The global sports footwear market will grow at a CAGR of 2.71% during the period 2017-2021. The findings emerge from the Global Sports Footwear Market 2017-2021 report by TechNavio (Infiniti Research Ltd.)
The report is prepared based on an in-depth market analysis with inputs from industry experts. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report considers value sales of sports footwear products.
The research is based on feedback and data from the Adidas Group, ASICS, New Balance, Nike, SKECHERS USA and several other prominent vendors like Amer Sports, AVIA, Berkshire Hathaway, British Knights, Columbia Sportswear, Eddie Bauer, Kering (Puma), NEWTON RUNNING, Nfinity, SAUCONY, The Rockport Group, Under Armour and VF Corporation.
Digital and social media marketing are essential marketing tools for the vendors to increase product visibility. To compete in this intensely competitive market, it has become essential for the brands to develop, market, and promote their products through interaction with the consumers on social media, the report suggests.
According to the report, one driver in the market is high operating margin of sports footwear. Sports footwear is usually priced higher than regular shoes. This is because their manufacturing process involves different technicalities that enhance performance at sports. Vendors focus on introducing innovative features in their products that are used for running, tennis, basketball, football, soccer, and other sports. Manufacturers also earn high operating margin from premium-priced sports footwear. This is because the manufacturing cost of these products is low, whereas they are sold at higher prices.
The report states the increasing cost of raw materials to be the biggest challenge for the market. Increasing prices of raw material and intense competition among the vendors are resulting in rising fluctuations in the profit margins for the sports footwear manufactures. This factor causes big challenges for vendors in formation of a proper pricing strategy.
Ethylene vinyl acetate (EVA), an elastomeric polymer, is the raw material used in the production of soles of sports footwear. Increase in the price of this material has a directly proportional impact on the prices of sports footwear. This further leads vendors to increase the prices of their products.