The future orientation of shoe export in Iran

Translated by: mandana Nasser

The primary results of the latest customs statistics in Iran by the work group of statistical analysis of shoe industry magazine and world trade organization for 2015 are as follows:

• The average price for a pair of exported shoes from Iran during a 5 year period (from 90 to 94) is about $3.05. Based on the latest international sources data for 2015, the average price of a pair of exported shoes in the world is $8.88, in China is $5.18, in Turkey is $3.47, in Pakistan is $9.58 and in Italy is $46.21.
• The average price of a pair of exported shoes among Asian countries was $6.70 and in European countries was $ 22.72.
• The share of leather shoes value in world shoe export in the mentioned period was %39 ($52 billion in $133 billion) and its share in volume in world shoe export was %15 (2130 million pairs in 14233 million pair in total).
• In 2015, the average price for every pair of exported shoes was $24.39 and the average price for each pair of leather shoes fluctuated from $17.80 in Asia to $39.90 in Europe. Leather shoes price dropped to %4 in 2015.
• Among five shoe exporting countries in Asia, the average price for each pair of shoes are as follows in a descending trend: $20.6 for Indonesia, $17.19 for Hong Kong, $14.45 for Vietnam, $11.92 for India and $5.18 for China.
• Top ten exporters of leather shoes in the world in 2015 with their average prices were as follows: China with $15.75, Italy with $61.5, Vietnam with $20.37, Hong kong with $27.34, Germany with $34.7, Indonesia with $23.48, Spain with $37.46, Belgium with $27.86, India with $16.72 and Portugal with $31.
• The comparison between Pakistan and Turkey which had records in world shoe production with Iran is thinkable here. Pakistan with 366 million pair production is in the sixth position. The export of this country in 2015 with 12 million pairs of shoes and the average price of $9.58 has reached to 116 million dollars (45^th country in export value and 40^th in volume). This country in this year has exported about %79 of leather shoes in value and %51 in volume with average price of $15 to countries like Germany, Italy, Emirates and England.
• Turkey with 350 million pair shoe production is in the 8^th position in the world. The export of this country in 2015 with 281 million pair and the average price of $3.7 have reached to $627 million. (24^th position in value and 10^th position in volume). Turkey exported %42 and %22 of its leather shoes in value and volume with average price of $7.09 to Russia, Germany and England.
• Iran with 200 million pair shoe production is in 12^th position in the world. The average export of any type of shoes in five year period (from 90 to 94) with 40 million pair and the average price of $3.05 have reached to $122 million. The share of exported shoes with leather upper is %4 in volume and %8.5 in value with the average price of $5.3 for each pair of shoes.
• In order to find the depth of Iran’s position in shoe export in the world and clarifying the future of Iran’s export, we compare the average price of exported shoes in any type with the average price of exported leather shoe in the world and some of the countries. Take a look at these numbers:

World total: $8.8, world leather: $24.39

China total: $5.18, China leather: $15.7

Italy total: $46.21, Italy leather: $61.5

Turkey total: $3.7, Turkey leather: $7.09

Pakistan total: $9.7, Pakistan leather: $15

Iran total: $2.23, Iran leather: $5.6

• While during the past 10 years, the value of shoe export in the world has been doubled (which part of this growth in this decade was the increase in average price and other part is because of the change in the combination of export in favor to higher added value shoes (leather shoes group) and other part is emerging new markets especially in Asian countries), the export of Turkish shoes has reached from $200 million in 2005 to $627 million in 2015 with triple increase and its volume has reached from 45 million pair to 180 million pair. The value of shoe export in Iran from 1385 to 1394 has increased only %18 in value and its growth in volume was%-27.6. While 45.9 million pair of exported shoes in 1385 has reached to 33.2 million pair at the end of 94.
• According to the comparison of the share of leather shoes exported in the world (%39), Italy (%73), China (%20), Vietnam (%37), turkey (%42), Pakistan (%78.5) with the average share of exported leather shoes in Iran in the past 5 years (%7) , the orientation of the actual structure of shoe export in Iran will be clarified, while to fill these 5.5 times more gap with world average, 10.4 times more gap with Italy, 2.8 times more gap with China, 5.2 times more gap with Vietnam, 6 times more gap with Turkey and 11.2 times more gap with Pakistan, we should change the orientation of export shoe basket combination in Iran in favor of export products with higher added value. We hope with this 40 million export of any type of shoes in the first years and with the aim of increasing the share of exported volume from the current %4 to the global average of %15 (1.6 million pair to 6 million pair leather shoes) and increasing the leather shoe average price from the current $5.3 to $10, we will be witnessing %35 export from $120 million to $162 million and the improvement of the average price of every exported shoe in Iran from the current $3.05 to $4.05 and increasing the share of leather shoes from %7 to %37.

Achieving this goal will be possible only with strategic plans and setting annual targets of each export-centered producing unit, while achieving the scenario of “Santa clause shoe” for many small units and the scenario of “flying elephant” for large and medium units in 1404 will be possible along with administrative and operational plans besides necessary arrangements from economic and industrial authorities and improvement of business environment which needs intensive and regular strategic planning to promote shoe export in Iran and defining annual targets with monthly continuous monitoring  with increase and decrease causes and logistics strong management both in accessibility to high quality raw material with suitable price and in production planning and the end price control. If we continue with this trend and keeping the current combination of shoe export (%91 non leather and %9 leather shoes), in the coming years, we will be getting off in the very same station we are in it right now!

We will write more about this issue in future.