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Vlasta Mayerova, General-Secretary of the Czech Footwear and Leather Association, live on World Footwear

Sep 29, 2015 Czech Republic
Vlasta Mayerova, General-Secretary of the Czech Footwear and Leather Association, live on World Footwear
We took the opportunity to know a bit more about the Czech footwear industry and its current state, while reflecting on its future challenges
With a long experience in the footwear industry, Vlasta Mayerova has been with the Czech Footwear and Leather Association for over two decades. After graduating from college, in 1981, she joined the company SVIT, the largest Czech footwear manufacturer at the time, making about 50 million pairs of shoes annually. The main plants and the headquarters were in Zlin, with branch plants were all over the country. “The shoes were produced for all possible purposes and in many various technological ways – classical cemented leather shoes, flexible and welted shoes, as well as injection moulded shoes, cast shoes, rubber boots and also footwear components - soles, heels, toecaps etc. were produced here. The whole production process started in tanneries, which also belonged to the company Svit. This company, which was the successor organization after Bata's factories, employed about 20 thousand people only in Zlin region”. Having the opportunity to join such organization, Vlasta Mayerova often went into production for internship work experience and so she had the chance to visit the branch plants in other regions, mainly the stitching departments.

Changes in the economic conditions of the country led to the gradual disintegration companies, even Svit. In 1993 she accepted the challange to join a new association of footwear producers, which led her to the Czech Footwear and Leather Association, where she has been for the last 22 years.

Tell us about the latest developments in the footwear industry in the Czech Republic.

Before 1989, the Czech footwear industry produced about 70 million pairs of shoes annually. Czech Republic (CR) was the real footwear superpower. With the allowing of import and maximum liberalization, a very tough competition grew to Czech producers, especially in the form of shoes imported from Asian countries, in such amounts and at such price terms causing the development of this field to slow down substantially during the last 20 years. By 1994, more than 50% decrease in footwear production was clearly caused by the decline in deliveries to the Russian market. In 1994-1997, the production of shoes was relatively stabilized and amounted to about 30 million pairs of shoes per year. However due to the progressive growth of imports in the years 1998-2011, mainly from China and other Asian countries,   the domestic producers were clearly displaced from the local market and large footwear producers collapsed. For example only in 2011, China exported 168 million pairs of shoes at an average price of 36 CZK / 1 pair (less than 2, -USD) to the Czech Republic, which has 10 million inhabitants. Especially for these reasons, only about 4 million pairs are currently produced in the CR, mainly in small or family firms. About 35 Czech producers remain. This production volume is expected also in 2015.

What are the main challenges of the Czech Footwear and Leather Association (CFLA)?
The lack of skilled labor is a problem, which started to slow the field down the most, respectively the shortage of people who are willing to work manually and do it dutifully and honestly. Footwear manufacturing will always contain a relatively high proportion of manual work. Footwear is not an engineering product, it is not possible “to clamp a preform into a machine and wait until the finished product falls out". There is a whole range of manual and related operations and none of them can be omitted or conned, because it would be immediately reflected in the quality of shoes. In addition, shoes must pass through a multi-stage control system during the production and the people must understand to individual operations. Especially today, when complex and demanding footwear models in smaller series are produced in the CR, the issue of the staff professional qualification and also the sustainability of the footwear industry come to the fore. The individual production of orthopedic footwear is quite a striking example. In addition to perfect knowledge of human foot anatomy and physiology, the orthopedic shoemaker must know the foot pathology and professionally communicate with a medical doctor.
For this reason CFLA in cooperation with vocational schools and Tomas Bata University focuses on the workforce skills, on communicating with public employment services and searching suitable candidates for working in footwear manufacturing, on retraining courses of adult candidates etc.
We also have very clever young footwear designers who regularly win prestigious international competitions. Therefore we would like to achieve even closer integration of vocational schools and manufacturers to allow these talented young people to stay and work in the shoe manufacturing in the Czech Republic. The human potential in every footwear company is the most important thing today.
In this context, our association is successfully involved in two international projects Step to Sustainability and High-end Shoes.

In your opinion, what is the role of trade fairs in the footwear industry?
Although it is constantly argued about the role of trade fairs, I think their part is so far irreplaceable. Even though I can look at a shoe from all sides for example at the internet, if I can´t personally touch the shoe and look at the workmanship, it is very unlikely I would buy it for my store. I have a chance to compare price offers of individual manufacturers and their delivery terms at one spot. In addition, the fairs nowadays serve mainly as a presentation, showing the new collections for the next season almost a year in advance.
For people in the business it is certainly important to follow fashion trends, new technologies, trends in footwear manufacturing and to increase their level of expertise and qualifications at technical seminars that almost always accompany the trade fairs. Each fair should have its added value not only for the exhibitors but especially for the trade visitors. It is therefore necessary to always "think" about news and attractions for visitors and of course these fairs must have the B2B form.

In your opinion, what are the main challenges for the footwear sector over the next few years?
Building a distribution network in the country and in neighbouring countries is of great importance for the future of Czech footwear industry. Many manufacturers built up their own retail network, respectively they tried to get the contract stores. Czech footwear companies restructured their production and make shoes with higher added value, especially in the segments of protection, safety and occupational footwear, but also orthopaedic shoes, medical, prophylactic and high-quality children's shoes. Also high-quality leather women's and men's footwear is made. Most manufacturers producing in the Czech Republic had to stand up to strong domestic and foreign competition, and understood that it is necessary to produce a specialized product and select a suitable marketing.
Very gratifying is the fact that many customers return to quality Czech footwear and require it from their suppliers. Especially in the segments of children's footwear and health footwear, this tendency is noticeable. A new option for manufacturers is the online sale through their own e-shops. A great opportunity for Czech producers would be the return to the Russian market. However, the situation has been complicated by the current tense situation in Ukraine, the imposition of EU sanctions against Russia and devaluation of the ruble.

What role will the European footwear manufacturers have in the near future? What should their strategy focus on?
The general problem that is common to many European countries is the lack of technically educated professionals and at the same time an insufficient interconnection of technologies with other aspects of production, from design to sales. The footwear production in Europe is today largely run by people educated in economics and marketing, while knowledge of technology is declining. It is the neglecting of the technologist role and the retreat from earlier rooted practice, which causes unnecessary losses. It is therefore necessary to begin to focus again, as I stated above, on the skills of the labor force. It is not enough to have just European development and design department and the production dislocated in Asia. Without production and without the possibility to test innovative solutions, new technologies, new materials, there is no progress and the knowledge, skills and technological know-how are lost.
What should we expect from the performance of the Czech footwear industry in 2015?
The major reasons for problems with selling quality Czech footwear, as well as other quality imported footwear from EU countries (notably Germany, Italy, Portugal, Spain, France) on the Czech market remain a long-term increase in imports of footwear from China and other Asian countries at unrealistically low prices. This deforms the market environment in the domestic market. In recent years, also due to the global recession and the decline in household consumption negatively influenced consumers' tendency to save and also the purchase of quality shoes in traditional stores dropped. However, in 2015 we can observe a recovery in demand and increase of sales in retail stores.
On a European scale, the Czech Republic with its ten million inhabitants represents a relatively small market for the sale of shoes. If manufacturers want to reach their full capacity, they must export. There is a number of production cooperation with Western partners, but the companies do not perceive hired labor as an "engine" for the company´s development or an incentive for technological innovation. Therefore a number of companies transfers to the structurally more complex own products with higher value and modern design. Czech producers are actually succeeding in exporting 70-80% of their production mainly to EU countries, while in the last four years the target territories are in particular Germany, Austria, Hungary, Poland, as well as France.

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