EXPORTING FOOTWEAR & LEATHER FASHION …miepo.md/sites/default/files/Export_Footwear&Leather_EN.pdfEXPORTING FOOTWEAR & LEATHER FASHION ACCESSORIES TO THE EU May, ... Importers 2012

European Union's Neighbourhood Programme for Moldova

EU EXPORT EXPLOREREXPORTING FOOTWEAR &

LEATHER FASHION ACCESSORIES TO THE EU

May, 2017

This project is implemented by a GFA Consulting Group - led Consortium

This project is funded by the European Union

Partner of German BusinessPartner of German Business

gGmbHgGmbHs e q u as e q u a

Chisinau

The views expressed in this publication do not necessarily reflect the views of the European Union.

EU EXPORT EXPLOREREXPORTING FOOTWEAR &

LEATHER FASHION ACCESSORIES TO THE EU

May, 2017

EU Export Explorer for Footwear & Leather Fashion Accessories, May 2017 Page 1 of 63

TABLE OF CONTENTS

1 INTRODUCTION ................................................................................................................. 2

2 THE MOLDOVAN INDUSTRY ............................................................................................ 4

2.1 Production ..................................................................................................................... 4

2.2 Exports .......................................................................................................................... 5

3 THE EU MARKET ............................................................................................................... 7

3.1 Supply & Demand ......................................................................................................... 7

3.2 Trends ......................................................................................................................... 37

3.3 Segmentation .............................................................................................................. 41

3.4 Competitiveness ......................................................................................................... 48

3.5 Requirements ............................................................................................................. 50

3.6 Trade Channels & Terms ........................................................................................... 55

4 EXPORTING TO THE EU ................................................................................................. 61

4.1 Preparation ................................................................................................................. 61

4.2 Planning ...................................................................................................................... 62

4.3 More information ......................................................................................................... 63


1 INTRODUCTION

This EU Export Explorer for Footwear & Leather Fashion Accessories focuses

on opportunities, guidelines and requirements for Moldovan manufacturers exporting

their products to the EU.

Hyperlinks

This document contains many practical and up-to-date references to additional

information available on the Internet. Instead of listing all kinds of long and complex

website addresses – often impossible to read, let alone replicate - those websites are

directly accessible in the electronic text via hyperlinks that can be recognised by the

fact that the text is italic, underlined and blue. If you click on such a string of text you

will be automatically directed to a website with more information on that particular

subject. So if you read this report on paper and you are interested in those additional

online information sources, you are strongly recommended to get the electronic

version of this document, which is freely available on the website of MIEPO

(www.miepo.md). On the bottom of that webpage you will find “Sectors”, choose from

there.

All information sources (hyperlinks and footnotes) in the paragraphs below are

available on the Internet in the English language, either directly or via an English

language button on that website. Should you have a problem with that and if you are

considering exports, then you are recommended to learn the English language, or at

least to make sure that somebody in your company masters the English language:

English is THE internationally accepted business language, and the majority of

export information available on the Internet is in English only.

The structure of this document

Chapter 2 briefly describes the Moldovan industry for footwear & leather fashion

accessories and its exports to the EU.

Chapter 3 zooms in on the EU market for footwear & leather fashion accessories.

Whenever needed there are per paragraph separate sections for footwear & leather

fashion accessories in chapter 3. This applies to paragraphs about:

- Product supply and demand (3.1), which analyses EU import, production and

consumption;

- Trends on the EU market (3.2);

- Product segmentation and market segmentation (3.3).

Readers only interested in one of the two products can in these paragraphs skip the

section about the other product, without affecting the readability of the document.


On the other hand, whenever possible chapter 3 deals with footwear and leather

fashion accessories jointly. This applies to the paragraph about:

- The required competitiveness for a Moldovan manufacturer exporting to the EU

(3.4);

- Legal requirements and buyer requirements in the EU for your product (3.5);

- Trade channels and trading terms related to logistics and payments (3.6).

Chapter 4 briefly describes how as a Moldovan manufacturer you could prepare and

plan for exporting to the EU.


2 THE MOLDOVAN INDUSTRY

2.1 Production

The manufacturing sub-sectors of textiles, apparel and footwear & leather

accessories together make up the light industry of Moldova. The light industry has

traditionally been export oriented, with 82 % of total production value for exports. Out

of delivered production, 69% in leather products and footwear was exported. Around

80% of the total production value of the light industry is made-to-order (i.e.

manufactured based on instructions of the customer) 1. This corresponds with the

abovementioned 82 % share of exports in total production value, as the rest (18 %) is

with own brand to the local market. According to statistics of the International Trade

Center (ITC) 84 % of footwear exports are re-exports, indicating that this proportion

is made-to-order whereby the customer provides the materials.

This large share of made-to-order in exports, whereby the customer usually supplies

all materials, means that net margins are relatively low and investments moderate. In

leather & footwear the role of foreign capital investments is not that significant as in

textiles, and joint ventures are not that common. This is relevant, as the ownership

background of a company has an impact on its strategy: fully foreign-owned

companies, as well as joint ventures of which the parent companies carry out trade,

tend to concentrate on production and on providing products to the parent company

at low transfer prices. In such a business context - with all design, sourcing and

marketing activities covered by the parent company - the strategy usually is to not

upgrade production in Moldova in the value chain.

For Moldovan companies with venture capital on the other hand it may be different

however, as their aim may be to enhance the value of the company, for example by

own-brand exports. Around 80% of the companies in footwear & leather fashion

accessories are funded through local private financial sources. In particular some

smaller firms operate already with own brands in the domestic market. But the low

GDP per capita in Moldova keeps consumption at a moderate level and is not really

a stimulus for branded businesses in the domestic market. It’s the larger companies

that tend to carry out exports on a made-to-order basis, often depending on just a

few foreign customers.2

1 “Textile, Apparel, Footwear and Leather in Republic of Moldova”, MIEPO, edition 2015/2016

2 “Recommendations for Creating a Roadmap for Competitive Development of Moldovan Fashion

Manufacturing Industry”, Heikki Matilla et al, 2016


2.2 Exports

Footwear

For footwear Romania (57%) and Italy (23.8%) are Moldova’s main export

destinations and together account for over 80% of Moldovan footwear exports.

Russia used to be a sizeable market as well, but its share has gone down from 20%

in 2012 to 5.7% in 2016. In that year it was even surpassed by Belarus, which has

been a strong growth market for Moldovan footwear over the past years and in 2016

represented a market share of 7.3%. But overall the export performance for footwear

over the past years has been rather weak, as shown in the table below, although

2016 was a year of strong recovery, with exports growing with 22%.

The export value of Moldova for Footwear, in Euro x 1.000

Importers 2012 2013 2014 2015 2016

World 30,884 26,887 25,205 21,402 26,119

Romania 15,497 12,492 15,285 12,407 14,893

Italy 6,436 5,135 5,417 5,407 6,236

Belarus 16 481 214 350 1,917

Russia 6,272 6,520 2,172 1,664 1,514

Source: ITC Trade Map (HS code 64)

Leather Fashion Accessories

For the export of leather fashion accessories Italy is virtually the only export market

for Moldova, accounting on its own for over 90% of total Moldovan exports in 2016

(see tables below). German used to be a stable, but substantially smaller second,

with an export share in 2015 of 6.5%. But in 2016 the German export market

collapsed (decline of 77.6%). Also in 2016, Hungary suddenly came to the scene

with 5-fold the amount of Moldovan export going there compared to 2015. Please

note though that in nominal terms we are talking about a very small market here.

Although in 2013 and 2014 the export of leather fashion accessories grew, it declined

even more in 2015 and 2016, with the net result that the export of leather fashion

accessories of Moldova in 2016 was lower than it was in 2012. In contrast, the export

of leather fashion accessories to the EU in 2016 is bigger than it was in 2012, thanks

to a strong growth from 2012 to 2014. Since then also export to the EU the export of

leather fashion accessories has declined however.

The export value of Moldova for Leather Fashion Accessories in Euro x 1.000

Importers 2012 2013 2014 2015 2016

World 17,396 18,952 20,106 17,224 16,795

Italy 14,663 16,457 17,721 15,775 15,661

Hungary 0 45 1 67 331

Germany 2,494 1,835 1,691 1,118 250

Source: ITC Trade Map (HS code 42)


In 2014 not only did DCFTA come into effect (which is expected to have a positive

effect on export), but also Moldova was hit by a financial crises. This means that it

will take some more years to assess the net effect of DCFTA on the export of

footwear and of leather fashion accessories to the EU and if those sectors will

succeed in diversifying their export markets.


3 THE EU MARKET

3.1 Supply & Demand

The import statistics below are derived from ITC Trade Map, based on HS codes

(Harmonised System codes). The production and consumption statistics are derived

from Eurostat’s database ProdCom (Production Communautaire), using Eurostat

product codes. Consumption as such is not available in ProdCom, but has been

calculated by the formula “consumption = production + import – export”.

3.1.1 Footwear

Footwear is subdivided in the product categories of rubber or plastic uppers, leather

uppers, textile uppers, other footwear, parts of footwear and other sports. The table

below shows those product categories and their corresponding product codes.

Footwear product categories and their corresponding product codes

Product category HS Code (for import)

Eurostat Code (for production

and consumption)

Rubber or plastic uppers 6401 6402 (excl. 640219)

15201100 15201231 15201237 15203120

Leather uppers 6403 (excl. 640319) 15201330 15201351 15201352 15201353 15201370 15201380 15203150

Textile uppers 6404 15201444 15201445 15201446 15202100

Other footwear 6405 15203200

Parts of footwear 6406 15204020 15204050 15204080 16291410

Other sports 640219 640319

15202900

3.1.1.1 Import

The EU has traditionally been a main supplier of high quality footwear to the world

market, but nowadays 6 out of 10 shoes in the world are produced in China. It is still

the leading exporter of footwear to the EU, but its market share is decreasing for

http://www.trademap.org/Index.aspx

http://ec.europa.eu/eurostat/web/prodcom/data/database?p_p_id=NavTreeportletprod_WAR_NavTreeportletprod_INSTANCE_iSpjsGQt409q&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&p_p_col_id=column-2&p_p_col_count=1


several years already now, because of rising wages and material costs, while other

developing countries succeeded in offering lower cost prices.

Developments in trade were in addition influenced by changes in 2014 in the

Generalised Scheme of Preferences (GSP) of the EU, setting new import tariffs for

products from developing countries. Some countries that were excluded from paying

import tariffs, such as China and Brazil, no longer benefit from this scheme. The

competitive position of countries such as Cambodia and Bangladesh, that still fall

under GSP scheme, has therefore become stronger. Price and EU import tariffs and

the Generalised Scheme of Preferences (GSP) will remain key drivers in

procurement and relocation strategies of European buyers. The GSP is scheduled

for another review in 2017. This will not directly affect Moldova however, as the Deep

and Free Trade Agreement (DCFTA) replaces GSP. But indirectly any changes in

other countries (no longer) falling under the GSP regime might affect Moldova’s

competiveness vis-à-vis other countries of course.

Import of footwear per country

Germany remains the leading EU importer of footwear with an import share of

18,45%, followed by France (17,63%), the UK (12,87%) and Italy (12,43%). These

are the traditional top-4 importing countries for years already.

Share of EU member states of EU import of footwear

(ranked according to 2016 market share, in descending order)

Footwear

EU import share

2012 2013 2014 2015 2016

Total EU share 100% 100% 100% 100% 100%

Germany 21.02% 21.84% 21.77% 22.20% 18.45%

France 13.74% 14.01% 14.27% 14.78% 17.63%

United Kingdom 14.63% 14.36% 13.94% 15.10% 12.87%

Italy 11.13% 11.19% 11.00% 10.49% 12.43%

Belgium 7.29% 7.93% 8.27% 8.74% 11.03%

Netherlands 5.94% 5.70% 5.16% 4.97% 6.98%

Spain 7.40% 6.81% 6.89% 6.58% 6.55%

Poland 2.76% 3.20% 3.59% 3.38% 4.36%

Denmark 1.70% 1.58% 1.36% 1.26% 1.49%

Sweden 1.24% 1.14% 0.97% 1.06% 1.13%

Slovakia 2.48% 2.60% 2.69% 2.48% 1.00%

Czech Republic 1.97% 1.87% 2.16% 1.94% 0.98%

Greece 0.70% 0.65% 0.69% 0.66% 0.77%

Austria 2.56% 2.85% 2.89% 2.35% 0.76%

Romania 0.54% 0.52% 0.53% 0.48% 0.73%

Portugal 1.12% 0.46% 0.59% 0.58% 0.70%

Slovenia 0.51% 0.55% 0.59% 0.53% 0.46%

Finland 0.91% 0.97% 0.85% 0.72% 0.40%

http://ec.europa.eu/trade/policy/countries-and-regions/development/generalised-scheme-of-preferences/index_en.htm


Hungary 0.20% 0.21% 0.23% 0.25% 0.34%

Ireland 0.83% 0.69% 0.66% 0.68% 0.31%

Croatia 0.58% 0.17% 0.14% 0.14% 0.18%

Bulgaria 0.11% 0.13% 0.14% 0.13% 0.18%

Lithuania 0.11% 0.11% 0.11% 0.10% 0.10%

Cyprus 0.09% 0.07% 0.07% 0.07% 0.04%

Estonia 0.25% 0.24% 0.28% 0.19% 0.04%

Luxembourg 0.12% 0.09% 0.10% 0.10% 0.04%

Latvia 0.04% 0.03% 0.04% 0.03% 0.03%

Malta 0.02% 0.02% 0.03% 0.02% 0.01%

Source: ITC Trade Map

The picture is less stable when we look at the nominal import figures however, listed

in the table below. The EU footwear market has been growing over the past years,

until 2016, when it dropped substantially from over 26 billion Euro to just over 22

billion Euro.

Import value of footwear from outside the EU of EU-member states, in Euro x 1.000

(ranked according to 2016 market value, in descending order)

Footwear

EU import value

2012 2013 2014 2015 2016

Total EU value 20,363,330 20,664,738 22,842,271 26,272,094 22,179,463

Germany 4,280,893 4,513,108 4,973,492 5,833,026 4,091,969

France 2,798,382 2,895,887 3,258,709 3,883,351 3,909,580

United Kingdom 2,979,250 2,968,337 3,185,149 3,967,661 2,855,319

Italy 2,265,898 2,312,723 2,511,696 2,757,181 2,757,924

Belgium 1,483,523 1,638,986 1,888,352 2,295,174 2,446,010

Netherlands 1,209,757 1,178,641 1,178,889 1,305,577 1,549,073

Spain 1,506,553 1,407,950 1,574,921 1,729,361 1,452,138

Poland 561,784 662,247 820,846 887,285 967,866

Denmark 345,842 327,226 310,594 330,726 329,704

Sweden 253,412 236,115 220,658 277,397 251,193

Slovakia 505,575 536,625 613,535 650,804 222,354

Czech Republic 400,194 385,522 492,422 508,606 218,285

Greece 143,548 135,073 157,669 174,264 171,002

Austria 521,151 589,219 660,677 617,610 168,241

Romania 110,843 106,555 121,230 126,470 160,862

Portugal 227,692 94,598 135,506 151,295 156,052

Slovenia 104,345 113,753 134,589 139,318 102,005

Finland 185,103 199,618 193,707 190,390 87,738

Hungary 41,090 42,573 52,393 65,857 74,673

Ireland 169,640 142,549 150,321 179,180 67,811


Croatia 117,113 34,703 33,094 36,631 40,978

Bulgaria 22,045 26,375 31,122 33,139 40,684

Lithuania 22,072 23,210 25,146 24,971 21,708

Cyprus 18,305 14,490 15,303 17,174 9,251

Estonia 51,121 49,502 64,918 49,503 9,165

Luxembourg 25,415 18,573 22,167 26,850 9,016

Latvia 7,869 6,337 8,108 7,181 5,846

Malta 4,907 4,241 7,059 6,118 3,014


On the other hand, this drop in EU footwear import of more than 15% in 2016 was

preceded by a rise of import in 2015 with also 15%. The footwear import market has

in other words been quite volatile. As the table below shows, the above average

decline of the big importers Germany (-29,85%) and the United Kingdom (-28,04%)

contributed substantially to this overall decline in EU imports of footwear in 2016.

