U.S. Consumption

Estimates of U.S. consumption of men's dress shoes are shown for 1965-69 in the following tabulation (in millions of pairs): 1

All the increase in consumption of men's dress shoes from 1965 to 1969 came from imports. In recent years fashion has increasingly become the keynote of the U.S. market for men's dress shoes. Rising per capita income, growth of leisure time, the changing age structure of the population (particularly the exceedingly high rate of growth in the number of males 15 to 24 years of age 2/) and the expansion of market outlets in suburban areas are factors which have greatly affected the mode of living in the United States, including the styles of men's footwear.

The light-weight, so-called continental look in footwear introduced into the United States by imports from Italy and Spain has become popular for wear with the new fashions in men's wearing apparel. Moreover, men's dress shoes, like women's dress shoes, are now subject to

1 Production plus imports. In recent years, exports of men's shoes have averaged about 500,000 pairs annually.

2/ From 1960 to 1968, males in the 15-24-year age bracket increased by 32 percent, compared with an increase of almost 12 percent in the U.S.

wn for

frequent style changes. Recently, buckled, blunt-toed oxfords and boots have been popular. Because of the increasing consumer interest in style and quality rather than price, the market for low-priced shoes of con

servative styles, such as Eagle produced, has been dwindling. 1/

U.S. Production

Volume

During the period 1965-69, annual production of men's footwear ranged between 84 and 88 million pairs as shown in the following tabulation of production by type of construction (in millions of pairs): 2/

The downward trend in the production of welt and cement-process shoes during 1965-69 resulted in part from the increasing use of the injection-molding process which eliminates many operations required in the manufacture of conventional welt and cement shoes. Style changes stimulated domestic production of men's shoes during 1968.

1 Commissioners Thunberg, Clubb, and Moore disagree with the conclusion that consumer interest in style and quality rather than price has caused injury to Eagle. Commissioner Thunberg observes that consumers appear to react favorably to a variety of styles and qualities at various price levels and thus show interest in style and quality as well as in price.

2/ Includes footwear other than athletic or work reported in SIC No. 3141 as (1) men's shoes except handsewns and footwear with uppers of soft tannage (desert boots and sandals) and (2) youths' and boys' shoes. Production of "other" men's footwear include footwear made principally by the injection-molded and other processes of affixing the sole and the heel unit to the assembled uppers. Detailed data for 1969 relating to

type of construction are estimated.

Prices

The following tabulation shows domestic production of men's shoes (other than athletic or work) in 1968, by manufacturer's selling prices,

which generally are about a half of the retail selling prices: 1/

Nearly all of the shoes produced by Eagle in 1968 ranged between $3.50 and $4.50 a pair at the wholesale level (about $7.50 to $10.00 at retail), i.e., the low end of the men's footwear market. Dress shoes of Eagle's price range are currently found in discount outlets and budget shops of department stores. As indicated in the Commission's nonrubber footwear report of December 1969, 2/ many of the long established shoe chains in the United States have upgraded and increased their product lines in recent years. The well known "price-houses" of

1 These data include hand sewns (13 million pairs) and footwear with uppers of soft tannage (desert boots and sandals) (12 million pairs)-two types of footwear not included in the preceding tabulation of U.S. production in 1965-69--but do not include shoes for youths and boys (24 million pairs), which are included in preceding tabulation. About 60 percent of the 1968 production of shoes for youths and boys was sold at wholesale between $2.41 and $4.80 a pair.

15 to 20 years ago (i.e., the retail chains that sold footwear at one low price, or within a narrow price range) are now featuring fashion products (both imported and domestic) of higher quality and in a wide price range.

U.S. Imports

Volume

Estimates of total U.S. imports of men's dress shoes, by types, are shown in table 2 for the years 1965-69. Such imports, which increased from 6 million pairs in 1965 to 11 million pairs in 1967 and to 20 million pairs in 1969, supplied 6 percent of apparent consumption in 1965 and 19 percent in 1969. Shoes made by the cement process have accounted for about two-thirds of the total imports. It is believed that a very large portion of the imports of men's dress shoes have soles of leather.

Italy, Spain, and the United Kingdom have been the principal suppliers of the dress shoes considered here. Italy and Spain supplied principally cement shoes; the United Kingdom, welt shoes.

Prices

Of the estimated imports of 20 million pairs in 1969, about fourfifths, principally men's dress cement shoes, were admitted with an average dutiable value of about $4 a pair. 1/ About a million pairs of men's dress welt shoes were admitted with an average dutiable value of about $6 a pair and about 2 million pairs at an average dutiable value

of about $10 a pair.

1/ After payment of ocean freight, U.S. import duty, and miscellaneous expenses, these shoes would have a landed value of nearly $5 a pair.