Segmentation of the Footwear Industry
The footwear market is segmented by type, price range, material, technology, occasion of use, gender, age group, lifestyle, and frequency of purchase. Understanding segmentation allows targeting specific consumer groups.
Importance of Segmentation in Footwear Market
Understanding segmentation allows targeting specific consumer groups. By understanding the needs and wants of different segments, businesses can create products that appeal to them and retailers can stock footwear customers are likely to buy. The market ranges from practical everyday footwear to specialty items.
Factors Affecting Demand for Children’s Footwear
Changing lifestyles, rise in disposable incomes across all regions, expected trends, and market intelligence.
Global Demand
- The largest segment is footwear, clothing, sportswear, accessories stores with 67.6% market share.
- Department stores 17.5%, remaining percentages distributed among other channels.
- A geographical distribution of demand is relevant.
Market Outlook
The global footwear market is expected to reach USD 223.2 billion by 2024, exhibiting a CAGR of 5.7%. The market is highly competitive with major firms accounting for large shares. The largest segment is textiles/other footwear.
Key Players
Nike, Adidas – global athletic footwear market valued at $64.30 billion in 2017. Industry is an oligopoly with high barriers to entry.
Opportunities
Avoiding counterfeit brands is key, as they disrupt supply chains and distribution, negatively impacting industry growth. Understanding customer segmentation allows targeting products and marketing.