And as much as 8 out of 28 countries EU-external imports were reduces by more

than half compared to 2015: Estonia (-81,49), Austria (-72,76%), Luxembourg (-

66,42%), Slovakia (-65,83%), Ireland (-62,15%), Czech Republic (-57,08%), Finland

(-53,92%) and Malta (-50,74%). In contrast, there were only two countries where

external EU imports grew with over 20% in 2016: Romania (+27,19%) and Bulgaria

(+22,77%).

EU import growth of footwear of EU member states

(ranked according to 5-year growth percentage, in descending order)

Footwear

EU year-on-year import growth %

2012-2013 2013-1014 2014-2015 2015-2016 2012-2016

Total EU growth 1.48% 10.54% 15.02% -15.58% 2.16%

Bulgaria 19.64% 18.00% 6.48% 22.77% 16.55%

Hungary 3.61% 23.07% 25.70% 13.39% 16.11%

Poland 17.88% 23.95% 8.09% 9.08% 14.57%

Belgium 10.48% 15.21% 21.54% 6.57% 13.32%

Romania -3.87% 13.77% 4.32% 27.19% 9.76%

France 3.48% 12.53% 19.17% 0.68% 8.72%

Netherlands -2.57% 0.02% 10.75% 18.65% 6.38%

Italy 2.07% 8.60% 9.77% 0.03% 5.04%

Greece -5.90% 16.73% 10.53% -1.87% 4.47%

Sweden -6.83% -6.55% 25.71% -9.45% -0.22%

Lithuania 5.16% 8.34% -0.70% -13.07% -0.41%

Slovenia 9.02% 18.32% 3.51% -26.78% -0.57%

Spain -6.54% 11.86% 9.81% -16.03% -0.92%

United Kingdom -0.37% 7.30% 24.57% -28.04% -1.06%

Germany 5.42% 10.20% 17.28% -29.85% -1.12%


Denmark -5.38% -5.08% 6.48% -0.31% -1.19%

Latvia -19.47% 27.95% -11.43% -18.59% -7.16%

Portugal -58.45% 43.24% 11.65% 3.14% -9.01%

Malta -13.57% 66.45% -13.33% -50.74% -11.47%

Czech Republic -3.67% 27.73% 3.29% -57.08% -14.06%

Cyprus -20.84% 5.61% 12.23% -46.13% -15.69%

Finland 7.84% -2.96% -1.71% -53.92% -17.03%

Slovakia 6.14% 14.33% 6.07% -65.83% -18.56%

Ireland -15.97% 5.45% 19.20% -62.15% -20.49%

Luxembourg -26.92% 19.35% 21.13% -66.42% -22.82%

Croatia -70.37% -4.64% 10.69% 11.87% -23.09%

Austria 13.06% 12.13% -6.52% -72.76% -24.62%

Estonia -3.17% 31.14% -23.75% -81.49% -34.93%


Despite the overall decline in external imports in 2016 compared to 2015, the EU

market still grew with over 2% from 2012 to 2016, although the imports from only 9

out of 28 EU-countries actually grew over this 5-year period, with Bulgaria

(+16,55%), Hungary (+16,11%) and Poland (+14,57%) as the top-3 growers.

Import of footwear per product category

If we zoom in on a product category level, it becomes clear that the decline in EU-

imports in 2016 applies to all footwear categories.

EU import value of footwear per product category, in Euro x 1.000


Footwear

EU import value

2012 2013 2014 2015 2016

Total EU value 20,363,330 20,664,738 22,842,271 26,272,094 22,179,463

Leather uppers 8,435,325 8,557,712 9,123,804 10,065,791 8,043,687

Textile uppers 4,381,519 4,658,350 5,421,604 7,034,337 6,582,637

Rubber or plastic uppers

5,119,328 5,111,692 5,827,339 6,446,956 5,176,107

Parts of footwear 1,211,455 1,201,375 1,319,608 1,337,093 1,326,962

Other sports 656,562 619,863 685,278 834,232 613,064

Other footwear 559,141 515,746 464,638 553,685 437,006


Leather uppers are still the main footwear product, but its share is slightly

decreasing. And the import of rubber or plastic uppers has been more or less stable

over the years.


Import share of footwear in the EU per product category


Footwear

EU import share

2012 2013 2014 2015 2016

Total EU share 100% 100% 100% 100% 100%

Leather uppers 41.42% 41.41% 39.94% 38.31% 36.27%

Textile uppers 21.52% 22.54% 23.73% 26.77% 29.68%


25.14% 24.74% 25.51% 24.54% 23.34%

Parts of footwear 5.95% 5.81% 5.78% 5.09% 5.98%

Other sports 3.22% 3.00% 3.00% 3.18% 2.76%

Other footwear 2.75% 2.50% 2.03% 2.11% 1.97%


What the table below clearly shows is that on the other hand textile uppers have

been doing quite well, with an import growth of 10,71% over the past 5-year period.

This is a confirmation of the growing popularity of sports footwear as a substitute for

more traditional footwear types and one of the sector’s main growth drivers.

Import growth of footwear in the EU per product category


Footwear


2012-2013 2013-2014 2014-2015 2015-2016 2012-2016

Total EU growth 1.48% 10.54% 15.02% -15.58% 2.16%

Textile uppers 6.32% 16.38% 29.75% -6.42% 10.71%

Parts of footwear -0.83% 9.84% 1.33% -0.76% 2.30%


-0.15% 14.00% 10.63% -19.71% 0.28%

Leather uppers 1.45% 6.61% 10.32% -20.09% -1.18%

Other sports -5.59% 10.55% 21.74% -26.51% -1.70%

Other footwear -7.76% -9.91% 19.16% -21.07% -5.98%


3.1.1.2 Production

The exact volume of EU production of footwear is not known, since not for all EU

countries statistics for the production of footwear area available at Eurostat, either

because there is no or virtually no production in those countries, or for confidentiality

reasons. For the Netherlands, Ireland, Belgium, Luxembourg, Sweden, Malta, Latvia,

Slovenia and Cyprus no production data are available and therefore they are not

included in the tables below. But these are known to be smaller producers and

therefore this does not change the overall picture.


Production of footwear per country

The EU footwear production industry concentrates on providing added value in better

designs, quality materials, comfort and in other innovations e.g. vegetable tanned

shoes to meet the strict environmental rules and to compete with China, Vietnam,

Indonesia and India.

Please note that Eastern and South-Eastern European countries are not just

competitors of Moldova. They can also be attractive destinations for Moldovan

footwear products. Semi-finished products can be exported to these countries for

specific further processing and in that way these countries can also indirectly provide

access to other EU countries.

The production of footwear in the EU is substantially lower than its import of footwear

(over 26 billion euro versus over 16 billion euro), as shown in the table below.

Production value for footwear of EU-member states, in Euro x 1.000


Footwear

EU production value

2011 2012 2013 2014 2015

Total EU value 14,676,285 13,903,522 14,607,447 16,370,829 16,220,939

Italy 8,044,995 7,077,837 7,438,583 8,731,795 8,588,463

Spain 1,632,068 1,630,276 1,662,968 1,859,639 2,024,766

Portugal 1,280,189 1,634,656 1,790,534 1,946,930 1,898,243

Romania 1,084,378 1,060,248 1,146,178 1,224,446 1,128,728

Germany 665,318 568,928 566,568 587,180 598,740

France 415,784 368,676 396,004 374,134 388,412

Poland 303,885 309,122 350,531 358,807 330,578

United Kingdom 216,279 245,265 266,169 285,307 312,968

Austria 231,991 248,266 247,227 237,444 242,323

Slovakia 264,274 275,520 235,625 242,430 223,846

Hungary 143,050 148,667 156,630 162,156 157,466

Finland 137,867 125,276 129,924 119,293 101,681

Croatia 83,144 67,859 72,669 88,308 92,451

Bulgaria 42,587 47,856 47,812 55,934 46,594

Greece 53,560 37,188 40,030 34,910 33,451

Czech Republic 30,772 24,449 23,782 26,429 23,819

Estonia 20,895 18,330 18,368 18,375 14,442

Lithuania 9,604 9,399 9,377 8,507 7,613

Denmark 15,644 5,703 8,469 8,805 6,353

Source: Eurostat / Prodcom

Together with Italy, Spain and Portugal, Romania is also a strong player on the EU

market. Manufacturing of parts of footwear is the most important product group in


Romania and its most important export destination is Italy. Several Italian companies

invested in production facilities in Romania, because of the combination of low

wages and craftsmanship there. This could also be an export development model for

Moldova.

Italy (52,95%) is by far the biggest footwear producer, accounting for over half of total

EU production. Other main producers are Spain (12,48%) and Portugal (11,70%).

Over the year the national shares in EU footwear production have been remarkably

stable. The EU footwear production growth from 2011 to 2015 has been modest,

2,35% also on a country-by-country basis relatively stable, with the same ranking of

top-5 producers in 2015 as in 2011.

Share in the production of footwear of EU member states


Footwear

EU production share

2011 2012 2013 2014 2015

Total EU share 100% 100% 100% 100% 100%

Italy 54.82% 50.91% 50.92% 53.34% 52.95%

Spain 11.12% 11.73% 11.38% 11.36% 12.48%

Portugal 8.72% 11.76% 12.26% 11.89% 11.70%

Romania 7.39% 7.63% 7.85% 7.48% 6.96%

Germany 4.53% 4.09% 3.88% 3.59% 3.69%

France 2.83% 2.65% 2.71% 2.29% 2.39%

Poland 2.07% 2.22% 2.40% 2.19% 2.04%

United Kingdom 1.47% 1.76% 1.82% 1.74% 1.93%

Austria 1.58% 1.79% 1.69% 1.45% 1.49%

Slovakia 1.80% 1.98% 1.61% 1.48% 1.38%

Hungary 0.97% 1.07% 1.07% 0.99% 0.97%

Finland 0.94% 0.90% 0.89% 0.73% 0.63%

Croatia 0.57% 0.49% 0.50% 0.54% 0.57%

Bulgaria 0.29% 0.34% 0.33% 0.34% 0.29%

Greece 0.36% 0.27% 0.27% 0.21% 0.21%

Czech Republic 0.21% 0.18% 0.16% 0.16% 0.15%

Estonia 0.14% 0.13% 0.13% 0.11% 0.09%

Lithuania 0.07% 0.07% 0.06% 0.05% 0.05%

Denmark 0.11% 0.04% 0.06% 0.05% 0.04%


Footwear production in Portugal, already high on the list, grew over 10% from 2011

to 2015. The considerable decrease in share in production in some other countries

on the other hand (Finland, Estonia, Greece, Denmark) can actually be ignored, as

the nominal production value of those countries is negligible.


Growth in the production of footwear of EU member states


Footwear EU year-on-year production growth %

2011-2012 2012-2013 2013-2014 2014-2015 2011-2015

Total EU growth -5.27% 5.06% 12.07% -0.92% 2.53%

Portugal 27.69% 9.54% 8.73% -2.50% 10.35%

United Kingdom 13.40% 8.52% 7.19% 9.70% 9.68%

Spain -0.11% 2.01% 11.83% 8.88% 5.54%

Croatia -18.38% 7.09% 21.52% 4.69% 2.69%

Hungary 3.93% 5.36% 3.53% -2.89% 2.43%

Bulgaria 12.37% -0.09% 16.99% -16.70% 2.27%

Poland 1.72% 13.40% 2.36% -7.87% 2.13%

Italy -12.02% 5.10% 17.39% -1.64% 1.65%

Austria 7.02% -0.42% -3.96% 2.05% 1.10%

Romania -2.23% 8.10% 6.83% -7.82% 1.01%

France -11.33% 7.41% -5.52% 3.82% -1.69%

Germany -14.49% -0.41% 3.64% 1.97% -2.60%

Slovakia 4.26% -14.48% 2.89% -7.67% -4.07%

Lithuania -2.13% -0.24% -9.27% -10.51% -5.64%

Czech Republic -20.55% -2.73% 11.13% -9.87% -6.20%

Finland -9.13% 3.71% -8.18% -14.76% -7.33%

Estonia -12.28% 0.21% 0.04% -21.40% -8.82%

Greece -30.57% 7.64% -12.79% -4.18% -11.10%

Denmark -63.54% 48.49% 3.97% -27.86% -20.17%


Production of footwear per product category

Leather uppers are by far the biggest footwear category produced in the EU.

EU footwear production value per product category, in Euro x 1.000


Footwear EU production value

2011 2012 2013 2014 2015

Total EU value 14,676,285 13,903,522 14,607,447 16,370,829 16,220,939

Leather uppers 10,330,003 10,503,548 11,026,099 11,883,526 11,661,986


Textile uppers 750,005 752,874 710,936 710,548 670,241


394,706 350,723 356,073 451,827 493,634

Other sports 282,449 249,679 294,749 448,080 410,514

Other footwear 360,655 317,610 80,202 115,385 90,740



As the table below shows, already for quite some years the production of footwear

and of parts of footwear together account for almost 90% of EU footwear production,

which means that, amongst others, the production of textile uppers and of rubber or

plastic uppers is negligible. This is in stark contract with the import of footwear which,

as we saw above, consists of over 50% of textile uppers and rubber or plastic

uppers. In plain language: the bulk of sports footwear in the EU has been imported

from Asia.

EU Footwear production share per product category


Footwear

EU production share

2011 2012 2013 2014 2015

Total EU share 100.0% 100.0% 100.0% 100.0% 100.0%

Leather uppers 70.4% 75.5% 75.5% 72.6% 71.9%


Textile uppers 5.1% 5.4% 4.9% 4.3% 4.1%


2.7% 2.5% 2.4% 2.8% 3.0%

Other sports 1.9% 1.8% 2.0% 2.7% 2.5%

Other footwear 2.5% 2.3% 0.5% 0.7% 0.6%


EU production growth of footwear has been rather volatile for some product

categories from 2011-2015, especially in 2011, 2012 and 2013, but in view of the

small nominal production numbers of these categories these, this is less dramatic

than it seems at first glance. The main news is actually that from 2011 to 2015 the

growth of the two main footwear categories leather uppers (+3,18%) and parts of

footwear (+3,13%) has been in line with the overall market growth (+2,53%) in that

period. In that sense the EU footwear manufacturing industry looks quite stable. The

decline in production of other footwear in that same period has been dramatic

however (-29,18%), but that is just 0,6% of the market. The same goes for the growth

of other sports footwear (+9.80%) from 2011-2015, which represents an increase in

market share from 1.9% to 2.5%.

EU footwear production growth per product category


Footwear

EU year-on-year production growth %

2011-2012 2012-2013 2013-2014 2014-2015 2011-2015

Total EU growth -5.27% 5.06% 12.07% -0.92% 2.53%

Other sports -11.60% 18.05% 52.02% -8.38% 9.80%


-11.14% 1.53% 26.89% 9.25% 5.75%

Parts of footwear -32.42% 23.73% 29.08% 4.79% 3.13%


Leather uppers 1.68% 4.97% 7.78% -1.86% 3.08%

Textile uppers 0.38% -5.57% -0.05% -5.67% -2.77%

Other footwear -11.94% -74.75% 43.87% -21.36% -29.18%

3.1.1.3 Consumption

The exact volume of EU consumption of footwear is not known, since not for all EU

countries statistics for the production of footwear area available. And the

consumption has been calculated here by the following formula: consumption =

production + import – export. However, these 9 lacking countries (The Netherlands,

Ireland, Belgium, Luxembourg, Sweden, Malta, Latvia, Slovenia and Cyprus)

together make up around 10% of the total EU population3, so their absence in the

statistics below does not significantly affect the overall picture.

