For highly competitive markets however, this reasoning is completely incorrect. In Germany for example, price increases in footwear have been far below increases in the general price index. While the general price increase in 2005 was 2,4 per cent higher than the one in 2004, on average shoes have become 1,55 per cent cheaper. Price development for footwear thus lies 3,4 per cent under that of the average price level.
"Consumers are extremely price sensitive and intense competition characterizes the footwear sector in almost all EU Member States. Therefore, our price calculations must be completely cutting-edge. The profit margins mentioned by the EU Commission are purely wishful thinking without any real substance", Verrips criticizes.
"A paradoxical result of ignoring the structure of the footwear industry is that the attempt to save jobs in the EU will result in massive job losses. It is true that decades ago, part of the production was moved to Eastern Asia, but this in no way injured the decline of the EU footwear industry. Instead, a healthy industry and trade sector has developed, whose existence is now being frivolously played with."
Sports footwear and children's shoes, which are excluded from the current proposal, are exceptions which Verrips sees as primarily cosmetic.
They only help a few companies. In the interests of EU importers and retailers, and even producers, FAIR hopes that the EU Member States will urge the Commission to continue the investigation without the imposition of provisional duties.
FAIR represents the interests of more than 100 footwear importers and retailers. Members are companies such as Columbia (France, USA), Clarks (United Kingdom), Deichmann (Germany), Wortmann (Germany), Leder & Schuh (Austria), Skechers (USA), Schoenenreus (Netherlands) and Vivarte (France), with a total of approximately 90.000 employees, which represent approximately 50 per cent of the import volume in the EU.
The European Footwear Association of Importers and Retailchains
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