Footwear

Laura Venecia Rodriguez
(202) 205-3499
laura.rodriguez@usitc.gov

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Change in 2017 from 2016:

• U.S. total exports of footwear: increased by $62.0 million (4.5 percent) to $1.4 billion
• U.S. general imports of footwear: increased by $20 million (0.1 percent) to $25.7 billion

In 2017, U.S. total exports of footwear, a category that includes footwear parts, increased by $62.0 million (4.5 percent) (table FW.1). Leading export destinations included Vietnam, to which exports (primarily footwear parts) rose sharply by $63 million to $179 million (54.3 percent); Canada, to which exports fell by $10 million to $155 million (6.3 percent); and China, to which exports (primarily footwear parts and athletic shoes) rose by $22 million  to $102 million (27.2 percent). Imports supplied 99 percent of the U.S. footwear market,^[1] and these saw a slight increase of $20 million (0.1 percent) to $25.7 billion.

Table FW.1: Footwear: U.S. exports and general imports, by selected trading partners, 2013–17

Source: Compiled from official statistics of the U.S. Department of Commerce.
Note: Import values are based on customs value; export values are based on free along ship value, U.S. port of export. Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S. general imports plus U.S. domestic exports) in these products in the current year.      

Although China remained the largest supplier of footwear to the United States, accounting for over one-half of total U.S. footwear imports in 2017, its share fell from 57.8 percent in the previous year to 55.6 percent. In contrast, the shares of lower-cost Asian suppliers such as Vietnam, Indonesia, and Cambodia rose in 2017. U.S. imports from Italy and Mexico, suppliers primarily of leather footwear, also increased in 2017.^[2]                                                                                                        

In 2017, imported footwear supplied an estimated 98 to 99 percent of the total U.S. market for footwear.^[3] On average, 7.3 new pairs of shoes per person are imported into the U.S. market annually,^[4] and total consumer spending on footwear is an estimated $80.2 billion.^[5]  However, U.S. consumer spending on footwear rose by just under 1 percent between 2016 and 2017.^[6] During the past few years, industry representatives have noted shifts in discretionary spending by U.S. consumers from goods such as apparel and footwear to expenditures on experiences and travel. This shift may explain, in part, the slowdown in growth of U.S. imports of footwear.^[7] Imports are also affected by the various styles and trends followed by consumers. For example, the “athleisure” trend continues to dominate U.S. consumer spending on athletic footwear: sales of athletic footwear grew 2 percent to $19.6 billion in 2017, and sport leisure is the largest category in athletic footwear.^[8] 

U.S. Exports^[9]

Total U.S. exports of footwear, consisting of domestic exports and re-exports (foreign exports),^[10] fluctuated during 2013–17, rising by 4.5 percent in 2017 over the previous year. During the same period, the share of total U.S. exports accounted for by foreign exports fell from 43 percent in 2013 to 40 percent in 2017.^[11] Canada and Mexico are the largest markets for foreign exports, accounting for 60 percent and 10 percent, respectively, of total U.S. foreign exports in 2017.^[12] 

U.S. exports are estimated to account for over one-quarter of U.S. footwear industry revenue.^[13] American-made shoes, which supplied only about 1 percent of the U.S. footwear market in 2017, have a global reputation for competing on quality rather than price and for serving specialized niche markets such as work-specific or premium high-end footwear.^[14] Vietnam, Canada, and China were the top three export markets for U.S. producers, accounting for 12.5 percent ($179 million), 10.8 percent ($155 million), and 7.1 percent ($102 million), respectively, of U.S. domestic exports of footwear by value in 2017. 

While both Vietnam and China were growth markets for U.S. footwear exports, their trade patterns were somewhat different. U.S. exports of footwear to Vietnam grew the fastest in 2017, rising by $63 million (54.3 percent), and Vietnam replaced Canada as the top export market for U.S. footwear. However, while U.S. exports of footwear to Canada encompassed a variety of shoes, including athletic and work footwear, virtually all (99.4 percent) U.S. footwear exports to Vietnam were footwear parts used to assemble shoes for the U.S. market. As discussed earlier, Vietnam has become a growing supplier of footwear to the U.S. market as an alternative to China. U.S. exports of footwear to China also grew in 2017; over one-half (56.2 percent) were also footwear parts used to assemble shoes for the U.S. market. However, almost one-third ($33.7 million) of U.S. footwear exports to China were athletic shoes for the Chinese consumer market. Growth in Chinese demand for quality U.S. athletic shoes can likely be attributed to the rising disposable income of China’s large population and Chinese consumers’ growing interest in health and an active lifestyle.^[15]

U.S. Imports

Because footwear production is highly labor intensive, U.S. footwear firms have moved most of their production and sourcing of footwear to developing countries where labor costs are significantly lower than those in the United States.^[16] Although U.S. footwear firms have retained and focused on the high-value-added design, marketing, and distribution of shoes in the United States,^[17] the U.S. industry has continued to shrink as U.S. footwear companies increasingly rely on foreign sources to manufacture their goods.^[18]

Table FW.2: Footwear: Leading changes in U.S. exports and imports, 2013–17

China continued to be the largest supplier of footwear to the United States in 2017. U.S. imports from China, however, fell by almost 4 percent to $14.3 billion in 2017, and China’s share of total U.S. imports declined to 56 percent. The continued slowdown in U.S. imports from China reflects the country's ongoing manufacturing challenges in recent years—rising labor costs because of strong economic growth, increasing freight costs, and competition from other Asian suppliers with lower production costs.^[19] The slowdown in U.S. imports from China in 2017 may also be attributed to the uncertain business environment and the possibility of new U.S. tariffs on a wide range of products from China.^[20]

U.S. imports from Vietnam, the second-largest U.S. supplier, have grown rapidly in recent years. In 2017, U.S. imports from Vietnam rose by $614 million (13 percent) to $5.5 billion. Major footwear companies like Nike, which manufactures virtually all of its footwear overseas, have increasingly relocated production from China to other Asian suppliers such as Vietnam and Indonesia.^[21] For fiscal year 2017, Nike reported that Vietnam manufactured 46 percent of its total branded footwear, compared to 27 percent for China.^[22] Another growing low-cost Asian supplier of footwear to the U.S. market is Cambodia; U.S. imports from Cambodia rose from $59 million in 2013 to $271 million in 2017.^[23]

Whereas Asian producers largely supply less expensive shoes,^[24] manufacturers in Italy, the fourth-largest supplier of footwear to the U.S. market in 2017, specialize in high-quality, high-value leather designer footwear.^[25] In 2017, U.S. footwear imports from Italy rose by 1 percent in 2017 to almost $1.4 billion.