Development and Technological Trends in the Footwear Industry

Publish Time:

2022-06-16

The footwear industry is an important part of the apparel industry. Consumers' increasing demands for design and quality present both challenges and opportunities for footwear manufacturers.

  The footwear industry is an important part of the apparel industry. Consumers' increasing demands for design and quality present both challenges and opportunities for footwear manufacturers.

  I. Current Status of Industry Development

  The footwear industry is an industry where opportunities and risks coexist. Some traditional big brands continue to attract consumers through innovative designs and craftsmanship, but counterfeiting and the sale of counterfeit goods are also common. E-commerce has brought more emerging brands into the consumers' view, while some traditional brands have withdrawn from the market due to their inability to keep up with the times.

  The footwear industry has a long history, and like clothing, it features diverse styles and high demand, with certain footwear subject to various regulations and requirements. The footwear industry is increasingly shifting from focusing on comfort to focusing on appearance. With the improvement of consumer spending power and e-commerce making it easier for consumers to compare footwear products from various merchants, competition in the footwear industry is intensifying, and differentiation has emerged in terms of price—branded "luxury shoes," "trendy shoes" targeting young fashion-conscious consumers, "affordable shoes" for everyday wear, and "internet celebrity shoes" emphasizing appearance and low prices.

  II. Overview of the Domestic Market

  Domestic footwear manufacturers are mainly concentrated in three provinces: Fujian (Quanzhou, Putian), Guangdong (Guangzhou, Huizhou), and Zhejiang (Wenzhou, Wenling).

  Fujian mainly produces athletic shoes. Many well-known domestic sports brands, such as Anta, Peak, Xtep, and 361 Degrees, originate from Fujian. The concentration of a large number of athletic shoe manufacturers has created a complete and convenient industrial chain in this region. However, negative events such as counterfeiting and the sale of counterfeit goods and "Putian shoes" in recent years have cast a shadow of "low-end" and "counterfeit" on Fujian's athletic shoe manufacturing industry. With the rise of domestic products and the increasing crackdown on counterfeiting, Fujian's athletic shoe manufacturing industry is expected to usher in a new era.

  Guangdong mainly produces leather shoes, fashion shoes, and formal shoes. Its characteristics are high quality, trendy styles, genuine leather, and relatively high wholesale prices, with Guangzhou prices generally higher than surrounding areas.

  Zhejiang mainly produces everyday shoes, with lower wholesale prices, but the quality of some small brands is difficult to guarantee, such as many "internet celebrity shoes" currently sold on Taobao.

  III. Business Models and Technological Development

  1. Upstream of the Industrial Chain

  The upstream of the industrial chain consists of raw material producers. For the shoe industry, the main raw materials used are leather, which mainly comes from pig and cattle farming. Upstream raw material manufacturers slaughter and lightly process the animals to produce cowhide and pigskin that can be processed by leather processors.

  2. Midstream of the Industrial Chain

  ① Leather Manufacturing

  This is the process of processing cowhide and pigskin obtained from the raw material end into finished leather, involving processes such as dyeing.

  ② Design

  This is a necessary process before the production of finished shoes. With the upgrading of consumption and the increasing consumer demand for fashion, appearance, and quality, the shoe industry's requirements for shoe design are also constantly increasing. Good design not only creates eye-catching appearances but also designs high-quality products through the comprehensive use of raw materials and processes.

  The biggest change in design is in the domestic athletic shoe industry. Comparing domestic athletic shoe brands ten years ago with today's various "trendy shoes," we can easily see that leading domestic brands such as Li Ning and Anta have put a lot of effort into design.

  Today, with both style and quality comparable to imported brands, the development of domestic athletic shoes has also ushered in a new era. It is believed that the future shoe design industry will attract more attention.

  ③ Finished Shoe Manufacturing

  Finished shoe manufacturers are a key part of the entire footwear manufacturing industry chain. Finished shoe manufacturers process raw materials into finished shoes according to design drawings. This involves issues such as "technological innovation," "cost control," "quality assurance," and "production line efficiency and capacity." Unexpected situations in the upstream and downstream, especially sudden changes in downstream demand, can severely affect finished shoe manufacturers. For example, during the Henan floods this year, Xtep's sudden surge in popularity made it difficult for its production lines to handle the huge production volume, highlighting the need for production lines to have a certain emergency response capability.

  3. Downstream of the Industrial Chain

  ① Sales

  Today, sales are still mainly through offline retail and e-commerce. In today's booming e-commerce environment, offline stores for footwear sales are not a thing of the past. Shoes are products that rely on in-store experiences. For high-end shoes such as leather shoes or collectible sneakers, consumers tend to prefer offline purchases. However, for affordable everyday shoes, consumers tend to prefer online purchases.

  ② Maintenance and Repair

  With the growth in the number of sneaker collectors in recent years, services for maintenance and repair have emerged. Most are individually operated, small-scale, and rely on manual labor, characterized by a small consumer base but stable customers and large transaction amounts.

  IV. Driving Factors of Technological Development

  Driving factors for technological development include: environmental protection, labor costs, policies, economic environment, demand for information technology and intelligence, shortages or price increases of raw materials (such as high-quality cowhide), and the substitution of new materials.

  Industry Technological Development Trends

  ① Automated Production

  Currently, with the increase in labor costs, China's manufacturing industry's demographic dividend is no longer prominent, and "Made in China" is beginning to transform into "Intelligent Manufacturing in China." China has successively developed fully automatic marking machines, machines that can scan 1.5 cowhides in 2 minutes, and robotic shoe-making machines that can produce one shoe in 8 seconds.

  3D Printing Technology

  ▷ Adaptive Technology

  Developed by a US start-up, this technology incorporates motion sensors that monitor the wearer's movements and adjust the pressure distribution inside the shoe to support the foot, ankle, and other parts. It can also change the support force by inflating and deflating. Equipped with a color-sensing camera and LED lights, it can change colors according to the wearer's clothing.

  ▷ Biosynthesis Technology

  Developed by London designer Shams Yadin and researchers, this technology allows for self-repair of damage and can react to pressure, movement, light, or heat. When running, specific areas expand to provide additional cushioning for greater comfort.

  ▷ Vacuum Lamination Technology

  Karl Lagerfeld, the current chief designer for Chanel and Fendi, collaborated with French 3D printing company Prodways to develop and manufacture these highly precise shoes with perfect sizing. The shoes feature a variable shell design, functioning as both waterproof rubber boots and lightweight canvas shoes. They can be completely customized to the customer's needs; users can 3D-scan their feet and then choose from various designs to find a perfectly fitting shoe.

  ▷ Optical technology

  Developed by the Dutch company LUXeXcEL, these are soft, transparent casual and athletic shoes whose components can form any geometric shape.

  ▷ Laser claw acceleration technology

  Developed by Nike, these lightweight shoes improve an athlete's sprinting speed.

  ▷ ABEE technology

  Developed by the Italian company Recreus3D in collaboration with the famous athletic shoe brand Lotto, these shoes are portable and can be bent arbitrarily.

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