Footwear and Leather Products Industry

  1. Production

In 2004, manufacturing production index of footwear and leather industry undergoes the following changes.

-Manufacturing production index decreases by 15.1 % for tanned leather and finished leather,as compared to the same period in the previous year.

-Manufacturing production index increased by 16.4 %for bag, as compared to the same period in the previous year.

-Manufacturing production index decreases by 3.8 % for footwear, as compared to the same period in the previous year.

Manufacturing Production Index

Item / 2001 / 2002 / 2003 / 2004* / Growth rate in the same period of the previous year
Tanned leather and finished leather / 96.7 / 99.7 / 79.5 / 68.0 / -15.1
Bag / 85.3 / 78.5 / 63.8 / 74.5 / 16.4
Footwear / 101.7 / 100.1 / 105.6 / 100.5 / -3.8

Source:IndustrialEconomicsInformationCenter, Office of Industrial Economics, Ministry of Industry

*2004 data is primary data (Jan.-Nov.).

2.Marketing

Export

Export value of footwear and parts in 2004 (Jan.-Nov.) decreases by 3.9 %as compared to the previous year. Products with a decreasing export valueare sport shoes (-5.9%) and other footwear (-26.4%). Products with an increasing export value are slippers (6.6%), leather footwear (4.1%) and shoes parts (1.8%).

Majorexport markets and export growth rates areU.S. (-13.3%), Belgium
(-8.5%), Denmark (25.1%), Japan (-1.2%), and United Kingdom (-18.9%).

Export value of traveling items increases by 3.7 %. Products with an increasing export value are handbag (2.4%) and other traveling items (22.6%). Products with a decreasing export value are luggage (-3.9%) and wallet (-4.6%).

Majorexport markets and growth rates areU.S. (3.7%), Switzerland (65.4%), Japan(-9.5%), Germany (13.0%), and UK (19.7%).

Export value of leather and leather products has increased by 9.1 % with an increase in all product categories including wet blue(13.3%), pet toy (8.5%), leather gloves (4.6%), clothing and belt (39.2%), leather and other leather products (8.6%).

Major markets and growth rates for leather products are Hong Kong (-7.2%),U.S. (-12.6%), Vietnam (54.9%), China (1.3%) and Taiwan (7.8%).

Thailand’s Structure of Exported Products

Value: US$ million

Item / 2001 / 2002 / 2003 / 2003
(Jan-Nov) / 2004
(Jan-Nov) / % Change in
2004 compared to the same period of 2003
Footwear and parts / 843.8 / 772.0 / 798.2 / 723.8 / 695.1 / -3.9
1. Sport shoes / 465.8 / 460.6 / 453.2 / 411.3 / 386.7 / -3.4
2. Slipper / 77.8 / 73.1 / 82.7 / 74.7 / 79.6 / 6.6
3. Leather footwear / 181.9 / 144.7 / 182.8 / 163.9 / 170.6 / 4.1
4. Other footwear / 63.2 / 58.2 / 65.0 / 61.0 / 44.9 / -26.4
5. Shoes parts / 55.0 / 35.4 / 14.2 / 12.9 / 13.2 / 1.8
Traveling items / 441.2 / 304.7 / 220.8 / 203.8 / 211.3 / 3.7
1. Luggage / 315.8 / 190.3 / 108.5 / 101.4 / 97.5 / -3.9
2. Handbag / 48.4 / 40.1 / 39.7 / 35.9 / 36.7 / 2.4
3. Wallet / 20.5 / 18.5 / 17.7 / 16.1 / 15.4 / -4.6
4. Other traveling items / 56.6 / 55.8 / 54.9 / 50.3 / 61.7 / 22.7
Leather and tanned leather products / 420.3 / 391.4 / 424.8 / 389.9 / 425.3 / 9.1
1. Wet blue / 246.5 / 61.2 / 60.9 / 56.1 / 63.6 / 13.3
2. Pet toy / 47.7 / 46.3 / 38.9 / 36.2 / 39.3 / 8.5
3. Leather gloves / 43.9 / 43.5 / 45.8 / 42.3 / 44.2 / 4.6
4. Clothing and belt / 4.3 / 4.2 / 3.4 / 3.1 / 4.3 / 39.2
5. Leather and other leather products / 77.9 / 236.1 / 275.7 / 252.2 / 273.9 / 8.6

Source:Department of Trade Negotiations, Ministry of Commerce

Import

Thailand’s Structure of Imported Products

Value: US$ million

2001 / 2002 / 2003 / 2003
(Jan-Nov) / 2004
(Jan-Nov) / % Change in
2004 compared to the same period of 2003
Raw leather and tanned leather / 451.7 / 397.9 / 465.3 / 424.6 / 454.6 / 7.1
Footwear / 44.0 / 49.6 / 62.8 / 57.4 / 64.7 / 12.7
Leather products / 29.8 / 32.9 / 29.0 / 26.2 / 35.7 / 36.3

Source:Department of Trade Negotiations, Ministry of Commerce

Import value of raw leather and tanned leather increases by 7.1 %. Majorimport markets and growth rates are U.S. (-9.1 %), Australia (65.8 %), Italy (-10.7 %), Argentina (23.7 %) and China (30.6 %).

Import value of footwear increases by 12.7 %. Major import markets and growth rates areChina (24.0 %), Indonesia (-10.0 %), Malaysia (60.6 %), U.S. (-10.3 %) and Vietnam (126.3 %).

Import value of leather products increases by 12.7 %. Major import markets andgrowth rates are France (36.4 %), China (122.7 %), Italy (-9.9 %), New Zealand (17.9 %) and Hong Kong (8.3 %).

3. Summary and Trend

Production conditions of raw leather and tanned leather in Thai footwear and leather products industry have declined because of large finished goods inventory. Production of footwear alsodeclines due to a decreasing export and increasing import of foreign footwear. Production of bag increases due to an increasing export.

The trend of Thai footwear and leather productsproductionis likely to grow slightly because of an expansion in export market, especially the export of tanned leather,finished leatherand traveling items, and higher domestic demand as a result of stimulated domestic consumption.