Thai footwear industry aims high

Department of Industrial Promotion, in cooperation with the Thai Footwear Association, has adopted a five-year strategy to turn Thailand into Asia's shoe centre through the sustainable development of skilled workers, footwear design and technology.

The local footwear industry is facing serious labour shortage because workers are being snatched up by other industries such as garment and service.

At present there are about 300,000 workers in the footwear manufacturing industry, which needs another 3,000 to 4,000 skilled people.

The industrial department's deputy director-general Veerapol Srilert said this strategy would help boost the export of footwear under local brands without having to rely heavily on original equipment manufacturing (OEM).

"We want Thai footwear brands to be known by Asian consumers and also want to develop loyalty to local brands. We also want to expand to new markets such as India," Veerapol said, adding that the industry was ranked 41 compared to other products in terms of export value.

Footwear export last year stood at Bt27 billion, a less than 10 per cent increase from 2008 even though growth of 12 per cent was foreseen for the industry.

"Export of footwear has slowed down due to global economic difficulties, especially in the US, and manufacturers, particularly those with OEM contracts, have been badly affected," Veerapol explained.

He added that Thai producers were also facing fierce competition from Chinese manufacturers, who were taking advantage of low labour costs.

"What Thai footwear producers need to do is create their own brands to replace OEMs and focus more on medium to high-end markets," he said.

Veerapol said that apart from a shortage of labour, the footwear industry also faced other challenges such as the shortage of designers and manufacturing support for accessories such as shoe soles and heels.

Ruamporn Ittipong, The Mall Group's senior speciality goods department manager, said the group's department stores had seen a significant increase in the sale of men's leather products, which grew by 19.6 per cent last year to Bt650 million.

"The sale of men's leather goods increased by 6.4 per cent year on year in the first five months of this year," she said, adding that The Mall expected the sale of men's leather products, including footwear and bags, to rise by 10 per cent to Bt720 million by yearend.

"We plan to give the men's leather-goods sections in Siam Paragon and Emporium a facelift. The renovation, costing Bt10 million each, will be completed by the beginning of the fourth quarter. About five or six new local brands will also be introduced," Ruamporn added.

Molee Maneechot, Thai Footwear Association secretary, said the association was holding a "Shoe Design Contest 2011" in cooperation with the Office of Small and Medium Enterprises Promotion, the Department of Industrial Promotion and The Mall Group.

He said the contest, which kicked off yesterday at Siam Paragon, was being held under the "City of Fashion" concept and covered casual and business footwear for both men and women.