Wenzhou, the leading shoe exporting city in China's Zhejiang Province, shipped 394 million pairs of shoes worth US$1.9 billion in the first seven months of this year, up 33.2% year-on-year, according to the city's customs.

The EU and Eastern Europe remain the biggest overseas market for Wenzhou shoes although exports to the US have seen rapid growth.

In the first seven months of this year, Wenzhou exported 131 million pairs of shoes to the EU, up 20.5% year-on-year, accounting for 33.2% of Wenzhou's total export of shoes during the period. That compared to exports of 42 million pairs of shoes to the US, up 85.3%, 22 million pairs to Russia, up 41.7%, and 30 million pairs to Croatia, up 96.2%.

The real leather shoes, which are relatively expensive, are getting a cold response from foreign buyers, despite some recovery in demand there, said Jin.

The share of high-end shoes in the total value of Wenzhou's total shoes export has steadily dropped to 17%, a drop of 1.7 percentage points from the same period last year.

Some foreign merchandisers are splitting orders to give themselves greater leeway and opportunities to change suppliers.

Major rivals like Indonesia, Vietnam and India, which all enjoy cheap labor costs, are emerging in a more advantageous position for international footwear markets.

The EU's market barriers have forced Wenzhou shoemakers to turn to the US market.

But economic recovery in Russia and Ukraine has provided the industry with a glimmer of hope.

It's understood that many Wenzhou companies have shifted to the newly-opened retailer Russian Home following the closure of the Cherkizovsky wholesale market. Deliveries are expected to reach their peak in the second half of the year, based on cyclical market patterns.

Real leather shoes are high-end products but are not generally affordable in the emerging ASEAN markets which Wenzhou manufacturers are pinning their hopes on.

However, Mainland shoe manufacturer Kangnai and other companies have begun to test the water in ASEAN countries by first opening their own stores in Vietnam.

At the China Wenzhou Brand Name and Quality Products Expo held in Malaysia recently, over 160 Wenzhou companies, including shoes manufacturers, introduced themselves to ASEAN markets with the idea of using Malaysia as a springboard.