Shoe exporters look to home market

A downturn in footwear exports and loss of competitive edge has prompted Vietnamese footwear manufacturers to focus on brand recognition and the long-neglected domestic market.

“The nation is losing its competitive edge to footwear rivals, including China, India, Indonesia and Thailand, because Vietnamese producers have to import 70 per cent of their materials amid rising labour costs,” said Diep Thanh Kiet, deputy chairman of the Viet Nam Leather and Footwear Association.

And not only the materials were being imported. The nation had about 500 footwear enterprises, 70 per cent of which were outsourcing to world brands such as Nike and Adidas, and most of their samples, designs and technology were being provided by the foreign companies.

Last year, exports reached only US$4.01 billion, Kiet said, $1 billion down on the target and 15.8 per cent down on the previous year.

The fall-off in exports had forced manufacturers to raise their target from 30-50 per cent of the domestic market this year to make up for their losses, he said

In Viet Nam each person buys an average 1.5 pairs of footwear a year, meaning the whole country consumes more than 130 million pairs per year. The lack of awareness of Vietnamese brand names, the poor distribution network and the less diversified designs are the main reasons Viet Nam-made products are considered inferior to imports.

To achieve the target, domestic enterprises needed to plan activities. They needed to build their brands which play an important role in holding domestic market share, Kiet said.

In addition, it was necessary to set up a large distribution system where enterprises could gather to sell products at certain sale points, like Viet Shoes Plaza.

“With Vietnamese products gathered at the same place, consumers will know where to go to purchase Viet Nam-made shoes.”

Kiet said it was also necessary to establish a centre in charge of inspecting locally made footwear and granting quality certificates. This would help footwear producers advertise and give Vietnamese consumers confidence in the quality of domestic products.

The association also planned to set up a consultancy centre which would give advice to domestic consumers on how to choose suitable footwear products, he said.

Europe is the biggest importer of Viet Nam’s footwear, making up nearly 50 per cent of Viet Nam’s footwear exports. The US ranks second, consuming 25 per cent of exports, followed by Japan which consumes 3 per cent.

VietNamNet/VNS

Tags: Vietnam Footwear Exports, Vietnam Footwear Industry, Vietnam Shoe exporters