The history of shoes, as a garment for the feet, goes back more than 25 thousand years, it is to this time period that modern scientists time the distribution of special devices among “homo sapiens” to save the lower extremities from frost, dampness and mechanical dangers. The first shoes were as natural as possible and were windings made of palm leaves, papyrus, bast, animal skin and sometimes even tree bark, which were attached to the ankle with strong vegetable cords or a leather strap. Such footwear met all the requirements of the time - it was affordable and protected the legs from injury and hypothermia. However, there was no need to talk about comfort or even minimal convenience.

Taking into account the physiology of the foot and the emotions of the wearer of shoes began only in ancient times, when high, soft leather, more reminiscent of stockings, boots and the use of various patterns for the right and left shoes, became widespread. In addition, with the advent of new technologies, shoes began to become an indicator of wealth or social status. For example, the patricians had the right to attach their shoes to the foot with 4 straps, while the plebeians were content with one.

But, shoes as an attribute of style and status fully realized itself during the Middle Ages. The extravagant king Philip IV was not too lazy to issue a decree, which clearly stipulated what kind of shoes someone was supposed to wear according to their status. And since pointed shoes were in fashion in those days, it was their outstanding part that became a sign of generosity. Princes and barons often tied the toe of their shoes with twine to the lower leg, so that a reminder of their high position would not cause injury when walking.

The emergence of the first guilds or shoemakers' workshops is also attributed to the era of developed feudalism, if earlier shoes were made by craftsmen - shoemakers individually and according to their own pricing policy, now the shoe craft has become clearly subordinate not only to the market, but also to a kind of trade union. In the workshops, the quality and aesthetics of shoes were at the forefront, in addition, it became possible to produce large batches of shoes in a short time.

During the Renaissance, shoes were returned to their original function, because the toes of the shoes became shorter and the backs narrower. It was at this time that the first heels appeared, which made men's shoes more elegant, women's shoes at that time were not considered an object that required an aesthetic touch - the long hems of puffy skirts covered ladies' legs from prying eyes. Only in the 18th century did women have the opportunity to demonstrate their legs, dressed in brocade and silk light shoes. Men's court fashion at that time was distinguished by the height of the heel and the obligatory luxurious bows on the instep. Medical aspects of wearing shoes at that time, gentlemen were of little concern, which led to a large number of tendon injuries and leg diseases.

By this time, the appearance of the shoemaker's manufactory, and the division of shoe manufacturing into stages can be attributed. Now more than one master led the entire process of the formation of the boot from blanks to decor, each stage was handled by a specialist in this particular issue. However, it was still almost impossible to simply come and buy men's sandals, each pair of shoes was made "for the client" and certainly to order, materials and labor were too expensive for stream work.

In the nineteenth century, shoes turn to face the person and his health, and outrageous bright ones replace practical, comfortable and wearable leather boots and boots, which begin to be cut, taking into account the configuration of the foot. The shoe industry in Europe is experiencing an extraordinary rise.

Since the second half of the 19th century, mechanical production has replaced manual labor. And by the beginning of the XX century, it reaches 500 pairs per year for each employee, and by the middle of the century - up to 3,000 pairs. The leading position in terms of quality, comfort and beauty of shoes is occupied by the Italian shoe industry. and to this day is considered the "crown" of shoe thought, both in terms of aesthetic and functional criteria. Along with the products of Italian shoemakers, Spanish and Portuguese shoes are in demand and authority all over the world, as successful representatives of the price-name-quality ratio.

To date, most shoe production is fully automated, in many areas software-controlled devices are used, which makes it possible to accurately follow the centuries-old shoe manufacturing technology, and the cooperative orders that have survived in Europe are responsible for the quality of shoes not only by the brand, but also by the conscience of the craftsmen. European shoes today are an element of style, a state of mind, comfort of movement and an indicator of success.