Consumption of footwear per country

Consumption of footwear (€21,7 billion in 2016) is slightly lower than the import of

footwear (also corrected for the absence of 10% of the EU population in the tables

below). This means that part of EU-imports of footwear is being re-exported, also

presuming that not the entire production of footwear in the EU is for export only. Italy,

Germany, France, United Kingdom and Spain are the footwear consumption

markets.

Footwear consumption value of EU-member states, in Euros x 1.000


Footwear

EU consumption value

2011 2012 2013 2014 2015

Total EU value 17,613,498 16,669,797 17,279,881 19,853,315 21,712,650

Italy 5,046,444 3,679,828 3,962,685 5,317,378 5,494,177

Germany 2,780,923 3,090,180 3,155,323 3,428,338 4,040,241

France 2,853,209 2,813,774 2,975,125 3,156,315 3,292,808

United Kingdom 1,999,291 2,165,750 2,125,739 2,266,134 2,640,808

Spain 1,709,830 1,607,036 1,517,284 1,685,646 2,222,394

Portugal 452,072 601,169 642,302 759,795 761,088

Romania 557,031 555,396 653,078 689,314 633,414

Austria 433,804 430,957 468,457 503,081 474,221

Poland 422,028 381,425 374,026 481,961 463,440

Denmark 216,313 241,857 242,004 257,496 303,285

Finland 308,824 297,191 307,078 287,829 289,334

Greece 283,289 225,565 232,862 280,304 280,082

Hungary 107,293 102,720 140,810 161,208 167,906

Slovakia 84,558 150,034 118,648 136,037 160,390

3 Source: www.worldometers.info


Czech Republic 129,599 106,888 113,326 140,276 154,728

Croatia 97,527 91,178 102,027 126,029 150,567

Lithuania 60,483 53,065 42,503 55,335 79,404

Bulgaria 45,070 43,143 51,343 54,346 55,197

Estonia 25,910 32,642 55,261 66,492 49,167


Not surprisingly there is a correlation between population levels and consumption

levels, with the bigger EU member states in the top of the list of footwear consumers.

Footwear consumption share of EU member states


Footwear EU consumption share

2011 2012 2013 2014 2015

Total EU share 100% 100% 100% 100% 100%

Italy 28.65% 22.07% 22.93% 26.78% 25.30%

Germany 15.79% 18.54% 18.26% 17.27% 18.61%

France 16.20% 16.88% 17.22% 15.90% 15.17%

United Kingdom 11.35% 12.99% 12.30% 11.41% 12.16%

Spain 9.71% 9.64% 8.78% 8.49% 10.24%

Portugal 2.57% 3.61% 3.72% 3.83% 3.51%

Romania 3.16% 3.33% 3.78% 3.47% 2.92%

Austria 2.46% 2.59% 2.71% 2.53% 2.18%

Poland 2.40% 2.29% 2.16% 2.43% 2.13%

Denmark 1.23% 1.45% 1.40% 1.30% 1.40%

Finland 1.75% 1.78% 1.78% 1.45% 1.33%

Greece 1.61% 1.35% 1.35% 1.41% 1.29%

Hungary 0.61% 0.62% 0.81% 0.81% 0.77%

Slovakia 0.48% 0.90% 0.69% 0.69% 0.74%

Czech Republic 0.74% 0.64% 0.66% 0.71% 0.71%

Croatia 0.55% 0.55% 0.59% 0.63% 0.69%

Lithuania 0.34% 0.32% 0.25% 0.28% 0.37%

Bulgaria 0.26% 0.26% 0.30% 0.27% 0.25%

Estonia 0.15% 0.20% 0.32% 0.33% 0.23%


But when comparing the share of EU population and the share of EU footwear

consumption more closely, there are some remarkable differences as well. In Italy for

example the share in footwear consumption (25,30%) is more than double of what

could be expected based on its share in EU population (11,30%). And in Poland on

the other hand the share in footwear consumption (2,13%) is less than one-third of

what could be expected based on its share in EU population (7,47%).


Share of EU population and of footwear consumption of EU-member states

(ranked according to 2017 share in EU population, in descending order)

Country EU Population % Consumption %

Germany 15,97% 18.61%

France 13,06% 15.17%

United Kingdom 12,76% 12.16%

Italy 11,96% 25.30%

Spain 9,14% 10.24%

Poland 7,47% 2.13%

Romania 3,91% 2.92%

Greece 2,14% 1.29%

Czech Republic 2,07% 0.71%

Portugal 2,04% 3.51%

Hungary 1,94% 0.77%

Austria 1,69% 2.18%

Bulgaria 1,42% 0.25%

Denmark 1,11% 1.40%

Finland 1,08% 1.33%

Slovakia 1,07% 0.74%

Croatia 0,83% 0.69%

Lithuania 0,57% 0.37%

Estonia 0,26% 0.23%

Source: Worldometers and Eurostat

The fact that Germany, Italy, France, UK and Spain together buy around 80% of the

shoes sold in the EU makes these countries interesting, but it does NOT mean that

the other 23 EU countries are therefore uninteresting to investigate as potential

export destinations. Not only because such a country (Romania for example) could

be an interesting destination for exporting semi-finished products, that then become

part of possibly onward exports into the EU. But also because the 20% percent that

the other 23 countries consume represent around 115 million consumers.

Even the smallest of EU-countries could be very interesting export destinations for a

Moldovan producer, because they are growth markets for example. For Moldova as a

relatively small producer of footwear the growth of EU-markets is therefore at least as

interesting as their sizes. The table below shows that overall the consumption of

footwear in the EU has grown in the period from 2011 to 2015. Interestingly, a small

market like Estonia (0,23% of footwear consumption) has actually been the highest

grower of that 5-year period (+17,37%), despite its drop in 2015. And in 2014

(+30,19%) and 2015 (+43,50%) Lithuania has had a very strong growth in footwear

consumption. This proofs that these relatively small growth markets can be very

interesting for Moldovan exporters. We explicitly say “relatively small” here,


because for Moldovan footwear manufacturers markets with an annual consumption of

almost 80 million Euro (Lithuania) and 50 million Euro (Estonia) are not small at all.

Consumption of footwear per product category

In terms of consumption, leather footwear is by far the biggest category, followed by

parts of footwear, textile uppers and rubber or plastic uppers.

EU consumption of footwear per product category, in Euro x 1.000


Footwear


2011 2012 2013 2014 2015

Total EU value 17,613,498 16,669,797 17,279,881 19,853,315 21,712,650

Leather uppers 9,999,959 9,578,161 9,759,516 10,706,119 11,327,706


Textile uppers 1,941,523 2,064,100 2,272,045 2,626,225 3,251,904


2,466,288 2,494,958 2,367,301 2,758,287 3,064,886

Other sports 378,436 374,344 348,034 557,642 690,794

Other footwear 19,280 47,001 23,426 25,397 31,545


As a matter of fact, leather uppers account for over half of EU footwear consumption.

The market share of leather uppers is gradually declining on a year-by-year basis

however, whereas that for rubber or plastic uppers is more or less stable. The market

share of textile uppers on the other hand (sports and “sports fashion” shoes for

example) has been growing for consecutive years now.

EU footwear consumption market share per product category


Footwear

EU consumption share

2011 2012 2013 2014 2015

Total EU share 100% 100% 100% 100% 100%

Leather uppers 56.77% 57.46% 56.48% 53.93% 52.17%


Textile uppers 11.02% 12.38% 13.15% 13.23% 14.98%


14.00% 14.97% 13.70% 13.89% 14.12%

Other sports 2.15% 2.25% 2.01% 2.81% 3.18%

Other footwear 0.11% 0.28% 0.14% 0.13% 0.15%



The nominal growth differences between the different footwear categories are shown

in the table below. Despite its sustained declining market share, the market for

leather uppers is still growing, albeit modestly. The growth of other footwear on the

other hand is double-digit, but bear in mind that it’s a small and rather fragmented

niche. (Other footwear: “Footwear with outer soles of rubber or plastics, with uppers

other than rubber, plastics, leather or textile materials; footwear with outer soles of

leather or composition leather, with uppers other than leather or textile materials;

footwear with outer soles of wood, cork, twine, paperboard, fur-skin, woven fabrics,

felt, nonwovens, linoleum, raffia, straw, loofah, etc. and uppers of any type of

material, not elsewhere specified”).

The double-digit growth of other sports and of textile uppers on the other hand is

more impressive in view of their bigger volumes, and also more coherent, because

they are both related to the increased popularity of sportive and recreational

footwear. Increased health consciousness and the shift towards comfort in daily

footwear is expected to continue to encourage the growth of sports and sports

fashion footwear. Sports footwear and sports-inspired footwear are expected to grow

in popularity in all EU countries.

EU footwear consumption growth per product category


Footwear

EU year-on-year consumption growth %

2011-2012 2012-2013 2013-2014 2014-2015 2011-2015

Total EU growth -5.36% 3.66% 14.89% 9.37% 5.37%

Other sports -1.08% -7.03% 60.23% 23.88% 16.24%

Textile uppers 6.31% 10.07% 15.59% 23.82% 13.76%

Other footwear 143.78% -50.16% 8.41% 24.21% 13.10%


1.16% -5.12% 16.52% 11.12% 5.58%

Parts of footwear -24.81% 18.87% 26.70% 5.23% 4.48%

Leather uppers -4.22% 1.89% 9.70% 5.81% 3.17%


Relevant as all these statistical data may be, do realize however that analysing sales

data is always “looking in the rear mirror”. So please don’t just look at absolute

figures, but try to digest patterns and trends in the figures that make you understand

where the market is going and that are of interest for your company. Also, be aware

that especially trends caused by the macro-economic situation can sometimes

suddenly turn around. Don’t be surprised if soon some of the slow-growing EU

countries will after years of decline suddenly be among the fast growers in

consumption and imports of footwear.


3.1.2 Leather Fashion Accessories

Leather fashion accessories are subdivided here in the product categories of carrying

products (bags, purses, wallets, etc.), gloves & mitts, belts, and clothing accessories

(applications). The table below shows those product categories and their

corresponding product codes.

Leather Fashion Accessories product categories and their corresponding product codes

Product category HS Code (for import)

Eurostat Code (for production

and consumption)

Carrying products (bags, purses, wallets, etc.) 420211 420221 420231

15121210 15121220 15121300

Gloves and mitts 420321 420329

14193175

Belts 420330 14193180

Clothing accessories (applications) 420340 14111000

Please note that product codes 5121210, 15121220 and 15121300 include textile materials and plastics as well, as Eurostat has no specific code for leather carrying products.

3.1.2.1 Import

The EU economy is recovering from a long recession and consumer confidence is

positive again. Especially the Southern EU countries are recovering from a serious

economic crisis, the Baltic states are doing well and most importantly: the economy

of Germany is strong. This is expected to have a positive impact, also on the import

of leather fashion accessories. Bear in mind though that the effects of the UK leaving

the EU are not quite clear yet.

Import of leather fashion accessories per country

Total import of the leather fashion accessories by the EU in 2016 was just over 2,3 billion

Euro, as shown in the table below. This is only around one tenth of the value of imported

footwear (just over 22 billion Euro, see previous paragraph). Whereas in comparison

(see Chapter 2) the export of leather fashion accessories of Moldova in 2015 (+/- 17

million Euro) was only slightly lower than its export of footwear (+/- 21 million Euro), with

almost the entire export of leather fashion accessories of Moldova going to Italy.

The table below shows that Italy is indeed the biggest importer of leather fashion

accessories, although Germany and especially France are not that far behind. The

main suppliers of leather fashion accessories to the EU are Asian. China accounts

for over 40% of the import of leather fashion accessories into the EU, India for almost

30%.4

4 Source: CBI (www.cbi.eu)


As in the case of footwear, imports for leather fashion accessories dropped

substantially in 2016. Because of their size, mainly the bigger importers Italy,

Germany and the United Kingdom were responsible for this drop.

Import value of leather fashion accessories of EU-member states, in Euro x 1.000


Leather Fashion

Accessories

EU import value

2012 2013 2014 2015 2016

Total EU value 2,284,907 2,278,088 2,423,666 2,657,016 2,313,638

Italy 391,821 400,982 433,298 517,686 432,738

France 392,864 376,010 412,916 404,856 412,119

Germany 440,870 466,435 485,313 490,474 373,171

United Kingdom 347,511 330,023 338,784 391,050 315,692

Netherlands 127,793 140,601 162,054 202,722 256,737

Spain 155,653 130,168 141,838 159,101 131,997

Sweden 74,274 77,188 74,992 80,178 79,960

Belgium 70,535 81,329 66,117 70,492 69,101

Poland 39,124 44,280 56,780 61,934 65,001

Denmark 52,997 48,459 51,302 53,723 52,268

Czech Republic 41,406 42,082 39,795 53,589 32,349

Finland 37,454 35,778 35,641 36,960 21,140

Austria 40,002 43,235 48,266 54,725 19,695

Hungary 4,963 3,748 4,636 9,952 10,810

Greece 4,879 5,193 6,510 6,885 7,190

Portugal 8,968 3,246 4,372 4,775 5,198

Ireland 8,395 8,838 12,246 15,661 5,068

Estonia 7,453 9,741 11,660 8,009 4,685

Romania 2,901 2,529 3,107 3,551 4,244

Slovenia 4,152 3,896 4,388 4,710 3,004

Lithuania 2,162 2,198 3,321 2,735 2,615

Slovakia 15,713 13,668 16,921 13,586 2,515

Croatia 5,827 1,974 2,271 1,677 2,169

Bulgaria 1,753 1,749 2,044 2,543 2,109

Latvia 1,480 1,215 881 882 895

Cyprus 1,123 1,233 1,245 1,089 676

Malta 201 259 122 218 246

Luxembourg 2,630 2,031 2,846 3,255 242


The external EU import of leather fashion accessories is fairly concentrated, with the

top-5 countries of Italy, France, Germany, United Kingdom and the Netherlands

together accounting for around 80% of the import value. As a consequence, the

import of 17 out of 28 countries is less than a percent of the total EU value.


Share of leather fashion accessories import (value) of EU member states

(ranked according to 2016 market share, in descending orders)


EU import share

2012 2013 2014 2015 2016

Total EU share 100% 100% 100% 100% 100%

Italy 17.15% 17.60% 17.88% 19.48% 18.70%

France 17.19% 16.51% 17.04% 15.24% 17.81%

Germany 19.29% 20.47% 20.02% 18.46% 16.13%

United Kingdom 15.21% 14.49% 13.98% 14.72% 13.64%

Netherlands 5.59% 6.17% 6.69% 7.63% 11.10%

Spain 6.81% 5.71% 5.85% 5.99% 5.71%

Sweden 3.25% 3.39% 3.09% 3.02% 3.46%

Belgium 3.09% 3.57% 2.73% 2.65% 2.99%

Poland 1.71% 1.94% 2.34% 2.33% 2.81%

Denmark 2.32% 2.13% 2.12% 2.02% 2.26%

Czech Republic 1.81% 1.85% 1.64% 2.02% 1.40%

Finland 1.64% 1.57% 1.47% 1.39% 0.91%

Austria 1.75% 1.90% 1.99% 2.06% 0.85%

Hungary 0.22% 0.16% 0.19% 0.37% 0.47%

Greece 0.21% 0.23% 0.27% 0.26% 0.31%

Portugal 0.39% 0.14% 0.18% 0.18% 0.22%

Ireland 0.37% 0.39% 0.51% 0.59% 0.22%

Estonia 0.33% 0.43% 0.48% 0.30% 0.20%

Romania 0.13% 0.11% 0.13% 0.13% 0.18%

Slovenia 0.18% 0.17% 0.18% 0.18% 0.13%

Lithuania 0.09% 0.10% 0.14% 0.10% 0.11%

Slovakia 0.69% 0.60% 0.70% 0.51% 0.11%

Croatia 0.26% 0.09% 0.09% 0.06% 0.09%

Bulgaria 0.08% 0.08% 0.08% 0.10% 0.09%

Latvia 0.06% 0.05% 0.04% 0.03% 0.04%

Cyprus 0.05% 0.05% 0.05% 0.04% 0.03%

Malta 0.01% 0.01% 0.01% 0.01% 0.01%

Luxembourg 0.12% 0.09% 0.12% 0.12% 0.01%


But what goes for footwear also goes for fashion leather fashion accessories: with a

relatively small Moldovan manufacturing sector for leather fashion accessories, the

growth of the EU export markets is at least as important as their market volumes and

shares. The table below shoes that year-on-year the positive or negative import

growth of a country can be quite substantial. Having said that, the countries of

Hungary (+21,48%), the Netherlands (+19,05%), Poland (+13,53%), Greece

(+10,18%) and Romania (+9,98%) have been the top-5 growers in the 5 years since

2012.


