News & Article

Indonesia: Footwear workers could miss out on wage rise

Indonesia’s Ministry of Industry has suggested the footwear, leather and textiles sectors be exempt from a new minimum wage due to come into force in the new year, in an attempt to boost the industries.

MS Hidayat said if labour-intensive companies were forced to raise wages, they might have to lay off staff, which would further impede their growth. “If we force them to comply with the new minimum wages, they might have to lay off their workers, creating a huge amount of unemployed people,” he said, according to the Jakarta Post.

Leather, footwear and textiles were among the slowest growing sectors in the country, recording a growth of 3.6% this year, compared with 8.8% last year.

A number of factories had to suspend production this year after workers protested about low wages and poor working conditions.

Senior leadership changes at Nike

US sportswear giant Nike has appointed a new vice-president of action sports, with responsibility for its skateboarding and snow businesses as well as Hurley International.

Roger Wyett joined Nike in 1994 and has held a variety of roles including CEO of Hurley and vice-president of global apparel.

"Roger’s leadership over these important businesses will help continue to drive success for Nike," said Mark Parker, CEO of Nike.

Sandy Bodecker, the current VP of action sports, will now work on special projects involving long-term product innovation. "I’d like to thank Sandy for his strong leadership over the last five years and look forward to his continued significant contributions to the company," added Mr Parker.

Scott LeClair, VP of Nike Skate and Nike Snow, will report to Mr Wyett. Bob Hurley, currently the interim CEO of Hurley, will remain in that position and will also report to Mr Wyett.

Nike Launches $315 computer-Chipped Shoes

Containing a computer chip that can measure how high you jump and how fast you run, Nike’s new LeBron X are its most expensive pair of trainers to date.

Retailing at $315, the basketball shoes can be digitally synced to relay performance information to the wearer’s smartphone.

They are endorsed by US basketballer LeBron James, who has collaborated with Nike on previous designs and who launched the shoes at the Olympics.

Nike justified the high price by saying it reflected the fact that the price of cotton has increased and that the cost of marketing is rising. A cheaper version, without the computer chip, will be available for $180.
The Wall Street Journal reported that they will be available in the US this autumn.

Nike to sell Cole Haan and Umbro

Nike is to sell its Cole Haan and Umbro brands so that it can focus on growing its Nike, Jordan, Converse and Hurley brands.

"We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the Nike brand," said Mark Parker, president and CEO.

"We also see significant potential in Jordan, Converse and Hurley, which have unique consumer relationships that complement the Nike Brand.

"Divesting of Umbro and Cole Haan will allow us to focus our resources on the highest-potential opportunities for Nike to continue to drive sustainable, profitable growth for our shareholders."

New York-based Cole Haan, which specialises in casual and dress leather footwear and bags, was acquired the sportswear giant in 1988.

Umbro is a football brand based in Manchester and was acquired by Nike in 2008.

Business as Usual For MBT Subsidiaries despite administration

The parent company of Swiss toning footwear brand MBT has gone into administration, but reports suggest business will continue as normal for its subsidiaries, in some countries at least.

Unmanageable levels of debt forced court-appointed administrators to take over the running of Masai Group International in mid-May.

However, MBT Ibérica, a new subsidiary the company set up for Spain, Portugal and Andorra at the start of 2011, has told media that it will carry on as normal. MBT shoes, whose curved soles imitate the footwear worn by the Masai tribe in Kenya, entered the Spanish market seven years ago, but last year the company bought out its distribution partner and launched the new wholly owned subsidiary.

In the course of its first year, MBT Ibérica increased sales by 10.5% and set up a retail chain of 70 own-brand stores, as well as 40 franchises. In addition, MBT shoes are for sale in 150 multi-brand outlets, including the stores of the region’s biggest department store group, El Corte Inglés.

“MBT Ibérica is still growing and is still solvent,” the company said, “and we can guarantee its continued viability in the short and long term.”

Similarly, MBT has said that its subsidiary in the UK, Masai GB, is to continue its business as usual. It has eight own-brand stores there, plus four outlet stores. The brand also works with 100 multi-brand stores in the UK.

Adidas to cut product portfolio by 25%

The CEO of German sportswear brand adidas has said the brand plans to reduce the size of its product portfolio by a quarter to improve overall corporate performance.
Herbert Haine told Frankfurter Allgemeine Zeitung in a recent interview that adidas currently sells 46,897 different lines, many of which do not deliver the desired results.
“Twenty percent of our products account for roughly 80% of sales,” he said. “We need to remove the products where margins and volumes are too small. We will reduce our collection by 25%. New ranges for the younger audience, like Neo, will be added, meaning we will need to make greater cutbacks in other areas.”

Sumber : Footwearbiz News

Troubled times for Chinese footwear machinery sector

China’s footwear machinery manufacturers had a difficult year in 2011. A report from the China Leather Industry Association (CLIA) has said that sales of locally produced footwear machinery declined in the first quarter of 2011 and experienced little pick-up in the second and third quarters.

Encumbered by excess inventory, machinery manufacturers discounted heavily during the fourth quarter of 2011, sometimes selling machinery to shoe manufacturers at zero margin to make way for new stock in 2012, the CLIA report says.

The association said that new footwear factories springing up in inland locations offer a degree of hope to domestic machinery manufacturers. Although the move of footwear factories to China’s interior from the more developed coastal and southern areas is mostly driven by the availability and affordability of labour, the new factories still need kitting out with machines. It also said Chinese producers were stepping up their efforts to sell machinery to footwear manufacturers in other emerging economies.

Armani wants to make more shoes and bags

Fashion designer Giorgio Armani wants to include more leathergoods and footwear in future collections.

In comments he made at the Milan Fashion Week at the end of February and start of March, Mr Armani told Italian media that he regarded shoes and accessories as “easier”.

Clothes have to change constantly, he said, whereas designs for accessory and footwear ranges are current for longer and provide manufacturers and design houses with higher margins. “Look at the Kelly bag by Hermès or the classic men’s moccasin by Tod’s,” he explained. “They are eternal; they never go out of fashion.”