320 separate outlets (http://www.stylo.co.uk). Stylo has taken over Dolcis that went bankrupt early in 2008. However, since 2009, Stylo was placed into administration as its PriceLess and Barratts shoe shop chains had suffered from the economic recession. Other footwear specialists include Kurt Geiger (2.6% share), The Show Studio Group (2.1% share), Brantano (1.9% share) and Schuh (German owned and 2.0% share). Many smaller footwear retailers have struggled to survive the competition from Shoezone, sports retailers and clothing retailers. However, some of them are successful in their differentiation from the multiples by following the latest trends. Footwear worn by celebrities is being sought after by some UK female shoppers who wish to emulate the lifestyles they see. This might be indicative of future footwear styles. Another opportunity is to specialise further in terms of offering more fitting option, half sizes, more colour choice, comfort, style and service. The non-specialists sector is big. As far as non-specialists are concerned, the department store Marks & Spencer held a second position in the UK footwear market. M&S represented a market share of over 7% in 2008 (http://www.marksandspencer.com). The performance of footwear in Marks & Spencer is very much dependent on the success of its clothing ranges. The clothing chain Next, with a share of 3.6%, has been one of the most successful non-specialist retailers in the footwear market due to its general appeal as a lifestyle brand and expansion of its number of stores (http://www.next.co.uk). New Look (3.7 % share) has increased its share by most, due to its policy of enlarging its stores and focus on fast fashion. It sells women’s footwear (http://www.newlook.co.uk). Peacocks (http://www.peacocks.co.uk) has become a significant clothing retailer selling footwear. The third position in UK footwear sales is held by the sports chain JD Sports (6.5% share). This chain serves a younger audience and has performed well in 2007 by focussing more on male sportswear fans, by exclusive footwear and by revamping their stores. Sports Direct (6.3% share), a heavy discounter expanded rapidly (http://www.sportsdirect.com). In addition, the supermarkets continue to increase their share. Sainsbury has now joined Asda (3.6% share), http://www.asda.co.uk, and Tesco (1.9% share) http://www.tesco.co.uk in selling footwear. The real impact of Internet retailing has only begun to be felt in 2006 with the wider uptake of fashion online by consumers and the arrival of broad product ranges on retailers’ sites. The Home Shopping share above has decreased, but this relates to traditional mail order companies. Internet retailing relates both to the home shopping sector, which is gradually moving online, and retailers’ own online websites. The most notable example was the launch of Amazon into footwear in October 2007. Nevertheless, the potential impact of the Internet on the footwear market should not be overstated. It is forecast to not amount to more than a few percent of sales. Finding a suitable trading partner There are a number of ways to look for a suitable trading partner in the UK. The first place to look would be to contact the main trade association(s), followed by trade fairs, which tend to feature a list of exhibitors, many of which may be potential partners – see Chapter 6. In addition to these sources, there are often a number of general or specific information portals that will be useful.

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The following organisations may be worth looking at: • There are several associations for footwear and some of their members could be interested

in contact with exporters from developing countries. Addresses and websites of these associations can be found in Chapter 6.

• Leatherwise has good links to other leather-related sites, including footwear, some of which include contacts (http://www.leatherwise.co.uk).

• UK contacts can also be found at trade magazines for the footwear and leather goods industry, which are mentioned in Chapter 6.

• The International Trade Centre (http://www.intracen.org) and the British Chambers of Commerce (http://www.chamberonline.co.uk) are also useful organisations to find UK contacts.

• UK Leather is a directory designed to identify companies in the leather sector, including footwear (http://www.ukleather.org).

• UK Trade & Investment helps companies who wish to do business in the UK (http://www.uktradeinvest.gov.uk).

