timberland sweatshirts Developing Economies Spur Growth in the Global Footwear Market
Global footwear market is intensely competitive, pitting large and small players alike against each other. Factors that significantly influence the dynamics in the industry include availability of wider product ranges, fashionable designs, competitive pricing, and changes in consumer preferences and purchasing power. Also, demand for footwear is influenced by key trends such as increasing awareness for eco footwear, demand for personalized footwear, and growing Internet usage. Innovation therefore ranks supreme with manufacturers battling to add uniqueness and exclusivity in designs, styles, and colors to their products. Innovative developments in leathers, fabrics and synthetic materials, and other material technology advancements that offer new look and performance will drive growth in the market.
Against the backdrop of growing competition and rise in raw material prices, value growth in the market is expected to outpace volume growth. Asia Pacific, with burgeoning markets such as China and India is unraveling robust growth opportunities. Revolutionary improvements in retailing and distribution formats are encouraging consumer preference for branded fashion footwear in developing countries. E Commerce is another factor driving growth in the market. Nevertheless, affordability is still a concern, pressurizing multinational footwear companies to competitively price their products. Premium designer footwear brands are expected to retain their popularity in the US and EU.
Despite the prevailing macroeconomic headwinds, growth in the footwear industry continued to remain stable driven by product innovations and strategies such as discounting and DTC store expansions. Growth in the athletic footwear segment in 2012 was particularly led by events such as the London Olympics and Paralympics, and the UEFA EURO. While consumer spending in the United States continues to remain encouraging, tough austerity programs and high unemployment rates in Europe continue to drag down consumer confidence.
Growth in the market is spurred by strong performance in the athletic footwear market. The athletic footwear category is characterized by high degree of concentration, with leading companies accounting for a bulk of the market. However, competition in the market is on the rise with entry of new players and growing popularity of innovative products launches such as five finger running shoes. With more people becoming health conscious and taking to running in large numbers, running shoes are growing in popularity in the sports footwear market. With innovation being the key to gaining market share, companies are introducing footwear that offers running comfort. Multifunctional shoes are also becoming increasingly popular due to their versatility and their overall suitability for everyday wear. Athleisure footwear category including hunting boots, baseball shoes and bowling shoes are forecast to witness strong demand, primarily from the retired yet healthy and active consumer group.
As stated by the new market research report on Footwear, Asia Pacific represents the single largest market worldwide. The region also represents the fastest growing market with a projected CAGR of 8.4% in value terms, over the analysis period. Growth in the region is led by strong preference for high fashion and branded footwear, expanding base of affluent middle class population, and increasing per capita spending on clothing and accessories.
Major players covered in the report include adidas AG, Reebok International, ASICS, Deckers Outdoor Corporation, Gucci Group, Nike Inc., Timberland LLC, Wolverine World Wide Inc., Foot Locker Inc., Vans Inc., Puma AG and Geox, among others.
The research report titled “Footwear: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia Pacific (China, India and Rest of Asia Pacific), Middle East and Latin America (Brazil and Rest of Latin America). Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today as one of the world largest and reputed market research firms.