Value growth in EU import for leather fashion accessories of EU member states


Leather Fashion

Accessories


2012-2013 2013-2014 2014-2015 2015-2016 2012-2016

Total EU growth -0.30% 6.39% 9.63% -12.92% 0.31%

Hungary -24.48% 23.69% 114.67% 8.62% 21.48%

Netherlands 10.02% 15.26% 25.10% 26.64% 19.05%

Poland 13.18% 28.23% 9.08% 4.95% 13.53%

Greece 6.44% 25.36% 5.76% 4.43% 10.18%

Romania -12.82% 22.85% 14.29% 19.52% 9.98%

Malta 28.86% -52.90% 78.69% 12.84% 5.18%

Lithuania 1.67% 51.09% -17.65% -4.39% 4.87%

Bulgaria -0.23% 16.87% 24.41% -17.07% 4.73%

Italy 2.34% 8.06% 19.48% -16.41% 2.51%

Sweden 3.92% -2.85% 6.92% -0.27% 1.86%

France -4.29% 9.82% -1.95% 1.79% 1.20%

Denmark -8.56% 5.87% 4.72% -2.71% -0.35%

Belgium 15.30% -18.70% 6.62% -1.97% -0.51%

United Kingdom -5.03% 2.65% 15.43% -19.27% -2.37%

Spain -16.37% 8.97% 12.17% -17.04% -4.04%

Germany 5.80% 4.05% 1.06% -23.92% -4.08%

Czech Republic 1.63% -5.43% 34.66% -39.63% -5.98%

Slovenia -6.17% 12.63% 7.34% -36.22% -7.77%

Estonia 30.70% 19.70% -31.31% -41.50% -10.96%

Latvia -17.91% -27.49% 0.11% 1.47% -11.82%

Ireland 5.28% 38.56% 27.89% -67.64% -11.85%

Cyprus 9.80% 0.97% -12.53% -37.92% -11.92%

Portugal -63.80% 34.69% 9.22% 8.86% -12.75%

Finland -4.47% -0.38% 3.70% -42.80% -13.32%

Austria 8.08% 11.64% 13.38% -64.01% -16.23%

Croatia -66.12% 15.05% -26.16% 29.34% -21.89%

Slovakia -13.01% 23.80% -19.71% -81.49% -36.75%

Luxembourg -22.78% 40.13% 14.37% -92.57% -44.92%


Import of leather fashion accessories per product category

Zooming in on a product category level, it becomes clear that carrying products

(bags, purses, wallets, etc.) are by far the biggest EU import category of leather

fashion accessories.


EU import value per leather fashion accessory product category, in Euro x 1.000



EU import value

2012 2013 2014 2015 2016

Total EU value

2,284,907 2,278,088 2,423,666 2,657,016 2,313,638

Carrying products (bags, purses, wallets)

1,574,719 1,565,137 1,680,733 1,867,630 1,646,520

Gloves and mitts

497,685 522,232 540,561 576,742 496,225

Belts

194,874 173,547 182,376 192,538 155,287

Clothing accessories (applications)

17,629

17,173

19,995

20,106

15,607


This import dominance for carrying products (71,2% in 2016) has been there for an

extended period already and is in fact quite stable, just like the market share for

gloves (around 21% over the past 5 years), belts (around 7%) and clothing

accessories (around 0,8%).

EU import value share per leather fashion accessory product category

(ranked according to 2016 market share from big to small)


EU import share

2012 2013 2014 2015 2016

Total EU share

100% 100% 100% 100% 100%

Carrying products (bags, purses, wallets, etc.)

68.9% 68.7% 69.3% 70.3% 71.2%

Gloves and mitts

21.8% 22.9% 22.3% 21.7% 21.4%

Belts

8.5% 7.6% 7.5% 7.2% 6.7%


0.8% 0.8% 0.8% 0.8% 0.7%


Whereas mainly the big importers Italy, Germany and the United Kingdom were

responsible for the substantial drop in imports of leather fashion accessories, this

decrease on a product category level is more evenly spread, with the smaller

categories of belts and clothing accessories having the bigger drops. Market growth

has been virtually absent over the extended period of 2012-2016, mainly because of

the double-digit decline in leather fashion accessories in 2016 of almost 13%.


EU Import value growth for leather fashion accessories per product category




2012-2013 2013-2014 2014-2015 2015-2016 2012-2016

Total EU growth

-0.30% 6.39% 9.63% -12.92% 0.31%

Carrying products (bags, purses, wallets)

-0.61% 7.39% 11.12% -11.84% 1.12%

Gloves and mitts

4.93% 3.51% 6.69% -13.96% -0.07%


-2.59% 16.43% 0.56% -22.38% -3.00%

Belts

-10.94% 5.09% 5.57% -19.35% -5.52%


3.1.2.2 Production

As is the case with footwear and for the same reasons, the exact volume of EU

production of leather fashion accessories is not known: Not for all EU countries

statistics are available at Eurostat, either because there is no or virtually no

production in those countries, or for confidentiality reasons. For the Netherlands,

Ireland, Belgium, Luxembourg, Sweden, Malta, Latvia, Slovakia, Slovenia and

Cyprus no production data are available and therefore they are not included in the

tables below. These are the same countries as for footwear, except that also for

Slovakia no production data on leather fashion accessories are available. The above

countries are known to be only small EU producers however and therefore this does

not change the overall picture.

Production of leather fashion accessories per country

The total production value of leather fashion accessories from the EU is more than

double the import value, but it’s steadily decreasing due mainly to the decrease of

production in number-one producing country Italy.

Production value of leather fashion accessories by EU-member states, Euro x 1.000


Leather Fashion

Accessories

EU production value

2011 2012 2013 2014 2015

Total EU value 6,194,785 5,888,413 5,763,845 5,445,874 5,354,176

Italy 4,479,598 4,106,472 3,737,548 3,342,448 3,057,807

France 928,282 979,439 1,214,997 1,234,147 1,326,776

Spain 382,954 383,538 381,673 423,538 447,972

Romania 116,864 121,692 126,012 142,282 141,384

United Kingdom 37,330 41,998 49,374 42,634 106,456

Germany 105,402 108,934 112,845 109,830 105,560


Hungary 47,959 47,920 52,232 59,040 61,740

Portugal 13,828 24,595 27,353 28,793 38,949

Poland 26,454 21,878 23,811 24,855 28,201

Austria 8,279 10,118 10,875 11,315 8,393

Czech Republic 21,239 19,965 3,935 6,513 7,923

Bulgaria 5,515 3,154 3,126 3,158 5,477

Estonia 3,892 3,994 3,004 3,782 4,921

Finland 9,637 7,332 8,105 5,516 3,946

Croatia 2,768 2,628 3,221 2,594 2,830

Greece 2,734 2,359 3,319 2,699 2,720

Lithuania 1,373 1,798 1,991 2,182 2,486

Denmark 679 602 426 547 637


Not only is Italy by far the biggest producer, it is also by far the biggest EU exporting

country of leather fashion accessories, accounting on its own for almost half of total

EU exports, which includes also re-exports of imported leather fashion accessories.

The top destination countries where these leather fashion accessories go to are

Hong Kong, the United States, South Korea, China and Russia. 5

Over half of the EU production of leather fashion accessories takes place in Italy

(57,11%) and Italy together with France (24,78%) and Spain (8,37%) account for

over 90% of EU production. The share of Romania is only minor, but steadily

increasing.

Share in production of leather fashion accessories by EU-member states, in Euro x 1.000


Leather Fashion

Accessories

EU production share

2011 2012 2013 2014 2015

Total EU share 100% 100% 100% 100% 100%

Italy 72.31% 69.74% 64.84% 61.38% 57.11%

France 14.98% 16.63% 21.08% 22.66% 24.78%

Spain 6.18% 6.51% 6.62% 7.78% 8.37%

Romania 1.89% 2.07% 2.19% 2.61% 2.64%

United Kingdom 0.60% 0.71% 0.86% 0.78% 1.99%

Germany 1.70% 1.85% 1.96% 2.02% 1.97%

Hungary 0.77% 0.81% 0.91% 1.08% 1.15%

Portugal 0.22% 0.42% 0.47% 0.53% 0.73%

Poland 0.43% 0.37% 0.41% 0.46% 0.53%

Austria 0.13% 0.17% 0.19% 0.21% 0.16%

Czech Republic 0.34% 0.34% 0.07% 0.12% 0.15%

5 Source: www.cbi.eu


Bulgaria 0.09% 0.05% 0.05% 0.06% 0.10%

Estonia 0.06% 0.07% 0.05% 0.07% 0.09%

Finland 0.16% 0.12% 0.14% 0.10% 0.07%

Croatia 0.04% 0.04% 0.06% 0.05% 0.05%

Greece 0.04% 0.04% 0.06% 0.05% 0.05%

Lithuania 0.02% 0.03% 0.03% 0.04% 0.05%

Denmark 0.01% 0.01% 0.01% 0.01% 0.01%


The decline in production of leather fashion accessories in the EU from 2011 to 2015

(-3,58%) results from a year-on-year decline in every year since 2011. Figures

however also show that in most EU countries production has been rising year-on-

year. But these are small producers and this gain in production is easily offset by the

decline in production in Italy (-9,10%).

Growth in production of leather fashion accessories by EU-member states, in Euro x 1.000


Leather Fashion

Accessories


2011-2012 2012-2013 2013-2014 2014-2015 2011-2015

Total EU growth -4.95% -2.12% -5.52% -1.68% -3.58%

United Kingdom 12.50% 17.56% -13.65% 149.70% 29.95%

Portugal 77.86% 11.21% 5.27% 35.27% 29.55%

Lithuania 30.95% 10.76% 9.61% 13.93% 16.01%

France 5.51% 24.05% 1.58% 7.51% 9.34%

Hungary -0.08% 9.00% 13.03% 4.57% 6.52%

Estonia 2.62% -24.78% 25.90% 30.12% 6.04%

Romania 4.13% 3.55% 12.91% -0.63% 4.88%

Spain 0.15% -0.49% 10.97% 5.77% 4.00%

Poland -17.30% 8.84% 4.38% 13.46% 1.61%

Croatia -5.07% 22.58% -19.48% 9.12% 0.56%

Austria 22.21% 7.49% 4.05% -25.83% 0.34%

Germany 3.35% 3.59% -2.67% -3.89% 0.04%

Greece -13.70% 40.67% -18.66% 0.76% -0.13%

Bulgaria -42.82% -0.89% 1.04% 73.44% -0.17%

Denmark -11.33% -29.17% 28.39% 16.31% -1.59%

Italy -8.33% -8.98% -10.57% -8.52% -9.10%

Finland -23.92% 10.55% -31.95% -28.46% -20.01%

Czech Republic -5.99% -80.29% 65.53% 21.65% -21.85%



Production of leather fashion accessories per product category

Of the 4 leather fashion accessories product categories that we distinguish here,

carrying products (bags, purses, wallets, etc.) are by far the largest.

EU production value of leather fashion accessories per product category, in Euro x 1.000



EU production value

2011 2012 2013 2014 2015

Total EU value

6,194,785 5,888,413 5,763,845 5,445,874 5,354,176


4,911,668 4,473,115 4,452,912 4,008,069 4,179,451


716,274 865,485 789,089 949,617 733,836

Belts

496,755 493,826 478,359 459,177 412,838

Gloves and mitts

70,088 55,988 43,486 29,010 28,051


Over the years the market shares of the leather fashion accessories product

categories is fairly stable, with carrying products (78,06%) accounting for the bulk of

production. The production of gloves and mitts was already negligible (1,13% in

2011) but nevertheless its market share declined yearly, to a mere 0,52% in 2015.

Share in EU production of leather fashion accessories per product category, in Euro x 1.000



EU production share

2011 2012 2013 2014 2015

Total EU share

100% 100% 100% 100% 100%

Carrying products (bags, purses, wallets etc.)

79.29% 75.96% 77.26% 73.60% 78.06%


11.56% 14.70% 13.69% 17.44% 13.71%

Belts

8.02% 8.39% 8.30% 8.43% 7.71%

Gloves and mitts

1.13% 0.95% 0.75% 0.53% 0.52%


Unlike the slow but steady decline of the production of leather fashion accessories,

the decline per product category has been much more volatile on a year-by-year

basis. The overall trend for production of leather fashion accessories in the EU is

unmistakably downward however.


Growth of EU production in leather fashion accessories per product category, in Euro x 1.000

(ranked according to 2015 market growth, in descending order)



2011-2012

2012-2013

2013-2014

2014-2015

2011-2015

Total EU growth

-4.95% -2.12% -5.52% -1.68% -3.58%


20.83% -8.83% 20.34% -22.72% 0.61%


-8.93% -0.45% -9.99% 4.28% -3.96%

Belts

-0.59% -3.13% -4.01% 10.09% -4.52%

Gloves and mitts

-20.12% -22.33% -33.29% -3.31% -20.46%


In conclusion so far: the EU import market for leather fashion accessories is stable,

but the production of leather fashion accessories has gone down over the past years.

So how about consumption?

3.1.2.3 Consumption

As was also the case for footwear, the exact volume of EU consumption of leather

fashion accessories is not known, since not for all EU countries statistics for the

production of footwear area available. This is relevant, since the consumption of

leather fashion accessories has been calculated by the following formula:

consumption = production + import – export. These missing countries are The

Netherlands, Ireland, Belgium, Luxembourg, Sweden, Malta, Latvia, Slovenia,

Slovakia and Cyprus. In addition Bulgaria and Romania are not included in the tables

on consumption of leather fashion accessories, because of too much missing data.

Together all these countries make up for around 15% of the total EU population6, so

their absence in the statistics below does not significantly affect the overall picture.

Consumption of leather fashion accessories per country

As was the case for import and production, in 2015 also the consumption of leather

fashion accessories was slightly lower than in 2011. Compared to the consumption of

footwear in the EU (€21,7 billion in 2016) the value consumption of leather fashion

accessories is relatively modest (€3,2 billion in 2016).

The biggest consumption markets for leather fashion accessories are Spain,

Germany, the United Kingdom, France and Italy.

