The business reserach company reported that revenue for Australian footwear retailing fell 2.9 per cent to $2.48 billion and wholesale revenue fell by 2.7 per cent to $1.49 billion. It said that in the last five years, Australian footwear manufacturing revenue declined by an annualised 7.9 per cent.
It reported that the high end sector was particularly hard hit. However IBISWorld general manager Australia Robert Bryant predicted this would be a temporary downturn and Australian manufacturers should focus on creating premium products rather than competing with China in the cheaper footwear sector.
The research company predicted imports will be key to the 2009/10 financial year, making up 76.6% of demand, with 60% of all imports coming from China.
It reported that Australian men spend an average of $85 each per year on shoes, compared to $173 for women.
The news comes as footwear suppliers and buyers prepare for the Australian Shoe Fair, launching on Sunday until Tuesday at the Melbourne Exhibition Centre. A number of labels including including Crocs, Poetic License and Windsor Smith are exhibiting.