6 Fast Footwear Import Insights
Current Data Released is for January 2020

1. Total footwear imports sank to the lowest January in ten years.
2. Imports from China plunged year-over-year, while shipments from Vietnam climbed to a record.
3. Total duties paid climbed to the biggest January on record, $326.1 million.
4. The average landed cost of all footwear imports rose 5.3% year-over-year, the fastest in 21 months and second-fastest in 46 months.
5. Duties per pair jumped 33.6% year-over-year, driven again by surging Chinese duties per pair, up 58.5%. Duties per pair from the rest of world only rose a scant 0.7%.
6. January data hint full-year footwear imports will tumble sharply, while duties will climb to another record year.
Be sure to click on any of the reports below to see full breakouts and analysis by category (you will need to login with your username and password). Email us at  info@fdra.org  if you have questions or need help logging in.
Kicks Over Coffee:
 Imports Dive - Coronavirus Impact on Footwear Taking Effect?
FDRA President & CEO Matt Priest catches up with FDRA Chief Economist Gary Raines as they breakdown the recent dive in footwear imports and what to expect as the coronavirus crisis rages on.
Sponsored By:
Coronavirus wreaks havoc on retail supply chains globally, even as China’s factories come back online
At first, U.S. retailers were most concerned about manufacturing facilities being disrupted by COVID-19 in China, where the virus originated.

Now, in the midst of a global pandemic, this is a much bigger issue than China. While some manufacturing operations are getting back up and running, much of the rest of the world is in distress.

The coronavirus could deal a blow to companies already on the brink of going out of business. While it may seem far off, the disruption is already starting to impact the shipment of goods to retailers for the back-to-school season, analysts say. And if the situation persists, it could end up hitting the holidays, when many retailers make the bulk of their profits.

“In 25 years, I have never seen anything like this,” parcel managing and logistics platform ShipMatrix President Satish Jindel said. “There is a psychological element, which is very hard to predict. ... This is an unprecedented situation.”

Footwear Materials Cost Report
A current issue that catches our attention this month: Leather & cattle prices. 
Just as leather is a key component of much of the world's footwear production, leather prices are a key cost component for much of the industry.  Live cattle futures traded on the CME are sharply lower in March, owing to a larger 2020 beef production forecast from the USDA and ongoing coronavirus concerns. 
 

Sponsored By:

Super Dry Recommendations
As Coronavirus Spotlights Supply Chain Flaws, a New Model Emerges
As the recent trade war with China revealed, fashion apparel sourcing needs to be nimble and efficient as retailers and brands shifted factories to Vietnam and other countries. And as the coronavirus outbreak is showing, retailers and brands need supply chains that can also be managed remotely.

But product development processes are not up to snuff.

Even without the duress of a supply chain disruption, product development processes are weighed down by high sample costs as well as wasted time as samples have to be shipped back and forth to Asia. And once samples are approved, sourced and developed, the lead time for final products can take months. Meanwhile, when items finally make it to stores or appear online, many products are destined for the clearance rack because it’s not what shoppers want.