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WF NEWS
2
SOUTH AFRICA
An influential political
analyst, Moeletsi Mbeki, has told local media
that joining the World Trade Organization
(WTO) led to almost a complete collapse of
the South African footwear industry. South
Africa joined the WTO in 1995, and, according
to Mr Mbeki (deputy chairman of the South
African Institute of International Affairs, and
the brother of former president Thabo Mbeki),
industries there were subjected to
competition before they were ready to fend
for themselves against cheap imported goods.
ZIMBABWE
The
Zimbabwe Revenue
Authority (Zimra) has
introduced 40% import duty
on footwear. Shoes were
previously included among
the goods a person was
allowed to bring in duty-free
once in a calendar month.
SWITZERLAND
A World Trade Organization (WTO) panel that
was set up in July 2010 to examine complaints from China about
anti-dumping measures on footwear exports to the European
Union has issued its report. The European Commission began
applying anti-dumping duties of 16.5% on imports of leather shoes
from China in 2006; the measures stayed in place until March this
year, but before then China had sent a wide-reaching set of formal
complaints to the WTO saying the measures were unfair. The WTO
panel found that for the European Union to apply the same level of
duty to all suppliers was “inconsistent with its obligations”, but it
rejected “the bulk of China’s specific claims”.
BRAZIL
Brazilian footwear brands are among a growing number of companies that are using the franchising model to
spread their sales networks across Latin America. The Brazilian Franchising Association (ABF) has said that revenues from
franchising will be worth $49.1 billion to Brazilian companies in 2011. Footwear brands such as Arezzo, Carmen Steffens and
Via Uno have been among the success stories for ABF. Via Uno, for example, is bringing in an estimated 10% of its revenue
from franchises, of which it currently has 60 in Argentina, Chile, Mexico, Peru and Panama.
UNITED KINGDOM
UGG Australia
opened a flagship store in Knightsbridge,
London in November. UGG Knightsbridge
will carry the brand’s complete range of
footwear collections along with handbags,
outerwear, and cold weather accessories
from the autumn 2011 collection. US-
based nautical footwear and clothing
brand Sebago also opened its first UK
flagship store in London in November.
ISRAEL
German sportswear
company Puma is setting up its
first subsidiary in Israel. For the
past 20 years, the company has
been represented in Israel by
Grundman & Co. In addition to the
marketing of Puma’s products at
350 points of sale across the
country, Grundman has also set up
five Puma concept stores. Puma’s
new representative will continue
working with Grundman.