Rieker
Sick people needed to open new factories in Russia
13.11.2010 7078

Sick people needed to open new factories in Russia

What was the year 2009 for footwear and leatherworkers and what is happening with domestic producers now? According to the Russian Union of Leatherworkers and Shoemakers (RSCO), in 2009 our country produced 1,94 billion square meters. dm of natural leather (growth rate - 74,4%) and 57,8 million pairs of shoes (102,3%). In the first quarter of 2010, tanners began to recover their volumes, increasing the production of chrome leather by 20,9%, while the production of footwear as a whole increased by 26,2%, and the production, including children's footwear, by 35,8%.

SR78_Perekrestok_Union_2.jpgThe export of leather goods in the 2009 year amounted to $ 155,6 million, decreasing by 30%, in real terms - by 8,7%. Official import of shoes decreased by 22% (223 million pairs against 286 million pairs in 2008 year). The profitability of the leather industry amounted to 1,8%, shoe production - -8%. The number of livestock decreased by 400 thousand heads, or by 2%, which led to a decrease in the raw material base for tanners and a sharp increase in prices for leather raw materials.

At the annual meeting in May, members of the RSKO concluded that it was almost impossible to open a new production facility or build up existing facilities legally. In the regions, questions about the allocation of additional limits on energy resources are hardly being resolved. The number of administrative barriers is not decreasing.

Last year, RSKO actively participated in the adoption of Decree of the Government of the Russian Federation No. 372 of 30 on April 2009, according to which certain types of leather and footwear equipment are imported exempt from VAT upon import into our country. Unfortunately, regional customs hinder the implementation of this document, although if the decree worked in full force, real savings in the payment of duties and VAT for enterprises could reach 70 million rubles.

One of the largest Russian manufacturers, the Unicel company, in 2009 was actively developing its own retail network. According to the General Director of Unichel Vasily Denisenko, the company was forced to accelerate the opening of new stores: 50 stores were opened in a year instead of the usual 30–40. At the same time, 70% of the manufactured shoes were sold through the branded retail network. Footwear production increased by 120 thousand pairs per year. There was an opportunity to attract good personnel. 30 million rubles were invested in the renovation of production, a new production line was installed at the Orenburg factory, and new equipment for tightening shoes was installed in Zlatoust. The company expects that in 2010 the production of footwear will increase by 300 thousand pairs per year. “If you take clear, verified and thoughtful steps,” the General Director of “Unichel” believes, “then you can work in Russia much more efficiently.” Although when asked what can be done so that new shoe factories begin to open in the country, Vasily Denisovich answered with sad irony that for this “sick people must appear. With free money. " Too much effort and money is required to obtain the technical conditions for construction, connection to the electrical networks and all the necessary permits. And you can count on 7-10% of annual profit in an uncertain future.

At the same time, Unichel branded retail grew by 148% last year. The volume of deliveries of other companies to the company's retail network amounted to 1 million pairs. The retail strategy in 2009 was built on changing the assortment, which shifted towards youth preferences (winter became more adjusted, summer became more colorful), a change in suppliers and a brand-name shop concept. The design of the store has become brighter, orange is chosen as the corporate color. According to Vasily Denisenko, the decision was costly, but the attitude of customers to shops began to change.

The company did not depart from its invariable principle - first of all, to use the trading floors of members of the RSKO. As a result, the turnover amounted to 2,8 billion rubles, while retail prices rose by only 5 – 7%.

What was the year for shoe-makers and tanners of 2009 and what is happening with domestic manufacturers now?
5
1
Please rate the article

Materials on the topic

The balance in the market will be determined by the availability of shoes

Vladimir Denisenko, General Director of the Russian shoe company Unichel, talks about the new market situation, the prospects for import substitution in the industry and the future of Russian shoemakers In recent months, economic conditions have changed radically, but…
04.07.2022 1512

World Footwear Yearbook: Russian footwear market statistics for 2020

The analytical bulletin of APICCAPS, the Portuguese Association of Manufacturers of Footwear Components and Leather Products, World Footwear Yearbook has published a report on the Russian footwear market at the time of 2020. Although currently in…
26.05.2022 2695

Sustainability in the footwear segment. Where are we now, what are the main trends?

The EU is moving towards a climate neutral and circular economy, which means that any product today must be more energy efficient, durable, reusable, repairable and recyclable. The fashion and manufacturing industry…
21.03.2022 4283

Business program EURO SHOES PREMIERE COLLECTION

Within the framework of the international exhibition EURO SHOES on February 22-23, a rich business program will be held. For two days, leading fashion market experts, business coaches and retail consultants,…
04.02.2022 3293

“There was a light at the end of the tunnel…” Participants in the shoe market on the situation in the industry.

2020 became a crisis year for the real sector of the economy and the footwear industry. Shoes Report talked with the wholesale companies, with Mikhail Kryuchkov, the head of the Paloma distribution company, which represents a number of Spanish footwear on the Russian market ...
22.12.2020 11716
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning