Footwear Market Overview
Global Footwear Market is expected to garner $371.8 billion by 2020, registering a CAGR of 5.5% during the forecast period 2015 - 2020. Footwear industry is growing at a steady pace since the past few years. Analysis of the report includes various types of footwear including athletic and non-athletic shoes used by individuals of all age groups and gender. The rising demand for fancy, trendy yet comfortable footwear among all age groups is a key factor driving the global footwear industry. The global footwear market is segmented by type of footwear, end users of footwear, various platforms for sale of footwear, material used, and their sales across various geographies. Asian countries, such as China and India are major exporters of leather footwear across developed countries (UK and US). The report explains material used for manufacturing footwear, which includes leather and non-leather; and analyzes the market for both types of footwear.
Leather footwear are premium products occupying a significant market share in the global market for footwear. Additionally, rising health concerns are influencing individuals to perform indoor and outdoor physical activities. This trend has generated a high demand for athletic shoes, in turn increasing the demand for footwear. Over the past decade, the global market for footwear has witnessed a steady growth and is anticipated to continue at the same pace in the years to come. The estimation of global market is based on revenue generated by the sale of footwear across different geographic regions.
Market players are also focusing on expanding their sales channels through different web portals across various regions. Online platforms for purchase of footwear are gaining steady popularity among teenagers and youths, thereby occupying a significant share among all distribution channels. Presently, manufacturers are focusing on developing and innovating new products, to maintain their market positions. Leading companies operating in the market, such as Adidas, Timberland, Nike, and ECCO among others are constantly devising new solutions and focusing on providing better services while upgrading the designs of their existing footwear models.
In April 2015, PUMA launched a lightweight football boot featuring Japanese dragon Graphics for soccer lover. The launch helped the company increase more customers for football shoes manufactured by the company. The shoe industry is set to scale new heights amidst a dynamic competitive landscape. Additionally, companies are using various platforms, such as Olympic Games, F1 car racing events and are collaborating with international sports platforms in a bid to promote themselves worldwide. In July 2014, Adidas collaborated with Manchester United to promote its brand among football teams. This partnership provided necessary platform for Adidas to reinforce their brand image on international sports platform, thereby making considerable additions to their brand.
The key players profiled in this report are Nike Inc., Adidas AG, PUMA, GEOX S.p.A, SKECHERS USA, Inc., Under Armour, INC., Wolverine World Wide, Inc., Timberland, Crocs Retail, Inc., and ECCO Sko A/S.
The global market is segmented based on type, mode of sale, gender, material, and geography. By type, the report segments the market into athletic and non-athletic footwear. Increasing health awareness is generating higher demand for athletic footwear among individuals worldwide. In addition, changing lifestyles and rising number of working professionals are leading the demand for non-athletic footwear segment. The mode of sale segments the market into retail and online sale.
The increasing preferences of consumers towards online medium are driving the sales through online retail websites. Retail stores offer a superior buying experience to the customers as compared to online sales, thereby acting as the dominant mode of sale segment. By material type, the report segments the market into leather and non-leather footwear, wherein leather footwear occupies larger market share. Geographically, the global footwear market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Source: AMR Analysis
ASIA-PACIFIC FOOTWEAR MARKET SCENARIO
In 2014, Asia Pacific generated the highest revenue in the global footwear industry. China is the largest manufacturer, consumer, and exporter of footwear in the Asia-Pacific region. Asian countries, such as China and India are the major producers of footwear worldwide. These countries largely export their footwear products to United States and United Kingdom. China has secured a supreme position in the global footwear industry. Non-athletic footwear has witnessed increased demand among individuals owing to changing lifestyles in this region. Domestic footwear manufacturers dominate the Chinese footwear market share. Following diagram shows the Chinese footwear consumption during 2005-2012.
CHINA FOOTWEAR CONSUMPTION, 2005-2012 ($BILLION)
Source: DATONE, INC.
VALUE CHAIN ANALYSIS
Value chain of the footwear market size includes various stakeholders, such as raw material suppliers, footwear manufacturers, distributors, and end users. Each of these players add a specific value to their business operations, in turn, contributing to the competitive value of the product. The R&D activities, innovations and constant efforts for improvement, collectively enhance the values associated with the final product deliverables.
VALUE CHAIN MODEL OF FOOTWEAR MARKET
Source: Secondary research and AMR analysis
Raw material supplier
Various raw materials, such as skin, jute, leather, rubber, plastics, synthetics, and PVC soles among others are used for manufacturing footwear products. The footwear manufacturing companies including PUMA, Adidas, Crocs, and Timberland procure all these materials from different vendors to manufacture different footwear.
Companies are responsible for designing, manufacturing, and packaging footwear with all necessary requirements. To innovate and conceptualize new designs, footwear manufacturers keep track of changing consumer preferences to keep pace with their tastes. Attractive designs are important yardsticks taken into consideration while purchasing a specific footwear.
Distributors of footwear supply shoes, sandals, and boots to different entities, such as retail stores, brand outlets, discount stores, online stores, and manufacturer owned online web portals. With the retail platforms, manufacturers understand the overall market demand and have opened their own outlets across various potential markets. Online store is an emerging channel of distribution and is a convenient medium for customers to purchase footwear items.
Consumers of footwear consist of individuals of different age groups and gender. The improved spending capabilities of individuals, changing lifestyles, and rising number of working professionals has increased the spending capability of individuals. This is occurring especially in the developing countries and leading to further expansion of the overall market for footwear.
KEY BENEFITS OF FOOTWEAR MARKET
- The report includes an in-depth footwear industry analysis, including information about current footwear market trends, such as high demand for stylish and trendy footwear among individuals of all age groups.
- Factors affecting the demand for children footwear have been analyzed to offer insights based on consumer groups.
- Report highlights the changing market dynamics, such as changing lifestyles, rise in disposable incomes of individuals across all regions, expected trends and market intelligence.
- Porter’s Five Forces analysis illustrates the potency of buyers and sellers operating in the market, and would help in developing effective strategies
- Value chain analysis of the industry provides a clear view of the key intermediaries and value additions at every stage in the chain.
- Insights regarding latent opportunities, such as rising demand for athletic footwear among men and women would help stakeholders in implementing strategic business plans.
- The report entails the detailed quantitative analysis of the current market and estimations through 2014-2020 that assists in identifying the prevailing market opportunities to capitalize on.
KEY MARKET SEGMENT OF FOOTWEAR MARKET
The market is segmented by type, mode of sale, gender, material and geography.
MARKET BY TYPE
- Non Athletic
MARKET BY MODE OF SALE
- Retail Sales
- Online Sale
MARKET BY END USER
MARKET BY MATERIAL
- Non leather
MARKET BY GEOGRAPHY
- North America