Boots Industry Marketplace Analysis

 Footwear Market Market Research Essay

Situation/Market Research

Market Size:

2. 33, 946, 600 running shoes sold in 2010 for a total of money 2, 538. 4M 2. 19, 149, 200 men's sports footwear sold in 2010 to get a total of $ 1, 363. 9M * 13, 797, 4 hundred women's running shoes sold in 2010 for a total of dollar 1, 174. 5M

Industry Growth:

Global sports footwear:

5. 46. 8% volume progress from 05-10 and installment payments on your 1% via 09-10

* 46. seven percent value growth from 05-10 and several. 3% from 09-10

Gents sports footwear:

* 66. 6% quantity growth via 05-10 and 2 . five per cent from 09-10

* 66. 8% value growth from 05-10 and 4. 0% from 09-10

Women's sports footwear:

* twenty-eight. 0% quantity growth from 05-10 and 1 . seven percent from 09-10

* twenty-seven. 5% benefit growth by 05-10 and 2 . 6% from 09-10

Future Expansion Potential of the Market (2010-2015)

Global sports footwear:

* 10. 9% volume growth

* 9. 1% value growth

Men's sports footwear:

* of sixteen. 9% volume growth

* 11. 8% value development

Women's running shoes:

* 6. 9% volume growth

5. 6. 3% value development

Barriers to Entry:

You will discover high boundaries of admittance in the athletic footwear industry.

* Good brand dedication

* Economies of range and opportunity:

2. The athletic footwear industry faces economies of level as the total cost of production shoes decreases as result increases as well as the fixed costs of marketing, production and R& D spread out. * Larger companies (NIKE, Nike, …) are able to afford to put more cash into marketing and R& M due to greater sales quantity. * Corporations often develop a wide range of related goods (ex. Nike: shoes or boots, watches, t-shirts, …)

2. Consolidation

* Larger companies frequently acquire smaller sized companies prior to they expand substantially and be threats. (ex.: Converse – Nike as well as Reebok – Adidas ), 2

* Patents:

* Patents are made on brand new features.

2. More difficult to enter the market because new companies ought to design their particular shoes with no infringement.

* Licensing and Retail Agreements

- Big...

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