Nonetheless, the bargaining power of customers and the threat of substitutes are also significant. Similarly, Nike has developed a shoe recycling program, which aims to reduce the carbon footprints of its products. The demand of athletic footwear is expected to rise on the back of factors such as growing popularity of various games and rising concern towards health and fitness in urban regions across the globe. The customization of products is not only limited to leather boots but exists for almost every product, especially in the fashion industry to a certain extent. The following external factors contribute to the weak threat of new entrants against Nike Inc. Likewise, adoption of latest 3-D printing technology by the shoe manufacturers in order to manufacture shoes in less time and with enhanced quality is the key factor for the growth of athletic footwear market over the forecast period i.
By product, the global market for athletic footwear has been divided into sports shoes, insert, backpacking shoes, and hiking shoes. The Athletic Shoe Industry We confine our analysis to companies that produce footwear for athletic use and have a strong market share. Freedonia Group Footwear Market research reports analyze U. Retailers like Amazon have been garnering recurring gains from doing so for their huge consumer base using Big Data. Regional Insights North America dominated the market with a revenue share of approximately 30. Youngsters are getting keen on adopting a healthy lifestyle and are hence participating actively in sports and other related activities.
This share of e-commerce was larger than any other country in the world. Competitive Rivalry or Competition with Nike Inc. Furthermore, factors such as introduction of customized and lightweight athletic footwear, ease of availability of branded athletic footwear owing to large distribution channel, rising preferences of physicians towards athletic footwear in order to maintain fitness and launching of new and advanced products by the key players are some of the key elements anticipated to prompt the demand for athletic footwear over the forecast period i. This element of the Five Forces Analysis shows how consumers determine business competitiveness and the industry environment. Global Footwear Industry Overview One of the largest segments of the , the footwear industry includes the manufacture, design, production and sales of shoes.
This region will continue to lead the global athletic footwear market over the coming years due to the increasing amount of disposable income available among individuals, and a growing interest in manufacture shown by globally prominent players into countries such as China and India. As a result, organic cotton, recycled rubber, plastic materials, and water-based adhesives are replacing traditional leather, synthetic rubber, nylon, , and other synthetic materials in the manufacturing of sports apparel and athletic footwear. If competitors have more success attracting customers with more appealing footwear or apparel, this would also hurt business prospects. Running Shoe Segment The market for running shoes appears to be shifting towards higher-quality specialty goods. This is due to a growing number of consumers that are highly fashion conscious and at the same time are demanding for a greater variety of athletic footwear.
The running shoe segment dominated the market in 2017, which can be attributed to daily usage of running shoes and availability of these shoes in a wide range of prices ranging from affordable athletic shoes to highly luxurious athletic shoes. Versatility, comfort, and style are some of the major factors driving the appeal of sportswear, which in turn is likely to propel the growth of the footwear market globally. This motivated the leading brands to come up with innovative and comfortable sports footwear products. By: Jason Dalavagas The business outlook at Nike is bright. The research report has been compiled using primary and secondary research methodologies to present an accurate and exact case of the global athletic footwear market. Nike sells its products through retail accounts, Nike-owned retail stores, internet websites, and independent distributors and licensees throughout the world.
This effect is especially prevalent in developed economies such as the U. This element of the Five Forces Analysis identifies the force of substitution on the business and the industry environment. Athletic footwear includes shoes that are designed to perform sports and other physical exercises effectively. The segment will continue to dominate the athletic footwear market until 2025. Compensation and Salary Surveys U. The rising number of trekking, fitness, and cycling enthusiasts are also expected to trigger a swift uptake of athletic footwear in the near future. In the athletic footwear industry there are many complements.
Key factors that will drive demand for footwear include population growth and the emergence in developing economies of a large middle class group with significant purchasing power. Their unique insight and straightforward commentaries on companies, industries, markets and economies give you the edge. This can be primarily attributed to a wide base of population and lower average selling price of athletic footwear in the region as compared to developed economies, such as the U. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Availability of strong distribution channel and ease of availability of athletic footwear at e-commerce platforms are likely to rise the demand for athletic footwear during forecast period. The industry is segmented by consumer groups, category, and retail channel.
Their intermediate consumers include a variety of stores from discounts stores, sporting goods stores and department stores. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. One of the most popular sporting goods retailers is Dick's Sporting Goods. The region is projected to continue to lead the market over the forecast period. Factors such as great diversity in the footwear market and easy availability of products in many retail outlets are anticipated to encourage impulse buying of these products.
The global athletic footwear industry is projected to grow owing to increasing demand from fitness conscious customers, gym goers, and ones who use athletic footwear during the fitness routines. According to the research firm SportsOneSource, basketball footwear sales grew by 25 percent during the 12 months ended March 31, 2013. Technological advancement in footwear industries has led the manufacturers to manufacture good quality products to fulfill the growing requirement of consumers. The study has further included recommendations and inputs given by industry experts in order to help the new and existing players in formulating effective business strategies. Census Bureau and major players in the industry. Thus, leading sports brands are continuously involved in the manufacturing of technically sophisticated and innovative products.