More information can be found in chapter 4 of ‘From survey to success - exports guidelines’ for footwear. 3 Trade: imports and exports Imports Total imports In 2008, the UK imported footwear valued at almost € 3.3 billion, or 415 million pairs. This accounted for 12% of all EU imports by value, or 13% by volume. This represented an average annual decrease in value of 1.2% since 2004 from € 3.4 billion (an increase of 3.5% in volume from 361 million pairs). The UK was the fourth largest importer of footwear after Germany, Italy and France. Countries with similar levels of imports were Italy and France. It ranked second in volume terms, behind Germany.

This compared with a 6% growth in exports (8.4% by volume). Import values were over 4 times greater than export values but import volumes were over 10 times greater than export volumes. Production continued to fall in the UK and the consumer market has fallen since 2006. The UK has become more reliant on footwear imports. It is clear that a significant proportion of its exports are in fact re-exports, mainly destined for the Irish market. The main point to note is the strong increase in volume imports that were not accompanied by an equivalent increase in the value of imports. The share of imports by developing countries was up from 46% in 2004 in value, and up from 69% or 251 million pairs in volume. Increases were registered in the footwear supplies of China, India, Brazil, Indonesia, Thailand, Cambodia (!), Turkey (!) and Sri Lanka. There were falling supplies from Vietnam and Pakistan. See further in Annex 2 for more information. Imports by product group Leather footwear This was the largest footwear product group. Valued at € 2.1 billion in 2008, it represented 64% of all footwear imports to the UK. This product group had decreased in both its value and its volume contribution since 2006 and since 2004. Intra-EU trade dominated the value supply accounting for 47% (27% by volume or 41 million pairs), but this decreased from 54% in 2004 (35% by volume or 56 million pairs). Italy’s share was down from 17% in 2004 to 15% in 2008.

Developing country suppliers represented 51% of all imports by value (71% by volume or 106 million pairs), up from 39% in 2004 (57% by volume or 92 million pairs). See Table 2 in Annex for more information. Outdoor leather footwear with other outer soles was the largest sub-sector, accounting for 79% of all leather footwear in 2008 (83% by volume). This sub-sector has decreased in both value and volume since 2006 and since 2004.

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Table 3.1 United Kingdom imports of footwear with leather uppers, 2004 - 2008, € million / million pairs* 2004 2006 2008 Average

annual % change in value

value volume value volume value volume

Total UK, of which from 2,339 162 2,508 173 2,083 150 -2.9 Intra-EU 1,253 56 1,196 52 974 41 -6.1 Extra-EU 166 14 98 6 36 2 -31.8 Developing countries 920 92 1,213 115 1,073 106 3.9 Sports 128 10 139 9 124 9 -0.8 Indoor 15 2 14 3 20 3 7.5 Outdoor leather outer soles

349 17 292 13 290 12 -4.5

Outdoor other outer soles

1,848 132 2,063 147 1,650 125 -2.8

Source: Eurostat (2009) *See Annex for more detail Textile footwear This group was valued at € 538 million in 2008, accounting for 16% of all footwear imports to the UK. This group has increased in importance since 2004 but decreased in importance since 2006. Intra-EU trade accounted for 29% of imports by value (8.3% by volume or 11 million pairs). This position compared with 40% by value in 2004 (15% by volume or 16 million pairs). Table 3.2 United Kingdom imports of footwear with textile uppers, 2004 - 2008, € million / million pairs* 2004 2006 2008 Av. annual

% change in value

value volume value volume value volume

Total UK, of which from 514 106 572 122 538 133 1.1 Intra-EU 205 16 195 16 154 11 -6.9 Extra-EU 12 2 15 2 11 2 -2.2 Developing countries 296 87 362 104 374 120 6.0 Sports 185 16 163 14 116 12 -11.0 Indoor rubber/plastic outer soles

25 8 26 11 33 14 7.2

Indoor other outer soles 66 35 73 39 79 41 4.6 Outdoor rubber/plastic outer soles

