Other categories include sports, which contains products suited for various sports such as baseball, basketball, soccer, tennis, cricket, etc. It is considered low because athletic shoe producers have two sets of customers, direct consumers and intermediate consumers creating very low buyer concentration. In no event shall GuruFocus. In order to ensure a clear understanding of the global footwear market, we have given a detailed analysis of the supply chain and distribution channel. It recognizes the drivers and restraints affecting the industry and analyzes their impact over the forecast period from 2015 to 2023. Geographically, we look for strong demand from North America and China.
This highlights their presence and helps establish their brand value to attract an increased volume of consumers. Internet retailing is also gaining prominence for the purchase of footwear across different cities. Future expectations are mixed as different retailers have applied varying strategies to the various shoe groups with different levels of success. North America, Latin America, and Europe are the most urbanized regions with a large consumer base and emerging fashion trends. This footwear is designed using flexible soles made from synthetic or rubber, which offer comfort to the user.
Prominent players, such as Nike, Adidas, and Asics Corporation, have regularly launched new products in the market. Key players in athletic footwear are highly investing in Asia-Pacific region as it contributes more than two third of all athletic footwear produced globally. This application area occupied majority of the overall volume share in 2015. Overall, domestic athletic shoe sales should benefit from strong pricing carrying over from fiscal 2013, and continued demand for new technologies, neon colors and retro styles. Strong Research and Development: Nike takes its research, design, and development efforts very seriously, and it believes this is one of the key factors for its success. The equity is also a safe pick, with an A++ Financial Strength rating and relatively low levels of debt.
Strengths Strong Global Brand: Nike is the most valuable sports brand in the world. Yet, in reality sweatshop owners have merely exploited them disregarding their basic rights… 1625 Words 7 Pages Adidas is one of the leading players within the athletic apparel and footwear industry; however, the company faces tough competition from its rivals, especially Nike. Increasing environmental concerns over synthetic rubber and the rise in raw material prices have emerged as major challenges for the market. The athletic footwear market is segmented on the basis of type, user, and geography. By 2018, Asia Pacific was expected to hold a whopping 41.
There are several significant athletic and leisure footwear companies and sports equipment firms that produce similar products. Due to advancements in manufacturing processes, technology innovation and integration, modern, trendy, and comfortable shoes are being continuously developed at reasonable prices in order to keep pace with the growing demand for these products. Rise in prices of synthetic rubber, which is used as a major raw material will result in increasing athletic footwear market price trend. In 2011, the insert segment dominated the market, holding a 36% share in the global market for athletic footwear. Class-based fitness on account of growing social fitness trend is forecast to drive the athleisure segment and open new opportunities for companies operating in the industry.
Furthermore, the global footwear market has been divided by geography into North America, Europe, Asia Pacific and rest of the world RoW. For instance, in April 2016, Lotto Sport Italia S. The industry has a huge opportunity owing to the emergence of e-commerce, which makes shopping simpler, easier, and more convenient. Snapshot version of this publication is available online. On the basis of gender type, the footwear market is subdivided into men's footwear, women's footwear and kids' footwear. The athletic footwear is highly dependent on fashion trends, customer preferences and other fashion-related factors.
On the other hand, North America is projected to witness sluggish growth in the next few years, owing to the high cost of labor and raw materials. Working with our clients, we custom tailor solutions and provide creative, thought-provoking analysis that address the most pertinent questions facing marketers, through general business consulting, white papers, and branded product concept and strategy development. In addition, players have adopted product launch and acquisition as their growth strategies to further strengthen their foothold in the athletic footwear market. Runners now accept a faster replenishment cycle for running shoes, which translates into higher sales for producers. 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. On account of their changing lifestyles, men and women are wearing sports-inspired footwear in daily life. Asia Pacific athletic footwear market share was approximately 40% in 2015, with the region expected to continue dominating global industry revenue through the forecast timeframe.
People are also increasingly realizing the importance of using appropriate type of shoes for sports activities in order to prevent muscle injuries, leg injuries, knee pain, hip pain, and back pain. Different brands as well as retailers are re-orienting their focus on this market, which has led to a significant increase in the number of retail outlets worldwide. Europe is also forecast to remain a sizable regional industry in the coming years. The analysts have described the competitive landscape in complete detail and have shared details pertaining to the bargaining power of suppliers and buyers. Packaged Facts also offers a full range of custom research services.
Nonetheless, this element of the Five Forces Analysis shows that substitutes exert only a moderate force against Nike Inc. The most well-known form of e-commerce is online shopping. In fact, one of every two basketball shoes in the U. Competitive Rivalry or Competition with Nike Inc. On the other hand, Europe and North-America collectively accounted the largest revenue share in 2015 and is expected to continue their dominance over the forecast period i.