We've had a lot of queries about the extent to which the earthquake in China has impacted product flow in the footwear space (i.e. 85% of our footwear consumption comes from China).
The bottom line is that the answer is 'No' as it relates to finished goods, but we're less certain about the availability of raw materials for future product.
With the epicenter in the Si Chuan province, the area around Chengdu is the focus as it relates to the footwear industry. There are not many athletic factories in the area, as it is rural and in most cases cost ineffective from an infrastructure standpoint. But there are several factories in the women's dress shoe segment that have been mildly impacted. These represents moderate price points that would sell into retailers like Target, Wall Mart, and Payless.
What might be of greater consequence is that there is a greater number of materials suppliers in the area, including leather and cotton, which is used by factories outside of the immediate region. While finished product appears to be moving, we'll keep an eye on the draw down of raw materials and subsequent product flows in the future.
The bottom line is that the answer is 'No' as it relates to finished goods, but we're less certain about the availability of raw materials for future product.
With the epicenter in the Si Chuan province, the area around Chengdu is the focus as it relates to the footwear industry. There are not many athletic factories in the area, as it is rural and in most cases cost ineffective from an infrastructure standpoint. But there are several factories in the women's dress shoe segment that have been mildly impacted. These represents moderate price points that would sell into retailers like Target, Wall Mart, and Payless.
What might be of greater consequence is that there is a greater number of materials suppliers in the area, including leather and cotton, which is used by factories outside of the immediate region. While finished product appears to be moving, we'll keep an eye on the draw down of raw materials and subsequent product flows in the future.