185 38 248 48 265 57 9.4

Outdoor other outer soles

53 8 62 10 45 9 -4.0

Source: Eurostat (2009) *See Annex for more detail Developing country suppliers represented 69% of all imports by value in 2008 (90% by volume or 120 million pairs), up from 58% in 2004 (82% by volume or 87 million pairs). See Table 3 in Annex for more information. Textile outdoor footwear with rubber or plastic soles was the largest sub-sector, accounting for 49% of this group in 2008 (43% by volume). Its share has increased significantly. Rubber or plastic footwear This group was valued at € 493 million in 2008, accounting for 15% of all footwear imports to the UK. This group has increased its importance in terms of volume. Intra-EU trade accounted for 19% of imports by value (6.8% by volume or 8 million pairs). This compared with a position of 30% by value in 2004 (14% by volume or 12 million pairs).

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Table 3.3 United Kingdom imports of footwear with plastic/rubber uppers, 2004 - 2008, € million / million pairs 2004 2006 2008 Average

annual % change in value

value volume value volume value volume

Total UK, of which from 455 83 601 112 493 117 2.0 Intra-EU 139 12 161 11 94 8 -9.3 Extra-EU 26 5 21 4 11 3 -19.4 Developing countries 290 66 418 97 389 106 7.6 Sports 90 9 130 10 70 8 -6.1 Indoor 3 2 5 2 4 2 7.5 Outdoor 361 72 466 99 419 106 3.8 Source: Eurostat (2009) Developing country suppliers represented 79% of all imports by value in 2008 (91% by volume or 106 million pairs), up from 64% in 2004 (79% by volume or 66 million pairs). Rubber or plastic outdoor footwear was the largest sub-sector, accounting for 85% of this group in 2008 (91% by volume). Other footwear This was the smallest product group, valued at just € 142 million in 2008 (4.4% by value and 3.4% by volume or 14 million pairs). Intra-EU supplies accounted for 26% of the value of this group (29% of volume), and that share has decreased from 31% in value and increased from 27% in volume over the period. China was the leading developing country value and volume supplier. Table 3.4 United Kingdom imports of other footwear, 2004 - 2008, € million / million pairs 2004 2006 2008 Average

annual % change in value

value volume value volume value volume

Total UK, of which from 105 11 120 13 142 14 7.8 Intra-EU 33 3 35 2 37 4 2.9 Extra-EU 14 2 11 2 11 0 -5.9 Developing countries 58 6 74 9 94 10 12.8 Other uppers 20 5 25 7 43 6 21.1 Waterproof 19 5 28 6 38 8 18.9 Parts 66 1 66 0 61 0.1 -2.0 Source: Eurostat (2009) Exports In 2008, the UK exported footwear valued at € 743 million, or 40 million pairs. This represented an average annual increase in value of 5.9% from € 590 million, and an average annual increase of 8.4% in volume since 2004 from 29 million pairs. In 2008, the UK was the eighth largest exporter by value after Italy, Germany, Belgium, Spain, Netherlands, France and Portugal. Its value was also close to Slovakia. It was ninth in volume, behind Slovakia. Re-exports from the UK exist, but they are not significant in the same way as Belgium or the Netherlands. Around 86% of UK exports were intra-EU (87% by volume), mainly to Ireland. In terms of product groups, leather footwear was valued at € 512 million or 20 million pairs, up an annual average of 5.4% from € 415 million and up 7.5% by volume from 15 million pairs in 2004. Outdoor leather footwear with other outer soles dominated this group of exports. The main destinations were Ireland, Germany and France. The next largest group of

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exports were textile footwear, which was valued at € 135 million or 11 million pairs, up 12% from € 85 million and down 12% by volume from 16 million pairs in 2004. Outdoor textile footwear with rubber or plastic outer soles was the leading sub-group. Ireland, Germany and the Netherlands were the main destinations. Rubber or plastic footwear was valued at € 75 million or 8 million pairs. This was up 8.1% from € 55 million and up 12% by volume from 5 million pairs in 2004. Outdoor plastic footwear was the largest sub- group. Ireland, the Netherlands and France were the main destinations. Other footwear accounted for € 20 million or 0.9 million pairs. This was down 12.4% from € 34 million but up 3% by volume from 0.8 million pairs in 2004. Other parts of footwear was the largest sub-group. Ireland, France and Italy were the principle destination countries. Opportunities and threats + The UK is a potentially interesting market for exporters from developing countries. It has a

mature domestic retail market, combined with the fact that local production has declined a lot in recent years. The mature market implies that consumers already have an enhanced demand for footwear, and local producers are no longer supplying that demand. Imports have not been increasing significantly in recent years, but they are forecasted to do so as local production declines further.