6 Source: www.worldometers.info


Consumption value of leather fashion accessories in EU-member states, in Euro x 1,000


Leather Fashion

Accessories


2011 2012 2013 2014 2015

Total EU value 3,279,792 3,086,008 2,766,222 2,989,819 3,224,901

Spain 689,870 691,880 574,493 537,365 649,139

Germany 560,291 480,498 493,679 537,168 620,775

United Kingdom 418,933 461,465 438,972 453,199 505,002

France 386,705 353,816 343,863 369,864 393,498

Italy 610,708 487,815 295,571 424,535 339,521

Poland 127,235 114,535 121,945 138,831 136,507

Portugal 108,992 110,136 109,500 120,381 129,230

Austria 78,721 76,318 72,157 82,086 84,245

Denmark 50,620 65,267 76,449 66,170 80,582

Czech Republic 44,975 48,647 47,793 56,422 63,932

Finland 71,249 77,052 70,747 64,992 63,818

Greece 72,006 55,029 54,595 62,331 63,764

Hungary 18,725 21,091 20,188 22,817 38,850

Croatia 25,437 23,712 26,271 26,085 29,233

Lithuania 7,567 9,077 8,006 10,482 13,922

Estonia 7,759 9,671 11,990 17,091 12,883


Overall there is a correspondence of course between population size and market

volume, with the more populous countries being the bigger markets. A remarkable

deviation however is the relatively modest consumption of leather fashion

accessories in Italy (EU market share of 10,53% in 2015) compared to its

consumption of footwear (25,30% in 2015). In contrast, the consumption of leather

fashion accessories in Spain (EU market share of 20,13% in 2015) is quite sizeable

compared to its consumption of footwear (10,24% in 2015).

Share in consumption of leather fashion accessories in EU-member states, in Euro x 1,000


Leather Fashion

Accessories


2011 2012 2013 2014 2015

Total EU share 100% 100% 100% 100% 100%

Spain 21.03% 22.42% 20.77% 17.97% 20.13%

Germany 17.08% 15.57% 17.85% 17.97% 19.25%

United Kingdom 12.77% 14.95% 15.87% 15.16% 15.66%

France 11.79% 11.47% 12.43% 12.37% 12.20%

Italy 18.62% 15.81% 10.69% 14.20% 10.53%


Poland 3.88% 3.71% 4.41% 4.64% 4.23%

Portugal 3.32% 3.57% 3.96% 4.03% 4.01%

Austria 2.40% 2.47% 2.61% 2.75% 2.61%

Denmark 1.54% 2.11% 2.76% 2.21% 2.50%

Czech Republic 1.37% 1.58% 1.73% 1.89% 1.98%

Finland 2.17% 2.50% 2.56% 2.17% 1.98%

Greece 2.20% 1.78% 1.97% 2.08% 1.98%

Hungary 0.57% 0.68% 0.73% 0.76% 1.20%

Croatia 0.78% 0.77% 0.95% 0.87% 0.91%

Lithuania 0.23% 0.29% 0.29% 0.35% 0.43%

Estonia 0.24% 0.31% 0.43% 0.57% 0.40%


Also in view of its population share in the EU (9,14%), the consumption of leather

fashion accessories in Spain is high. The same goes for some other countries, such

as Portugal, Finland, Denmark and Estonia, but especially the latter three are

relatively small.

Share of EU population and of leather fashion accessories consumption of EU-member states

(ranked according to 2017 share in EU population, in descending order)

Country EU Population % Consumption %

Germany 15,97% 19.25%

France 13,06% 12.20%

United Kingdom 12,76% 15.66%

Italy 11,96% 10.53%

Spain 9,14% 20.13%

Poland 7,47% 4.23%

Greece 2,14% 1.98%

Czech Republic 2,07% 1.98%

Portugal 2,04% 4.01%

Hungary 1,94% 1.20%

Austria 1,69% 2.61%

Denmark 1,11% 2.50%

Finland 1,08% 1.98%

Croatia 0,83% 0.91%

Lithuania 0,57% 0.43%

Estonia 0,26% 0.40%

Source: Worldometers and Eurostat

Often more interesting than the size of a market is its growth. This growth, be it positive

or negative, can be quite substantial year-on-year, as shown in the table below. Both

double positive and negative double-digit growth is not uncommon, and markets can


be quite volatile, probably also due to fashion trends. The sustained decline in

consumption of leather fashion accessories in Italy is considerable, also in view of its

large size. The Nordic countries of Denmark (+12,33%), Estonia (+13,52%) and

Lithuania (+16,47%) may be relatively small markets, but not so small for Moldovan

producers and they are among the fast growers, just like Hungary (+20,02%).

Growth of consumption of leather fashion accessories in EU member states


Leather Fashion

Accessories


2011-2012 2012-2013 2013-2014 2014-2015 2011-2015

Total EU growth -5.91% -10.36% 8.08% 7.86% -0,42%

Hungary 12.63% -4.28% 13.02% 70.27% 20.02%

Lithuania 19.96% -11.79% 30.93% 32.81% 16.47%

Estonia 24.64% 23.98% 42.55% -24.62% 13.52%

Denmark 28.94% 17.13% -13.45% 21.78% 12.33%

Czech Republic 8.17% -1.76% 18.06% 13.31% 9.19%

United Kingdom 10.15% -4.87% 3.24% 11.43% 4.78%

Portugal 1.05% -0.58% 9.94% 7.35% 4.35%

Croatia -6.78% 10.80% -0.71% 12.07% 3.54%

Germany -14.24% 2.74% 8.81% 15.56% 2.60%

Poland -9.98% 6.47% 13.85% -1.67% 1.77%

Austria -3.05% -5.45% 13.76% 2.63% 1.71%

France -8.50% -2.81% 7.56% 6.39% 0.44%

Spain 0.29% -16.97% -6.46% 20.80% -1.51%

Finland 8.14% -8.18% -8.14% -1.81% -2.72%

Greece -23.58% -0.79% 14.17% 2.30% -2.99%

Italy -20.12% -39.41% 43.63% -20.03% -13.65%


Consumption of leather fashion accessories per product category

From 2011 to 2015 the consumption of leather fashion accessories in the EU was

every year higher than import and lower than production. In 2015 consumption of

leather fashion accessories was around €3,2 billion, which is more than was

imported (around €2,3 billion) and less than was produced (around €5,3 billion). This

means (re-) export of leather fashion accessories from the EU is sizeable (and as we

saw before: Italy is the main EU exporter). This probably means that a sizeable part

of the leather fashion accessories export of Moldova, which almost exclusively goes

to Italy, is re-exported by Italy.


Consumption in the EU of leather fashion accessories per product category, in Euro x 1,000




2011 2012 2013 2014 2015

Total EU value

3,279,792 3,086,008 2,766,222 2,989,819 3,224,901


1,879,797 1,725,366 1,560,094 1,605,947 1,995,898


1,057,463 1,033,647 897,882 1,075,479 931,698

Belts

256,247 254,358 232,181 228,727 222,949

Gloves and mitts

86,285 72,637 76,065 79,666 74,355


Consumption market shares per product category are quite comparable to those for

import and production, with in every year from 2011-2015 carrying products (bags,

purses, wallets, etc.) being by far the largest product category (61,89% in 2015),

followed by gloves and mitts (28,89% in 2015), belts (6,91% in 2015) and clothing

accessories (2,31 % in 2015).

Consumption share in the EU of leather fashion accessories per product category




2011 2012 2013 2014 2015

Total EU value

100% 100% 100% 100% 100%


57.31%

55.91%

56.40%

53.71%

61.89%


32.24%

33.49%

32.46%

35.97%

28.89%

Belts

7.81% 8.24% 8.39% 7.65% 6.91%

Gloves and mitts

2.63% 2.35% 2.75% 2.66% 2.31%


Despite now and then some volatility on a year-by-year basis, over the extended

period from 2011 to 2015 the market is quite stable, both overall (-0,42%) as well as

on a product category basis.


Consumption growth in the EU of leather fashion accessories per product category

(ranked according to 2015 market growth, in descending order)



2011-2012

2012-2013

2013-2014

2014-2015

2011-2015

Total EU growth

-5.91% -10.36% 8.08% 7.86% -0.42%


-8.22% -9.58% 2.94% 24.28% 1.51%


-2.25% -13.13% 19.78% -13.37% -3.12%

Belts

-0.74% -8.72% -1.49% -2.53% -3.42%

Gloves and mitts

-15.82% 4.72% 4.73% -6.67% -3.65%


Conclusion

The EU import of leather fashion accessories is quite small compared to that of

footwear and market volumes (in terms of import, production and consumption) are

more or less stable. This is not a growth market. The export value of leather

fashion accessories is higher than the production value and the import value is

higher than the consumption value. This means that there are not only exporting

opportunities to the EU, but there are also re-exporting opportunities for

Moldovan producers. Moreover, Italian producers are not necessarily only your

competitors on the EU market, but they could also turn out to be your partners, for

whom you could become a supplier: Either for branding your product and then selling

it, or for you to supply semi-finished leather accessories (for example you only supply

the leather part of the belt). And apart from being potential export destination

markets, France and Italy are main trading hubs for leather fashion accessories. The

advantage of a trading country like for example Romania on the other hand, is that it

has a well-established access to both the EU market and the Eastern European

market.


3.2 Trends

3.2.1 Footwear

A growing post-recession footwear market

After years of post-credit crisis economic recession, the EU economy is slowly

picking up again. This recovery is positively affecting the footwear market. According

to the organization Transparency Market Research the major drivers of growth are

expected to be eco-fashion footwear, changing lifestyles – for example more health-

consciousness and exercising – and increased e-commerce. While buyers will

remain cautious and price-conscious, they may after years of recession be eager to

grow again and many of them will be looking for new suppliers, especially in

countries with costs lower than EU-supplier levels. That could be an opportunity for

Moldovan suppliers also.

Political instabilities affecting buyer preferences

Terrorist attacks, political developments in Turkey, the international economic boycott

against Russia and the countermeasures taken by the Russian government, the

possible increase in protectionism by a new US government, and the yet unknown

effects of a Brexit - they are all signs that the economic recovery comes with political

tensions and uncertainties, as well as fluctuating exchange rates between US dollar,

British Pound, Russian Rouble and the Euro. These circumstances may also affect the

preferences and procurement behaviour of EU buyers of footwear. The consequences

of that are not necessarily negative for everybody however. For footwear suppliers

from Moldova for example the presence of terrorist threats in Europe could also create

opportunities: European buyers may want to avoid countries – or transport routes –

associated with (Islamic) extremism. And as far as Brexit is concerned, trade between

the EU and the United Kingdom may face stricter regulations, which will affect trade

patterns. It is recommendable for any Moldovan exporter to keep a close eye on such

developments that may have a direct impact on its export business.

E-commerce and social media disrupting the footwear business

For a long time it was thought that an article like footwear would not be sold well

online, because consumers would want to feel and fit shoes before they buy them. A

clever return-for-free policy of online sellers of shoes, like Zalando, has changed this

however. European consumers increasingly buy their footwear online. And buying

leather fashion accessories is even more hassle-free, without the need for fitting the

product. Nowadays almost every footwear brand has a web shop or uses existing

online sales channels. Sellers are big and small brands, multi-brand web shops,

retailers and apparel chains. Some EU retailers are struggling to keep up with e-

commerce and are losing traffic to their physical shops, and in some inner cities

footwear shops are already disappearing.

http://www.transparencymarketresearch.com/pressrelease/europe-footwear-industry.htm

https://www.zalando.co.uk/shoes/


The growth of social media is supporting and speeding up this development. Apart

from shopping online, consumers also use the Internet and social media to follow

trends, develop their own styles and preferences, share their buying experiences

online and show what they bought. Facebook (including its Instagram) has become a

leading social media platform in footwear and also Youtube is a hotspot for

consumers, trend-watchers and brands.

The growth of e-commerce does not mean that Europe will no longer have “brick

shops” for footwear and leather fashion accessories however. Although web

shopping has become for many an exciting experience replacing the need to go out

to a shop, the experience of going to town and look for a pair of new shoes is still

valued by a lot of consumers. It’s not a matter of “either/or”: a lot of companies

successfully combine e-commerce and online activities with offline commerce.

It may be a bit farfetched for a Moldovan exporter to open up its own footwear web

shop in order to sell directly to European consumers. But you can certainly use the

Internet and social media to your advantage, either by using existing online platforms

(like Aliexpress and Alibaba) by becoming a supplier of online sellers, or by using

online media to present yourself to European buyers. As a first step to get into social

media you could become a follower (and maybe even an active social media user

yourself) of some of the footwear brands that are active on social media, like for

example TOMS, Nike, Converse, Steve Madden, Crocs, Sam Edelman and

Vivobarefoot. You could also try to find out how to use social media to improve the

online presence of your company.

Sustainability and corporate social responsibility are getting more important

EU consumers are getting more concerned about the use of hazardous chemicals,

waste management, labour conditions (including child labour), fair wages and animal

welfare. European buyers will therefore increasingly be looking for innovative

sustainable footwear solutions, for example environmental-friendly materials and

production methods. They will also be keen to find suppliers who have a strong

social and environmental record.

Some buyers therefore start to prefer footwear produced in Europe, because for them

the social performance of European manufacturers is easier to monitor than that of

producers in faraway countries. This could be an opportunity for you as a Moldovan

supplier of footwear or leather fashion accessories, by presenting yourself to EU

buyers as a European company that works with European quality standards, but then

at lower prices. But it is not just a matter of presentation or of controlling production

processes of course. Improving your eco-friendly performance may also require using

organic cotton and recycled leather and other materials (including packaging

materials). Footwear brands like El Naturalista, Eco Vegan shoes and Ecouterre for

https://www.aliexpress.com/category/322/shoes.html?isCates=y&fromKeyword=shoes

https://www.alibaba.com/trade/search?fsb=y&IndexArea=product_en&CatId=&SearchText=shoes

https://www.facebook.com/toms

https://www.facebook.com/nike

https://www.instagram.com/converse/

https://www.instagram.com/stevemadden/

https://www.instagram.com/crocs/

https://www.instagram.com/sam_edelman/

https://www.instagram.com/vivobarefoot/

https://www.thebalance.com/social-media-overview-what-it-is-and-how-to-use-it-2531971

http://www.elnaturalista.com/en/content/eco-innovation

https://www.eco-vegan-shoes.com/

http://www.ecouterre.com/category/shoes


example even have soles made of recycled tires, cork or wood. This is a good example

of how market trends and buyer preferences may result in product innovations.

Technology replacing labour and enabling innovation

In reaction to rising labour costs and in order to defend their export markets,

particularly Chinese manufacturers are seeking for technologically driven production

innovations to replace labour. But also fabrics technology (sustainability, durability,

weather-resistance) and the use of alternative materials (the new “miracle material”

graphene for example) is pushing innovation, and correspondingly additional

investments in new machinery and skills. As a Moldovan footwear manufacturer you

don’t need to be in the forefront of these developments and you even don’t have to

follow every improvement and innovation. But, depending on your strategy and

market, do stay informed about relevant developments to understand in time when is

the right moment to (re)act.

An active lifestyle and ageing consumers demanding “healthy footwear”

There are two seemingly contradictory trends on the EU market that will call for more

comfortable footwear: on the one hand there is a trend towards a more active and

sportive “forever young” lifestyle (“sportive health”); and on the other hand the EU

population is ageing, which comes with the need to preserve the body (“senior

health”).

Technology is opening up opportunities for linking footwear and smartwatches to

health, supported by gadgets such as built-in ID-tags for runners and the application

of new smart fabrics for regulating the climate inside shoes. The “sportive health”

hype as a lifestyle (and a fashion style) is a major driver of this technological trend,

resulting in all kinds of high-tech shoes. On the other end of the spectrum seniors

have a need for high-quality comfortable shoes that provide support where and when

needed: they work longer, stay more active, have money to spend but are

nevertheless starting to get “old feet”. This requires specific design features of

footwear for seniors, with for example simple closures and fasteners, easy–to-read

labels, easy care, and comfortable fabrics.

3.2.2 Fashion Leather Accessories

The sportive and senior health trend affects leather fashion accessories to a lesser

extent than it affects footwear, but it does influence tastes and preferences, therewith

also influencing the style, design, colours and functionality of leather fashion

accessories. The trends in the leather fashion accessories market in the EU relate to

the changing demand for those products caused by the increase in electronic

gadgets that require protection or just a better look, to the rise of the male consumer,

http://www.coolthings.com/tag/cool-shoes/

http://comfortableshoeguide.com/best-shoes-for-seniors/


to the raising prices of leather, to the popularity of “design for the masses” and to the

increased awareness of sustainability issues and an increased demand for

transparency.