 Overview of the Russian leather and footwear industry market 

 October 2007  www.snbc.ru © Designed by Alexander Savelyev 

OVERVIEW OF THE RUSSIAN MARKET

LEATHER AND SHOE INDUSTRY

(October 2007)

The leather and footwear industry in Soviet times was a huge mechanized industry. Old enterprises were expanded and reconstructed, new tanneries were built in Moscow, Yelets, Novosibirsk, Irkutsk, Kuznetsk, Mogilev, Frunze, Semipalatinsk and many other cities. Shoe factories were built in Sverdlovsk, Tbilisi, Kuznetsk, Novosibirsk, Kyiv, etc. Leather and shoe engineering, the production of tanning extracts, chrome leather goods, and also artificial leather were laid.

The industry was equipped with modern technology, technology was improved, and the organization of production was improved. In 1970, approximately 43 thousand engineering and technical specialists were employed in the leather and footwear industry of the USSR, which accounted for 6% of the entire industrial and production personnel of the industry. In 1971, in terms of the total production of leather shoes, the Soviet Union occupied the world championship, lagging behind, however, many developed countries in terms of the production of leather shoes per capita.

In the pre-revolutionary period, the leather and footwear industry developed mainly in the northwestern, western and central regions of Russia. On the territory of Central Asia, Kazakhstan and the eastern regions of Russia, there were almost no leather and footwear enterprises at all. During the years of Soviet power, a more even geographical distribution of leather and footwear enterprises was carried out.

Of the other socialist countries, Poland, the GDR, Czechoslovakia, and Hungary had the most developed leather and shoe industry. Czechoslovakia, which at that time owned the world championship in the manufacture of shoes per capita, exported a significant part of its products to other countries, including the USSR. Among other countries, the United States, Germany, Great Britain, France, and Italy have a well-developed leather and footwear industry.

Until 1998, almost all imported shoes in Russia were imported from Italy, Spain, Portugal, Germany, Eastern Europe and very rarely from Asia. Even Russian companies that created their own collections made them mainly in Europe. But the crisis forced us to reconsider our opportunities, especially those companies that were mainly focused on the middle and cheap market segment.

As a result, Russian factories received many orders, and production began to grow. By the end of 1999, the Russian footwear market stabilized, there was a relative saturation of the market, expressed by a wide range.

However, the recovery was short-lived. In 2000, it was not possible to maintain the high growth rates in the industry, achieved in the post-crisis year of 1999, and in 2001, the industry's production indicators remained at the level of 2000. Rising prices for raw hides on the world market spurred the export of hides from Russia, which put domestic manufacturers of leather goods in a difficult position, as their costs for the purchase of raw materials increased significantly.

The volume of the Russian footwear market in 2004 was estimated by the experts of the Internet portal Obuv v Rossii at $6-6.5 billion, the Federal State Statistics Service of the Russian Federation at $6-8 billion. turnover and structure of retail trade, the size of the market in 2004 was to be at least $8.62 billion.

In 2005, the total turnover of the footwear market in Russia, according to its participants, amounted to two billion US dollars.2 In physical terms, according to DISCOVERY Research Group, the market volume in 2005 amounted to 270.9 - 326.7 million pairs of shoes. 3

According to Rosstat, shoe consumption per capita in 2006 was approaching two pairs per year. However, some of the unaccounted for shoes sold (for example, in clothing markets) should be taken into account.

In 2006, according to various experts, the volume of the Russian shoe market amounted to:

380 - 400 million pairs (according to the Roslegprom association);

400 - 420 million pairs (three pairs per person per year, according to the general director of the Russkaya Kozha factory);

up to 450 million pairs (estimated by the CEO of the National Shoe Association).

According to DISCOVERY Research Group, the volume of the Russian footwear market in 2006, taking into account the shadow sector, represented in the main by illegal imports, was in the range of 315-380 million pairs. The market growth rate was about 16%, but the market growth rate is predicted to slow down in the future. The maximum estimate of the shoe market in Russia in 2006 is 380 million pairs. With this indicator, the volume of consumption is 2.6 pairs of shoes per capita per year. Taking into account the indicators of domestic production (according to various estimates, 45–52 million pairs) and legal imports (100–106 million pairs), the volume of illegal imports is estimated at 222 - 235 million pairs, which is consistent with the estimates of other experts (in a wider range, the volume of unofficial imports in 2006 is estimated at between 198.8 million pairs and 283.5 million pairs, legal imports at 98.4 - 162 million steam).4

