Singapore Footwear Analysis

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Chapter 2

Market Analysis

2.1.1 Footwear Market Size

The global consumption of footwear showed a steady growth between 2004 and 2007 but the global recession caused output volumes and consumer spending across a wide range of products, including footwear, to weaken in 2009. The USA, EU and Russian markets contracted in 2008 after good growth. Whereas the Asian and Brazilian markets continue to grow as a rising number of low-middle class people replace their flip-flops by closed shoes. A more important driving force to the global footwear market is the fast growth of very affluent people in the emerging economies buying luxury footwear.

In 2008, the global footwear market was estimated at USD 201 billion and 7.3 billion pairs, an annual average growth of 1.4%, compared to USD 190 billion in 2004. The rising number of workingwomen, the trends towards casual footwear, the increasing affluence, and footwear as a fashionable status symbol, growing awareness about healthy and active lifestyle, rising population and disposable income levels, were driving this growth.

According to a new market report published by Transparency Market Research, the global footwear market was worth USD 185.2 billion in 2011 and is expected to reach USD 211.5 billion in 2018, growing at a CAGR of 1.9% from 2011 to 2018. Global spending is expected to be moderate in 2012, as industry revenue for the Global Footwear Manufacturing industry increases by 2.2% in the current year to total USD 122.9 billion, up from USD 107.4 billion in 2007. This represents annualized growth of 2.7% in the past five years. As consumer spending power in the United States, Europe and other parts of the world steadies, demand for basic, non-discretionary footwear will continue to remain low. Furthermore, Transparency Market Research also stated that, in the overall global market, Asia Pacific is expected to maintain its lead position in terms of revenue till 2018. It is expected to hold the largest share at 42% with 30.1% of the global footwear market revenue share in 2018 followed by Europe with 21% of market share.

2.1.2 Footwear Market Segmentation

The footwear market is segmented into Men, Women and Children. Women’s footwear, excluding athletic footwear makes up the industry's largest product segment, with an estimated 26.3% of industry revenue in 2012. Due to rise of economic independence and demand, new products are being launched more frequently in the women’s footwear segment than the men’s and children’s sections.

There is a large variety of footwear for women, which are categorized by types and styles. Most types of them are designed for specific activities but, on the other hand, in the same activity, there have many styles in it. For this reason, both of the categories are somewhat overlap. Therefore, in this chapter, women’s footwear is categorized into types as followed: * Athletic shoes

* Boots
* Casual shoes
* Comfortable shoes
* Dress shoes
* Job-specific shoes
* Office and Professional
* Sandals
* Specialty and Special Needs

2.1.3 Footwear Market Growth Rate

Packaged Facts expects the global footwear market to grow at a substantially slower clip between 2008 and 2013 compared to previous years. The global economic environment will likely put a damper on consumer spending putting pressure on all measures of the footwear including frequency of purchase, unit consumption and pricing. Regionally, markets will be affected to varying degrees and at various points in time as the global economic slump works its way through international markets. For instance, the Asia-Pacific region may take longer to slow down and may not be as severe as other regions.

Global Footwear Retail Market Forecast, 2008-2013 (in billion $)

Source: Packaged Facts

On a unit volume basis, Packaged Facts expects global unit volume consumption is expected to reach 12.1 billion pairs in 2013, which is equal to 3%...
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