Segmentation
The footwear sector comprise of a relatively well-defined group of companies which produce a variety of shoes made from leather, plastic, fabric and textiles.

Vision
To become a world-class producer of predominantly leather foorwear, in the middle to upper price range, vigorously defending its local market position, while actively pursuing a 1% share of world footwear exports by 2005.

Production Capacity
The South African footwear industry focuses on four areas (Western Cape, Southern Cape & Mid/Border, KwaZulu Natal and Gauteng). KwaZulu Natal accounts for 63% of the production. Production is concentrated; only 15% of all the companies account for 70% of production. Industry size in terms of employment, ranges from 1 500 to 5 employees and approximately 40% of the factories have less than 50 employees. The industry has been one of the hardest hit by trade liberalisation. During the period 1993 to 1996, 100 factories closed down and the industry employment declined from 29 583 to 23 617. The significant import penetration, mainly from the Asian economies (China and recently also Indonesia), especially in the lower price category, coupled with the inward looking policy adopted by the sector, have been the main contributory factors to the aforementioned situation. As a short-term expedient, the DTI imposed quotas on imports from non-WTO members.

Imports
Footwear imports increased by 20,6% in the first semester of 1997, compared to the first semester of 1996. This represents 0,9% of total manufactured imports.

The top seven countries of origin of imported manfactured footwear for the first semester of 1997 were: (in order of descending volumes) 1) China2) Hong Kong
3) Indonesia4) Italy5) USA6) Taiwan7) India.

Exports
Foot wear exports increased by 6% in the first semester of 1997, compared to the first semester of 1996. This represents 0,1 % of total manufactured exports.

The top seven export destinations for South African manufactured footwear for the first semester of 1997 were: (in order of descending volumes) 1) UK2) Zambia
3) Zimbabwe4) Netherlands5) France6) Germany
7) Kenya.

South African exports are destined primarily for Africa and Eruope. Exports to Europe consist mainly of manufactured leather footwear, while exports to Africa consist mainly of fabric and plastic manufactured footwear. Production cost benchmarks suggest that South Africa is a medium-cost footwear producer and is better placed to compete in leather footwear than textile, synthetic or athletic footwear.

Objectives

•	To agree to and implement a common vision and strategy
•	To shift production emphasis away from the lower end of the market
•	To reinforce a customer-focused and market driven approach and develop marketing skills(SACTEC)
•	To develop a positive global image of the quality of footwear produced in South Africa
•	To diversify to major new markets and increase market share in existing markets
•	To encourage foreign investment in the foowear sector
•	To train SMMEs in exports.

Export Promotional Assistance

•	Establish an export council which would act as the driving force in stretching export growth
•	Develop and export market strategy and business plan, to identify and target the most lucrative new markets with selected product groups
•	Organise an inward buying trade mission to coincide with a prominent local exhibition
•	Organise an outward selling mission which would also comprise the clothing and textiles sector
•	Assist the sector in compiling a comprehensive guide of the South African footwear and allied industry
•	Assist the industry in identifying foreign sources of expertise and technology which could be utilised to develop the global competitiveness of the South African footwear sector.