U.S. Footwear Market

Part
01
of six
Part
01

Competitive Landscape - Wolverine WW and Red Wing: Columns B and C

The market share of the company Wolverine WW and Red Wing is 2.62% and 0.819%, respectively. The key sale channel for both the company is eCommerce website and retail front.

The link to the spreadsheet is here.

1. Wolverine Worldwide

  • Website — http://www.wolverineworldwide.com/
  • Overview — The company is operating since 1883 and is a global marketer of branded footwear and has its presence in over 200 countries and territories
  • Brands Under Ownership — Bates®, Chaco®, HyTest®, Hush Puppies®, Keds®, Merrell®, Saucony®, Soft Style®, Sperry®, Stride Rite Children’s Group®, Wolverine®, and Wolverine® Leathers
  • Brands Under License — Cat® Footwear and Harley-Davidson® Footwear
  • Market Share — 2.62% in 2018.
  • Company Size — 3,700 employees
  • Company Structure — It is a publicly-traded company and the company strongly believes in corporate governance with high standard management and board of directors team.

Key Sales Channels

2. Red Wing WW

  • Website — https://www.redwingshoes.com/
  • Overview — They are proficient in making work boots for industries such as mining, logging, and farming. For over 110 years, the company has been producing high-quality footwears. It is headquartered in Red Wing, Minnesota
  • Brands Under Ownership — Irish Setter, VASQUE, Red wing Heritage
  • Market Share — 0.819% in 2018.
  • Company Size — 1001 to 5000 employees
  • Company Structure — It is a private company which is led by the CEO/President of the company Mark Urdahl

Key Sales Channels

  • eCommerce sites like Heritage Collection, Irish Setter Hunting Boots, Irish Setter Work Boots, Vasque Trail Footwear, etc.
  • Retail Stores

RESEARCH STRATEGY

Market Share

Wolverine WW:
  • U.S. footwear market size in 2018: $85.45 billion
  • Revenue of Wolverine WW in 2018: $2.24 billion
Market Share of Wolverine WW in 2018 — [(2.24/85.45)*100] = 2.62%

Red Wing:
  • U.S. footwear market size in 2018: $85.45 billion
  • Revenue of Wolverine WW in 2018: $700 million
Market Share of Red Wing in 2018 — [(0.7/85.45)*100] = 0.819%
Part
02
of six
Part
02

Competitive Landscape - Famous Footwear and NIKE: Columns D and E

Famous Footwear's retail store chain of casual, athletic, and fashionable footwear resulted in $1.6 billion of revenue in 2018 or 1.87% market share. Nike, the largest seller of footwear and apparel in the world, had a shoe revenue of $22.29 billion in 2018 that translates to a 26.06% market share. The required details on these two companies have been provided in columns D and E of the attached spreadsheet.

OVERVIEW

Famous Footwear:

  • The company sells athletic and casual shoes for the whole family from hundreds of name brands. It has styles for women, men, and kids.
  • The company has 992 stores at the end of 2018, and its core consumers are women looking for national brands of casual, athletic, and fashionable footwear.

Nike:

  • Nike is the largest seller of athletic footwear and apparel in the world. Nearly all of its footwear and apparel products are manufactured outside of the US and by independent contractors.

BRANDS UNDER OWNERSHIP

Famous Footwear:

  • Company-owned and licensed brands are Dr. Scholl's Shoes, LifeStride, Naturalizer, Fergie Footwear, Blowfish Malibu, Carlos by Carlos Santana, Circus by Sam Edelman, and Vionic.

Nike:

  • Nike's subsidiary brands include Jordan Brand, Converse, Chuck Taylor, All Star, One Star, Star Chevron, Jack Purcell, and Hurley.

MARKET SHARE

Famous Footwear:

  • Famous footwear's 2018 revenue totaled $1.6 billion, which is equivalent to 1.87% market share.

Nike:

COMPANY SIZE

Famous Footwear:

  • Famous footwear has 5,001 employees.

Nike:

  • Nike has 73,100 employees worldwide, including part-time and retail employees.

COMPANY STRUCTURE

Famous Footwear:

  • Famous Footwear is part of Caleres Inc, a publicly traded company on the New York Stock Exchange. The company is responsible for 57% of Caleres Inc total revenue for the year 2018. The parent company, Caleres, believes in a diversified business model focusing on changing consumer demand.

