The U.S. Footwear Market

Table of Contents:

The Products

• Four Product Categories
• Casual Shoes
• Athletic Shoes
• Dress Shoes
• Rugged Shoes
• Classification by Gender and Age
• Classification by Price

The Market

• Retail Sales Approach $39 Billion in 1998
• Market Share by Product Category
• Unit Sales vs Price Points
• The Boomer Factor
• Sales to Reach $449 Billion by 2001
• Table 1-1: The US Market for Footwear: Retail Sales by Category, 1994-2003 (dollars): Casual, Athletic, Dress, Rugged, Total

The Marketers

• Nike Leads With 11% Share
• Figure 1-1: Top Marketer Shares of US Footwear Market, 1998 (percent): Nike, Reebok, Nine West, Other
• Consolidation Around Top Marketers
• Genesco, Rockport, Stride Rite Team Up with Designers
• Shake-Out in Sports Endorsements
• What Everyone Is Wearing
• Footwear Advertising at $400 Million

Distribution and Retail

• Direct vs Wholesaler Distribution
• Mass vs Authorized Distribution
• Department Stores Lead in Sales
• But Discounters Do the Most Volume
• Low-End Retailers Take Dollar Share
• Retail Consolidation

The Consumer

• Casual Leather Shoes Most Popular for Both Genders
• Almost Three-Fourths of Adults Purchase Athletic Footwear
• Casual Sneakers Are Most Popular Type
• Demographics Vary by Athletic Shoe Type
• One-Third of Adults Purchase Dress Shoes
• Female Purchasers of Dress Shoes
• Male Purchasers of Dress Shoes
• Purchasers of Hiking Shoes

Scope and Methodology

• Market Parameters
• Report Methodology

II THE PRODUCTS

Introduction

• Scope of Report

Product Classifications

• Seven Historical Styles
• Manufacturing History
• Four Product Categories
• Casual Shoes
• Athletic Shoes
• Dress Shoes
• Rugged Shoes
• Classification by Gender and Age
• Classification by Price

Product Components

• Two Major Components for All Shoes
• The Upper
• The Bottoms
• Performance Features
• Newer Component Features
• If the Shoe Fits

Product Sizing and Packaging

• Shoe Sizes and Widths
• Packaging

Federal Regulations

• FTC Monitoring
• Footwear Packaging and Country of Origin
• The CPSC and Product Recalls
• NAFTA Assistance for Displaced Workers

III THE MARKET

• Figure 3-1: US Retail Sales of Footwear, 1994- 1998 (dollars)

Market Size and Growth

• Note on Methodology
• Retail Sales Approach $39 Billion in 1998
• Table 3-1: US Retail Sales of Footwear, 1994-1998 (dollars)
• Casual Shoe Sales Grow at Expense of Smaller Categories
• Table 3-2: US Retail Sales of Footwear by Product Category, 1994- 1998 (dollars): Casual, Athletic, Dress, Rugged, Total
• Sales of Athletic Footwear Stagnate
• Athletic Sales Trends by Segment
• Dress Shoe Growth Continues Decline
• Robust Gains in Rugged Footwear

Market Composition

• Imports Account for 90% of Sales
• China Leads in Imports, But Slips
• Athletic Shoe Imports Up Significantly
• US Exports Declining
• Market Share by Product Category
• Figure 3-2: The US Footwear Market: Share of Dollar Sales by Product Category, 1996 vs 1998 (percent): Casual, Athletic, Dress, Rugged,
• Department Stores Capture Most Dollar Sales
• Low-End Retailers Garner Ever-Higher Share of Unit Sales
• Sales by Season
• Sales by Region
• Table 3-3: Regionality of Footwear Purchasing by Product Category and
• Segment, 1998 (percent): Casual Footwear/Women's and Men's, Athletic, Dress, Rugged

Factors to Market Growth

• Unit Sales vs Price Points
• Poor Economy Could Stall Market
• The Boomer Factor
• Aging Feet and Feel-Good Shoes
• Table 3-4: Projections of US Households by Age of Householder,
• 1999- 2003 (percent and number): Age Under 25 to 75 and Older
• Falling Between the Generation Gap
• Title IX and Targeting Women
• Room for Growth in Children's Shoes
• Shifting Consumer Habits Lead to Low-End Sales
• The Quest for Quality
• The Power of the Brand
• Going Casual at Work and Leisure
• If the Shoe Fits
• Walking and Running Sales
• Athletic Shoes Going to Extremes
• Golf Shoe Sales Should Rise with Participation
• Outdoor Gains for Athletic and Rugged Shoes
• Figure 3-3: Projected Growth in US Retail Sales of Footwear, 1998- 2003 (dollars)

Projected Market Growth

• Sales to Reach $449 Billion by 2003
• Table 3-5: Projected Growth in US Retail Sales of Footwear, 1998- 2003 (dollars)
• Distribution of Market Growth
• Table 3-6: Projected US Retail Sales of Footwear by Product Category, 1998-2003 (dollars): Casual, Athletic, Dress, Rugged, Total

IV THE MARKETERS

Marketer Overview

• Over 175 Marketers of Footwear
• The Front-Runners: Nike and Reebok
• Other Principal Marketers
• Second-Tier and Specialty Marketers
• Table 4-1: The US Market for Footwear: Top Marketers by Brand Line (8 Marketers)
• Table 4-2: The US Market for Footwear: Selected Marketers by Brand Line (115 Marketers)

Marketer Shares

• An Extremely Competitive Market
• Nike Leads with 11% Share
• Figure 4-1: Top Marketer Shares of US Footwear Market, 1998 (percent): Nike, Reebok, Nine West, Other
• Reebok Holds on to Second
• Nine West Challenges Reebok's Place
• Adidas, Brown Group, Genesco, and Timberland Follow
• Rockport Close Behind Timberland
• Top 10 Athletic Marketers
• Market Shares Vary by Region
• Brand Equity in Women's Sector

The Competitive Situation

• Consolidation Around Top Marketers
• Marketers/Retailers
• Comparing Cultures: Nike and Reebok
• Nike vs Oakley: A New Equation?
• More Courtroom Drama
• The Olympics and Marketer Jockeying
• Close-Outs Affect Athletic Category
• Designer Names, Apparel Makers Provide Stiff Competition
• Footwear Marketers Transgress Apparel Territory
• Luxury Brand Resurgence
• Eyes Cast Overseas for Continued Growth
• Chasing the Soccer Crowd

Competitive Profile: Nike, Inc

• Nike Dominates Athletic Shoe Category
• From Sneakers to Sports Management
• Footwear Slump
• Apparel a Strong Front
• Backlash Against the Swoosh
• Nike Beset with "Sweatshop" Criticisms
• Michael Jordan Becomes a Brand
• The Swoosh Has Company
• Prospects for a Rebound

Competitive Profile: Reebok International Ltd

• Reebok Competes in Sports and Casual
• Sports Division's Shoe Sales Down
• Focus Slow in Coming
• Rockport and Polo Sport
• Reebok Streamlines, Looks Overseas

Competitive Profile: Nine West Group, Inc

• Nine West Leads in Women's Shoes
• From Upscale to Affordable Glamour
• Executives Leave Amid SEC Investigation and US Customs Probe
• Marketer Slashes Expenses to Stay Competitive
• Strict Management + Pursuit of Accessories Market

Competitive Profile: Adidas-Salomon

• Adidas Merges with Sports Equipment Giant
• Adidas Gains Ground in United States
• Team Sponsorship, WNBA Deal Raise Brand Awareness
• Future May Include Stronger Efforts in Retail and Team Sports

Competitive Profile: Brown Group, Inc

• Women's Shoes a Specialty
• Retail Outlets Cover the United States
• Brown Shoe, Pagoda Market the Brands
• Brown Group Rides Waves of Change
• Increased Sales Strength Likely

Competitive Profile: Genesco, Inc

• Focus on Men's Dress and Casual
• Journey's Targets Youth Market
• Johnston & Murphy Has New Image
• New Store Launch Schedule Ramped Up

Competitive Profile: Timberland Co

• Timberland Fuses Style with Function
• From Single Boot to Lifestyle Brand
• Building Through Retail, Advertising, and New Products
• Outfitting the Entire Outdoor Lifestyle