+ The main Asian footwear suppliers have consolidated their hold over the UK market, but there will always be niche opportunities for other producers, particularly in a market as large as the UK. Although it is one of the smaller product groups, imports of rubber or plastic footwear appear to be offering the best opportunities currently, especially outdoor footwear. Nevertheless, the market for textile products is offering opportunities at the lower priced end of the market.

+ The fact that the share of imports from most developing countries increased (in value and volume), implies a challenge for (new) DCs to compete on e.g. nearby location, originality or price in order to enter the UK market.

- Exporters should take care not to trade at a loss or with unsustainably low margins over a prolonged period. This may be justifiable for a limited period to gain market entry, but it is neither advisable nor feasible to trade in this way in the long run. It is also important to note that an opportunity for one developing country can also be a threat

to another. Many EU countries switch country sources purely for competitive advantage, rather than moving supplier because of changes in demand for other reasons. Exporters should read carefully the trends and developments outlined in other parts of this survey before establishing whether the UK offers a genuine export opportunity.

See also chapter 7 of the CBI market survey covering the EU for a more general analysis. Useful sources • EU Expanding Exports Helpdesk http://exporthelp.europa.eu go to: trade statistics • Eurostat – official statistical office of the EU http://epp.eurostat.ec.europa.eu; go to ‘themes’ on the left side of the home page go to ‘external trade’ go to ‘data – full view’ go to ‘external trade - detailed data’ • Understanding eurostat: Quick guide to easy comext http://www.eds-destatis.de/en/database/download/Handbook_Comext_Database.pdf

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4 Price developments Consumer prices Consumer prices of footwear in the UK are just below the EU average. Prices have fallen recently as low-priced imports have entered the country in large volumes. This has changed the perception of how much consumers are prepared to pay. Prices vary considerably. Consumer prices for all items in the UK increased by 3.6% in 2008 and by 2% in 2009, which was above the EU average (3.7% and 1% respectively). However, UK consumer prices of footwear increased by 0.2% in 2008 and by 0.3% in 2009 across the EU as a whole. This was well below the EU average of price movements in the footwear sector. According to a footwear price study by the UK’s department of trade, the price of men’s Timberland premium waterproof boot was highest in the UK, as was the same product for women. The Dr Martens original 3-eyelet shoe was least expensive in the UK of the four countries studied (UK, France, Germany and Sweden). Table 4.1 highlights how footwear prices vary very significantly between retailers, depending on the style of shoe and the target audience that the respective shoes are intended for. Table 4.1 Average prices of various types of footwear, €, different retailers, 2009 Clark’s Barratts Jones & SonMen’s leather shoe 64.33 58.69 101.83