In value terms, the total market volume in 2006 is estimated by DISCOVERY Research Group at $10.1-16 billion. 5

Over the past 5 - 6 years, the domestic leather and footwear industry has doubled production volumes, but they amounted to 50% of the 1990 level for leather, 15% for shoes, that is, only the lost positions are being restored. Growth in footwear production should be much higher as consumption increases each year and the domestic market has now reached $8-9 billion.6

However, the ill-conceived customs and tariff policy of the Government of the Russian Federation, aimed at the export of raw leather and the import of finished footwear, has led to the monopolization of the Russian market by imports, including 90% of products imported from China. Production conditions in China, state support for the leather and footwear industry in this country, as well as 25% import duties on shoes ensure high production growth rates and low prices for products.

The domestic leather and footwear industry is developing in completely different conditions of constant growth in prices for raw materials, materials, energy carriers, social costs, the lack of a clear policy regarding the development of light industry and, in particular, the leather and footwear industry, that is, it is in unequal competitive conditions with the main importers - Chinese manufacturers. Shoe import gives a profit of 100% and more, and domestic production - 7 - 10%, which reduces investment attractiveness.

In January-August 2007, footwear production in Russia decreased by 6.8%, which was largely due to a decrease in import customs duties on footwear. At the same time, for seven months of 2007, imports of leather shoes increased 2.4 times. The result of price competition between domestic footwear production and imports was a reduction in footwear production at some large Russian enterprises. Thus, the leader of Russian production, the Bris-Bosphorus company, which produces about 30% of footwear in Russia, reduced production by 29 percent in the first half of 2007.7

The terms of the upcoming accession of Russia to the WTO for the Russian leather and footwear industry are disastrous, since import duties on shoes, under the terms of the WTO, will be reduced to 5%, which will further increase the price gap between Russian and imported shoes in favor of imported ones. Already, the production of footwear in Russia is unprofitable, and imports are highly profitable.

All this worries Russian manufacturers of leather and footwear, which in recent years have made a breakthrough in their industry not only in terms of volume indicators, but also in design, quality, organization of branded trade and service.

The Nizhny Novgorod market of the leather and footwear industry is represented by such enterprises as Bogorodsk Shoe Factory LLC, BorObuvSpetsProm CJSC, MAAG LLC, Borsk Felted Shoes Factory OJSC, Koverninskaya Felted Shoes Factory OJSC.

Limited Liability Company "MAAG", established in 2001, is one of the most promising and dynamically developing enterprises in the shoe industry. The factory is equipped with the latest modern Italian and German equipment and uses the most advanced technologies.

Footwear of the stitched-injection method of fastening, which the factory produces, meets the highest requirements for quality and protective properties. The priority direction of the factory's work is the production of work shoes for various industries: petrochemistry, metallurgy, gas production, agriculture. Expensive equipment allows us to implement the most advanced technological achievements and produce shoes of excellent quality, light and durable. To date, the factory produces 30 thousand pairs of shoes per month and is increasing output.

Specially designed in Italy, a comfortable and ergonomic last that meets international quality standards allows you to use boots without experiencing discomfort during the working day. The design of this model was carried out with the help of a specialized Italian computer program. Computer modeling is carried out by experienced talented fashion designers with the help of an Italian specialized program.

The process of making shoes in a modern enterprise is divided into a number of operations performed on a conveyor by one or more workers:

cutting material,

preparing parts for assembly

assembly of the workpiece (the workpiece is the upper of the shoe, sewn from separate parts),

billet molding,

attaching the bottom parts to the workpiece,

finished product finishing.

In the manufacture of footwear, up to 120 types of main-purpose machines and a large number of auxiliary devices and devices are used.