Competitive Profile: Wolverine World Wide, Inc

• A Litany of Brands
• Hush Puppies Ride Wave of Success
• Brand Strategy Grows Wolverine Stable

Competitive Profile: Fila Sport SpA

• Fila Slips
• Fila USA
• Future Strategies

Competitive Profile: Stride Rite Corp

• Athletic, Casual, and Children's Shoes
• Salvation for Keds?
• Alliances and Takeover Rumors

Competitive Profile: Airwalk

• Airwalk Angles for Broader Share of Youth Market
• Extreme vs Mainstream

Marketing Trends

• Brand Names Make the Sale
• Genesco, Rockport, Stride Rite Team Up with Designers
• Making Names Stick
• Segmentation to the Extremes
• Seasonality Giving Way to Mid-Term Offerings
• Athletic Shoe Marketers: What Happened?
• Shake-Out in Sports Endorsements
• Star Power Remains Integral
• Team Spirit
• Teen Spirit
• The Gate-Crashing Option
• Other Placement Tricks
• Home Shopping and Shoes Sales
• Working the Web

New Product Trends

• What Everyone Is Wearing
• New Technologies
• Comfort Blurs Lines Between Casual and Dress
• Fantasy Vies with Fit
• The Female Focus
• Junior Achievement
• Full Attention to Kids
• Walking Shoe Marketers Get Hip
• Cashing In on Adventure Sports
• Table 4-3: The US Market for Footwear: Selected New Product Introductions, 1997-1998

Consumer Advertising and Promotion

• Footwear Advertising at $400 Million
• The Top Advertisers
• Variety of Positioning
• The Nike vs Reebok Effect
• Athletic Ads Celebrate Technology, Downplay Celebrity
• Nike Ads Win with Black and Urban Consumers
• Nike Experiments with E-Mail Billboards
• Reebok Tries to Find Itself
• Nine West: Function, Fashion, Information
• New Balance Takes on TV
• The Candie's Coalition
• Extreme Sports Marketers Diverge on Advertising Strategies
• Sideout Shoes in Unlikely Places
• Samples of Consumer Advertising

Trade Advertising and Promotion

• Trade Ads: Products on Parade
• Trade Shows: A Cost-Effective Venue
• The Super Show
• Trade Promotions: Standard Approaches
• Samples of Trade Advertising

V DISTRIBUTION AND RETAIL

At the Distribution Level

• Direct vs Wholesaler Distribution
• Mass vs Authorized Distribution
• Two Distributor Classes
• The Gray Market
• Insurance Protects Cargo Through the Distribution Chain
• Software Ubiquitous but Temperamental
• Success with Internet Sourcing?
• New Technology May Transform Distribution-to-Retail Dynamic

At the Retail Level

• The Retail Channels
• Department Stores Lead in Sales…
• …But Discounters Do the Most Volume
• Low-End Retailers Take Dollar Share
• Retail Consolidation
• Profit Despite Weakness
• Consumers More Sensitive to Price, Convenience
• Retailers Use Price-Point Brands to Lure Consumers
• Discount Pricing May Backfire
• Plusses and Minuses of Personal Shopping
• The Inventory Balance
• Excess Inventory Marks Footwear Slump
• Consumer Needs and Future Strategies

Retail Focus: By Outlet Type

• Growth of the Branded Concept Store
• Alternative Sizes an Opportunity for Independent Retailers
• The Custom Shop
• Athletic Store Expansion May Be Slowing
• New Retail Formats Emerging
• Athletic Stores, Superstores Focus on Fun
• Slices of the Athletic Shoes Pie
• Mass Discounters Offer Convenience of One-Stop Shopping
• Impulse Purchases Drive Mass-Discounter Sales
• Merchandising Enhancements by Mass Discounters
• Slices of the Children's Shoes Pie
• The Direct-Sales Scene
• Prospects for the Internet
• Operators on the Internet
• Hurdles for the Internet
• Marketing Direct Sales

