World Footwear Industry Market Brief

World Footwear Industry Market Brief

The global outlook series on Footwear provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. An easy guide to What, Why, When, How, Where, and Who of an industry, the global outlook series offers the reader a bird’s eye view of the global Footwear industry. Annotated with 44 information-rich tables presenting market data findings, and analytical research projections, the entire discussion allows the reader to build a macro-level perception of the industry by gaining rudimentary insights into major product markets, selective insights into trends/issues, industry best practices influencing the market, and incisive insights into consumer/demographic interests, distribution/logistics, marketing strategies, and many more. The report offers a compilation of major mergers, acquisitions, and strategic corporate developments. A regional-level of market discussion takes the reader on a tour of select major countries i.e. the US market discussion is designed to evaluate key market parameters, such as, brand awareness, sales of leading players and retailers, and sales of leading brands, and products by footwear category, among others. Other regional markets researched and abstracted include Japan, Czech Republic, France, Germany, Italy, Poland, Russia, Spain, Sweden, UK, Australia, China, Hong Kong, India, Indonesia, Pakistan, South Korea, Thailand, Vietnam, Brazil, and Mexico. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 457 companies worldwide.

FOOTWEAR INDUSTRY GOS-076
A GLOBAL OUTLOOK, SEPTEMBER 2008


CONTENTS


1. Overview 1
Brand Building - A Key Success Factor 1
Branding - What the Consumer Looks For 1
Brand to Fashion - The Transition 1
Move Towards Unconventional Brand Names 1
Plethora of Products Characterizes the Market 2
Fashion Drives the Sales 2
Custom-Made Footwear for Special Customers 2
Design Process 2
Development 2
Economic Conditions Affects Footwear Sales 2
Price Trends 2
Athletic Footwear Market 3
Athletic Footwear Makers Party on Consumers Getting Sporty 3
Fashion-Statements Override Brand Aspirations 3
Competitive Landscape 3
Demand Factors 3
Supply Factors 3
Pricing - A Marketing Tool for Athletic Footwear Chains 4
Price Corrections Prompted by Euro 4
Price Perception Vs Purchase Decision 4
Trekking Shoes Gains Ground 4
Global Brands of Athletic Footwear 4
Table 1: Leading Brands in the Global Athletic Footwear
Market (2005): Percentage Breakdown of Value Sales for Nike,
adidas, Reebok, Puma, New Balance, ASICS, and Others 4
The Teen Market 5
The Gap between Production and Consumption Narrows 5
Competitive Advantages of Leading Footwear Producers 5
China: The World’s Largest Footwear Producer! 5
US: The Leading Consumer of Footwear 5
Growth Prospects Worldwide 5
Per Capita Footwear Consumption 6
Table 2: Global Footwear Market (2006): Per Capita
Consumption by Select Country - USA, Italy, Germany, France,
and UK 6
Distribution Channels 6
Logistics 6
Shelf Presence 7
Participatory Levels - Forecasts for the Near Future 7
Small Retailers - A Flexible Lot in a Fluid Scenario 7
Entertainment-based Retailing - Luring the Consumer 7
The Advent of a New Supply Mechanism 7
Leading Footwear e-tailers 7
Table 3: Leading Footwear e-Tailers in the Global Market
(2005): Visitors in Million for Limited Brands, Eddie Bauer,
Old Navy, Gap, Alloy, Nike, Foot Locker, Nordstorm,
Fredericks and Land's End 8
Marketing Strategies 8
The Role of Manufacturers and Marketers 8
Utilization of Resources 8
Successful Strategies and Trends in the Recent Past 8
Hearst Magazines - Forging Strategic Alliances of a Different
Kind 8
Brand Extension - A New Meaning 8
Trends in the Men’s Footwear Market 8
Strategies of Footwear Manufacturers - A Comparison 9
Inventory Management 9
Retail Productivity 9
Excess Inventory Levels 9
Technological Advances 9
Manufacturing Resource Planning (MRP) 10
Materials Requirements Planning (MRP) 10
Effective Implementation of EDI and the Internet 10