Also for gadgets and men

There are more personal devices on the market now, like smartphones and tablets.

Consequently there has been much innovation in small leather carrying products to

accommodate these gadgets. As a result of that, there is an increased focus on

leather fashion accessories for male consumers, which is a growing segment in

leather fashion accessories.

Rising costs of raw materials

A global shortage of leather is affecting all levels of the supply chain. Manufacturing

costs are rising and margins are shrinking; as supply struggles to meet demand,

costs are being passed along to consumers of luxury handbags.

Affordable luxury

There will be continuing strong touristic luxury shopping in the EU, but mature luxury

markets such as Western Europe are expected to decline. Although many domestic

Western European customers are still loyal to traditional luxury brands, they are

spending less on true luxury. There are also a number of buyers that are trading

down to more affordable luxury brands, which continue to expand in the EU. In the

mid-range segment there is a strong focus on leather accessories to upgrade or

update an outfit. The lower-middle segment is still focused on volume sales, with

retailers like H&M, Zara, and River Island copying the designs of more expensive

brands and making them available to a larger audience at lower prices.

Increased environmental awareness

There is an increasing concern in Europe regarding sustainability issues in all stages

of the leather supply chain. Livestock production is a key factor in deforestation,

threatening natural biodiversity and polluting air, water and soil; the preparation,

tanning, crusting and finishing of leather are water- and chemical-intensive and can

pose health risks to workers and residential areas; improper solid waste disposal can

cause high methane emissions and improper wastewater management degrades the

quality of water. All this results in a demand for “clean” products and manufacturers

are starting to design leather fashion accessories for consumers concerned about

these issues. Brands are becoming more transparent and provide more background

information on the leather supply chain and production processes.

http://www2.hm.com/en_gb/ladies/shop-by-product/accessories/bags.html

https://www.zara.com/uk/en/woman/bags/leather-c796017.html

https://www.riverisland.com/women/bags-purses/leather-bags/_/N-82kZkj4


3.3 Segmentation

3.3.1 Footwear

3.3.1.1 Product Segmentation

Your challenge as a Moldovan supplier is to find a specific segment on the EU

market with requirements that you can match. The EU footwear market can be

segmented in several ways, for example based on demographics (i.e.

men/women/boys/girls, or: seniors / middle-aged / youth / children), based on

materials (leather / textiles / synthetic), or based on use (formal & festive / day-to-day

/ recreational & sportive). A niche typical niche segmentation for footwear could be

fashion / specialized / eco.

Fashion footwear comes in a vast range of models and materials, especially

women’s footwear. The fashion footwear segment can be of interest for you as a

Moldovan footwear manufacturer if you are able to convert new fashion trends into

saleable footwear for mid-market and lower-end EU buyers. This means you will

have to be quick-to-market and flexible in your production capacity. Tastes and

preferences for colours, design and materials in this fashion segment can change

quickly and volumes can quickly rise and fall. If the product is in demand, margins for

you can be higher, but the business is riskier also. Typically, new high-fashion

models are first produced in Europe; if a breakthrough into the mainstream market

occurs, production is then relocated to Asia. The challenge for you as a Moldovan

producer is therefore to immediately pick up on EU fashion trends, before volumes

become too big and prices too low.

Specialized footwear is one-of-a-kind footwear worn only on special occasions, or

by small, specific target groups. Demand in this segment is limited and usually

steady. Examples are traditional footwear, orthopaedic footwear or specific work

footwear. Sometimes traditional footwear is also sold to tourists (e.g. wooden clogs).

Specialized footwear is often at least partly produced manually. Such specialized

footwear is usually produced near the regional market, but if volumes grow,

production can be shifted to producers that can handle larger volumes, and/or at

lower prices and/or that avail of a specific expertise. Work shoes are a good example

of this: while they represent a niche market in terms of volume, they are produced

both in and outside the EU at professional, specialized production plants. Please

note that safety footwear requires CE-marking.

Eco footwear is characterized mainly by the use of environmentally friendly

materials, production methods, dying techniques and packaging. The aim of the

http://www.satrappeguide.com/safety_footwear_ce_marking.pdf


producers is to minimize the environmental impact of production. Demand in this

segment is limited, but it’s growing. In some cases the use of chemicals is reduced to

zero and dyes used are natural and free of chemicals and waste reduction is

achieved through the use of biodegradable materials. Whether or not you will be able

to produce environmentally friendly shoes not only depends on your own factory, but

to a large extent also on the materials and production processes of your suppliers. A

legal certification framework specifically for eco-friendly footwear does not yet exist,

but as a footwear producer you can apply for the EU Ecolabel.

3.3.1.2 Market Segmentation

Which segment of the EU market for footwear offers opportunities for you depends

on the match between the requirements and characteristics of each segment on the

one hand, and your qualifications and ambitions as a footwear manufacturer on the

other hand. Main thing is, as a Moldovan exporter you probably don’t want to be in

the lowest segment of the market, which is largely covered by low-cost Asian

producers. Nor could you probably meet the requirements imposed by the most

exclusive brands in the highest segment.

In order to position yourself as a Moldovan exporter in the middle of the EU market a

price-based market segmentation is most practical. Such a segmentation of the

market runs pretty much in parallel with a volume-based market segmentation: the

lower product prices, the higher the production volumes.

A price-based segmentation of the EU footwear market results in five segments,

each with their own characteristics: a low-end segment, lower-middle segment,

middle segment, higher-middle segment and high-end segment.

Low-end footwear market segment

At the low-end, low-price products are sold in high volumes through factory outlets,

discounters or hyper- and supermarkets.

Low-end

- All kinds of low quality footwear - Predominantly cheap synthetic materials - Often one-off container shipments - Footwear sold on an irregular basis for bottom-prices - Sold by non-footwear retailers like Primark, Lidl and Action

Lower-Middle footwear market segment

The lower-middle segment is dominated by private labels sold by footwear chains,

independent retailers, department stores and mail-order companies.

http://ec.europa.eu/environment/ecolabel/how-to-apply-for-eu-ecolabel.html


Lower-middle

- Sneakers, “normal shoes”, sandals, slippers, moonboots, etc. - Reasonable quality no-nonsense footwear for a cheap price - Cheap leather and all kinds of other materials - Low-budget retail chains, large volumes, aggressive price policy (Scapino,

Deichmann) - Lots of private label, no serious branding

Middle footwear market segment

The middle segment offers single-brand fashion products sold by independent shops,

footwear chains, department stores and mail-order companies.

Middle

- Footwear with good price-quality ratio - Less fashionable, more conservative design - Upper leather combined with other materials - Specialized footwear stores - Brands like Le Coq Sportif (sports), Umbro

Higher-Middle footwear market segment

Between the middle and the high-end of the market lies the upper-middle segment

with footwear designed by lesser known designers and sold in independent specialty

shops and luxury department stores.

Higher-middle

- Fashion footwear - Emphasis on leather and high-tech materials - Footwear combined with clothing to match “look” - Luxury specialised footwear chains - Luxury brands, like: Nike, Adidas (sports) and Invito, Ziengs

High-end footwear market segment

Haute couture footwear is designed by the world’s top designers, sometimes even

made-to-order. A less fashionable top segment consists of high-quality shoes with a

more traditional design made of the best leather materials, often handmade. Think of

shoes that sell for up to thousand Euro – or more.

High-end

- Haute couture - Emphasis on exclusivity - Specialty stores with personal service - Small, local retail outlets - Exclusive Brands, like: Versace, Dior, Channel and smaller, local brands


Buyers

Find out where your own strengths as a Moldovan footwear manufacturer are and

where you could add value for your buyers. If the best you can do is to produce

exactly according to customer specifications, then you might want to stick to that for

now. This would mean: looking for buyers who have their own large design and

production facilities, probably somewhere in the middle or the lower-middle end of

the market. If you have your own design department however and can regularly

present new models, materials or outsoles to your buyers, then you could start

looking for export business a little higher up the ladder.

Please note that buyers usually know their market very well. They love lower prices,

but they also know very well that at some point insisting on lower prices will go at the

expense of footwear quality. Most buyers are moreover not looking for cheaper

prices per se. They are looking for value for money. Given a specific price bracket,

they are looking for better service levels, delivery speed, and production discipline.

Large buyers have a lot of supply chain knowledge. This means that for them cost

price, quality and delivery times are more or less fixed, they just look for suppliers

who can meet their requirements. The advantage of working with such buyers is that

they buy in large volumes. The main disadvantage however is that margins are low

and that a big client can become so dominant that he may almost completely absorb

your production capacity, maybe even demanding an expansion of your production

capacity or an upgrade of your equipment. Until one day you are faced with a choice:

you either once again lower your price, or lose him as a client… What for a lot of

independent export companies may sound as a luxury problem (having a big client)

may then turn into a real problem, often resulting in either a take-over or a

bankruptcy of the producer. As an independent company you should also beware of

becoming too dependent on one single client over a sustained period of time.

Conclusion

In conclusion, there are many different ways of approaching market segmentation.

What matters for you as a Moldovan footwear exporter is that you identify clear

segments in preparing for exporting to the EU. Look at different types of footwear

and find out which type you can best produce: men’s, women’s, casual, sports, work

footwear, for example. Study the market, but always based on your own strengths,

experience and expertise.


3.3.2 Leather Fashion Accessories

3.3.2.1 Product Segmentation

Leather fashion accessories are a category of products that are generally worn with,

and supplement, clothing items. This category consists of four product groups:

carrying products (like bags, sleeves and wallets), gloves & mitts, belts and clothing

accessories.

Fashion accessories are usually purchased to match apparel, and like any fashion

product, leather fashion accessories should be both functional and beautiful. The

difference however is that leather fashion accessories tend to have a longer life cycle

than garments and fashion accessories that are not made of leather. Especially high-

end leather products usually keep their value. The quality of leather accessories is

very much determined by how well the product has been made (e.g. the durability of

zippers and the stitching of the leather) and by the quality of the leather and of

processing it.

A product segmentation can be made based on the type and quality of leather of the

fashion accessories:

- There are broadly three types of leather, with three levels of quality for each. The

cheapest leather is from pigs (lower-end of the market), then comes leather from

cows (middle segment) and the more exclusive leathers are from animals such

as sheep, deer, horses, ostrich, crocodile, etc. (high-end of the market).

- As for leather quality, lower grades of leather are produced from the layers of

hide that remain after the top is split off for the better grades. Top-grain leather is

the second highest grade of leather; it is split from the top layer of hide then

sanded and refinished for a uniform finish. Full-grain leather is the strongest,

most durable, highest quality of leather. Napa leather is a type of full grain leather

known for its softness and suppleness and is commonly used in high-end leather

accessories.

3.3.2.2 Market Segmentation

The EU market for leather fashion accessories can roughly be divided into five price-

based segments, each segment with its own characteristics. Depending on your

company profile and on you export strategy you can decide through which segment

you would prefer to enter the EU-market and work your way up from there. It is

unlikely (nor recommendable) that you will as a Moldovan producer of leather fashion

accessories try to directly enter the EU market via the higher-end segments of the

market, as the standards and requirements there are very high.


Low-end market segment

At the low-end of the market there are basic leather accessories on offer at very low

prices and in large quantities. These products are retailed by hypermarkets, outlets,

discounters and at street markets. Competition at the low-end is extremely fierce. If

you can deliver high volumes at low prices, the low-end may be a good segment for

you to get your export started in the EU. As you gain export experience, you can then

start looking for ways of adding value and trading up to other segments with higher

margins and less competition.

Low-end - Mass-market commodity, basic quality, large quantities - Private label, no branding - Factory outlets, hyper markets & street markets - Chains with branches: 150+ stores

Lower-Middle market segment

Retailers in the middle-low segments – clothing chains, department stores, mail-

order companies and independent retailers – offer medium quality leather fashion

accessories at a medium-low price in medium to large quantities. In the lower-middle

segment, volume requirements are higher than in the middle segment. Moving from

the low to the lower-middle price segment is a good way to try and trade up.

Lower-middle - Medium quality, medium and large quantities - Mostly private label, some branding - Independent shops, clothing chains, department stores & generic web shops - Chains with branches: 100+ stores

Middle market segment

The middle segment offers medium to good quality in medium to large volumes,

usually at lower volumes than in the lower-middle segment. Those two segments

have almost the same retail channels, except that independent specialty shops are

rare in the middle-low segment. In the middle segment, quality requirements are

higher and prices are also a little higher. Moving from the middle-low to the middle

EU market segment is a good way to try and trade up.

Middle - Good quality, medium quantities - Single-brand fashion, branding is important - Independent shops, clothing chains, department stores and generic web

shops - Chains with branches: 50+ stores


Upper-middle market segment

In the upper-middle segment independent specialty shops, luxury department stores

and specialized web shops offer good quality leather fashion accessories. Unique

standard products are produced in small to medium-sized quantities. If you can meet

the quality and design requirements of the upper-middle segment, this is a good

segment to aim for. The fashion cycles here are slower than in the higher segments,

giving you more time to deliver high quality. Because price pressure is lower here

than in the lower segments, you will have competition from European manufacturers.

Upper-middle - Good quality, small and medium-size quantities - Less known designers, branding is important - Independent shops, exclusive department stores, specialized web shops - Chains with branches: 25 – 35 stores

High-end market segment

At the high-end of the market, designers and brands mostly sell exclusive and unique

top-quality leather fashion accessories through their own shops and channels. The

EU high-end market segment is very difficult to access directly as a supplier from

Moldova. Requirements here are very strict in terms of quality, delivery service and

design. If your company has truly outstanding technical skills, you might be able to

get small orders.

High-end - Top quality, small quantities - International exclusive designers and brands - Smaller exclusive chains with few branches (prêt-à-porter) and designer

shops

Conclusion

For a small or medium-sized exporter from Moldova, the best opportunities are

probably in the middle and upper-middle segments of the market. In these segments,

good quality and well-priced leather fashion accessories are offered by independent

specialty shops, fashion retailers, brands and luxury department stores.


3.4 Competitiveness

A growing but changing and competitive market

Although the EU market for footwear and leather fashion accessories is expected to

recover from economic recession, it is still quite competitive, with a broad range of

sellers selling a variety of products. The market is momentarily moreover very

dynamic, with more and more shoes and fashion accessories being sold online,

which is changing the way of retailing. The resulting retail competition translates into

higher retailer demands put on you as a supplier of footwear or leather fashion

accessories. Many traditional retailers are losing market share, due to disappointing

sales results and the strong growth of e-commerce. If you are able to offer short

delivery times, thus enabling retailers to immediately react to trends, then you have a

clear competitive advantage in this market.

You have to be flexible to enter this market

The leading countries outside the EU supplying Europe with footwear and leather

fashion accessories are almost all Asian: Myanmar, Bangladesh, Vietnam and, to a

lesser extent, Pakistan and Cambodia. These countries tend to lag behind China in

terms of quality and service levels, but they are often cheaper. It is very difficult for a

Moldovan producer to compete with these countries on price. The distance to the

market of most developing countries can be a reason for European buyers to prefer

alternatives however. Suppliers closer to the EU are then often called upon by

buyers who wish to respond to sudden trends or shortages. This offers opportunities

also for Moldovan producers of footwear and of leather fashion accessories, if you

have the flexibility in production capacity to cope with such sudden demands.

Free trade agreements affect competitiveness

Europe’s Free trade Agreements (the General Scheme of Preferences and for

Georgia, Ukraine and Moldova the Deep and Comprehensive Free Trade

Agreement) influence the competitiveness of exporters. Exporters located in

countries that enjoy free trade with Europe (such as Moldova) benefit from the

absence of import duties. This means their prices can be up to 12% lower than

exporters based in countries excluded from free trade. This is why there is now less

price competition from China, which no longer has a Free Trade Agreement with the

EU for footwear and leather fashion accessories. Competition on quality is coming

from the EU itself, with Italy as a dominant force in leather fashion accessories.

