|Type of paper:||Essay|
|Categories:||Marketing Sport Strategic marketing Customer service|
There is a lot of potential for the global athletic footwear market, and there are many expectations that the industry will continue growing. There is a firm decision to focusing on global markets rather than country marketing (Müller, 2017). Therefore with the worldwide market in mind, it is essential to create strategies that will enable the companies to develop and attract customers regardless of the geographical location (Adams, 2016). International marketing will help the firm to get a significant market share in many countries. Global marketing involves research, product development, and marketing knowledge to meet customer needs in those countries. There is a need for a company to evaluate the market to expand.
The original design was for athletics, but many of the products nowadays are used for leisure wear or casual wear. The products are designed and manufactured by other contractors who are independent and sold directly to customers through retail shops, outlets, independent distributors, sales representatives, and other sales representatives. The rivals of Nike are Adidas, Lululemon, Puma, and others (Adams, 2016). Most of the industry sales are made through wholesale sales in the USA while they have seen more significant business operations in Greater China.
The unites states is the largest market for athletic footwear globally. The athletic shoe depends highly on the fashion trends in the market as well as customer preference. However, the industry for athletic footwear is segmented into men, women, and kids' shoes. The United States shoe market in revenue is about $53.7 billion, and 82% is contributed by Nike Inc. and Adidas (Müller, 2017). The market is dominated by Nike, which has a significant market share of 47%even though it is the latest compared to Adidas.
There is a global forecast by Borts (2018) showing that the market for athletic footwear will rise by 1.7% in the next two years. Currently, the market enjoys a high gross margin of approximately 46% of the low input cost. The pricing of the products is premium and has also contributed to the growth of revenue. There is a significant growth in the athletic footwear industry with the growth seen in the three substantial categories mentioned (Müller, 2017). The highest grade is running class with almost 36%, with the basketball category growth rapidly rising in comparison to the other categories. The basketball category has about a 2.9% market share.
The basketball footwear category enjoys a high margin, with Nike benefiting more from the market. For example, the Jordan brand has contributed to 58% of the total revenues collected in the basketball category from the United States market. The famous sporting activities have also added to the sales of athletic footwear (Adams, 2016). Such events include the FIFA world cup, Olympics, and the National Football League, which have contributed to the boosting of revenues of the footwear company.
Many companies are seeking opportunities worldwide, providing clients with some most exquisite designs. The most beneficiaries of the new market are Nike and Adidas. The two enjoy a market of about 65%. However, there is fierce competition from smaller companies emerging and going for large manufacturers (Borts, 2018). There is a positive overall outlook of the athletic shoe industry as there are many expectations from the existing and emerging manufacturers.
Adams Jr, G. T. (2016). Empowering consumers is capable guardians to prevent online product counterfeiting victimization in the athletic footwear industry: a routine activity perspective. Michigan State University.
Borts, A. (2018). Nike, inc.-athletic footwear, and apparel (Doctoral dissertation).
Müller, D. (2017). The role of brand communities within the athletic footwear industry is to assess selected brand communities with a focus on the Swiss athletic footwear industry.
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