For years, southern China has dominated the footwear industry, with over 90% of the world’s shoes produced there.
But with rising costs of living and increasing wage demands, China’s stronghold on the market is beginning to shift.
As a result, footwear companies are scrambling to diversify their sourcing and find new ways to maintain low prices and quality production.
One of the primary drivers of China’s dominance in the footwear industry has been its ability to offer low prices. But as the cost of living and wages continue to rise in China, factories are being forced to reconsider their pricing strategies.
This has led to a shift in the market, as many footwear companies turn to other countries to source their products.
Vietnam, for example, has seen a significant increase in demand for footwear production, with many factories moving operations there in search of lower costs.
However, the shift away from China isn’t as simple as just finding a new country to manufacture in. Many footwear companies have established long-term relationships with Chinese factories and rely on their expertise to produce high-quality products.
Shifting production to a new country can be risky and comes with its own set of challenges, including language barriers, cultural differences, and legal complexities.
That’s where Kesco steps in.
Count on us to navigate the twists and turns of the supply chain process with you, offering constant monitoring and proactive solutions.
Connect with an expert today so you can focus on your business goals while knowing your supply chain is in good hands.
