US shoe price increase ‘due to China wage rises’

US shoe retailers say prices rose by 8-10 per cent in 2011

Footwear prices in the US increased during November and December 2011. According to the American shoe retailers and trade associations, this rise was as a result of higher wages paid by Chinese manufacturers and increased shipping costs, which have fed through to the retail level in the US.
Prices rose by 8-10 per cent last year, with further increases expected in 2012. The US market is vulnerable to Chinese wage inflation, because most shoes worn in America are made in China. The Chinese Ministry of Human Resources and Social Security has stated that the minimum wage in 21 of the country’s 31 regions went up by an average of 21.7 per cent.

Mark Denkler, Chairman of the National Shoe Retailers Association, reported that a number of his members were experiencing shoe prices increasing between the order being placed and the delivery arriving. Some retailers who normally deal with one factory may now be talking to three to achieve the best price.

Publishing Data

This article was originally published on page 4 of the February 2012 issue of SATRA Bulletin.