global footwear market trends, developments and prospects

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Sports footwear forms approximately 26% of total global footwear market sales in 2013, and is also expected to outperform the overall footwear market going forward – due to increased participation in sports, but also as consumers increasingly choose to wear sports footwear on a day-to-day basis, following the move towards comfort. Euromonitor segments the sports footwear market into 3 subcategories: ‘Performance, Outdoor and Sports-inspired. Performance footwear includes footwear which is specifically designed for sporting activities and includes a significant level of technical development – e.g. Nike Flyknit Lunar running shoes. Outdoor footwear includes footwear specifically designed for outdoor activities with technical features, e.g. durability and enhanced protection against difficult weather conditions. Sports-inspired footwear – currently the biggest category - are not designed to enhance performance while practising specific sport disciplines and instead are more geared towards latest fashion trends. Some of the biggest and best online fashion retailers have been purveyors of footwear. Not only are they winning on price and variety, they are also not piggybacking on fit-lifting tactics. In fact, many of the most successful online start-ups are creating and marketing their own branded products. It’s important to discuss distribution strategies in more detail as these are closely linked to consumer demand. A huge proportion of footwear in China is sold through an unorganised retail and currently we are seeing a dynamic shift from this channel through apparel specialist retailers and sports good specialists to internet retail. And whereas unorganised retail is here to stay – at least for now – it’s dominance is gradually diminishing and the unorganised retail sector is bound to shrink as a share of the overall market in the medium term.



2. INTRODUCTION AND GLOBAL PICTUREKEY GLOBAL TRENDSZOOMING IN ON CHINA 3. INTRODUCTION AND GLOBAL PICTUREGlobal retail sales 2013 (US$ million)Packaged FoodApparelHome and GardenConsumerElectronicsTobaccoNon-AlcoholicDrinks Euromonitor International3Where footwear fits in the global consumer goods worldAlcoholic Drinks2.4 tn1.5 tn1.0 tn899 bn863 bn717 bn717 bnPersonal Accessoriesand EyewearBeauty and PersonalCareFootwearConsumer HealthTissue and HygieneToys and GamesHome Care680 bn484 bn375 bn221 bn180 bn167 bn165 bn 4. INTRODUCTION AND GLOBAL PICTURE600500400300200100 Euromonitor International4Global footwear market continues to grow87654321002009 2010 2011 2012 2013 2014 2015 2016 2017 2018% Year-on-Year GrowthRetail Sales, US$ billionGlobal Footwear Market Growth 2009-2018Footwear Market Size Footwear Markeet Size Growth 5. Top 3 markets account for almost 40% of global sales Euromonitor International567US$ billion212 US$52US$ billion38 US$21US$ billion145 US$INTRODUCTION AND GLOBAL PICTURETotal valuemarket sizePer capitaspend 6. INTRODUCTION AND GLOBAL PICTURE Euromonitor International6Footwear volume trends2012 % GrowthUnits per Capita> 9.05.0-8.92.0-4.90.0-1.9< 0.0 7. INTRODUCTION AND GLOBAL PICTURE25020015010050 Euromonitor International70Women'sFootwearMen'sFootwearChildren'sFootwearUS$ billionGlobal Footwear Market Sizeby Category 2013-182013 2013-18 GrowthGlobal FootwearMarket CategoryShares 2013Womens footwear still dominates salesMensFootwear34%WomensFootwear53%ChildrensFootwear12% 8. GLOBAL FOOTWEAR MARKET: TRENDS, DEVELOPMENTS AND PROSPECTS4%2%Global FootwearMarket 2013Sports26% Euromonitor International8Sports footwear outperforms the marketEurope: Sports FootwearMarket 2013Performance44%Outdoor15%Sports-inspired41%0%% year-on-yeargrowthSports Footwear ForecastGrowthFootwear Sports Footwear 9. Performance and sports-inspired hold the greatest potential605040302010 Euromonitor International902013 2014 2015 2016 2017 2018US$ billionEurope: Sports Footwear Forecast Growth 2013-18Performance Outdoor Sports-inspired FootwearEUROMONITOR INTERNATIONAL 10. INTRODUCTION AND GLOBAL PICTUREKEY GLOBAL TRENDSZOOMING IN ON CHINA 11. Post-recession polarisation in developed markets151050 Euromonitor International11Post-recessionPolarisationLuxuryEconomyKEY GLOBAL TRENDS-52008-09 2009-10 2010-11 2011-12 2012-13% year-on-year growthWestern Europe: Brand Sales Growth vs FootwearGrowth2008-2013FootwearPradaH&M 12. KEY GLOBAL TRENDS Euromonitor International12FastFashionPrivateLabelValue fashion boomsDecliningunit pricesRisingvolumesGrowth ofvalueformats 13. Private label: flexing stronger fashion credentials Euromonitor International13Stand-alonestoresTescoF&FFashion trendsCollaborations/SponsorshipBrandSegmentationSocial mediaKEY GLOBAL TRENDS 14. KEY GLOBAL TRENDS Euromonitor International14E-tailing innovation focuses on footwear 15. INTRODUCTION AND GLOBAL PICTUREKEY GLOBAL TRENDSZOOMING IN ON ASIA PACIFIC AND CHINA 16. ZOOMING IN ON ASIA PACIFIC AND CHINA Euromonitor International16Asia Pacific value sales account for almost US$100 billionAsia Pacific coverageChinaHong Kong, ChinaIndiaIndonesiaJapanMalaysiaPhilippinesSingaporeTaiwanThailandVietnamUS$ 98 bnAsia Pacific footwearmarket sales 2013 17. ZOOMING IN ON ASIA PACIFIC AND CHINAFootwear Sales Breakdown by Category 2013 Euromonitor International17A brief look at footwear market structure in ChinaChildren'sFootwear11%Men'sFootwear36%Women'sFootwear53%Total market sizein China52US$ billion 18. Mix of local and global heavyweights dominate Chinese footwearNikeBelleadidasDaphneAokang Euromonitor International180 0.5 1 1.5 2 2.5 3 3.5Teenmix% Market ShareZOOMING IN ON ASIA PACIFIC AND CHINA 19. ZOOMING IN ON ASIA PACIFIC AND CHINA Euromonitor International19Distribution Patterns: Footwear Route to MarketUnorganisedRetailFootwearSports GoodsSpecialistsInternetRetailingApparel andFootwearSpecialistRetailers 20. ZOOMING IN ON ASIA PACIFIC AND CHINAInternet Retail Shift: Store to Web Gaining Momentum12108642 Euromonitor International2002008 2009 2010 2011 2012 2013% Share of Total DistributionFootwear Internet Sales 2008-2013NegligiblePresence10.7% 21. ZOOMING IN ON ASIA PACIFIC AND CHINA8070605040302010 Euromonitor International21Continued growth going forwardRanking 2013 20181 USA USA2 China China3 Russia Russia4 Brazil Brazil5 Japan Mexico6 Germany Japan7 MexicoUnitedKingdom8 France Germany9 UnitedKingdomItaly10 Italy France02014 2015 2016 2017 2018US$ billionFootwear Value Sales in China2013-2018 22. Euromonitor International22THANK YOU FOR LISTENINGRoy Zhou | Client Development [email protected] International (Shanghai)29/F, Finance Square333 Jiujiang RoadShanghai