Growth will continue, albeit at a slower rate as the industry’s markets become saturated
Los Angeles, CA (PRWEB) January 24, 2012
In 2012, revenue generated from the Online Shoe Sales industry is projected to reach $7.8 billion, representing an increase of 16.3% from 2011. According to IBISWorld industry analyst and report author Brian Bueno, “the industry has grown furiously for more than a decade as consumers increasingly shift purchases online. Every year, more than 100 million Americans purchase goods from the online retail marketplace, one of the fastest-growing industries in the United States.” According to figures from the US Census Bureau, online footwear purchases will account for about 3.6% of all e-commerce sales in 2012. Furthermore, as brick-and-mortar retailers have entered the online realm to recapture sales taken by exclusively online retailers, industry revenue has expanded. Over the five years to 2012, IBISWorld estimates revenue will increase at an average annual rate of 17.4%.
Many industry sources attribute the industry’s rapid growth to major player Zappos.com. Online retail giant Amazon.com acquired the Nevada company in 2009 and the combined entity remains the industry leader. The company’s growth is largely attributed to its loyalty business model, which focuses on customer satisfaction. According to Bueno loyalty will be incresingly important; while the industry will continue climbing over the coming years, "an increasingly saturated market will result in relatively slower growth. IBISWorld estimates that industry revenue will increase at double digit pace over the next five years to 2017.”
Many of the same factors that contributed to the industry’s ascent in previous years will carry forward over the next five, including the rising acceptance of online shopping. Furthermore, the industry’s long-term prospects will be aided by rising consumer confidence, since it contributes to customer retention.
The Online Shoe Sales industry exhibits low market share concentration, as evidenced by the combined market share of the industry’s largest participants. This share, however, is increasing due to Amazon’s acquisition of Zappos.com in 2009. The other major player in this industry is Foot Locker Inc. Many online shoe operators sought to sell themselves during the recession for access to larger credit lines and stronger financial backing. Those that did generally out-performed their peers since the recession led to lower online shoe sales and, in turn, a decline in industry revenue. Acquisitions are expected to continue over the next five years as operators strive to be a one-stop resource for shoes in a particular market.
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IBISWorld industry Report Key Topics
This industry retails shoes for men, women and children via the internet. Industry goods are typically purchased from domestic (in some cases international) manufacturers and wholesalers and then sold online.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.