Insider predicts shoe prices to take hike
Rising wages in China and an increase in the cost of raw materials will push up the price of shoes, the German head of Deichmann, Europe’s largest footwear manufacturer, said this week.
Heinrich Deichmann told Der Spiegel about “dramatic changes” taking place in China, which produces a large portion of shoes sold in the West. Consumers must, he said, get used to the idea of forking out more for their footwear.
But Deichmann said his company would sacrifice profits this year, which marks the company’s centenary, in order to keep prices steady.
Despite rising costs, Deichmann intends to make a grand entry into the Russian market. At least five stores are planned for Moscow and Saint Petersburg, where in some cases rents are said to be higher than in prime German locations.
“If we’re successful, we could be looking at 100 stores in Russia in the foreseeable future,” he said.
The Deichmann head also claimed to be unfazed by competition from online retail outlets such as Zalando, which he described as loss-making as opposed to his company's internet sales, which he claimed were bringing in “good money.”
In the wake of several disasters – most recently the collapse of a factory building in Bangladesh which killed more than a 1,000 workers – consumers are becoming increasingly aware of the origin and working conditions endured by those manufacturing their clothing.