Trade

French leather shoe exports fall, but China offers opportunity

Dec 30, 2024 France

French leather footwear exports fell by 3% year-on-year between January and August, but according to Alliance France Cuir, there’s still room for luxury footwear to grow in China

In a gloomy international environment, marked by rising costs and falling consumption, French leather footwear exports fell by 3% in the first eight months of the year, as compared to the same period in 2023, with declines of 3% to the US and Italy and 7% to Germany. According to the World Footwear 2024 Yearbook (more information available HERE), these countries were France’s main destinations for footwear in 2023.

However, sales to China have doubled in terms of pairs, representing a 60% increase in turnover. This can be explained by the 17% fall in the average customs price of shoes exported to China: 213 euros per pair today, compared with 258 euros in 2023. “At a time when the Chinese economy is experiencing difficulties, there is still room for growth for luxury footwear from France”, concluded the association.

The figures were published by Alliance France Cuir, the association representing the French leather industry.

Leather Exports

Between January and August, exports of raw hides and leathers also fell by 4% in value terms, as compared to the same period of the previous year, as growth of 3% in Italy and 8% in China was offset by a weaker performance by some of France’s regular customers. Exports in this segment fell by 56% to Turkey, 47% to Spain and 7% to Belgium.

The weakness of international demand also affected the turnover in the French tanning industry, which fell by 4%. “On average, leather is selling for 40% less than in 2018, despite increased costs”, commented Christophe Dehard, President of the Alliance France Cuir

Leather Goods Exports

While China has helped France’s footwear exports, it has slowed its leather goods exports, which were down 4% in the first eight months of the year. In the end, leather goods exports are expected to rise by 2% in 2024, as compared to a 5% growth in 2023.

Alliance France Cuir highlighted that “the Chinese government is targeting the 'hedonism of the Western elite' - some Chinese companies are even banning their employees from wearing European luxury brands”. Consumers are also starting to spend their money on experiences rather than luxury goods or mixing well-known brands with less expensive items.

In addition, sales for the US are stable, but luxury consumption is sluggish, as consumers are cautious about how the country will develop over the next few years. In Europe, exports to Italy, Germany and the UK fell by 6%, 9% and 4%, respectively.

Image Credits: leformier.com

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