Cold feet: Increasing wholesale bypass has caused industry revenue to decline

The Footwear Wholesaling industry has faced several challenges over the past five years. Growth in the number of imports from low-cost countries has negatively affected footwear prices. A decline in the average price of footwear has hindered industry revenue growth. Increasing wholesale bypass has also affected trading conditions across the industry, with industry revenue being lost to manufacturers. As a result, industry revenue is expected to post weak annualised growth of 1.2% over the five years through 2016-17, to total $2.2 billion. Industry profitability has declined over the past five years, due to price discounting by most major footwear retailers, and department stores constraining product more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

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 in developing premium products and services
  • Industry Report - Starting a New Business Chapter

    The industry has medium barriers to entry, and the trend is steady. The industry is operating in the decline stage of its life cycle, underperforming the overall economy. Changes in the industry's buyers' market reflect the growing trend for manufacturers and retailers to bypass traditional wholesalers. Furthermore, existing contracts and agreements among established retailers and wholesalers can make it difficult for new wholesaling companies to gain clients. Licence agreements provide wholesalers with exclusive distribution of certain brands. Industry competition is high. Operators compete on the basis of price, product range and quality. Industry operators are also subject to strong competition from manufacturers and importers seeking a share of the market...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?

    Companies in the industry 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, and establishing relationships with manufacturers and retailers to ensure the reliable supply and demand of stock.

    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
  • Department stores
  • Other retailers
  • 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
  • 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,
  • Table: Nike Australia Pty Ltd - financial performance
  • Table: adidas Australia Pty Ltd - 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
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • 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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