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Purpose

To explain how the footwear industry is exploring product innovation.

Design/methodology/approach

This briefing is prepared by an independent writer.

Findings

Since the quotas on Chinese shoes were lifted in January 2005, China now has a 25 percent share of the EU market compared with 6 percent four years ago. While the EU Commission is reviewing “trade options”, including the setting of minimum import prices to support the industry, the industry itself is now looking to increased R&D efforts. However, now the focus is not just on product, but finding ways to maximise the opportunities to develop and sell innovative products, improve service to the market and minimise production costs.

Practical implications

Shows how the industry is using product innovation to keep its trade and lower the increasingly present competition.

Originality/value

Gives an example of how an industry is using product innovation in the face of threat from imports..

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