2. Trends & Issues 10
Branded Footwear Sales to Soar High 10
Growth in Online Sales of Footwear 11
Consumerism in the 21st Century 11
Time - A Rare Commodity 11
Freedom - The Prized Possession 11
Small Shops - The Most Favored Targets 11
Advent of a Global Network 11
Children - Deciding Success and Failure of Retailers 11
New Materials Make Foray into the Footwear Market 12
Fashion Drives Footwear Sales 12
Integration of Fashion and Comfort 12
Fusion of Performance and Style - A Successful Formula 12
Endorsement by Celebrities to Drive Athlete Footwear Sales 12
Casual Footwear Vs Athletic Footwear 12
Licensing - A Hot Rage! 13
Cross Industry Forays Rife 13
Shifting Brand Loyalty - A Major Concern! 13
Affordable Luxury - Painting New Scapes for Growth 13
Globalization - Optimal Efficiencies 14
Lacy Shoes Make a Comeback 14
Comfort - For Today’s Woman 14
Female Footwear Market 14
Parents & Kids - The Retailers’ New Favorites 14
Kids - The Easiest Prey for Brands 15
The Growing Popularity of Private Labels 15
Casual Footwear Gains Market Share 15
Outsourcing Rising for Casual Footwear Market 15
Retro/Classic Trend on a Decline in Athletic Footwear Market 16

3. Mergers and Acquisitions 16

4. Strategic Corporate Developments 24

5. Product Launches/Developments 27
A REGIONAL PERSPECTIVE

1. North America 29

1a. United States 29
Overview 29
adidas Salomon + Reebok - The Effect 29
Major Footwear Producing Regions 30
Consumption of Footwear by States 30
Sports Shoe - A Brief Analysis 30
Demand Growing for Sports Shoes 30
Demand Growing Fast for Bowling, Skateboarding, and Other Shoes 31
New Balance - The Dominant Footwear Brand 31
Old-Style Footwear Designs - Propelling Business 31
Greater Usage of IT Technology 31
Table 4: Leading Electronic Retail Shoe Sites in the US
(2004): Number of Users in Millions for VictoriasSecret.Com,
OIdNavy.Com, Gap.Com, Fredericks. Com, EddieBauer.Com, and
Others 31
TV Ad Spending 31
Footwear Brand Awareness 32
Table 5: Survey of Athletic Footwear Purchased by Women (18
-54 Years Old) through Leading Stores in the US (2005):
Percentage Breakdown for Lady Foot Locker/Foot Locker, JC
Penney, Kohl's, Wal-Mart, and K Mart 32

Table 6: Leading Sportswear and Athletic Shoe Brands
Awareness in the US (2005): Percentage Breakdown for Nike,
Reebok, adidas, New Balance, Champion, Columbia, Coleman,
Russell, Nutmeg, Icon, Wilson, and others 32

Table 7: Sportswear and Athletic Shoe Brands Awareness
Survey in the US (2005): Percentage Breakdown for adidas,
Reebok, Nike, Puma, Spalding, Tommy Hilfiger, Converse, La
Gear, and Others 33

Table 8: Sportswear and Athletic Shoe Brands Awareness
Survey in the US (2005): Percentage Breakdown for Skechers,
Coleman, Ocean Pacific, Titleist, Louisville Slugger,
Rollerblade, Danskin, K-Swiss, Jansport, Oakley, Birkenstock
and Others 34
Brand Awareness Among Youth 34
Table 9: Sportswear and Athletic Shoe Brands Awareness
Survey by Age Group in the US (2005): Percentage Breakdown
for adidas, Nike, Skechers, Tommy Hilfiger, Puma, Nautica,
K-Swiss, La Gear, Polo Sport, Guess, Spalding and others 35
Athletic Footwear 35
Table 10: US Market for Athletic Footwear by Product Segment
- Aerobic, Baseball, Basketball, Cross-Training, Soccer,
Running, Tennis, Walking, Hiking, Athleisure and Others
Independently Analyzed with Annual Sales in Million Pairs for
Years 2003 through 2008 36

