Stepping out: Players target niche and export markets as imports wear down local demand

Australian footwear producers have faced a tough operating environment over the past decade. Tariff reductions and import penetration have significantly changed the industry's structure. The Footwear Manufacturing industry has also been dealing with skilled-labour shortages, accelerated industry reforms and companies offshoring production. Finding a significant low-cost footwear producer based in Australia is now a difficult task. However, several larger footwear manufacturers that still produce industrial and safety boots and sheepskin footwear have retained stable domestic output over the past five years...read more.

Industry Statistics & Market Size
Revenue
$605m
Annual Growth 12-17
3.2%
Forecast Growth 17-22
Profit
Employment
1,633
Businesses
218
Market Share of Companies

Industry Threats & Opportunities

  • Lower import duties on apparel have inhibited industry growth over the past five years
  • Rising import growth has contributed to large falls in domestic output over the past five years
  • Firms that convert into high value-added producers are more likely to remain in the industry
  • Industry Report - Industry Key Buyers Chapter

    The Footwear Manufacturing industry is characterised by a low level of market share concentration with only one major player, R.M. Williams, accounting for 16.7% of revenue. The industry is largely made up of many small firms, with an estimated 48.2% of industry players non-employing and 41.2% of enterprises hiring between one and 19 people. The majority of footwear manufacturers, an estimated 36.5%, generate revenue between $200,000 and $2.0 million.Market share concentration has fallen over the past five years as mid-size firms have left the industry or moved production offshore. Domestic manufacturers have struggled to compete with imported goods produced in countries such as China that have significantly lower operating costs. Thi...purchase to read more.

    Additional Insights for the Footwear Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Footwear Manufacturing Industry are

  • Establishment of brand names
  • Access to niche markets
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Demand from footwear retailing and Demand from department stores in the Footwear Manufacturing industry impact industry performance..

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    What's in this report

    What is the Footwear Manufacturing Industry?

    The Footwear Manufacturing industry consists of operators that manufacture footwear or footwear components. These products are then purchased by footwear wholesalers and retailers that resell them to consumers.

    Industry Products
  • Footwear with leather uppers
  • Specialised footwear
  • Footwear with plastic or rubber uppers
  • Industry Activities
  • Footwear and boot
  • Footwear component
  • Safety and protective footwear
  • Sandal and shoe
  • Slipper
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from footwear retailing
  • Demand from department stores
  • Import duties on apparel manufacturing
  • Real household disposable income
  • Trade-weighted index

  • Current Performance
  • International trade
  • Building innovative capability
  • Wages, employment and enterprises
  • Industry changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry changes
  • Branding and consumer trends
  • Automation and profitability
  • Table: Footwear Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Footwear Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Footwear Wholesaling
  • Department Stores
  • Footwear Retailing
  • Defence
  • General Hospitals

  • Key Selling Industries
  • Leather and Leather Substitute Product Manufacturing
  • Nut, Bolt, Screw and Rivet Manufacturing
  • Paperboard Container Manufacturing
  • Tool and Hardware Manufacturing

  • Products & Services
  • Footwear with leather uppers
  • Specialised footwear
  • Footwear with plastic or rubber uppers
  • Other
  • Chart: Footwear Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Footwear wholesalers
  • Department stores
  • Specialty footwear retailers
  • Export markets
  • Manufacturer direct sale
  • Specialised industries
  • Chart: Major Market Segmentation for the Footwear Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Footwear Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Footwear Manufacturing Industry

  • Industry Globalization
    RM Williams Proprietary Limited,
  • Table: RM Williams Proprietary Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Footwear Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Footwear Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Leather Shoes
  • Shoes entirely or mostly made of leather, whether natural, artificial or synthetic.
  • Plastic Shoes
  • Slippers and sandals made of a variety of plastics.
  • Tcf Industries
  • Textile, clothing and footwear industries.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Footwear Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Footwear Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Footwear Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Footwear Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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