Men’s leather boot 105.82 66.08 118.62

Ladies’ heeled fashion shoe 56.16 39.57 78.03

Ladies’ plastic sandal na 13.28 16.34

Ladies’ fashion boot 95.72 52.53 99.00

Source: Retailer websites (2009/2010) Consumer price indices can also be found on the UK National Statistical website (http://www.statistics.gov.uk). The Bank of England also provides information on prices (http://www.bankofengland.co.uk). See chapter 2 for a list of main retailers, many of which feature prices on their websites. Clark’s, the well-known manufacturer and retailer feature prices on its website for a wide range of footwear products (http://www.clarks.co.uk). Barratts, part of the British Shoe Corporation, also publishes prices on its website (http://www.barratts.co.uk). Jones the Bootmaker also features a comprehensive range, including prices (http://www.jonesbootmaker.com). A good online footwear portal featuring retail prices is http://www.footwear.co.uk. Wholesale prices can be found via the Footwear and Shoe UK suppliers directory (http://thewholesaler.co.uk). Other sources include mail order company Argos - http://www.argos.co.uk - for lower priced items. Import prices Import prices to the UK have been falling during the period, as Table 4.2 indicates. Total import prices to the UK are below the EU average of € 8.49, and developing country prices are also below the EU average (€ 5.13). Prices from developing countries have been falling while intra-EU prices have been rising. Import prices from developing countries are more than one fourth of the level of intra-EU import prices.

These price movements reinforce the trend of increasing purchases of lower-priced footwear from Asian manufacturers. Due to the anti-dumping duties, less was imported from Vietnam, while British importers sourced more low cost footwear from Cambodia, Indonesia and Turkey. Please note that these trends should be interpreted with care, as changes in imports do not reflect the demand in the UK.

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Table 4.2 Development in the UK of average import values/prices, 2004 – 2008, € 2004 2006 2008 ave. Annual ave price ave price ave price % change per pair per pair per pair

Total imports 9.44 9.05 7.85 -4.5Intra-EU 18.74 19.81 19.73 1.3Developing countries 6.23 6.36 5.64 -2.4

Source: Eurostat (2009) Price structure Footwear retailers’ margins have been severely impacted by anti-dumping tariffs. The retailer Stylo estimates it has increased its sourcing costs from China and Vietnam by between 5% and 16%, although larger organisations such as clothing retailers have been less affected and more capable of withstanding such additional costs. Footwear margins have been falling in the UK in recent years, because of intense competition in the supply end and an intensification of competition between retailers. In general, there are some national differences, however, footwear is a global business and margins tend to become more similar in most EU markets. There are also differences in margin levels between different types of footwear, with generally higher retail margins for (branded) formal or evening footwear, and lower margins for more casual or sports footwear. In each trade channel different margins and prices apply, with a total mark-up (including VAT) of 2.3 up to 2.9 of the export (CIF) price. These margins will vary depending on which market segment is being approached. The higher the market segment, the higher the margins that can be commanded. Buying groups and multiples ask for large-volume discounts, which are then passed on to their affiliated stores. VAT of 17.5% is added to retail prices. Table 4.3 Overview of margins in footwear Low HighImporters/wholesalers' margins 30% 40%Agents' margins 10% 15%Retailers' margins 45% 75%

Mark-up CIF price - Consumer price 2.3 2.9 More can be found in chapter 3.2 of the CBI market survey ‘The footwear market in the EU’. 5 Market access requirements As a manufacturer in a developing country preparing to access the UK, you should be aware of the market access requirements of your trading partners and the UK government. For information on legislative and non-legislative requirements, go to ‘Search CBI database’ at http://www.cbi.eu/marketinfo, select footwear and the UK in the category search, click on the search button and click on market access requirements. Also, the UK Customs and importers check carefully footwear coming from China, containing anti moisture sachets, on the appearance of DMF (Dimethyl Fumarate) in footwear. For more information see Chapter 6 Market requirements of the CBI market survey ‘The footwear market in the EU’ or the SATRA at http://www.satra.co.uk The new EU regulation on chemical substances, called REACH, has been in force since 2007. For more information on REACH, see the document on the CBI website at http://www.cbi.eu/marketinfo. Additional information on packaging can be found at the website of ITC on export packaging: http://www.intracen.org/ep/packit.htm Information on tariffs and quota can be found at http://exporthelp.europa.eu

