Vietnam’s newest vulcanised shoe factory: “The sky’s the limit!”
September 8, 2014
The long road to Indochina
November 28, 2013
Visual Marketing Basics: the challenge of shoe shops in creating exciting visual marketing
September 20, 2014
Shoe brands benefit by moving production from China to Vietnamese factories
June 2, 2014
An increasing number of leading shoe brands are reaping the benefits that come from moving their production centers from China to Vietnam where companies like the Innolux Group are able to offer a choice of specialized factories with an emphasis on high quality and cost effectiveness.
As with any industry, shoe brands consider factors such as logistics, workforce, cost and quality when deciding where to base their production centers. More and more shoe brands are now finding that there are a number of advantages to choosing Vietnam as a manufacturing base.
The Vietnamese footwear industry is well-established with over 500 factories across the country. The industry employs approximately 500,000 workers with another million people working in supporting industries, making it the third biggest contributor to Vietnam’s GDP and export turnover.
The quality of workmanship is also very high in comparison to China, India and Bangladesh. It is no coincidence that global brands such as Nike, Adidas and Reebok have been using Vietnamese factories for many years. Workers in Vietnamese factories are highly trained and highly literate - with a large percentage of the workforce being under 30-years-old. Vietnam is also rich in the natural resources used in shoe manufacturing, such as natural rubber, and also has an abundance of tanneries and leather providers.
Future tax breaks are also likely to increase the number of shoe brands moving their production to Vietnam. As a member of the proposed Trans-Pacific Partnership (TPP), import taxes for products coming from Vietnam to countries such as the USA, Canada, and Australia will be significantly reduced when the TPP comes into effect. Such benefits will not apply to products imported from China.
While moving production to Vietnam means that shoe brands are perfectly placed to conduct their business in the international arena while also reaping all the benefits that the established Vietnamese factories offer, it is often difficult for international brands to work directly with overseas factories, which often request deposits and advance payments. By choosing to partner with companies like Innolux, shoe brands do not need to deal directly with locally-owned factories and are able to communicate with people who speak their own language. At Innolux, the multi-national staff can communicate fluently in English, French, Hebrew, Chinese, Khmer and Vietnamese.
Clear communication channels give brands the confidence that their designs will be developed exactly to their specifications. To ensure that products are delivered exactly as ordered, Innolux’s in-house team of highly skilled technicians and Quality Control experts monitor every step of the production process, and in some cases perform 100% quality inspections, depending on each client’s requirements. By liaising with its factories and clients on a daily basis, Innolux is ultimately able to bring its clients’ ideas and designs to life, no matter how complex or sophisticated they may be.
With a reputation for high quality and competitive prices, Innolux has helped a number of shoe brands move their production seamlessly from China to Vietnam by matching its clients’ needs with one of the group’s many factories, each of which specializes in a different type of construction, from high-heels to Goodyear welts. A comprehensive range of services that include technical assistance and Quality Control enables Innolux to offer a complete manufacturing solution that makes relocation not only cost-effective but also surprisingly efficient.
Innolux Group’s CEO, Roy Jahoda, explained why so many shoe brands are moving their production to Vietnam and choosing Innolux as their production partner. “Every step of the shoe development process is critical to profitability. Innolux offers solutions and expert assistance in developing models all the way through the production process, whether it is the design stage, making samples, sourcing materials, finding solutions for uppers and soles, or having them custom made.
“The smallest of details can differentiate one product from the rest. Innolux understand that quality is the key to success. Working with people who understand that quality matters ensures that our clients’ brands really stand out on the high street.”
As more shoe brands reconsider the issues of quality and cost-effectiveness, the trend of relocating their production centers from China to Vietnam looks set to continue.