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. The global retail market within the shoe industry currently represents $185 billion, driven primarily by Asian and Latin American economies and is expected to reach $211.5 billion by 2018. The growth rate globally was 6% between 2004 and 2008, contrasting to the 2% compound annual growth from 2008 to 2012. The United States holds over 24% of the overall industry size it projected over $48 billion in annual revenue in 2012. Domestically, the growth rate has been flat at 0.3%. On a unit volume basis, global footwear consumption for 2012 is approximately 11,421.3 million (in pairs), where the United States makes up roughly 2,741.1 million (in pairs). By 2018 the U.S. Census Bureau has forecasted a steady decline within demand domestically of 3% and an increase of 1% globally. Main drivers for US profitability has been within women shoes, broken down in sub categories of casual (17%), dress (13%), and athletic (10%) shoes, composing roughly a 40% demand of the market. However, domestically men’s athletic shoes represent 20% of the market and show signs of increase, globally men’s athletic shoes make up 30% of the market. This increase in sales within the athletic sub-category can be lead by the increase in demand for shoes that allow easy, fast movement. Studies show that ages within 18 and 45 in the U.S. have increased physical fitness by 17% since 2006. According to the Outdoor Industry Association, outdoor footwear grew... ... middle of paper ... ...isposable income available the higher prices can be and vice versa. WIth a low disposable income available across a country, many retail companies can be left with high levels of inventory which as noted no shoe company wants to have. Works Cited http://www.statisticbrain.com/footwear-industry-statistics/ http://www.statisticbrain.com/footwear-industry-statistics/ http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/4102.0Main+Features30Jun+2011 http://business.highbeam.com/industry-reports/retail/shoe-stores http://www.reportlinker.com/ci02119/Footwear.html http://www.prweb.com/releases/2013/9/prweb11094057.htm http://www.statisticbrain.com/footwear-industry-statistics/ http://business.highbeam.com/industry-reports/textiles/apparel-leather http://business.highbeam.com/industry-reports/retail/shoe-stores http://www.valueline.com/Stocks/Industry_Report.aspx?id=7259
The most recognized brands amongst US males in the sports and fitness clothing market are Nike, Adidas, Reebok, and Puma (Statista, 2014). However, there is a large amount of opportunity to gain market share as only Nike hold a high percentage favoritism from male shoppers (Statista, 2012). Multiple brands have a stronger focus on women’s clothing such as: Fabletics, Athleta, and Lululemon. Lululemon has a similar business model however the brand has a stronger connection with women and yoga.
“the Americas led the global tennis apparel market and accounted for almost 48% of the revenue market share during 2015.” (technavio)
CIMA is not sure what percentage of sales the typical footwear company makes through t...
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
Only a week earlier, on June 28, 2001, Nike had held an analysts' meeting to disclose its fiscal-year 2001 results.1 The meeting, however, had another purpose: Nike management wanted to communicate a strategy for revitalizing the company. Since 1997, its revenues had plateaued at around $9 billion, while net income had fallen from almost $800 million to $580 million (see Exhibit 1). Nike's market share in U.S. athletic shoes had fallen from 48%, in 1997, to 42% in 2000.2 In addition, recent supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue.
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.
Clarks Customer Care 0145 889 9901 is a helpline for customers that seek assistance from Clarks Shoes. Clarks International or Clarks Shoes is an international manufacturer and retailer of shoes for men, women, and children. It operates in 33 countries worldwide. This page has all contact information for Clark's existing as well as new customers. A call to Clarks customer service number opens many gateways to seek assistance during or after shopping. Customers can shop online or visit any of the stores located in these countries as well as the UK.
Nike’s focus for fashion forward women is the following: lead the athleisure trend, increase advertising, and the introduce the #BetterForIt social media campaign. We need to focus on the athleisure trend by increasing our portfolio for the women target market. Athleisure is already 20% of the firm’s revenue and we need to recognize that women are leading this fashion movement. Under Armor and Lululemon are already making headways in this fashion focused market. We need to emphasize our athletic technologies, promoting lighter fabrics and better performance, while still maintaining a level of comfort and fashionability. Increasing the portfolio means nothing if women don’t know we’ve done just that. Nike will need to increase advertising specifically with this target market in mind. The #BetterForIt campaign is one important aspect of these advertising efforts. Similar campaigns should promote and help “normalize” athletic wear in everyday
This type of product differentiation has helped the running shoe evolve over time. At first ASICS and the runni...
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
In the case of Nike footwear they have segmented into the following groups: Running shoes, Soccer, Basketball, Football, Hockey, Golf, Tennis, Skateboarding, men’s training and women’s training. Nike footwear has a lot of target markets but their main target market is athletes and fitness professionals. The second target market are people who train, work out and play sports as hobbies or who are semi-professional. Nike also targets the fashionable people. Nike footwear is has further segmented their market according to the people that endorse the products. For example: Jordan, Kobe, Lebron and Durant to name a few. The footwear segment has also been segmented on the bases of brands like Jordan and Converse. (Nike website). According to Svezia Nike will continue to use “premium channels of distribution to family and value channels, it will continue to segment and take market share wherever it presents itself.” (Canadian
The market share of Vietnamese shoes in the domestic market is not large with the segment of high quality shoes is apparently in the hands of foreign brands. According to the Vietnam Leather and Footwear Association, there are about 150 million pairs of shoes, slippers,.. consumed in the
Charles & Keith, a well-recognized women’s footwear brand was established in 1996 in Singapore Amara shopping centre by the two young brothers, Charles Wong and Keith Wong. The company began its foreign market venture in 2000. To date, Charles and Keith has a presence in more than 20 major cities around the world. The brand are well-known internationally today with the vision “to be the most admired fashion-forward company” and the mission “to offer high quality products and services, with a commitment to perfection” in mind all the time (Charles & Keith, 2013).
shoe industry has is getting its stock value to rise again because all but Nike
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.