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6 Doing business The most important ways to develop a business relationship are to either exhibit at one of the main footwear trade fairs, or to make a direct approach to wholesalers or major retailers. In the UK, many business people still prefer a formal style of communication, both in the way a presentation is put together, and in the way contact is made. A very aggressive price driven approach will not be effective, although price is very important in the UK market. General information on doing business like approaching potential business partners, building up a relationship, drawing up an offer, handling the contract (methods of payment, and terms of delivery) can be found in CBI’s export manuals ‘Export Planner’ and ‘Your image builder’. Furthermore, cultural awareness is a critical skill in securing success as an exporter. Information on cultural differences in the EU can be found in chapter 3 of CBI’s export manual ‘Exporting to the EU’. These manuals can be downloaded from http://www.cbi.eu/marketinfo - go to search publications. Trade magazines Advertising in trade magazines can sometimes be an effective means of reaching a small target group. The main publications in the UK are: • Leather International - http://www.leathermag.com - is a monthly publication, including a

good search facility. • Fashion Extras - http://www.ras-publishing.com - is produced 8 times a year, targeting

retailers, manufacturers, agents and suppliers of bags, shoes and other accessories. Attire Accessories - http://www.attireaccessories.co.uk - is produced 6 times a year and is targeted at specialist retailers in this sector. Drapers - http://www.drapersonline.com - is a well known fashion publication with good information online.

• World Leather - http://www.worldleather.co.uk - is produced in the UK. • Footwear Today - http://www.footweartoday.co.uk - is produced 10 times a year and also

features information on leather goods. • Insight - http://www.insight.ltd.uk - produces trend publications on accessories and leather

goods, as well as footwear. Trade fairs The main footwear trade fair takes place each year in Birmingham in February and August and is called Moda Footwear (http://www.moda-uk.co.uk). Other trade fairs are: • Moda Accessories which takes place in February and August each year, also in Birmingham. • Pure London (http://www.purelondon.com), which takes place in February and August each year. • A further exhibition for fashion accessories buyers, called Boutique By Chic -

http://www.boutique-by-chic.com - takes place each May and October. Trade associations There is information on the footwear industry in the UK at the website of the British Footwear Federation (http://www.britfoot.com). Some manufacturers featured may be looking to develop relationships with developing country exporters. Other useful contacts are: • The Independent Footwear Retailers Association (http://www.shoeshop.org.uk). • The world’s leading footwear research centre, Satra, is based in the UK,

(http://www.satra.co.uk). • Insight provides trend information and analysis on the footwear market, and produces a

news bulletin called Footnote (http://www.insight.ltd.uk). • Footwear Business News can be reached at http://www.pcdsreview.com.

This survey was compiled for CBI by Searce

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

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ANNEX ADDITIONAL STATISTICAL TABLES Table 1 United Kingdom imports and leading suppliers of footwear, 2004-2008, € million/million pairs, average annual changes 2004 2006 2008 %

value share

% change value

% volume share

% change volume

value volume value volume value volume

Total UK of which from

3,412 361 3,801 420 3,257 415 100.0 -1.2 100.0 3.5

Intra-EU of which

1,630 87 1,587 81 1,259 64 38.6 -6.3 15.4 -7.4

Italy 462 24 372 18 355 16 10.9 -6.4 3.8 -9.6Belgium 162 7 340 17 183 9 5.6 3.1 2.2 6.5Netherlands 267 14 258 12 163 9 5.0 -11.6 2.2 -10.5 Extra-EU 219 23 146 14 68 9 2.1 -25.4 2.2 -20.9(ex. DC) Developing countries of which

1,564 251 2,067 325 1,930 342 59.3 5.4 82.4 8.0

China 486 116 942 201 869 221 26.7 15.6 53.2 17.5Vietnam 601 79 554 71 476 64 14.6 -5.7 15.4 -5.1India 163 16 174 16 190 19 5.8 3.9 4.6 4.4Brazil 117 9 175 11 169 10 5.2 9.6 2.4 2.7Indonesia 95 12 119 12 125 16 3.8 7.1 3.8 7.5Thailand 34 4 53 5 38 4 1.2 2.8 1.0 0.0Cambodia 5 0.7 12 1 34 4 1.0 61.5 1.0 54.6Turkey 3 1 8 1 8 0.9 0.2 27.8 0.2 -2.6Pakistan 12 3 9 2 4 1 0.1 -24.0 0.2 -24.0Sri Lanka 3 0.4 5 0.4 4 0.3 0.1 7.5 0.07 -6.9Source: Eurostat (2009) Table 2 United Kingdom imports and leading suppliers of footwear with leather uppers, 2004-2008, € million/million pairs, average annual changes 2004 2006 2008 %

