In a recent market research report examining the global footwear market, Transparency Market Research states that the market will expand at a meagre 2.5% CAGR in terms of revenue and 2.3% CAGR in terms of units of products sold over 2015-2023. The sluggish growth prospects for the market make evident that market vendors will have to pay more attention on key trends and modify accordingly to stay ahead of competition.
Mentioned below are some of the major trends seen in the present-day footwear market that will have significant influence on the growth prospects of the market:
Emerging Markets Exhibiting Most Lucrative Growth Opportunities
Spending on footwear reduced substantially during the recent recession in developed regions such as North America and Europe. Though the market witnessed a steady recovery in the post-recession period, much of the market’s growth was seen in developing counties such as India, China, and other Asian countries. The trend is expected to persist over the next many years and will strengthen economies. Rising GDPs, flourishing industrial segments, and the rising commercialization of products grant the consumer in developing regions more purchasing power, which subsequently fuels demand from the footwear market in the region.
It is projected that a dominant share of consumer spending on footwear will be seen in emerging markets. Only the companies who prepare themselves and modify their product offerings according to the choices of this new consumer-base will be able to sustain in the market in future years.
E-Commerce Retail Segment is strengthening
The convenience of buying and payment, the availability of a vast array of product choices, and the attractive discounts offered by the e-Commerce retail industry have jeopardized the traditional brick-and-mortar retail industry in the past few years. Though the e-Commerce industry is projected to witness strong growth over the future years, the experience of shopping for a perfect, comfortable pair of footwear by actually trying it will bring back the consumer to traditional stores. Nevertheless, the heightened popularity of the e-Commerce segment will continue to have a significant influence on the retail industry. Thus, in addition to traditional outlets, having presence in the online space will help companies in benefitting the online trend and extending marketing and consumer retention plans.
Consumers are Prioritizing on Making Sustainable Purchases
Consumers around the world are becoming increasingly aware of the need to switch to renewable resources to tackle the vast environmental damage and the severe climate changes triggered by several industrial and human activities. Thus consumers are prioritizing on making sustainable purchases, a trend that will prompt manufacturers in implementing environment-friendly, transparent, and better manufacturing practices in the near future.