A. Industry Analysis:
1. Industry size, growth, profitability, and forecast of demand, in dollars and units if possible.
2. Size and Characteristics of product segments
The Shoe Industry consists of a multitude of footwear categories, varying in utility, style and occasion. When overseeing the market for the shoe industry, we must look at the influence of all shoe trades universally to comprehensively understand how the disparities in sales relate to the needs of specific regions. Worldwide the footwear industry holds great aptitude for expansion, with a strong hold on over $256 billion in market value . When geographically segmenting the market, the United Sates represents 27.9% of the market at $71.7 billion, leading the market is Europe grasping 38.4% of the market at $98.4 billion and the Asia-Pacific region holding 19.1% of the market at $49 billion; the rest of the world makes up the remaining 14.6% of the market at $37.5 billion. Between 2008 and 2012, the average growth rate domestically has been 4.1%; in Europe and Asia-Pacific markets the growth rate was 1.7% and 4.8% respectively (see Exhibit 1).
Exploring the profitability of this industry, domestically retailers are struggling to maintain high profit margins. The solid industry growth expected for the coming years is highly supported by the economic turnaround in 2011, however many small retailers are feeling the pressure of low-cost imports . Reduced imports and the continued shifting of manufacturing operations to low-cost countries, creates a trickle down effect onto the fragmented market of companies, with a mix of small and large participants (see Exhibit 2). Increases in price-setting control of wholesalers, are causing downst...
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...gtip shoes, oxford styled, boat shoes or sling-backs. Dress shoes represent approximately 19% of the market.
D. Competitive Analysis
1. Who are the key players in this industry and what are their marketing strategies? 2. What is the nature of competitive rivalry?
Although footwear retailing is highly fragmented, the market is dominated by large retail groups, between whom there is a high degree of rivalry.
However, fixed costs for retail operations are not prohibitively high and therefore, smaller companies easily co-exist within the market. Furthermore, this allows relatively easy expansion of output capacity, which enhances rivalry.
There is a high degree of diversity between retailers, with dedicated shoe retailers competing with apparel retailers and large supermarket chains.
Overall, rivalry between footwear retailers is assessed as moderate.
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
Even though many believe customer is the greatest and customer should have the absolute power, in this case, Nike has absolute power over customer, where customer has low bargaining power. This can be proved by study many cases where Nike make their customer angry and claim that they will refuse to buy Nike product.
After the direction of the new shoe line has been developed, a price of each shoe will need to be determined to see if a profit can still be made. The price will be benchmarked against other shoes in the same category to make them competitive in the buying market. L.A. Gear may even try to undercut the prices if they are still able to maintain a profit to entice the consumers to try their new product and gain their loyalty. They must be careful though not to make them to inexpensive because they want the customer to feel that these are the shoes they need to perform better and the expense would be well worth it.
These companies are direct competitors of Macy 's and sell similar items as Macy 's. There are many indirect competitors of Macy 's. The company faces fierce competition from emerging apparel companies such as Forever 21, H&M, Zara. The company also faces major competition worries from Amazon.com and other online retailers which provide convenience to customers and avoid the costs of having a brick and mortar presence (Bailey,
In Small Shoes, Camille Licate shares her story of how she has learned to let go of the things in life that had been holding her back, so that she could be open to new opportunities. She does this by using the metaphor of shoes. While there are some opportunities in life that help to carry you forward, eventually, you may need to let go of them in order to take advantage of other opportunities. Likewise, you cannot keep using the same pair of shoes forever. At some point, you will outgrow them, and need a new pair to help you get to the place where you need to be. Through this metaphor, Licate explains how your plans for the future may change with time and dance is not the only career path out there for dance majors. She also relates
Although we have been expanding our facilities by building extra capacity, we have not been able to contribute shoes to the private-label and therefore, we have not employed a global strategy for that market. When we are able to sell shoes to the private-label footwear industry, we will also use a global strategy for that region as well.
Other competitive activities included sales promotion, advertising, and product differentiation. Larger companies have a much greater financial ability to be able to invest more into advertising than a new business starting out would be able to. Shelf space and competitive pricing were two major issues that affected sales. Because they are already recognizable brands, they can afford to purchase the best shelf space. Consumers will see their products before noticing other, not so well known products.
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
The retail discounters and departmental stores industry have been experiencing increasing consolidation, and the consolidation would lead to the formation of stronger and bigger entities, commanding greater bargaining power from suppliers which could adversely affect the Li & Fung's margin.
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.
is like the concepts of mass customization (Pine et al., 1993; Lau, 1995), Shoes of Prey didn’t start it business on the base of mass customization. The business started due to one co-founder’s passion for bespoke shoes. They didn’t do anything for the market investment about customization high-quality woman shoes. Although some sports brands like Adidas or Nike has simple customization services for shoes, there was no competitors doing the customization business for high-quality woman shoes, and they thought it was a chance for
Degree of Rivalry - Very High to Intense – Multiple competitors, high strategic stakes, innovation often easily imitated, and low switching costs for consumers
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
Most people in the world gratefully have the chance to make their own choices and decisions every day. One of those choices and decisions that they make is what they are going to put on their feet for the day. Unknowingly the decision of what type of shoe a person wears for a specific day will affect their entire day. There are also many factors that contribute to what type or style of shoes a person buys or wears such as economic status, design, usefulness, and popularity. As of today, there are various types of shoes which are sandals, heels, boots and athletic and casual shoes.
Skechers is a global leader in the lifestyle footwear industry. They offer one of the largest selection of lifestyle footwear that appeals to trend savvy men, women and children. Consumers are always considered about various type , unique design, colour, attractive, fashionable and so on. Skechers' early products were just only utility-style boots and skate shoes. In order to satisfy needs of consumer, the company has since diversified to include thousands of athletic, casual and dress styles for men, women, and children. So that, Skechers' produce several brands that included Skechers Sport, Skechers USA, Active, Cali, Shape-ups, Tone-ups, Skechers Resistance, Skechers Work and Skechers Kids. We consider about the womens those are care about their height especially model and don’t want wear gorgeous high heels. Thus, Skechers produce the SKCH+3 which are the footwear that hidden wedge then adds height and attained fashion effect. Not just only the features, the company also emphasized about comfortable cushion of the shoes such as the Skechers Memory Form which built in memory foam insoles provide a gentle, comfortable cushion with every step. It's like a bed for your feet! Thus, marketer want to satisfy needs of consumer so they would not missed out any features. Skechers sport is the best choice for those are athletic and sport lovers because it provided light weight and flexible footwear for them. Consumer would not worry about easy get injury when doing exercise or any sports. Furthermore, Skechers also considered about the family who have kids, Skechers Kids provided the shoes which are colourful and twinkle. This also satisfy the needs of consumer are always worry about their kid’s shoes. Comparing with oth...