Tempe Grupo Inditex, the shoe-making franchise of Spanish fashion giant Inditex, plans to triple its footwear production in Mexico. Meanwhile, other international brands such as Nike, Steve Madden and Puma are also mulling boosting their output in the Aztec country, whose Guanajuato region has become well-known for making high-quality leather shoes.
“We would like to make 2-3m pairs in the medium term and we are working hard to make that happen,” reveals Hector Vera, production manager at Tempe Grupo Inditex. This year, Tempe hopes to make 1.5m pairs in Mexico, up from 1.1m pairs in 2010, he adds.
Inditex’s shoes are made by a cluster of ten undisclosed suppliers in the town of Leon in the state of Guanajuato, Mexico. Thanks in part to industry chamber the Camara de la Industria del Calzado (Ciceg), the Guanajuato hub has grown significantly in recent years, churning out as many as 244m pairs in 2010.
As it works to win new business, the cluster hopes to export 70m pairs by 2020, up from 19m last year, according to Ciceg executives.
That goal could very well be achieved, industry observers say, as the Guanajuato workshops have improved their quality, design and turnaround to fit the demanding delivery schedules of global fast-fashion brands like Inditex, owner of the Zara fashion chain.
“They’ve done a very good job at meeting our stricter quality standards and delivery schedules,” Vera points out. Vera says Inditex worked hard with Guanajuato suppliers to make their supply chains quicker and more flexible to finish products seven weeks after receiving the first sample design.
Ciceg also helped by creating the so-called Tempe platform which provided suppliers with a new set of software tools to help them meet Inditex’s demands.
With this platform, companies can deliver high quality shoes in seven weeks at a very competitive price,” says Ciceg communications director Jorge Alberto Hernandez Cano, adding that the system helped convince Inditex to bolster output in Guanajuato.
Guanajuato’s competitive prices also helped attract the Spanish firm’s interest. According to Hernandez, they are as competitive as any other leading shoe-making country except China.
Roughly 70% of Inditex’s Mexican output – comprising mainly leather shoes for men, women and kids – is sold in the fashion group’s Mexican store network which also includes Paul Bear, Massimo Dutti and Bershka. The other 30% is shipped mainly to Japan and Europe, Vera says.
However, Vera expects that will change in three years when he envisages Tempe will export 40% of its Mexican output to markets in Japan, Europe, the US, Canada, Central and South America – all of which Inditex is taking by storm with its Zara and other clothing chains.
Currently, Inditex makes some 30m units a year across factories in China, Vietnam, Spain and Portugal. These countries also make leather footwear, but Mexico also has high quality leather so as quality and price ratios improve, Tempe hopes to make more of that type of footwear in Mexico.
Nike could source 750,000 pairs
Meanwhile, Nike is also considering raising production in Mexico. According to Arturo Anguiano Velazquez, owner of Guanajuato-based shoe maker Karosso, factory hopes to make as many as 750,000 pairs next year if Nike commissions a new line of running shoes later this year.
Currently, Karosso makes some 400,000 pairs annually for Nike. It makes Nike’s “fashion” line of men’s and women’s sneakers and is expecting to add a new range of kids footwear later this year.
Diego Zurita, Nike’s Mexican production director, confirms the brand is happy with its Mexican suppliers and that it is working to make them more competitive against rival Nike factories in Asia. He says Nike intends to increase its Mexican output but would not state by how much.
Madden eyes suppliers
Steve Madden also intends to step up its Mexican output as Asian production becomes increasingly difficult and complex. Without detailing precise production plans, marketing director Gabriella Weisser confirms: “Our Mexican production is going very well and is set to be better than ever.”
Marco Delli, which makes its own formal footwear line, is currently making a women’s boot prototype for Steve Madden and hopes to win that and other business when the US brand reviews the project in coming weeks. Other Madden outsourcing partner Lady Glory would not comment.
Lastly, German shoe maker Puma is also considering producing in Mexico, though the process is still at an “exploratory stage,” a company official says.
Article source: http://www.just-style.com/analysis/mexican-shoe-makers-lifted-by-inditex-expansion_id112587.aspx
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