Footwear Industry Market Analysis
Situation/Market Analysis
Market Size:
* 33,946,600 sports footwear sold in 2010 for a total of $ 2,538.4M * 19,149,200 men’s sports footwear sold in 2010 for a total of $ 1,363.9M * 14,797,400 women’s sports footwear sold in 2010 for a total of $ 1,174.5M
Market Growth:
Global sports footwear:
* 46.8% volume growth from 05-10 and 2.1% from 09-10 * 46.7% value growth from 05-10 and 3.3% from 09-10
Men’s sports footwear:
* 65.6% volume growth from 05-10 and 2.5% from 09-10 * 65.8% value growth from 05-10 and 4.0% from 09-10
Women’s sports footwear:
* 28.0% volume growth from 05-10 and 1.7% from 09-10 * 27.5% value growth from 05-10 and 2.6% from 09-10
Future Growth Potential of the Market (2010-2015)
Global sports footwear:
* 11.9% volume growth * 9.1% value growth
Men’s sports footwear:
* 16.9% volume growth * 11.8% value growth
Women’s sports footwear:
* 6.9% volume growth * 6.3% value growth
Barriers to Entry:
There are high barriers of entry in the athletic footwear industry.
* Strong brand loyalty
* Economies of scale and scope:
* The athletic footwear industry faces economies of scale as the total cost of manufacturing shoes goes down as output increases and the fixed costs of marketing, production and R&D spread out. * Larger companies (NIKE, Adidas, …) can afford to put more money into marketing and R&D due to larger sales volume. * Larger companies often produce a wide range of related goods (ex. Nike: shoes, watches, tees, …)
* Consolidation
* Larger companies often acquire smaller companies before they grow substantially and become threats. (ex.: Converse – Nike / Reebok – Adidas ),2
* Patents:
* Patents are made on new shoe features. * More difficult to enter the market as new companies need to design their shoes without infringement.
* Licensing and Retail Agreements
- Big
Market Size:
* 33,946,600 sports footwear sold in 2010 for a total of $ 2,538.4M * 19,149,200 men’s sports footwear sold in 2010 for a total of $ 1,363.9M * 14,797,400 women’s sports footwear sold in 2010 for a total of $ 1,174.5M
Market Growth:
Global sports footwear:
* 46.8% volume growth from 05-10 and 2.1% from 09-10 * 46.7% value growth from 05-10 and 3.3% from 09-10
Men’s sports footwear:
* 65.6% volume growth from 05-10 and 2.5% from 09-10 * 65.8% value growth from 05-10 and 4.0% from 09-10
Women’s sports footwear:
* 28.0% volume growth from 05-10 and 1.7% from 09-10 * 27.5% value growth from 05-10 and 2.6% from 09-10
Future Growth Potential of the Market (2010-2015)
Global sports footwear:
* 11.9% volume growth * 9.1% value growth
Men’s sports footwear:
* 16.9% volume growth * 11.8% value growth
Women’s sports footwear:
* 6.9% volume growth * 6.3% value growth
Barriers to Entry:
There are high barriers of entry in the athletic footwear industry.
* Strong brand loyalty
* Economies of scale and scope:
* The athletic footwear industry faces economies of scale as the total cost of manufacturing shoes goes down as output increases and the fixed costs of marketing, production and R&D spread out. * Larger companies (NIKE, Adidas, …) can afford to put more money into marketing and R&D due to larger sales volume. * Larger companies often produce a wide range of related goods (ex. Nike: shoes, watches, tees, …)
* Consolidation
* Larger companies often acquire smaller companies before they grow substantially and become threats. (ex.: Converse – Nike / Reebok – Adidas ),2
* Patents:
* Patents are made on new shoe features. * More difficult to enter the market as new companies need to design their shoes without infringement.
* Licensing and Retail Agreements
- Big