Key Issues in the Footwear Sub Sector in UK

Key issues

Table of Contents
INTRODUCTION...........................................................................................................................3
Key issues....................................................................................................................................3
Categorizing key issues by using PESTLE analysis....................................................................4
Impact of issues on the business..................................................................................................5
Reflection.....................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Footwear sub sector is one of the major part of footwear industry of the country. The
companies that are operating in this sector offers wide range of products such as sandals, shoes,
boots, slippers etc. There are various factors like economic and other factors that have
transformed the footwear sector in recent times (Schamp, 2016). The Report will outline the
major issues that are faced by footwear sub sector such as rise in the cost , increase in demand
etc. It will also describe the categorization of the issues with the help of PESTLE analysis,
positive and negative impact of the issues on different companies and reflection of the challenges
faced while preparing the Report etc.
MAIN BODY
Key issues.
There are various issues that are influencing the footwear sub sector in UK. These are
described below -
Rising cost -
The term cost of raw material can be defined as the cost of elements that are involved in
the process of manufacturing goods for offering to the customers. Manufacturing cost involves
cost of direct material, direct labour and overheads. One of the major issue that footwear sector is
facing is the increase in cost to manufacture different types of footwear. The major challenge for
companies involved in shoe business in UK is the increasing cost of being on the high street and
customers are more focussing on online shopping (Johnston and Huggins, 2018). In year 2018,
the manufacturing sector of UK has shown slow growth due to increase in the prices of raw
material and other commodities. The real cost to manufacture a shoe is $15. The figures of
January have shown fall in growth of manufacturing sector as compared to the figures in the
month of December of 56,.2 to 55.3 on a scale in which above 50 shows the expansion (How
much does it cost to make a sneaker ?, 2019).
Major challenge for footwear sector is economic uncertainty, increasing cost of inputs
and increasing competitive market. The increasing cost includes rising cost of energy,
unexpected changes in the prices of raw materials, unexpected barriers are destabilizing the
supply chains and making difficult for manufacturing firms to remain in the black (Econometrics
and Garden, 2015). Therefore, it is the duty of footwear manufacturers to determine new