San Jose, CA (Vocus/PRWEB) January 12, 2011
The prolonged world economic recession has taken its toll on the world footwear market with sales witnessing erosions in developed countries and growth slowing down considerably in developing countries. Household demand retracted, especially in the developed countries, as a result of rising rates of unemployment, falling disposable incomes, reduction in household wealth, high energy and food costs, plummeting per capita spends and crumbling consumer confidence. Decline in income levels have reduced the spending on clothing especially apparel and footwear (including casual, outdoor, sports, and formal footwear). Tight liquidity and financial constraints have redefined value and have induced simplicity in lifestyles and this marks the beginning of shifting consumer focus towards value for money bargains. Consumers search for a sturdy value proposition is common thread that runs through all segments of the footwear market. This frugal consumer spending, with the prime-shopping motif being value for money, resulted in erosion in sales of high-end, expensive, premium brands. The recession induced price sensitivity, and trading down to lower price points, has therefore constricted revenues in the marketplace, albeit expanding opportunities to value brands and private label brands.
Although luxury is widely touted as a habit difficult to break, the prolonged severity of the economic slowdown has elicited declines in spending and the low tide has stranded growth with wealthy consumers gradually cutting back on lavish, luxury lifestyles. This scale back on spending by High Net Worth Individuals (HNWIs) has hurt the luxury footwear segment with demand reeling under the impact of reduced lifestyle and passion spending. Destabilization of net worth among individual consumers is a primarily reason fingered for the soft demand for luxury brands.
Premium priced branded athlete footwear market, which exhibited resilience at the start of the recession, has witnessed quick deterioration in business opportunities, with the number of sports participants and enthusiasts declining. The economic pressures of the recession impacted consumers' interest in taking up sports, and the drop in sports participation is reflected in the widespread postponement of renewal of club membership fees. Key factors fingered for the drop in sports participation, especially among lower income households, include high unemployment rates and the resulting loss of corporate benefits. For most sporadic players, footwear is not a necessity when income levels fall behind the inflation curve. Sharpening the blow on the athletic shoes market was the dearth of fashion innovation, which was also the result of investment cutbacks on product development by manufacturers. Against this backdrop, global market for Athletic Footwear is expected to increase at a modest pace during 2007 through 2015 period.
The recession has therefore highlighted the relationship between income and sports, especially individual sports like golf, tennis, swimming, and soccer, among others. A recessionary backlash is forecast to be on cards with customers who have switched to value shopping, due to the current economic situation, most likely to persist with the newly acquired frugality for a long time into the foreseeable future. Given the long-term changes wrought out by the recession in consumer buying behavior, reduced shopping frequency, lesser spending per shopping trip, changing perceptions of luxury and greater emphasis on cost and product attributes, performance and function are factors forecast to stay awhile. And this thereby will require alterations in marketing programs and manufacturers will be necessitated to offer new value propositions to consumers, redefining luxury and customization of products. To survive, players are making a value pitch and throwing their nets wider over a larger consumer base. Offering quality products at compelling competitive prices, while simultaneously ensuring against unwarranted brand dilution remains the key strategy for players to survive the downturn.
United States and Europe account for a major share of the global Footwear market revenues, as stated by the new market research report. Region-wise, developed markets bore the brunt of the recession pummeled by the financial crisis, which was the deepest in North America and Europe, and demographic factors, such as, aging population and falling birth rates. Developing markets have and will continue to post quick recovery, given the growing Asian appetite for mass consumption of footwear, globalization of the industry, the casualisation of clothing, and rising number of sports enthusiasts in the region. Additionally, restoration of economic health and growth fundamentals like improving consumer sentiment, income levels, employment levels, and resurgence in discretionary spends, are more wholesome than in comparison with developed economies. Volume sales of Outdoor/Rugged Footwear in Asia-Pacific are expected to surge at a CAGR of 3.7% during the analysis period.
Major players in the global marketplace include adidas AG, Bata Shoe Organization, Brown Shoe Company, Deckers Outdoor Corporation, ECCO Sko A/S, Gucci Group, Kenneth Cole Productions, LaCrosse Footwear, Nike, Nine West Group, Puma AG, R.G. Barry Corporation, San Paulo & Alpargatas, The Timberland Company, Vans, Weyco Group, Wolverine World Wide, 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, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in billion pairs and US$ million for major geographic markets including the United States, Canada, Japan, France, Germany, Italy, United Kingdom, Spain, Russia, Asia-Pacific, Latin America and Middle East/Africa. Product segments analyzed include, Athletic Footwear (Aerobic, Baseball, Basketball, Cricket, Cross-Training, Soccer, Running, Tennis, Walking, Hiking, Hockey, and Athleisure among others), Casual Footwear, Outdoor/Rugged Footwear, and Dress/Formal Footwear.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Footwear_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
Global Industry Analysts, Inc.
Web Site: http://www.StrategyR.com/
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