Best foot forward: Demand for locally made footwear gives import competition the boot

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 endured fluctuating downstream demand 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, premium footwear and sheepskin footwear have retained stable output over the past five years. As a result, existing manufacturers must seek ways to differentiate themselves from mass-produced imports through leveraging consumer style trends, quality and Australian brand value to remain competitive...read more.

Industry Statistics & Market Size
Revenue
$644m
Annual Growth 13-18
3.8%
Forecast Growth 18-23
Profit
Employment
1,951
Businesses
181
Market Share of Companies

Industry Threats & Opportunities

  • Export markets and rising demand for Australian-made products provide opportunities for revenue growth
  • Profit continues to fall as wage and purchase expenses increase industry costs and squeeze margins
  • 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 low market share concentration, with the industry's four largest players accounting less than 40% of industry revenue. The industry is largely made up of many small firms, with an estimated 48.9% of industry players non-employing and 43.5% of enterprises hiring between one and 19 people. The majority of footwear manufacturers, an estimated 35.5%, generate revenue between $200,000 and $2.0 million.However, market share concentration has risen over the past five years. Declines in industry enterprise numbers is primarily due to the departure of small businesses, while larger players have maintained market share. Sma...purchase to read more.

    Additional Insights for the Footwear Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Footwear Manufacturing 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
  • Trade-weighted index
  • Real household disposable income
  • Import duties on apparel manufacturing

  • Current Performance
  • International trade
  • Profit, employment and enterprises
  • Downstream trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand markets
  • Production trends
  • Profit and employment
  • 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
  • Export markets
  • Specialty footwear retailers
  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • 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
  • Shoes, such as slippers and sandals, made of a variety of plastics.
  • Tcf Industries
  • Textile, clothing and footwear industries.
  • What Our Customers Say

    Why buy this report?

    The Footwear Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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