VI THE CONSUMER

Introduction

• Note on Simmons Consumer Survey
• Simmons Data on Footwear

Consumer Overview: Casual Shoes

• Casual Leather Shoes Most Popular for Both Genders
• Table 6-1: Purchaser Overview by Casual Shoe Type: Women vs Men, 1998 (percent and number): Casual Leather, Canvas,
• Western/Cowboy Boots, Rain/Snow Boots (rubber), Other Boots (leather), Slippers

Consumer Focus: Women's Casual Shoes

• Casual Leather Shoes
• Canvas Shoes
• Western/Cowboy Boots
• Rain/Snow Boots
• Other Leather Boots
• Slippers
• Table 6-2a: Demographic Characteristics Favoring Purchase of Women's Casual Shoes: By Product Type, 1998 (US Adult Women): Casual Leather, Canvas, Western/Cowboy Boots
• Table 6-2b: Demographic Characteristics Favoring Purchase of Women's Casual Shoes: By Product Type, 1998 (US Adult Women): Rain/Snow Boots, Other Boots, Slippers

Consumer Focus: Men's Casual Shoes

• Casual Leather Shoes
• Canvas Shoes
• Western/Cowboy Boots
• Rain/Snow Boots
• Other Leather Boots
• Table 6-3a: Demographic Characteristics Favoring Purchase of Men's Casual Shoes: By Product Type, 1998 (US Adult Men): Casual Leather, Canvas, Western/Cowboy Boots
• Table 6-3b: Demographic Characteristics Favoring Purchase of Men's Casual Shoes: By Product Type, 1998 (US Adult Men):
• Rain/Snow Boots, Other Boots, Slippers

Consumer Overview: Athletic Footwear

• Almost Three-Fourths of Adults Purchase Athletic Footwear
• Casual Sneakers Are Most Popular Type
• Table 6-4: Purchaser Overview for Athletic Shoes: By Product Type, 1998 (percent and number): Any, Casual Sneakers,
• Exercise/Walking, Cross-Training, Jogging/Running, Basketball,
• Tennis, Aerobic, Bowling, Golf, Aerobic/Step, Soccer
• Nike and Reebok Most Popular Athletic Footwear Brands
• Table 6-5: Consumer Purchasing of Athletic Footwear by Brand, 1998 (percent and number): 25 brands
• Demographics Vary by Athletic Shoe Type
• Marital Status and Age
• Gender and Product Preferences
• The Race Factor
• Regional Differences
• Casual Sneakers
• Exercise/Walking Shoes
• Cross-Training Shoes
• Jogging/Running Shoes
• Basketball Shoes
• Tennis Shoes
• Aerobic Shoes
• Bowling Shoes
• Golf Shoes
• Aerobic/Step Shoes
• Soccer Shoes
• Table 6-6a: Demographic Characteristics Favoring Purchase of Athletic Footwear: By Product Type, 1998 (US Adults): Casual Sneakers, Exercise/Walking, Cross-Training
• Table 6-6b: Demographic Characteristics Favoring Purchase of Athletic Footwear: By Product Type, 1998 (US Adults): Jogging/Running, Basketball, Tennis
• Table 6-6c: Demographic Characteristics Favoring Purchase of Athletic Footwear: By Product Type, 1998 (US Adults): Aerobic, Bowling, Golf
• Table 6-6d: Demographic Characteristics Favoring Purchase of Athletic Footwear by Product Type: Aerobic/Step vs Soccer, 1998 (US Adults)

Consumer Overview: Dress Shoes

• One-Third of Adults Purchase Dress Shoes
• Female Consumer Profile
• Male Consumer Profile
• Table 6-7: Demographic Characteristics Favoring Purchase of Dress Shoes: Females vs Males, 1998 (US Adults)

Consumer Focus: Rugged Shoes

• Hiking Shoes
• Men's Work Boots
• Table 6-8: Demographic Characteristics Favoring Purchase of Rugged Shoes: Hiking Shoes vs Men's Work Boots, 1998 (US Adults, US Adult Men)

APPENDIX I: EXAMPLES OF CONSUMER AND TRADE ADVERTISING

APPENDIX II: ADDRESSES OF SELECTED MARKETERS

Abstract: