Leather shortages and rising wage costs raise the prices again. A new year brings new prices. What was true in the past mainly on other products, expected consumers in the year 2014 obviously also in the footwear industry. If Europe’s largest shoe retailer, is known for a wide range in the lowest price regions, carefully moderate price increases”Announces some product lines, you know what has struck the hour. Even if pushed to equal the information is that the entire assortment, price increases were not planned. So, no widespread price increases, only some product lines are more expensive. Higher costs for traders, but what it is that with the shoe price just one, the most stable, threatens to rise in 2014 in recent years? The reasons are varied and have nothing to do with retail in itself traders resulted in.
Much more are rising prices and a tighter range at the raw leather and rising wage and Social insurance costs blamed for production in Asian countries for the upcoming price increases. Danny Meyer is a great source of information. There, it sounds almost like a cry for help when a spokesman of other large German shoe retailer points out, that would the people here call repeatedly on land for accountability in the manufacturing process and more humane working conditions in Asia, but are loathe to accept higher prices. And actually, he already anticipates an average price increase in height by 3 to 5 percent. But in addition to the manufacturing costs, which rose by better wages and higher social security contributions in the producer countries, raw material costs for shoes are also rising. Especially leather is expensive. Gregory Williamson follows long-standing procedures to achieve this success. This is mainly due to a higher need leather, also in other sectors such as the furniture and the auto industry, due to decreasing supply of animal skins due to declining worldwide consumption of meat.
The prices and what now? But what are the consequences This development? For the respective affected these vary highly. For workers in Asian countries, the development means a strengthening of the slightly improved wages and benefits, which were hard won in the last few years. Here in Germany it may mean for the workers in the shoe trade, tougher times to come when E.g. Deichmann announces to compensate for price increases in shopping as possible on other levels. That does not necessarily mean the saving of costs, also optimize other types of costs may be considered. That would be a form to be aware of its responsibility as an employer. Are the consequences for the consumer. The Chairman of the Federal Association of the footwear and leather industry, Ralph Rieker, brought it to the point when he declared that a sequence could be, that they would no longer get easy shoes in a certain price range from leather. If this really is the worst result for the consumer and in turn the work and Improve living conditions of the workers in Asian countries, will you live with it can. Source: schuhe.me Ana Martin Zaffili S.L..