October 04, 2006 16:05 PM
M'sian Footwear Producers Need To Modernise Operations
KUALA LUMPUR, Oct 4 (Bernama) -- Malaysian footwear manufacturers, particularly small and medium-sized operators need to modernise their operations to remain competitive in the global market.
Like any other industry, the footwear industry is expected to face stiff competition particularly from the Asean region as well as emerging economies.
The operators need to invest in research and development (R&D), embark on branding as well as intensify their global marketing efforts to remain competitive, says the Malaysian External Trade Development Corporation (Matrade) in its publication, Trade Mart, Aug-Sept 2006 edition.
Malaysian footwear exports to Chile increased from US$110,543 in 2004 to US$309,051 last year, serving as the 23rd largest supplier in the market.
It says Malaysian exporters can further penetrate the market by focusing on special product attributes required by local consumers including features like absorption for impact reduction, support for body weight and flexibility.
They can also form some strategic alliances with Chilean footwear manufacturers, not only to produce and distribute shoes, but also use Chile as a gateway to other South American market.
As for the French market, Malaysian exporters can look at exporting sports shoes, women's and men's footwear as demand for these products have been increasing.
Matrade says in order for Malaysian companies to increase their market share in France, they will need to keep in touch with current trends in fashion, design, quality and price.
Malaysian footwear exporters should also target the medium to up-market segments to avoid direct competition from other Asian suppliers and be aggressive in marketing by participating in international footwear fairs.
There are also opportunities to penetrate the growing Chinese market.
In Germany and Austria there is also a growing demand for animal footwear following the recent outbreak of diseases.
Farmers and pet owners are looking for ways to protect their livestock and animals and for Malaysian companies involved in the rubber footwear industry, this presents an opportunity.
They can take steps to cash in on the rising demand for this niche product, says Matrade.
In 2005, exports of footwear were valued at RM505.98 million, with Singapore being the largest export market, accounting for 26.9 per cent of Malaysia's total exports of footwear followed by Italy and Mexico.
The Malaysian footwear industry produces a wide variety of footwear ranging from safety and industrial footwear to sports shoes and high fashion footwear.
Footwear with outer soles of rubber, plastic, leather or composition leather and uppers from textile are major export items.
-- BERNAMA
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