EU standards on the use of chemicals call for supply chain management

Through the Deep and Comprehensive Free Trade Agreement (DCFTA), Moldovan

exporters now have free access to the EU market, which improves their

competitiveness. But that doesn’t make exporting to the EU easy. Like any other

footwear and leather fashion accessories supplier, you will face tough legislation on

http://ec.europa.eu/trade/policy/countries-and-regions/development/generalised-scheme-of-preferences/

http://trade.ec.europa.eu/doclib/docs/2013/april/tradoc_150981.pdf

http://trade.ec.europa.eu/doclib/docs/2013/april/tradoc_150981.pdf


issues such as the use of chemicals and dyes through REACH (the Registration,

Evaluation, Authorisation and restriction of CHemicals). The challenge for you as a

manufacturer of footwear or leather fashion accessories is not just to comply with

those standards yourself, but also to find suppliers offering you REACH-compliant

raw materials. Supply-chain management is thus becoming more important to keep

up with European standards.

Be ready for internet-focused EU buyers

The potential of and increased focus on Internet retailing has resulted in an

increased Internet focus of EU importers and wholesalers, also for footwear and

leather fashion accessories. If you want to be competitive, you will therefore have to

review and improve your “digital presence”, which includes presenting yourself in

flawless English - be it on a website, through e-mail or on social media. Take a

critical look at the design of your website and digital presentation materials (like

professional pictures or video’s), making sure that they match what your potential

buyers like and want to know about you. Also consider supporting the e-commerce of

your buyers by upgrading your digital services.

Increased consumer awareness calls for lower production costs

Consumer awareness is affecting your competitiveness also. European consumers

are increasingly aware of price and quality and want their footwear and leather

fashion accessories to be produced in a socially acceptable and environmentally

friendly way. There is for example a growing focus on raising the standards for

tanning leather, as the commonly used process of chrome tanning can be very

harmful to the environment. Sustainable leather solutions are more expensive than

the conventional ones and will require hardware investments, but may distinguish

yourself from other tanneries and leather production companies that process leather.

This increased consumer awareness is reflected in stricter Corporate Social

Responsibility (CSR) requirements, which often increases the cost price. But just like

with healthy and responsible food, it is often difficult to persuade consumers to pay a

higher price for “responsible footwear”. This paradoxically leads to a situation

where the producer is “encouraged” by EU buyers to comply with social and

environmental standards – but without raising production costs too much. The

paradox is of course in the fact that it was this very same “price pressure

mechanism” that in the past led to poor labour conditions and cheap but polluting

production methods. Nevertheless, as a Moldovan exporter you should know that

Corporate Social Responsibility is here to stay and that the way in which you respond

as a Moldovan supplier to this demand for CSR will affect your competitiveness.


Distinguish yourself

Increasingly, production has become a measurable ‘science’ with larger buyers

wanting more and more control over the production process and even over the

supply-chain as a whole. As a supplier you have to strike a balance between buyer

demands and your capabilities, resources and ambitions to comply with these

demands, therewith distinguishing yourself from your competitors.

You can distinguish yourself from your competitors in several ways:

- By making the same product in the same way, but better than your

competitors. For example: make exactly the same footwear at a lower price,

and/or with shorter delivery times and/or with less mistakes.

- By making the same product with the same materials prepared differently; for

example: produce leather casings for mobile phones by only working with

leather that is tanned in an eco-friendly way

- By making different products; for example: use different materials and/or

create really new designs with relatively new techniques.

Innovation can be driven by new fashion trends or by new technologies. Three-

dimensional or 3D printed shoes are an example of such a technology-driven

innovation. It is not yet widely used, but if you could somehow get to work and

experiment with 3D printing, you could certainly catch the attention of EU buyers.

3.5 Requirements

3.5.1 Legal requirements

If you export footwear or leather fashion accessories to the EU there are several

legally binding requirements - related to for example product safety, labelling and the

use of chemicals - which you will have to comply with.

Product safety

The General Product Safety Directive is a legislative framework which says that all

products marketed in Europe must be safe to use. Within that framework there are all

kinds of specific legislation for specific products. If (some of) those specific

requirements apply to your product, then the General Product Safety Directive

applies in addition, covering all safety aspects which may not have been described

specifically. And if there are no specific legal requirements for your product and the

use of it, then the General Product Safety Directive still applies. To make sure that

their suppliers don’t cause any problems with their product deliveries, EU buyers

often provide supplier manuals in which all their requirements (including legal

https://www.wired.com/insights/2014/09/3d-printed-shoes/

http://exporthelp.europa.eu/thdapp/taxes/show2Files.htm?dir=/requirements&reporterId1=EU&file1=ehir_eu15_02v001/eu/main/req_safeprod_eu_010_0612.htm&reporterLabel1=EU&reporterId2=NL&file2=&reporterLabel2=Netherlands&label=General+product+safety&languageId=en&status=PROD


requirements) are described. You can check yourself RAPEX, the EU Rapid Alert

system for dangerous non-food products, to get an idea of the most frequently and

recently detected product incompliances.

Labelling

The aim of a common set of labelling rules is to ensure that consumers know what

they are buying. In addition, there is EU legislation coming up on mandatory origin

labelling (the “made-in” label) for all non-food products, but it is not known yet when it

will be ready and implemented.

Footwear in the EU must have labels with information on the main materials used in

the three main parts of the footwear (the upper, the lining and sock, and the outer

sole). For each of these, the label must indicate (in words or using symbols) if the

material is “leather”, “coated leather”, “textile” or “other”. Textile in footwear must be

labelled with the fibre composition and using the fibre names in accordance with

European rules.

There is no separate EU legislation on labelling leather fashion accessories.

Occasionally parts of the EU Textile Regulation and Footwear Directive apply. In

some countries (Austria, Belgium, France, Italy, Lithuania, Spain) there is some

national legislation for labelling leather fashion accessories, mainly prescribing the

name of the leather product and information about how to take care of the leather.

Check with your buyer.

Chemicals

In the EU there are restrictions on a large number of chemicals that are considered

to be hazardous for people or the environment. Footwear, and also leather fashion

accessories that are made of more than just leather, can consist of a variety of

materials and the volumes used are often not that big. That can make it relatively

cumbersome for footwear producers to assure that all parts of their product comply

with the legal restrictions. Most of those restrictions are listed in the EU regulation on

Registration, Evaluation, Authorisation and restriction of CHemicals (REACH). You

can check for yourself what are the chemicals not allowed in textile and leather

articles in the EU. Please note that these are the minimum, legally binding,

requirements and that a buyer may have stricter requirements.

Examples of restricted substances relevant for footwear and leather fashion

accessories include:

- Azo dyes (leather and textile): if you use dyed leather, make sure your product does

not contain any azo dyes that release any of the 22 aromatic amines which are

prohibited. European law lists the aromatic amines, not the azo dyes that release

them.

https://ec.europa.eu/consumers/consumers_safety/safety_products/rapex/alerts/main/?event=main.listNotifications

http://exporthelp.europa.eu/update/requirements/ehir_eu14_04v001/eu/auxi/eu_lblfootw_annex1.pdf

http://ec.europa.eu/environment/chemicals/reach/reach_en.htm

http://exporthelp.europa.eu/thdapp/taxes/show2Files.htm?dir=/requirements&reporterId1=EU&file1=ehir_eu14_02v001/eu/main/req_chetext_eu_010_1303.htm&reporterLabel1=EU&reporterId2=NL&file2=ehir_nl14_02v001/nl/main/req_chetext_nl_010_1306.htm&reporterLabel2=Netherlands&label=Restriction+on+the+use+of+certain+chemical+substances+in+te

http://exporthelp.europa.eu/thdapp/taxes/show2Files.htm?dir=/requirements&reporterId1=EU&file1=ehir_eu14_02v001/eu/main/req_chetext_eu_010_1303.htm&reporterLabel1=EU&reporterId2=NL&file2=ehir_nl14_02v001/nl/main/req_chetext_nl_010_1306.htm&reporterLabel2=Netherlands&label=Restriction+on+the+use+of+certain+chemical+substances+in+te

http://exporthelp.europa.eu/update/requirements/ehir_eu15_02v001/eu/auxi/eu_cherest_entry43_annexXVII_r1907_2006.pdf


- Chromium VI (leather): this substance is one of the most common causes for

withdrawal of products. European law limits the use of chromium in leather

products to max. 3 ppm (parts per million).

- PVC (polyvinyl chloride) contains several chemicals that are often subject to

restrictions, such as lead. Organostannic compounds, especially the ones used in

PVC, can be used in textiles, for example in prints. Their use is restricted

because of their risk to human health. Although PVC itself is not prohibited, some

companies have voluntarily decided not to use PVC in their products.

- Metal parts (such as zippers or buttons) coming into direct and prolonged contact

with the skin (e.g. in shoes or mitts) are allowed to release only a limited amount

of nickel per week.

- Perfluorooctane sulphonate (PFOS) is a persistent organic pollutant (POP)

substance for making leather and textiles water- and dirt-resistant. In the EU its

use is restricted to 1 microgram per square meter. The use of other persistent

organic pollutants, like so-called short-chain chlorinated paraffins (SCCPs), which

are often used in the leather industry, is also restricted.

You could set up your own lab to test all materials that you buy locally, including what

you receive from your suppliers, to know for yourself if your materials comply with EU

requirements. But you can also use the services of external testing laboratories, such

as SGS, Intertek and TUV. Please note that some European countries have

additional or stricter national restrictions on chemical substances than required by

EU legislation. It might therefore be more practical to have your buyer select an EU

testing laboratory. Some buyers for example have their ordered products tested and

paid for themselves, unless products are found to be in non-compliance, in which

case the supplier is required to pay for all subsequent tests. Make sure you know in

advance what the costs for you are.

Products from wild plants and animals

If you use materials (partially) made from wild plants or animals – for example

footwear or leather fashion accessories with applications of crocodile leather – you

need to make sure that you comply with the requirements of CITES, the Convention

on International Trade in Endangered Species, which the EU implements through a

regulation.

Safety shoes and CE Marking

If you produce safety shoes, you have to make sure that they meet the strict

standards set for personal protective equipment (PPE). Safety shoes must be tested

against these standards and bear the CE mark (Conformité Européenne). CE

marking is a mandatory conformity scheme for certain products sold in Europe and

also applies to safety shoes. Safety shoes face requirements regarding for example

slip-resistant soles, protection against chemical substances, fire-resistance et cetera.

https://www.tuv.com/media/india/informationcenter_1/softlines_1/Restriction_of_Chromium_VI_for_Leather_Articles_in_EU_REACH.pdf

http://exporthelp.europa.eu/update/requirements/ehir_eu15_02v001/eu/auxi/eu_chetext_entry20_annexXVII_r1907_2006.pdf

http://exporthelp.europa.eu/update/requirements/ehir_eu13_03v003/eu/auxi/eu_cherest_entry27_annexXVII_r1907_2006.pdf

http://www.sgs.com/en/consumer-goods-retail/softlines-and-accessories/footwear-and-leather-products

http://www.intertek.com/footwear/testing/

http://www.tuv.com/en/corporate/business_customers/product_testing_3/clothing_protective_equipment_2/shoes_leather_products_2/shoes_leather_products.html

http://exporthelp.europa.eu/thdapp/taxes/show2Files.htm?dir=/requirements&reporterId1=EU&file1=ehir_eu15_02v001/eu/main/req_cites_eu_010_0612.htm&reporterLabel1=EU&reporterId2=NL&file2=ehir_nl15_02v001/nl/main/req_cites_nl_010_0612.htm&reporterLabel2=Netherlands&label=CITES+-+Endangered+Species+Protection&languageId=en&status=PROD

https://ec.europa.eu/growth/single-market/ce-marking_en

https://ec.europa.eu/growth/single-market/ce-marking_en


3.5.2 Buyer requirements

In addition to the legal requirements, there are a lot of “soft” requirements, i.e.

requirements that are not legally required. These requirements are formulated by the

buyers themselves. Such buyer requirements typically apply to the use of chemicals,

environmental sustainability and social responsibility.

Chemicals

As was mentioned above under the legal requirements, REACH is the mandatory EU

standard: failing to comply with REACH means you cannot do business in the EU.

But there is an even stricter standard, which was launched in a “Toxic Free Future”

campaign by Greenpeace. The purpose of the initiative is to eventually create a

fashion and footwear industry that is free of harmful chemicals. Although not a legal

requirement, buyers may require you to comply with this Greenpeace standard.

Environmental sustainability and social responsibility

Animal welfare and environmental care are important issues for a growing number of

consumers. Buyers and branch organisations therefore often go beyond what is

legally required. Before contacting any potential buyer, try to find out whether in your

target export country there is some sector covenant that also applies to your product.

Future EU legislation is expected to require buyers and producers to account for all

of the waste involved in the production process. Several brands are already looking

at ways to use waste instead of, well, wasting it... Adidas for example now offers

sneakers made of recycled plastic ocean waste. And Looptworks is a company that

produces bags from so-called “upcycled” leather, re-using leather in a premium

product.

The phrase “sustainable footwear” may refer to recycling in the production process,

the choice of sustainable materials, or to improved working conditions. Although the

importance of sustainability is growing, the market segment for footwear sold as ‘fair’

or ‘sustainable’ is still small. There is already an EU Ecolabel however, which can

also be used for footwear and leather fashion accessories. Consider implementing a

management system aimed at more sustainability, such as ISO14000 (on

environmental aspects).

Social aspects - such as labour rights in your company and in the factories of your

suppliers - are also considered important by European consumers. Working

conditions, cleanliness and safety are gaining attention in the footwear industry.

Wages are a growing concern as well, just like in the fashion industry. A common

requirement of buyers related to corporate social responsibility (CSR) involves

signing a suppliers’ code of conduct, in which you declare that you conduct your

http://www.greenpeace.org/international/en/campaigns/detox/

http://www.theverge.com/2016/6/8/11881670/adidas-3d-printed-sneaker-competition

http://www.looptworks.com/pages/about

http://ec.europa.eu/environment/ecolabel/products-groups-and-criteria.html

http://www.iso.org/iso/home/standards/management-standards/iso14000.htm


operations in a responsible manner (for example that you and your suppliers respect

local environmental and labour laws and that you avoid corruption). Consider

implementing SA8000 (on social conditions).

Many of the environmental and social sustainability issues begin upstream in the

supply chain: at the raw materials factory, with the collector or on the farm. The

Sustainable Apparel Coalition is an initiative by companies in the footwear, apparel

and textile sector. They developed the so-called Higg-index, a self-assessment

standard used in the apparel and footwear industry to assess environmental and

social sustainability throughout the supply chain. And several other initiatives have

gained ground in the EU over the past years, for example the Ethical Trading

Initiative (ETI) - an alliance of companies, trade unions and NGOs that promotes

respect for worker’s rights - and the Business Social Compliance Initiative (BSCI) - a

supply chain management system for the improvement of and compliance with social

standards in factories and farms.

Please note that the abovementioned requirements that apply to your product often

also apply to its packaging. Check with your buyer.

http://www.standardsmap.org/review.aspx?standards=58

http://apparelcoalition.org/

http://apparelcoalition.org/the-higg-index/

http://www.ethicaltrade.org/

http://www.ethicaltrade.org/

http://www.bsci-intl.org/


3.6 Trade Channels & Terms

3.6.1 Trade Channels

There are several ways to get your footwear and leather fashion accessories from

your factory in Moldova all the way to your buyer in the EU. The first one is to do

business with a local agent, who then does the exporting to the EU himself. If you go

with your product to the EU market yourself, you can sell your product either to an

agent there, or to an EU manufacturer, to an importer/wholesaler, to a retailer or

directly to the EU consumer.

