Footwear Industry Hyped By Online Retailing

Footwear manufacturing has saw dynamic shift from industrialized economies to developing economies. Few countries such as China has grasped the opportunity, being the leading footwear manufacturer in the world. Global footwear market is growing at a CAGR of 2.3% during 2017-2025 to reach a market size of USD 26.5 billion by 2024. Global footwear industry at the consumer end is driven by rapid changing fashion trends and consumer preferences. Presence of multiple brands with different pricing segment and footwear quality has increased the competition among the players and footwear options among the consumers. The apparel industry also has close impact on the footwear styles and demand. Such trends have the major impact on the USA and European markets.

Global footwear industry in terms of production has maximum contribution from Asia-Pacific region by a share of nearly 80% of global output in 2017. South America has nearly 6% share whereas Europe still stands among the footwear manufacturing countries with a share of nearly 5% in 2017. Whereas in terms of footwear consumption, global footwear industry generates highest revenue combined from USA and Europe, nearly 45% share in global footwear consumption. Moreover the growing manufacturing technology and machinery is advancing and speeding the footwear manufacturing process.

The increasing  market demand of luxury goods and customized footwear provides an added lift to the global footwear market size. Luxury footwear can be attributed to the combination of rational (tangible) and emotional (intangible) features. Moreover other luxurious features can be high quality, sustainability and handmade footwear using high quality raw material and exclusive design and patterns.

Key segments of the footwear industry are types of footwear, distribution channel, end user and geographical segmentation. Further, footwear types are classified into athletic shoes and non-athletic footwear. Although there is a new category emerging, majorly in developed regions, named athleisure footwear. Athleisure footwear’s are designed for the purpose of both athletic activities and other purpose such as workplace, school and other casual occasions. In the non-athletic footwear segment sneakers are taking over the market due to being comfortable and fashionable. Moreover the performance footwear demand is also driving the sales of sneakers. However, performance sneakers are still finding its place in the industry as it is a quite new kind of footwear to grow as a choice among consumers.

Globally distribution of footwear can be divided into online retailing and offline retailing, further segmented into company owned outlets, multi-brand outlets, hypermarkets/supermarkets and domestic retailers. Purchase of footwear from offline stores has always an experience to the consumers. But the increasing adaptation of technology, online footwear sales is growing at an exponential rate. Online shoes sales is increasing at a rate 15.2% annually due to attractive product portfolio, quality services and influence of online shopping of apparels.

Geographically the footwear industry has shifted from developed regions to developing regions. Asia Pacific region is a hub for footwear manufacturing. All over the world, top footwear companies are investing in APAC region either for setting up their own manufacturing facilities or contract based footwear manufacturing. APAC accounts for 80% of global footwear manufacturing followed by Latin America and Europe. The presence of cheap labor, low cost raw material and absence of strict government regulations that provide favorable economic conditions for manufacturing footwear. China alone accounts for nearly 60% production of footwear in APAC, followed by India and Vietnam. Other than APAC countries, Brazil has increasing production of footwear followed by Mexico, Italy and Turkey.

In terms of consumption Europe and USA are leading the market. The top athletic brands such as Nike, Adidas, Puma, and JD Sports Fashion have all witnessed growth in the sales by double-digit percentage in 2017 results. There is high demand for athleisure footwear and therapeutic footwear in the two countries along with the fashion and comfortable footwear in fashion states of USA and Europe. Moreover the evolving technologies such as 3D printing and customization is further driving the growth of the market. Total footwear sales by value in UK increased by 6.2% year over year in 2016. Whereas, in the US, total footwear sales witnessed increase by 2.8% reaching USD 76.6 billion in 2016.

Global competitors in footwear industry are Adidas AG, Nike Inc., New Balance Inc., Puma SE, Asics Corp. Bata Limited, Deichmann SE, Skechers USA Inc., Under Armour, Timberland, Wolverine World Wide, Inc., ECCO Sko A/S, Crocs Retail, Inc. Two global companies from Germany has surged their revenues in 2017. Adidas brand witnessed sales in North America increased by 31% due to expansion and investment activities in the U.S. and increased marketing aiming women. Whereas Reebok sales, owned by Adidas, had climbed the revenue growth by 22% in the same period.

Additional Footwear Market Research

Markets Covered: Athletic Shoes, Casual Footwear, Formal Footwear, Smart Shoes, Evening Footwear and Kids Footwear

Footwear Companies Covered: Adidas AG, Nike Inc., New Balance Inc., Puma SE, Asics Corp. Bata Limited, Deichmann SE, Skechers USA Inc., Under Armour, Timberland, Wolverine World Wide, Inc., ECCO Sko A/S, Crocs Retail, Inc.

Regions: North America, Asia Pacific, Europe, Latin America, Middle East and Africa

Forecast Period: 2017-2025

Data: Market size, market share, year-on-year growth rate, production, consumption, import, export, footwear industry indicators

Other Information: PESTEL analysis, market drivers, restraints, risk and opportunities, government regulations.