In 2022, the growth in prices for shoes in Russia amounted to about 20%
This year, shoe prices have been rising all over the world. The increase in the price of footwear products was most noticeable in countries with high inflation (more than 10%), these include Argentina, Turkey, the Netherlands, Russia, Italy, and the UK. In these countries, shoes have risen in price by 15% or more, - says Anna Lebsak-Kleymans, CEO of Fashion Consulting Group.
According to the expert, the increase in shoe prices in 2022 occurred everywhere, but the range of changes differs in different regions.
It is least pronounced in countries with lower inflation (2-4%), such as China, Saudi Arabia, Switzerland, Japan, Korea, where shoe prices rose by 3-5%. It is more noticeable in countries with an average inflation rate (6-8%), such as France, Brazil, India, Singapore, South Africa, and the USA. The rise in prices amounted to 5-10%. The increase in shoe prices was most pronounced in countries with high inflation - above 10%: Argentina, Turkey, the Netherlands, Russia, Italy, and the UK. The rise in prices was 15% and more.
In Russia, prices increased by about 20%, while in the budget segment the growth was about 15%, in the premium and luxury segment - up to 30%.
According to Anna Lebsak-Kleymans, the main reasons for the growth in prices for footwear products are the rise in price of raw materials (by 30% and more) and the growth of other production costs, the increase in logistics prices (15-30%), the growth of overhead costs to maintain retail sales (10- fifteen%).
“Price growth is inevitable in the presence of inflationary processes,” says Anna Lebsak-Kleymans. - According to the base scenario of the Central Bank of the Russian Federation, annual inflation in 2023 is projected around 7,0%. In addition, currency / exchange rate risks are included in retail prices, which lead to the fact that retailers insure themselves and include an additional coefficient in the price.”
Separately, it is worth noting that in the United States, the FDRA (Footwear Distributors and Retailers of America) Association of Footwear Distributors and Retailers of America predicts that 2022 will show the largest annual increase in retail shoe prices in almost forty years.
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