Bags / Shoes & Accessories

According to customs data, as of October 2022, the combined import profit margin of China and Vietnam was 80.6%, lower than 81.5% in the previous nine months. This has opened the door for some major second-tier suppliers to seize market share from the former two major manufacturers, especially China.

Other countries in the top five shoe producing countries in the United States market have shown this growth.

According to customs data, footwear shipments from Vietnam, the second largest supplier, increased by 20.6% during this period to 5413.7 million pairs. This is higher than the year to date growth of 16.8% in the first three quarters of this year.

Imports from Indonesia, the third largest supplier, increased by 53.4% to 164.8 million pairs. After growing by 52.7% in the first nine months of this year, Indonesia's import volume surged to a year-to-date growth of over 50% for the fourth consecutive month.

Shipments from Cambodia increased by 38.1% to 65.9 million pairs, while imports from India increased by 46.9% to 35.67 million pairs.

Consumption is weak, US footwear imports are slowing

As most of the goods in the crucial fourth quarter have been struggling to improve inventory conditions in stores, retailers, and brands, U.S. footwear imports continued to slow in October, increasing 19.2% so far this year to 2.27 billion pairs, up 21.95% in the previous nine months, according to the latest data from the Office of Textiles and Clothing (OTEXA) of the Ministry of Commerce.

Footwear imports have slowed steadily in recent months as businesses and suppliers have struggled to cope with weak consumer demand and high inventory levels. According to customs data, as of August, imports have increased by 24.8% so far this year and 27.4% in the first half of the year. For many people, the tightening of inventory management seems to have taken effect.

Diane Sullivan, chairman and CEO of Caleres, said last month, "In the third quarter, even as consumers responded to this challenging macroeconomic environment, our quarterly sales reached a record $798 million, nearly 2% higher than in the third quarter of 2021."

The retailer's inventory grew by approximately 19.5%, in line with expectations and 15.8% lower than in the second quarter of 2022.

Shoe Carnival announced in late November that its third quarter profit was 12.8%, the highest profit for the year after 12.4% in the previous quarter, and it achieved double digits for the seventh consecutive quarter.

"As we have seen over the past seven quarters, we continue to provide excellent product margins," said Chief Marketing Officer Carl Scibetta. "Compared to 2019, the profit margin of these products continues to rise by more than 700 basis points, which is the result of our transformation of promotional strategies."

According to customs data, after an 18.8% increase in the first three quarters of 2022, the import of footwear from China, the largest supplier, increased by 12% to 1.21 billion pairs in 10 months.

According to customs data, footwear shipments from Vietnam, the second largest supplier, increased by 20.6% during this period to 5413.7 million pairs. This is higher than the year to date growth of 16.8% in the first three quarters of this year.