Converse Brand Strategy
[pic]– Verb - to talk informally with another or others; exchange views, opinions, etc., by talking.
MARKET
Brand share 2007
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Past seven years have seen a decline in the footwear market as the popularity of cheaper “low performance” wear increases (sector includes Converse) although there is a lack of more recent data available. However, during the economic downturn even the “low performance” segment has struggled.
From 2003 to 2004, the market for athletic apparel and footwear grew by almost $7.5 billion, 12% Between 2004 and 2005, however, it grew by less than $4 billion; in percentage terms, the 6% growth was only half as high as growth a year earlier. Furthermore, in 2007, global footwear sales reached $44.4 billion, a mere 2% increase from 2006. Much of this slow down is because of weakened consumer spending But also the rise in popularity of low-performance footwear. This may have propped up Nike who managed better than most competitors, as the company 's footwear sales increased 9% during Q1 2009
Break down of footwear market – low performance includes Converse
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For many years this has been good news for Converse, but recently they have also seen marked slow down (although still in growth)
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Women’s and youths footwear is especially affected by decline
Women 's footwear is struggling just like many other retail apparel sectors. While it might be tempting to assume that women and shoes are “recession proof,” this market experienced over a 3% decline in 2008 at inflation-adjusted prices and is expected to decrease even more in 2009.”
The picture for shoes targeting a younger audience is even worse. Many youthful shoe brands have experienced sales declines well above 10% or even 20%. Apparel is one of the worst hit categories —wearing a pair of shoes for longer before replacing it and cutting out impulse purchases is a common response to economic fears – Mintel 05/09
COMPETITION
Competition that 's getting stiffer all
MARKET
Brand share 2007
[pic]
Past seven years have seen a decline in the footwear market as the popularity of cheaper “low performance” wear increases (sector includes Converse) although there is a lack of more recent data available. However, during the economic downturn even the “low performance” segment has struggled.
From 2003 to 2004, the market for athletic apparel and footwear grew by almost $7.5 billion, 12% Between 2004 and 2005, however, it grew by less than $4 billion; in percentage terms, the 6% growth was only half as high as growth a year earlier. Furthermore, in 2007, global footwear sales reached $44.4 billion, a mere 2% increase from 2006. Much of this slow down is because of weakened consumer spending But also the rise in popularity of low-performance footwear. This may have propped up Nike who managed better than most competitors, as the company 's footwear sales increased 9% during Q1 2009
Break down of footwear market – low performance includes Converse
[pic]
For many years this has been good news for Converse, but recently they have also seen marked slow down (although still in growth)
[pic]
Women’s and youths footwear is especially affected by decline
Women 's footwear is struggling just like many other retail apparel sectors. While it might be tempting to assume that women and shoes are “recession proof,” this market experienced over a 3% decline in 2008 at inflation-adjusted prices and is expected to decrease even more in 2009.”
The picture for shoes targeting a younger audience is even worse. Many youthful shoe brands have experienced sales declines well above 10% or even 20%. Apparel is one of the worst hit categories —wearing a pair of shoes for longer before replacing it and cutting out impulse purchases is a common response to economic fears – Mintel 05/09
COMPETITION
Competition that 's getting stiffer all