In the shoe industry, a new injection molding method for making shoes began to be used. Shoe upper blanks are made of artificial and natural leather, textile materials. The material for the manufacture of the sole is polyvinyl chloride resin with a small amount of additives. On top of the press-form, a metal block is lowered with a blank for the upper of the shoe put on it. Heated liquid resin is injected into the press-mould, covered with a block with a blank top. Within a few seconds, a sole is formed, which immediately fuses with the upper blank. The shoes are ready.

A new type of footwear is made on injection molding machines. Shoe made by injection molding is worn for a long time. To make the sole soft, springy, it is made porous.

LLC "MAAG" produces work shoes based on two-layer materials:

thermoplastic polyurethane (TPU) + polyurethane PU);

nitrile + polyurethane.

For the production of a two-layer sole, high-quality imported polyurethane systems made in the USA, Germany and others are used. The oil and petrol resistant and antistatic two-layer TPU + PU outsole can be made in red, green, beige, gray and other colors according to the customer's request. The sole is corrugated, light and comfortable, with good mechanical characteristics.

Sole two-layer "polyurethane + nitrile" for outdoor work, heat-resistant (up to + 3000C), has such necessary properties as wear resistance, antistatic, oil and petrol resistance. Non-slip nitrile rubber undercarriage, resistant to acid and alkaline solutions.

The range of products manufactured by MAAG LLC is very wide. It presents women's and men's shoes from 36 to 46 sizes. These are summer sandals, low shoes, boots, boots. Unlined, insulated on the pile, lined with natural and faux fur.

^ Photo 1. Products of the shoe factory MAAG LLC.

Nitrile pads are made of green, black, red and blue rubbers. The outsole has ridges at the toe and heel to protect the leather upper.

The range of products manufactured by MAAG LLC is very wide. It presents women's and men's shoes from 36 to 46 sizes. These are summer sandals, low shoes, boots, boots (unlined, insulated on the pile, lined with natural and artificial fur).

The factory offers shoes with a wide range of protective properties. In addition to protection against general industrial pollution, oil, petroleum oils and petroleum products, special shoes are produced to protect against impacts in the toe part - with an internal metal toe cap and a metal insole that protects the foot from punctures and cuts.

Footwear by MAAG LLC is practical and versatile, easy to use, with a large margin of safety and reliable protection against mechanical damage. Footwear is made for different categories of workers - working specialties, management personnel, using elements of corporate symbols to create a corporate identity.

The technical equipment of the factory and careful quality control at all stages of production (from the development of a model and the purchase of raw materials to the shipment of products to the consumer) allow us to produce a wide range of shoes and successfully compete with the leading manufacturers in this industry.

The equipment of the MAAG shoe factory is represented by the equipment of leading European equipment manufacturers.

^ Photo 2. Areas for cutting and processing shoe upper parts of the MAAG LLC factory.

Today, shoe manufacturers can choose from a sufficient number of brands and manufacturers. Equipment from Germany, Italy, Poland, Czech Republic, Turkey is represented on the market. MAAG LLC works with such manufacturers as Cerim, Atom, Fortuna, Camoga, PMF, Leibrock, PFAFF. Each manufacturer has its own advantages and disadvantages. Ideally, only equipment correctly selected by the supplier for specific conditions and production tasks will work.

^ LLC "MAAG" cooperates with one of the leading suppliers of equipment for the manufacture of shoes - the company "Mine Group".

During its existence, MINE GROUP Corporation has manufactured and delivered more than 16,500 machines worldwide, many of them still work effectively even after 30 years, and MINE GROUP Corporation still maintains them and supplies spare parts. The history of MINE GROUP Corporation begins in 1930. Main Group is the only brand in the world with a wide range of products for all materials, in all configurations and in two technology levels: PREMIUM and GLOBAL.

^ MARKET OVERVIEW

LEATHER AND SHOE INDUSTRY OF RUSSIA

Review prepared

Savelyeva Svetlana Vladimirovna

Deputy General Director

CJSC "NizhBusinessConsulting" for valuation activities

Business valuation expert.

e-mail: [email protected]

Phone: (831) 277 – 9929

When using this review in the media

(including electronic) and commercial projects link to the source -

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1 http://www.b2blogger.com/pressroom/release/4406.html

2 http://www.allmedia.ru/

3 http://www.b2blogger.com/pressroom/release/4406.html

4 http://www.b2blogger.com/pressroom/release/4406.html

5 http://www.b2blogger.com/pressroom/release/4406.html

6 http://www.fis-group.ru/ “Is there no industrial policy of the country regarding leather and footwear?”

