According to the Euromonitor report on the footwear industry entitled “Comfort Conquers the Global Footwear Market ”, footwear sales have grown at a compound annual growth rate (CAGR) of 6 percent from 2010 to 2015, compared to just 4 percent CAGR for the rest of the apparel industry. Sales of women’s and children’s footwear alone is expected to lead to a $31.2 billion increase in U.S. sales by 2020. TechNavio Infiniti Research is a leading market research company which models market trends and builds forecasts across market segments and geographical regions based on the trends identified. Their forecasts indicate the global footwear market will reach $216 billion in sales by 2019.
Fashion, it appears is largely fuelling the rise in footwear sales, as many consumers, especially millennials, “prefer matching their footwear with their daily outfits. The population in the age group, 14 - 30 years is relatively more fashion-conscious and contributes considerably to the replacement purchase of footwear. Comfort is also a “major priority” for consumers when it comes to footwear, but not at the expense of style. Fortunately, for many consumers, these two trends are dovetailing nicely in the recent boom in casual athletic gear outside of the gym.
The footwear market is also getting a big boost from the popularity and high visibility of sneakers and athletic shoes. Sports footwear grew even faster than the sales of other footwear between 2010 and 2015, with a CAGR of 7 percent during that time, and that figure is also expected to grow in coming years as brands realize the value of a successful sports footwear marketing campaign and partnerships with popular athletes and teams. According to the TechNavio, celebrity-endorsed fashion, sponsoring sports teams and attracting consumers through social media are some marketing initiatives adopted by vendors.
Morgan Stanley estimated recently that the partnership between Under Armour and Stephen Curry, the NBA’s reigning two-time MVP, has been worth about $14 billion to the sports apparel company. Curry and his Golden State Warriors’ meteoric rise to the top of the NBA pantheon also helped increase sales of Under Armour’s basketball shoes 350 percent in a year.