Survey of footwear industry

Sales of footwear are booming in Russia, according to BISNIS, part of the US Department of Commerce in Washington DC. Unofficial figures indicate that 200 million pairs of footwear were sold in Russia in the year 2000 with sales this year likely to reach 233 million pairs. In the coming five to ten years annual footwear sales are expected to increase by an average of 12-14%. During 2000 and in 1999 Russian footwear imports started to increase substantially, particularly from Italy which in the first five months of last year totalled 2.35 million pairs worth US$75 million, a 100% increase as compared with the same period in 1999. The average price of a pair of imported Italian shoes last year was US$33, an increase of 15% as compared with the previous year. Bisnis says that the Russian footwear market offers real opportunity for American footwear manufacturers as imported footwear is still seen by Russian consumers as being better than domestic product. Production of footwear in Russia has increased significantly over the past two years with local designers creating new designs and selling their products in exclusive boutiques. Russia currently lacks a strong local brand presence in the lower-end footwear market, notes the report. A recent inspection of footwear sold in Russia by Russia's Department of State Trade Inspection revealed that 60% to 84% of leather footwear sold on the domestic market failed to meet minimum quality standards. Most of this sub-standard footwear was produced in China, Türkiye, Taiwan and Syria and often carried bogus Italian labels.