7 http://www.ecraft.ru/main/news/

N LOW BUSINESS CONSULTING n LOW BUSINESS CONSULTING n LOW BUSINESS CONSULTING n n LOW BUSINESS CONSULTING n LOW BUSINESS CONSULTING n LOW BUSINESS CONSULTING n

Shoe production is a mass, multi-product production, with a quick change in assortment and is focused on mass consumption. Another distinguishing feature of this production is increased material consumption and labor intensity. In Russia, only 75% of raw hides harvested in the country are used for the production of leather goods and products from them, and 25% of raw materials are exported abroad. An important task of this branch of light industry is to strengthen its own raw material base.

Shoe industry enterprises are currently mainly concentrated in the European part of Russia, namely in the Moscow, Kirov, Tula, Penza regions and some others.

The leather and footwear industry also includes the leather haberdashery industry. The enterprises of the leather goods industry produce bags, gloves and mittens, cases, sports balls and other leather goods. The main production centers are concentrated in Moscow and St. Petersburg.

In addition, the fur industry is distinguished as part of the leather and footwear industry. It includes raw-dyeing and furrier-sewing production, where dressing, dyeing and finishing of various types of furs and fur raw materials and the manufacture of various types of products from them are carried out.

The light industry, in comparison with other branches of production, has a less pronounced territorial structure, since there are some enterprises in almost every region. However, it is possible to identify specialized areas, especially in the textile industry, producing a certain range of products. For example, the Ivanovo region specializes in the production of cotton products and ranks first in Russia in terms of output. The Central Federal District specializes in the production of all branches of the textile industry, and only in this federal district is light industry a branch of specialization. Most often, sub-sectors of light industry are complementary to the economic complex of the region.

Further, in the characteristics of enterprises in different regions, statistical data on the volume of output for each enterprise are used. To understand how large a share an enterprise occupies in the production structure, it is necessary to know the total production volumes. Statistical data are given based on the results of the work of light industry in the first half of 2003. In total, garment industry enterprises produced products worth 12,505 million rubles; in the leather and footwear industry produced 684 million square meters. dm of chrome-tanned leather, 21.3 million pairs of shoes, 2245 thousand bags and 64 thousand pairs of gloves

shoe industry- one of the leading components of the light industry, it is distinguished by the mass character and versatility of production, quick change of assortment, as well as increased material and labor intensity.

Leather materials, textile materials, artificial fur, jute, wood, plastic, rubber, felt materials are used as raw materials for finished products.
According to the basic principle of classification (source material and technological features of production), shoes are divided into three groups:
Leather shoes. The most common type of footwear in terms of production and consumption.

Shoe upper - natural leather, artificial or synthetic, textile or combined materials. The main stages of the production of leather shoes: cutting materials for the upper and lower parts of the shoe, processing parts before fastening, joining the blanks of the upper part of the shoe, forming the blank of the upper part on the last, attaching the lower part of the shoe, final design, finishing and decorating shoes, quality control of shoe products according to external and physical and mechanical indicators.
Rubber Shoes. The top of the shoe is rubber, rubber-textile masses or polymers.

Main production methods: adhesive method, punching method, shaping method, injection molding
Felted shoes. It is a whole product obtained by the process of rolling from wool fibers with impurities of other materials. The main operations in the production process are: preparation of raw materials, production of the base, roll of the base, dyeing of the base, drying of the base on special blocks, finishing.
The finished products of the shoe industry are classified according to a huge variety of characteristics related to the raw materials, the shape of the toe, the shape of the heel, fullness, size, heel height, etc.

