Appreciation in the value of the rupee against major currencies, weak consumer confidence in the European Union (EU) and significant decline in the value of the British Pound (GBP) have affected footwear exporters hard and they are now focusing on the domestic market to achieve better results. It has been reported in the recent past (October 2017) that leather footwear and leather goods export have been facing significant hurdles due to the challenging external and internal environment. Demand was affected by weak consumer confidence in the European Union (EU). This is India's main footwear export destination and a significant drop in the value of the British Pound (GBP) following the vote on the referendum to leave the European Union. Recent unfavorable regulations and restrictions faced on animal slaughter and tanneries have also affected the availability of raw materials. Due to these factors, there was a decline in export figures for two consecutive years, by 9% in FY15 and 5% in FY17. While on the domestic front, the Indian footwear industry has historically witnessed healthy growth driven by rising footwear demand and average selling price (ASP), the growth slowed down significantly in FY16 and FY17 due to moderation in confidence of consumers. Additionally, there has also been an impact on consumer demand for footwear due to the demonetization push that occurred in November 2016. Revenues associated with export-oriented leather footwear market participants declined by 2% in fiscal 2017 On the other hand, revenues of domestic-focused operators involved in both leather and non-leather products saw significant growth of 3% in fiscal 2017. There was also a decline in aggregate operating profitability margin. of export-focused entities along with the aggregate operating profitability margin of domestic-focused companies from 12.2% to 11.9% from FY16 to FY17. Although the company's participants focused on leather products and export markets, they faced headwinds due to a combination of internal and external factors and experienced net sales/revenue pressures; the credit risk profile remained stable due to limited leverage and lower expected CAPEX. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Currency fluctuations have had a profound influence on the sourcing of footwear. Indonesia is probably the best example of this. Countries and areas that have been linked to the United States dollar, such as China, have been able to benefit from their favorable position with the United States compared to countries such as Italy and Spain. Italy's adherence to a constant exchange rate of the mark-lira within the European monetary system, at a time when Italian inflation is two or three times that of Germany (Federal Republic), has caused a decline in international competitiveness for all Italian producers. As a result, the cost of Italian shoes increased a lot in the United States and therefore Italians contributed to a large downturn at that time in the US market. Gradually Italian manufacturers managed to regain their position with their main European customer, namely Germany (Federal Republic), as they did not experience an unfavorable movement in the exchange rate scenario. Inflation and above-average interest rates have limited thecompetitiveness of the footwear and leather goods industries in some countries. The actual output of China's shoe industry in 1997 was 5.252 billion pairs of shoes. The production increased to 7.65 billion pairs of shoes in 2005 and further increased to 8,908 billion pairs in 2009. It was reported that the actual production reached 16.98 billion pairs in 2015. In some areas of China the demand exceeds supply of shoes. workforce and therefore the Chinese worker can expect to have secure employment prospects and an increase in real wages. This will definitely create a market that will consume large quantities of footwear. It is the strength of consumer spending and the enormous size of the domestic market that distinguishes the Chinese footwear market from other Asian markets. It is essential to understand this point because it indicates that in the future, even if the Chinese footwear industry increases its capacity very rapidly, much of that capacity will be used to supply the domestic market. It is therefore conceivable that Chinese export production may not increase much above current levels because: Domestic demand is strong Prices are generally better in the domestic market There are capacity constraints Production for the domestic market can take place in regions with less good logistics and lower labor costs. China was the largest footwear exporting country in the world. In 2016 the value of footwear exports amounted to 47202913 thousand dollars. Chinese footwear exports account for 35.5% of the global total. China exports footwear, gaiters and related parts to more than 200 countries around the world. United States, United Kingdom and Japan are the main importers of footwear. However, China mainly exports to the United States of America and recorded 25.7% of footwear sales exported to the United States. According to footwear export data, the product with code HS 6402 is the most exported product from China. The United States is the largest country in the world and imports from 130 countries. In 2016 it recorded a value of footwear exports of 26552471 thousand dollars. Footwear imports from the United States represent 20.9% of the total production value. The United States imports footwear, gaiters and their parts from China only worth 57.9%, or $1,537,2404 thousand. In general, the product with the code HS 6403 is most in demand in the United States. According to footwear import data, the United States imported this product in 2016 worth $1,162,9605. The total value of footwear sales in the mainland in 2016 was RMB 360.9 billion, an increase of 2% year-on-year. As a result, men's shoe sales brought in RMB 136.3 billion in revenue, accounting for 38% of the total, while women's shoe sales brought in an additional RMB 176.6 billion (49%). Rising disposable income due to China's huge population, coupled with growing consumer demand for premium quality, has boosted footwear growth in the recent past and is expected to follow a similar trend over the forecast period. The continental footwear market is dominated by domestically produced products. There are four main footwear industry clusters in the country, located predominantly in the south-eastern coastal regions. Guangdong's footwear industry base, with Guangzhou and Dongguan at the center, focuses on mid-to-high-end shoes, while Zhejiang, with its footwear industry centered on Wenzhou and Taizhou, mainly produces mid-to-high-end men's shoes. low. The western region is led by Chengdu and Chongqing, with women's shoes.