value share

% change value

% volume share

% change volume

value volume value volume value volume

Total UK of which from

2,339 162 2,508 173 2,083 150 100.0 -2.9 100.0 -1.9

Intra-EU of which

1,253 56 1,196 52 974 41 46.8 -6.1 27.3 -7.5

Italy 394 18 319 13 306 11 14.7 -6.1 7.3 -11.6Netherlands 197 9 214 9 124 6 5.9 -10.9 4.0 -9.6Belgium 60 2 174 8 108 5 5.2 15.8 3.3 25.7Extra-EU 166 14 98 6 36 2 1.7 -31.8 1.3 -38.5(ex. DC) Developing countries of which

920 92 1,213 115 1,073 106 51.5 3.9 70.7 3.6

Vietnam 417 44 363 37 300 32 14.4 -7.9 23.3 -7.7China 132 13 368 37 257 27 12.3 18.1 18.0 20.0India 137 13 147 14 167 17 8.0 5.1 11.3 6.9Brazil 113 8 171 10 162 9 7.8 9.4 6.0 3.0Indonesia 63 7 91 9 108 13 5.2 14.4 8.7 16.7Thailand 24 2 42 3 31 3 1.5 6.6 2.0 10.7Cambodia 3 0.2 9 0.9 22 3 1.1 64.6 2.0 96.8Turkey 0.6 0.06 2 0.2 4 0.3 0.2 60.7 0.2 49.5Sri Lanka 2 0.2 5 0.3 3 0.2 0.1 10.7 0.1 0.0Bangladesh 3 0.6 2 0.4 3 0.4 0.1 0.0 0.3 -9.6Source: Eurostat (2009)

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Table 3 United Kingdom imports and leading suppliers of footwear with textile uppers, 2004-2008, € million/million pairs, average annual changes 2004 2006 2008 %

value share

% change value

% volume share

% change volume

value volume value volume value volume

Total UK of which from

514 106 572 122 538 133 100.0 1.1 100.0 5.8

Intra-EU of which

205 16 195 16 154 11 28.6 -6.9 8.3 -9.0

Belgium 52 2 62 4 37 2 6.9 -8.2 1.5 0.0Italy 32 3 26 2 26 2 4.8 -5.1 1.5 -9.6Germany 11 1 16 1 19 1 3.5 14.6 0.7 0.0 Extra-EU 12 2 15 2 11 2 2.0 -2.2 1.5 0.0(ex. DC) Developing countries of which

296 87 362 104 374 120 69.5 6.0 90.2 8.4

China 184 62 250 81 275 100 51.1 10.6 75.2 12.7Vietnam 74 15 84 16 78 15 14.5 1.3 11.3 0.0Indonesia 15 2 6 0.9 5 0.9 0.9 -24.0 0.7 -18.1Thailand 6 1 7 1 5 0.9 0.9 -4.5 0.7 -2.6Brazil 1 0.3 1 0.2 3 0.2 0.6 31.6 0.1 -9.6India 4 2 5 2 3 1 0.6 -6.9 0.7 -15.9Cambodia 0.6 0.1 1 0.2 3 0.3 0.6 49.5 0.2 31.6Turkey 1 0.9 2 0.3 0.7 0.2 0.1 -8.5 0.1 -31.3Pakistan 4 2 2 1 0.5 0.3 0.09 -40.5 0.2 -37.8Bangladesh 0.1 0.04 0.4 0.1 0.2 0.09 0.04 18.9 0.07 22.5Source: Eurostat (2009)