Some types of shoes, depending on a specific feature:
- type of production: machine, manual or chemical production.
- intended purpose: orthopedic, sports, special, household (everyday and model), preventive.
- sexually mature signs (male, female, booties, and children's (ganders, preschool and school.)
Consumer properties of shoes:
- ergonomics (anthropometric, physiological and hygienic properties of footwear);
- reliability (physical durability, maintainability and storability);
- aesthetics (silhouette, shape, product model).

The domestic shoe market is represented by large factories and factories (10-15) and many small industries that are concentrated in the Moscow Tula, Kirov and Penza regions. Shoe production is an industry where small business has every opportunity for effective development, since initially shoe production was handicraft.
Technological modernization of enterprises, reduction in the share of imported raw materials, elimination of channels for illegal import of products, training of highly qualified specialists are the main tasks by solving which the shoe industry will be able to switch to an innovative development path and expand the export opportunities of enterprises in their industry.

shoe industry- one of the most diversified branches of the national economy. Recently, all over the world there has been a clear increase in expensive leather products for goods made from synthetic materials. They are not only cheaper, but often more practical than natural counterparts.

Shoe industry in Russia: far from China

The production of expensive leather products has never been a strong point of our country. The lack of technology, a significant lag in fashion has led to the widespread use of products made from substitutes and artificial materials based on polymers. In correspondence competition with leading European brands in the class of top models, we always lost. But synthetic sneakers from our manufacturers began to buy even tsy.
Recently, the leading European powers have maintained their leading positions in manufacturing oriented to a limited circle of consumers. The niche of low-budget products has given way to developing countries. China, Thailand, Indonesia, Malaysia, Vietnam almost completely satisfy the needs of consumers of goods from inexpensive raw materials. The shoe industry in Russia, which is not provided with a large amount of cheap, is inferior to the countries of Southeast Asia in terms of production volumes.

The development of the shoe industry depends on the little things

During the period of sanctions, the attempt of the domestic shoe industry to switch to full import substitution is commendable. It would seem that such a trend plays into the hands of Russian manufacturers. However, we are not yet talking about the replacement of imported products. What can we talk about if Russian goods can satisfy only 15% of the country's population?
Factories are ready to increase their capacities, they lack high-quality raw materials. It was the supply of imported components that hit Russian factories the hardest. They lack quality materials, and no one will buy cheap stuff, especially if the neighboring market has a similar one at a lower price.
In Russia, lining fur, accessories, and glue are almost never produced. Until recently, needles and threads were also imported, but in connection with this, we have to look for internal reserves. So far this is going badly. There are less than a dozen factories for the production of components throughout the country, and the material and technical base is in a deplorable state.

No accessories - no quality boots

Modernization of production in factories for the production of components, which began several years ago, is now in a state of stagnation. Investors do not want to invest in this even on the most favorable terms. And here we are not talking about possible financial risks or insufficient support from local authorities or central authorities. Talk about elementary unprofitability: the minimum payback period for investments is at least 15 years, and then in a good scenario.
Who will wait so long? It is clear that foreign investors do not want to invest in an obscure business with vague prospects. Like it or not, our country will never become a world center for the manufacture of elite boots and shoes like Italy, and China will not catch up in terms of the number of workers and the cheapness of raw materials. Domestic investors, who could well revive the industry - which they did in the pre-crisis period - clearly understand the futility of the industry as a whole.

There are prospects

However, not everything is so bleak. The production of soles and insoles is still on top. Oddly enough, but the economic disasters have affected the manufacturers of sandals and sneakers for children the least, although they are more difficult to sew. Perhaps this is due to a sincere desire to do something good for the younger generation - not all schoolchildren look at Chinese Nikes and Adidas.
According to Konstantin Bobrov, Deputy Director of Obuv Rossii, our country is on the verge of a technological revolution. It is no longer possible to work in the old way, and new technologies are only at the development stage. And although there is still a long way to go before full import substitution, there are prerequisites for restrained optimism.
In four regions of Russia, all conditions have already been created for the construction and creation of complex clusters. They include sewing and cutting complexes, as well as factories for the manufacture of components and accessories. There is no need to wait for a quick appearance of beautiful and comfortable products from a Russian manufacturer, but there is still hope for the flourishing of the industry.