Wenzhou presents ample growth opportunities, but footwear makers have had to adapt to the dimensions of the market to stay competitive

Sfide Strategiche
ferragamo shoes

According to the Zheijang Foreign Trade and  Economic Cooperation Bureau, Wenzhou holds the record for being the largest footwear manufacturing center in the world but domestic competition is high, as companies vie to expand their distribution into second and third tier cities where economic growth is livelier. This could be a difficult obstacle for newcomers, who compete against megabrands like Belle, which controls two-thirds of the market and Daphne and Saturday, who together have 10% of market share. Control of distribution channels is also important in a country where 71% of purchases are made in department stores and shopping malls. Salvatore Ferragamo and Tod’s have created a different atmosphere in the high-end segment, and other brands are approaching China with aggressive market development strategies. Italian brands have often had to change their corporate and manufacturing stances with respects to distributors and local manufacturers, to maintain quality standards and better control over the local supply chain. It is thanks to these changes that Italian brands have the chance to take advantage of solid future growth, driven by a healthy consumer class made up of the women who are able to afford prestigious brands with their growing purchasing power. Source albertoforchielli.com of Lelio Gavazza and Beatrice Spagnoli

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