Table 11: US Market for Athletic Footwear by Product Segment
- Aerobic, Baseball, Basketball, Cross-Training, Soccer,
Running, Tennis, Walking, Hiking, Athleisure and Others
Independently Analyzed with Annual Sales in US$ Million for
Years 2003 through 2008 36
Major Players 37
Table 12: Leading Players in the US Footwear Market (2005 &
2006): Sales in US$ Million for Nike, adidas, Puma, Skechers
USA, The Timberland Company, Columbia Sportswear, Wolverine
World Wide, Oakley, and K-Swiss 37
Major Footwear Retailers 37
Table 13: Leading Retailers in the US Footwear Market (2005)
: Percentage Breakdown of Value Sales for Wal-Mart,
Payless, Federated, Foot Locker, Famous Footwear, Nordstrom,
Kohl's, Finnish Line, JC Penney, Target, and Others 37
Boys, Women, and Infant Shoes Market 38
Boys' Footwear - A Moderate Growth 38
Women’s Footwear - Dominant Sector 38
Table 14: Leading Manufacturers in the US Ladies Footwear
Wholesale Market (2005): Sales in US$ Million for Nine West
Group, Brown Shoe, Clarks Companies, Steve Madden, VCS
Group, Nike, Kenneth Cole Productions, Liz Claiborne, and H
H Brown 38

Table 15: Leading Brands in the US Women’s Footwear Market
(2005): Percentage Breakdown of Value Sales for Steve
Madden, Nike, adidas, Bakers, Nordstrom, Nine West, Diesel,
Puma, Aldo, Journeys and Others 38
Outdoors Shoes Market 39
Table 16: Leading Players in the US Outdoor Footwear Market
(2005): Percentage Breakdown of Value Sales for Timberland,
Nike and Others 39

Table 17: Leading Brands in the US Rugged Outdoor Footwear
Market (2005): Percentage Breakdown of Value Sales for
Timberland, Merrell, Wolverine, Columbia, Hi-Tec Sports,
Teva, Genfoot/Kamik, and Others 39
Casual Footwear - The Largest Category in the US Footwear Market 39
Footwear Market by Gender 39
Trends & Issues 39
Manufacturers Resort to Brand Building and Lowering
Production Costs to Remain Competitive 39
High Competition Encourages Innovation 40
Fitness and Health Consciousness Drive Footwear Sales 40
High Competition Characterizes the Athletic Footwear Market 40
Boots’ Popularity Soars Among Younger Generation Men 40
Softness - A Women’s Collection 40
Reflexology - To Promote Footwear Stores 41
Brown Shoes - In Vogue 41
Retail Consolidations Give Rise to Mega Brands 41
Offshore Sourcing, a Growing Phenomenon 41
Service and Ambience - The Prime Shopping Factors 41
Lifestyle Center - The New Look for Retailers 42
Offering Discounts - The New Marketing Mantra 42
Emergence of e-Commerce Drives Sales of Footwear 42
Value Shopper - Redefining American Retail Scene 42
New Generation Shoppers 42
Bargain Hunters - Hailed by Retailers 43
The Value Shopper Strategies 43
Environmental Factors Slows Down Growth of Footwear Market 43
Competitive Scenario 43
Trade Dynamics 43
Table 18: Footwear Market in the US (2006): Volume Imports in
Million Pairs by Country - China, Brazil, Indonesia, Italy,
Thailand, and Others 44
Major Organizations Operating in the Footwear Sector 44
AAFA 44
FIA 44

2. Japan 44
Table 19: Leading Players in the Japanese Luxury Footwear
Market (2005): Percentage Breakdown of Value Sales for
Ferragamo, Bally, Prada, Gucci, Louis Vuitton, and Others 44

3. Europe 45
Overview 45
Seasonality Thrives Footwear Sales 45
Production Drops Across EU-25 45
Table 20: Footwear Market in the European Union (2005):
Production in Volume (Millions of Pairs) and Value (?
Million) by Select Country - Italy, Spain, Portugal, France,
and Germany 45

Table 21: Footwear Market in the European Union (2005):
Consumption in Volume (Millions of Pairs) and Value (?
Million) by Select Country - Germany, UK, France, Italy, and
Spain 46
Table 22: Footwear Market in Europe (2003-2005): Production
(in Million Pairs) 46
Export-Import Scenario 46
Table 23: Footwear Market in the European Union (2005):
Imports in Million Pairs by Country - China, Vietnam,
Romania, India, Indonesia, Brazil, Thailand, Turkey, Hong
Kong, Tunisia, and Others 46

Table 24: Footwear Market in the European Union (2005):
Exports in € Million by Country - USA, Switzerland, Romania,
Russia, Japan, Norway, Canada, Hong Kong, Ukraine, Croatia,
and Others 47
European Athletic Footwear Market 47
Footwear Industry Undergoes Modernization and Restructuring 47
Technology Advancements to Reduce Production Costs 47
Trends 47
US Retailers - Lose Out to Europeans 47
An Ageing Europe 48
Consolidation - An Inevitable Trend 48
Eastern Europe - Growing Beyond Expectation 48

