Race to the bottom: Low-cost imports are forcing industry wholesalers to lower prices to compete

The Footwear Wholesaling industry has faced several challenges over the past five years. Growth in the volume of imports from low-cost countries has negatively affected footwear prices, as price competition has heated up. The resultant decline in the average price of footwear has hindered industry revenue growth over the period. Furthermore, the growing trend towards wholesale bypass has also affected industry wholesalers, as some large retailers have dealt directly with manufacturers, instead of purchasing footwear through wholesalers. Overall, industry revenue is expected to rise at an annualised 1.3% over the five years through 2017-18, to $2.1 billion...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
1.3%
Forecast Growth 18-23
Profit
Employment
4,596
Businesses
454

Industry Threats & Opportunities

  • Growth in import volumes from low-cost countries has negatively affected footwear prices
  • Despite growth in disposable incomes, volatile consumer sentiment has constrained spending
  • Footwear wholesalers are expected to invest more into sourcing premium products.
  • Industry Report - Industry Key Buyers Chapter

    The Footwear Wholesaling industry has low market share concentration, with the top four players accounting for considerably less than 40% of the market. Most industry participants are smaller-sized operators with fewer than 20 employees. Technology change in the industry is low, and the industry is subject to low regulation. As a result, it is feasible for new operators to enter the industry and gain market share. The low capital investment required by new entrants also encourages new players to enter the industry.Nevertheless, the industry’s medium barriers to entry may deter prospective industry entrants. Existing operators have well established contracts and agreements in place with manufacturers and retailers. Fur...purchase to read more.

    Additional Insights for the Footwear Wholesaling Industry

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

  • Guaranteed supply of key inputs
  • Having contacts within key markets
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Demand from footwear retailing and Demand from department stores in the Footwear Wholesaling industry impact industry performance..

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    What's in this report

    What is the Footwear Wholesaling Industry?

    Industry companies wholesale a range of footwear products to retailers. Most footwear wholesalers also conduct sales and administrative activities. These activities include managing the storage and transportation of stock, developing marketing and advertising materials, and establishing relationships with manufacturers and retailers.

    Industry Products
  • Women's footwear
  • Men's footwear
  • Children's footwear
  • Other footwear
  • Industry Activities
  • Men's footwear wholesaling
  • Women's footwear wholesaling
  • Children's footwear wholesaling
  • Work-related footwear wholesaling
  • Unisex footwear wholesaling
  • 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
  • Real household disposable income
  • Consumer sentiment index
  • Trade-weighted index

  • Current Performance
  • Trading landscape
  • Profit and competition
  • Stores and staff
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading landscape
  • Profit and competition
  • Table: Footwear Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Footwear Retailing
  • Sport and Camping Equipment Retailing

  • Key Selling Industries
  • Footwear Manufacturing

  • Products & Services
  • Women's footwear
  • Men's footwear
  • Children's footwear
  • Other footwear
  • Chart: Footwear Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Footwear retailers
  • Discount stores
  • Other retailers
  • Department stores
  • Chart: Major Market Segmentation for the Footwear Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Footwear Wholesaling

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

  • Industry Globalization
    Nike Australia Pty Ltd, adidas Australia Pty Ltd, Accent Group Limited,
  • Table: Nike Australia Pty Ltd - financial performance
  • Table: adidas Australia Pty Ltd - financial performance
  • Table: Accent Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Footwear Wholesaling 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 Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Lead Time
  • The time from the moment a supplier receives an order to the moment it is received by the purchaser.
  • Rfid
  • Radio-frequency identification is an object or tag that is applied to a product, person or animal for the purpose of tracking and identification using radio waves.
  • Wholesale Bypass
  • A trend whereby the wholesaler is bypassed in the supply chain, such as when retailers purchase directly from the manufacturer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Footwear Wholesaling market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Wholesaling:
    • 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 Wholesaling 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 Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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