Agent

A common channel for exporting products from Moldova to the EU is via a trader,

broker or agent. In that case you sell your footwear or leather fashion accessories to

for example a Moldovan or European agent, who in turn sells the goods to a

wholesaler or retailer, who then sells to the consumer. Usually you offer such a

trader a fixed fee for his involvement and/or you might agree to pay him a provision

for orders he acquires (either a fixed order fee or a percentage of the order size).

Such an agent is then merely a broker, linking you to an EU buyer. He is not really in


the market himself in the sense that you don’t ship you goods to him, nor receive the

payment from him.

Manufacturer

Shoe brands with their own EU-based shoe manufacturing companies or brands of

leather fashion accessories with their own manufacturing companies may decide to

outsource part of their production. This can be done incidentally or on a more

structural basis (for example for the production of a sub-brand or for semi-finished

shoes or belts that will then be finished in the factory in the EU.) This means that you

as a Moldovan manufacturer will become a dedicated supplier, supplying this product

only to this customer. It also means that in case of follow-up orders from such a

client, you will probably develop more than a supplier-customer relation. You may

become a production partner or maybe even a fully dedicated supplier. In the latter

case this customer often becomes a co-owner of your factory in order to maximize

quality control and usually also to co-finance new investments required to upgrade

the production process and expand the production capacity.

Importer/Wholesaler

In this case you sell your footwear or leather fashion accessories and ship it to an EU

importer/wholesaler, who then sells to an EU retailer. The difference with an agent is

that importers/wholesalers do take ownership and responsibility of the products they

buy from you. Their emphasis tends to be on converting trends into collections,

developing collections and on overviewing the whole process of production, import

and delivery.

Shorter fashion cycles call for a shorter time-to-market for buyers, which itself calls

for faster deliveries. In today’s footwear market, the ability to minimize the time you

need to produce an entire order is a clear selling point, because it enables your

buyers to respond quicker to trends and developments.

Traditionally, exporters in footwear and leather fashion accessories do business with

importers/wholesalers. Disintermediation (skipping the intermediate, the “middle-

man”) is a way to save time and to have shorter and faster supply chains. This is

often a favourite subject among exporters: any intermediate earns money that you

might have earned without him. So why not by-pass the EU wholesaler altogether

and go directly to the EU retailer?


Please note however that although disintermediation may result in higher margins for

you (and possibly the EU retailer), this comes at a price. Not only is a wholesaler

often in a position to find new markets for you, he will also take away a lot of the

potential logistic and administrative headache you will get in case you would have to

do without him. Instead of dealing with of lot of EU retailers in smaller amounts, you

are doing business and deliver to a couple of wholesalers in larger amounts - unless

you are delivering to large retail chains with their own central warehouse of course.

Your preference to do business with or without a wholesaler will thus depend on the

capacity and flexibility of your production and administration, the size of the retailer,

the typical order sizes and the product varieties ordered.

Retailer

Small retailers offer you the highest profit potential. Small, independent footwear

retailers in Europe usually lack the volume needed for placing direct orders. Service

levels are higher than usual though: The right of return, combined with consignment

agreements and extended payment terms (in short: you buyer will pay you after he

sold your shoes or handbags) are fairly common in this segment. For you as a

supplier that is in itself not an attractive business condition of course, but because of

that the profit margin is bigger here than in any other segment. Suppliers of these

smaller retailers are often importers who stock these smaller buyers under an

independent brand.


Medium-sized retailers offer comparatively smaller, but still good margins and want

more involvement. But medium-sized retailers usually don’t commit themselves to

the kind of volumes that will bind suppliers or facilitate supply chain control. And like

smaller retailers these buyers often depend on your input in terms of design,

development and fabric sourcing. Brands and wholesalers operating in this segment

usually require some sample support to guide them.

Large retailers on the other hand like to control the supply chain. More and more EU

department stores, large retailers and footwear and fashion chains are buying

directly from manufacturers – and not just in order to save costs through

disintermediation, by cutting out the middle-man. These buyers are in addition

looking for vertical integration in order to get more control over the production

process, more flexibility in product specifications and to have a say in delivery times.

Large footwear retailers for example, such as Deichmann and Humanic like to have

maximum control over the supply chain. They try to avoid intermediaries and cut

costs as much as possible. They tend to be involved in your production process and

because of their big order volumes largely determine your margins. The advantage

for you is that these retailers can more or less guarantee stable business over a

longer period of time. The disadvantage is that your profits are minimized and that

you can become very dependent on only one customer, who someday might decide

to order his goods elsewhere.

Online consumer

Some manufacturers are going even one step further and try to sell directly to

consumers online – the ultimate form of disintermediation. Consumers in Europe are

open to this option. Especially for leather fashion accessories, that the customer

does not have to fit and that are often small and can be shipped easily. But even for

a product as footwear consumers are nowadays prepared to buy online, provided

that there is a hassle-free return policy.

Selling directly to consumers through your own web shop is a possibility, but the

problem is: consumers in Europe may never find you. An advantage for you as a

supplier is a higher margin. But traceability is really an issue for small to medium

companies on a global market. And even if consumers are able to find you, they may

not feel confident to buy from you, as they know nothing about you.

Distribution and returns is the real big problem with online sales however. A

consumer only feels confident to order something if the product can be returned

hassle-free (sending back the goods and getting back the money). But that means

that you really have to have your return policy in order, both logistically (returning of

the goods) and administratively (refunding of the money). Distributing directly to

http://www.deichmann.com/GB/en/shop/welcome.html

http://www.humanic.net/int


consumers in the EU can be troublesome, with return shipments causing extra costs

and logistical problems. Without a distribution centre in the EU this seems to be a

rather farfetched option for the average exporting Moldovan producer of footwear or

leather fashion accessories.

Nevertheless, online sales is growing and the EU is not necessarily far away for you,

take Romania for example. For a Moldovan producer with very special footwear there

might be some opportunities, just as for leather fashion accessories with a special

design – but on two conditions. Firstly, you should have the ordering process and the

distribution logistics (including for the returned goods and the refunding) under

control. And secondly, you should have a good presence on the Internet, either via

your own website, or via websites such as Alibaba and AliExpress that are becoming

quite popular in the EU among younger people in particular.

Trade Fairs

Manufacturers, agents, importers/wholesalers and retailers meet at trade fairs in

order to get an idea of the developments and latest trends in their branch and to do

business. The most important fairs for footwear and leather fashion accessories in

the EU are:

- For footwear

o ExpoRivaSchuh, footwear trade fair in Riva del Garde, Italy

o Gallery-shoes, footwear trade fair in Dusseldorf, Germany

- For leather fashion accessories

o LineaPelle, exhibition of leather, accessories, components, fabrics,

synthetics and models in Milano, Italy

o MiPel, leather fashion accessories trade fair in Milano, Italy

o ILM, leather fashion accessories trade fair in Offenbach, Germany

3.6.2 Trading Terms

Transportation terms

A crucial part of exporting physical products like shoes is arranging their

transportation, along with the required documentation. The so-called Incoterms

(International Commercial Terms) are internationally recognized standard trade

terms used in sales contracts. They are being used in order to make sure that the

seller and buyer know:

- Who is covering the cost of transporting the goods, including insurance, taxes

and duties

- Where the goods should be picked-up from and transported to

- Who is responsible for the goods at each step during transportation

https://www.alibaba.com/trade/search?fsb=y&IndexArea=product_en&CatId=&SearchText=leather+bags

https://www.aliexpress.com/wholesale?catId=0&initiative_id=AS_20170428005602&SearchText=leather+bags+women

http://exporivaschuh.it/en

http://www.gallery-shoes.com/

http://www.lineapelle-fair.it/en/

http://www.mipel.com/en/

http://www.ilm-offenbach.de/

http://www.one-ill.com/downloads/incoterms%202015.pdf


The three most important transportation conditions to keep in mind for you as a

Moldovan manufacturer are:

- Free On Board (FOB)

This is the most commonly used delivery form. It means you supply the shipment

to the forwarder, along with all the necessary documentation. The buyer then

arranges all transportation, insurance and clearance issues.

- Cost and Freight (CFR)

In the CFR model, you arrange and pay for the order to be shipped to the

forwarder as well as for insurance and transportation to the port in the destination

country, in accordance with your buyer’s specifications. The buyer is then

responsible for clearance at the port of arrival and for transportation to his

storage facility.

- Cost Insurance and Freight (CIF)

Under CIF terms, you arrange and pay for the order to be shipped to the

forwarder and for transportation to the port in the destination country, in

accordance with your buyer’s specifications. The buyer takes care of clearance at

the port of arrival and transportation to his storage facility. The difference with

CFR is that you do not have to cover the insurance costs, the buyer is

responsible for that.

Payment terms

As banks in Europe have cut back their credit facilities over the past years, EU

buyers often prefer suppliers that agree with longer payment terms. Payment terms

have in other words become a form of credit, providing buyers with some working

capital – financed by their suppliers. You will nowadays often get paid only after the

order has been produced and is ready to be shipped, or even only after the buyer

received the goods. This means that in order to produce the order YOU will have to

avail of the working capital or of the ability to take a loan from a bank. This loan is

often not covered by an order guarantee, whereas in the past buyers would send you

a Letter of Credit (LC), guaranteeing your payment along with the order. The draw-

back of this development for you as a supplier is that you will have to bear all the

costs up-front and that your risks have increased: when you are not paid until well

after shipping the order out of your factory, you effectively have lost ownership of the

goods (see the Incoterms for the transfer of ownership). Whatever sales contract you

sign, make sure that you are aware of all the ins and outs of the payment conditions

and the corresponding risks involved.

http://www.bizmove.com/export/m7m.htm


4 EXPORTING TO THE EU

4.1 Preparation

In order to successfully export to the EU, you need a product which is in demand. But

within your own company you also need the necessary commitment, resources, skills

and information to support sustained exporting activities over the longer term.

How do you know if your company is ready for exporting to the EU? Every company

is unique and exporting involves making a lot of choices - choices that will be

different for every company. Each company has its own strategies, markets, products

and services. There is no standard recipe for export success. Nevertheless,

successful exporters usually have the following characteristics in common:

1. Significant management time and strong management commitment.

Developing an international business is no different to starting and building your

domestic business; in fact, you can expect it to consume even more management

time than developing business at home. Exporting requires substantial

commitment from management across the business, not just from the CEO or

sales manager.

2. Strength in the domestic market. In most cases, solid domestic sales form the

basis of a good exporting business. A successful domestic business gives

overseas buyers confidence in you as a supplier and will ensure that your

business processes are in place and well tested. Importantly, strength in the

domestic market will also provide you with cash flow and the working capital you

need to invest in developing your export markets.

3. The resources to succeed. Exporters find they need strong financial resources

to expand overseas to cover the costs of product modifications, travel and

international marketing, to name just a few of the additional costs you might face.

You also need to have the right people in place to run the export side of your

business, and that may mean additional staff.

4. Export knowledge and skills. To export successfully you will need to learn

about a wide range of issues such as how foreign markets operate, export

documentation and foreign currency management.

5. Business planning and export planning. Many smaller companies don’t get

around to formal business planning, but once you start exporting you are moving

your business to a different level, so it is wise to consider putting these plans in

place.

In order for you to assess for yourself whether you are ready to start exporting to the

EU, there are a number of online Export Readiness tools and questionnaires available


on the Internet. Going through those questions makes you realize what you should

think through when seriously considering exports. Some of those tools go into an

impressive level of detail, but in the end it all boils down to the five bullet points above.

At the preparation stage, information and communication is crucial and could include

browsing the internet to get a picture of your potential competitors in exports, following

a basic export course, discussing your concerns with advisers, talking with your bank

and accountant about financial requirements and repercussions, and getting in touch

with an agency or consultant with knowledge about exporting to the EU in general and

about exporting footwear and/or leather fashion accessories in particular.

Google “export readiness checker”, “export readiness checklist”, or “export readiness

assessment” and you will find the tools easily. Pick the one you find most

straightforward.

4.2 Planning

If after this initial orientation and preparation you still think you are ready for exporting

to the EU and you are still motivated to get on with it, it’s time to get things down on

paper more concretely and develop an Export Plan. Think of the table of contents of

an Export Plan as merely a detailed and elaborated export checklist, containing all

the aspects of exports that you should think of when exporting to the EU. By

elaborating on what you would like to export where and how, you will get insight into

the requirements and resources for achieving your export ambitions.

Make your export plan as concrete as possible, it is NOT an academic exercise.

Especially a first draft doesn’t need to be long, just a couple of pages. You will find

that initially you do not know yet all questions to all answers, and you will also find

that some answers generate new questions. Your export plan will change and grow

over time. But don’t avoid any issues that you can address now. Any hard choices

that you go around now will get back to you later, at a possibly less convenient

moment. Remember that an export plan is not just a broad idea, it’s a concrete and

precise plan and should therefore include specific objectives, set forth time

schedules for implementation, and mark milestones - so that the degree of export

success can be measured.

There is not one best table of contents for an export plan, the structure and contents

depend on your line of business, the size of your company and your export

ambitions. But your export plan should at least address the following 10 questions:


1. Which products / services are selected for export development? What

modifications, if any, must be made to adapt them for overseas markets?

2. Which countries are targeted for sales development?

3. In each country, what is the basic customer profile? What marketing and

distribution channels should be used to reach customers?

4. What are the special challenges of each market (competition, cultural

differences, quality standards, import controls, etc.), and what strategy will be

used to address them?

5. How will the product's export sales price be determined?

6. What specific operational steps must be taken and when?

7. What will be the time frame for implementing each element of the plan?

8. What personnel and company resources will be dedicated to exporting?

9. What will be the cost in time and money for each element?

10. How will results be evaluated and used to modify the plan?

Google “Export Plan”, “Export Planning”, or “Export Strategy” and you will find some

excellent documents and templates on the subject. Have a quick look at them, and

then pick the document and template that suits your business best.

4.3 More information

There are many types of sources of information and to get a full picture it is often

best to combine all those sources in order to get a full picture of the EU market in a

destination country of your choosing. Talk with other Moldovan business people

about their experience with exporting to the EU, visit trade fairs, visit shops when you

are in your EU destination country, etc. There is no real substitute for this kind of

first-hand field-research information.

For desk-research there is professional literature and there are magazines to follow

the latest trends and developments for footwear and leather fashion accessories.

And then there is the Internet of course, a great source of information if you know

how to find your way, and for which the many hyperlinks in the digital version of this

document are possibly already helpful.

The main source of EU export market information - and which has been a major

source for this publication as well - is CBI. Click on the section “Market Information”

and you will find a wealth of information, all freely available. You can use the EU

Export Helpdesk to check the requirements of the EU market that apply to your

product. And for getting further information support on exporting your product to the EU

you can also consult the National Board of Trade of Sweden, called Open Trade Gate.

http://www.cbi.eu/

http://exporthelp.europa.eu/thdapp/index.htm?newLanguageId=EN

http://exporthelp.europa.eu/thdapp/index.htm?newLanguageId=EN

http://www.opentradegate.se/

The European Union (EU) is made up of 28 Member States who have decided to gradually link together their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms.

The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders.

The European Commission is the EU's executive body.

Delegation of the European Union to Moldova

12 Kogalniceanu Street MD-2001 Chisinau, Republic of Moldova

Tel.: (+373 22) 50 52 10Fax: (+373 22) 27 26 22

E-mail: [email protected]

Lead Company

Project Office“Technical Assistance for the implementation of the DCFTA”

Republic of Moldova

180 Stefan cel Mare blvdoffice 1318

MD-2004, ChisinauRepublic of Moldova

Tel.: +(373 22) 292 211Fax: +(373 22) 293 307

E-mail: [email protected]

This project is funded by

the European Union

Documents

EXPORTING FOOTWEAR & LEATHER FASHION …miepo.md/sites/default/files/Export_Footwear&Leather_EN.pdfEXPORTING FOOTWEAR & LEATHER FASHION ACCESSORIES TO THE EU May, ... Importers 2012