3a. Czech Republic 49
Overview 49
Shoemaking - The Largest Sector of Footwear 49
Business Restructuring 49
Market Drifts 49

3b. France 49
Overview 49
Footwear Market 49
Table 25: French Market for Footwear by Product Segment -
Athletic, Outdoor/ Rugged, Casual and Dress/Formal Footwear
Markets Independently Analyzed with Annual Sales in Million
Pairs for Years 2003 through 2008 50
Athletic Footwear Retailers 50
Table 26: Leading Retailers in the French Athletic Footwear
Market (2005): Percentage Breakdown of Value Sales for
Decathlon, Intersport, Go Sport, Sport 2000, Courir, and
Others 50

3c. Germany 50
Overview 50
Up-Market Styles Witness Stable Growth 51
Athletic Footwear Retailers 51
Table 27: Leading Retailers in the German Athletic Footwear
Market (2005): Percentage Breakdown of Value Sales for
Intersport, Kadstadt, Deichemann, Sport 2000, Runners Point,
and Others 51
Competition from the Low Cost Asian Countries Rising 51
Germany - A Key Re-Exporter 51
Specialist Retailers Account for Maximum Revenues 51
Table 28: German Market for Footwear by Product Segment -
Athletic, Outdoor/Rugged, Casual, Dress/Formal Footwear and
Footwear Accessories Markets Independently Analyzed with
Annual Sales in US$ Million for Years 2003 through 2008 52

3d. Italy 52
Overview 52
High Quality Expensive Italian Footwear Market 53
USA - The Largest Export Market 53
Prime Footwear Production Regions 53
Italian Athletic Footwear Retailers 53
Table 29: Leading Retailers in the Italian Athletic Footwear
Market (2005): Percentage Breakdown of Value Sales for Foot
Locker, Giacomelli, Cisalfa, Pittarella, Giglio, and Others 53

3e. Poland 53
Overview 53
Branded & Designer Labels Hold Sway 54

3f. Russia 54
Overview 54
A Bullish Scenario 54
Trends 54
Open-air Complexes - The Popular Destination for Shoe Hunters 54
European Brands - The Pick of the Lot 55
Russian Preference 55
Salamander - Winning the Heart 55
Imports and Exports 55
Major Footwear Brands 55
Leading Athletic Shoe Brands 55
Table 30: Leading Sportswear and Athletic Shoe Brands in
Russia (2005): Percentage Breakdown of Awareness for Nike,
Reebok, adidas, New Balance, Champion, Columbia, Coleman,
Russell, Nutmeg, Icon, Wilson, Maurice, and Others 56

3g. Spain 56
Europe’s Shoe Design Studio 56
Spanish Footwear - Greater Dependence on Tanning Industry 57
Major Export Markets for Tanning Industry 57
EXIM Market 57
Table 31: Spanish Market for Footwear by Product Segment -
Athletic, Outdoor/Rugged, Casual and Dress/Formal Footwear
Independently Analyzed with Annual Sales in Million Pairs for
Years 2003 through 2008 57

3h. Sweden 57
Footwear Market 57

3i. United Kingdom 57
Overview 57
UK Athletic Footwear Retailers 58
Table 32: Leading Retailers in the UK Athletic Footwear
Market (2005): Percentage Breakdown of Value Sales for JJB
Sports, GUS, Littlewoods, Sport & Soccer, J.D. Sports, and
Others 58
Distribution Channels 58
Table 33: Leading Distribution Channels in the UK Footwear
Market (2005): Percentage Breakdown of Sales for Value
Retailers, Foreign Specialty Stores, Middle Market, and
Department Stores 58
Women’s Footwear Sector - Prime Market 59
Footwear Sales 59
Table 34: UK Market for Footwear by Product Segment -
Athletic, Outdoor/Rugged, Casual and Dress/Formal Footwear
Markets Independently Analyzed with Annual Sales in Million
Pairs for Years 2003 through 2008 59

Table 35: UK Market for Footwear by Product Segment -
Athletic, Outdoor/Rugged, Casual, Dress/Formal Footwear and
Footwear Accessories Markets Independently Analyzed with
Annual Sales in US$ Million for Years 2003 through 2008 59

4. Asia-Pacific 60
Asia - Leading the Way 60
A Land of Opportunity 60

4a. Australia 60
Australia - Creating Waves 60
Footwear Retailers Sector 60
Advanced Manufacturing Technology 61

4b. China 61
Overview 61
A Stitch in Time 61
Chinese Footwear Production and Exports - Largest in the World 62
Table 36: Footwear Market in China (2005 & 2006): Exports in
Value (US$ Billion) and Volume (Billion Pairs) 62

Table 37: Footwear Market in China (2005 & 2006): Exports of
Parts of Footwear, Gaiters and the like in Value (US$
Billion) and Volume (‘000 Tons) 62

Table 38: Footwear Market in China (2005 & 2006): Import of
Parts of Footwear, Gaiters and the like in US$ Billion 62
Major Footwear Centers and Top Brands 62

4c. Hong Kong 62
Various Categories of Fashion 62

4d. India 63
Overview 63
A Huge Domestic Market 63
Leather Footwear Market 64
Indian Leather Sector - Major Exporter and Employer 64
Leather Footwear Competitors 64
Main Footwear Export Destinations 64
Table 39: Footwear Market in India (2004 & 2005): Leather
Footwear Exports in US$ Million by Country - UK, Germany,
USA, Italy, France, and Others 64

Table 40: Footwear Market in India (2004 & 2005): Footwear
Components Exports in US$ Million by Country - Italy,
Germany, UK, Spain, Portugal, and Others 64

4e. Indonesia 65
Overview 65
A Promising Footwear Market in Asia 65
Lack of Government Backing 65
Nike - Leading the Bandwagon 65
Labor Policies and Unions - Major Obstacles 65
Role of Foreign Countries 65
Indonesian Rubber Sports Shoes Sector - A Regaining Market 66
Rubber Ski Boots and Rubber Shoes - Maximum Exports 66

4f. South Korea 66

4g. Thailand 66

4h. Vietnam 66
Overview 66

5. Latin America 67
Getting Cosmopolitan 67
Exports - A Vital Factor for Growth 67

5a. Brazil 67
Overview 67
Per Capita Consumption of Footwear 68
Table 41: Footwear Market in Brazil (2000-2005): Per Capita
Consumption in Pairs 68
Top Footwear Types 68
Brazilian Footwear Exports 68
Table 42: Footwear Market in Brazil (2005): Exports in Value
(US$ Million) and Volume (Million Pairs) by Country - USA,
UK, Argentina, Mexico, Spain, and Others 69

5b. Mexico 69
Table 43: Footwear Market in Mexico (2005-2007): Imports (in
US$ ‘000) of Footwear for Young Girls and Women by Select
Country - Vietnam, China, Taiwan, Indonesia, and Thailand 69

Table 44: Footwear Market in Mexico (2005-2007): Imports (in
US$ ‘000) of Footwear for Young Men and Men by Select Country
- Vietnam, China, Indonesia, Taiwan, and Malaysia 69
PRODUCT OVERVIEW & DEFINITION
History of Footwear 70
Moccasin 70
Sandal 70
Boot 70
Clog 70
Mule 70
Pumps 70
Oxford 70
Footwear Style & Fashion 70
Sneakers 71
Product Definitions 71
Athletic Footwear 71
Components of Athletic Footwear 71
Upper 71
Midsole 71
Insert 72
Outsole 72
Aerobic Shoes 72
Athleisure Footwear 72
Baseball Footwear 72
Metal Cleats 72
Molded Cleats 72
Basketball Footwear 72
Cricket Footwear 72
Cross-Training 72
Running Shoes 72
Soccer Shoes 73
Tennis Shoes 73
Walking Shoes 73
Other Athletic Footwear 73
Outdoor/Rugged Footwear 73
Trekking and Walking Boots 73
3-4 Season Boots 73
3 Season Boots 73
Mountaineering Boots 73
Backpacking Boots 73
Hiking Boots 73
Day Hiking Boots 73
Technical Hiking Boots 74
Light Hiking Boots 74
Approach Shoes 74
Technical Shoes 74
Casual Footwear 74
Dress/Formal Footwear 74
Footwear Accessories 74
Socks 75
Insoles 75
Gaiters 75

GLOBAL DIRECTORY