Nike:

  • Nike is a publicly traded company listed on the New York Stock Exchange. Nike changed its operating structure on June 1, 2017, and currently has a geographic divisional organizational structure. Geographic regions define Nike's brand segments, which consist of North America, Europe, Middle East & Africa, Greater China, Asia Pacific, and Latin America.

KEY SALES CHANNEL

Famous Footwear:

  • Famous footwear has two main sales channels, namely retail stores and e-commerce. Retail stores accounted for 91.88% of the total revenue ($1.47 billion in sales), while e-commerce accounted for 8.5% ($136 million in sales) in 2018.

Nike:

  • The three key sales channel for Nike are Nike Direct, wholesale customers, and global brand divisions. In 2018, wholesale customers brought $23.97 billion in revenue, while Nike Direct brought $10.43 billion in revenue. Global brand divisions brought $88 million in revenue.

RESEARCH STRATEGY

To calculate the market shares of Nike and Famous Footwear, we looked for their revenues via their annual reports. We used 2018 figures as these are their latest available revenues. We then divided their 2018 revenues by the 2018 market size already determined in the strategy document. For Famous Footwear, since it is a chain of retail stores selling footwear, we used the total revenue while for Nike, we used the revenue due to footwear as mentioned in its latest annual report.
Part
03
of six
Part
03

Competitive Landscape - Puma and Adidas: Columns F and G

PUMA and Adidas are global sports brands headquartered in Germany. They develop and manufacture apparel, accessories, and footwear brands. The market share of the footwear segment of PUMA is 2.9% of the total footwear market and Adidas' is 14.96%. A competitive analysis of these companies have been presented below, as well as in columns F and G of the attached spreadsheet.

PUMA

  • PUMA is one of the leading sports brands in the world that develops and designs apparel, accessories, and footwear products.
  • It was founded in 1948 by Rudolf Dassler and is headquartered in Herzogenaurach, Germany.
  • The company focused on 5 priorities: "brand heat, a ­competitive product range, a leading offer for women, an improved distribution quality and organizational speed".

BRANDS UNDER OWNERSHIP
  • Cobra Golf, Tretorn, and PUMA are the brands owned by the PUMA Group.

MARKET SHARE
  • PUMA's revenue on its footwear segment was $2.5 billion in 2018.
  • It is 2.9% of the total footwear market in 2018 (see calculation on the research strategy section).

COMPANY SIZE

COMPANY STRUCTURE
  • PUMA became a public company in 1986 led by the founder's son Armin Dassler as CEO.
  • It operates as a European corporation with internal reporting activities based on regions Asia/Pacific, EMEA, and the Americas.
  • It has 103 subsidiaries as of December 2018 that are controlled by PUMA SE.

KEY SALES CHANNELS
  • PUMA operates in different sales channels: traditional trade (wholesale), retail stores, and e-commerce platforms.

ADIDAS

  • Adidas is a global sports brand headquartered in Herzogenaurach, Germany.
  • Founded in 1949 by Frank Dassler, the brand manufactures accessories, footwear, and apparel for various sports.
  • The company's mission is "to be the best sports company in the world".

BRANDS UNDER OWNERSHIP

MARKET SHARE
  • Adidas' revenue on its footwear segment was $12.78 billion in 2018.
  • It is 14.96% of the total footwear market in 2018 (see calculation on the research strategy section).

COMPANY SIZE

COMPANY STRUCTURE
  • Adidas is a public company.
  • The company is directed by the guiding principles of its operating model "Brand Leadership" which aims to provide an organizational structure that enables a culture that can work with agility, speed, and empowerment.
  • Its "Global Operations" team manages the production planning, sourcing, development, and distribution of its products.

KEY SALES CHANNELS
  • Adidas operates in different sales channels: its own retail stores and e-commerce sites, as well as through its wholesale partners.
  • In 2018, e-commerce is the fastest growing sales channel of Adidas. Its global e-commerce sales grew with a 36% increase.

Research Strategy:

For this request, we primarily used PUMA and Adidas' official website and their 2018 annual report as the most credible sources of information. To determine their market share as part of the total footwear market revenue, we applied the following computations:
The total footwear revenue in 2018 was derived from the 2017 figure with 7% growth.
2018 footwear market revenue
= 2017 revenue + growth rate
= $85.45 billion
To calculate the market share of Puma and Adidas, we used the footwear segment sales of these brands in 2018 and compared them to the total estimated footwear revenue in 2018 (computed above).
Puma market share 2018
= Puma footwear segment revenue 2018 / total footwear market revenue * 100
= $2.5 billion / $85.45 billion * 100
= 2.9%
Adidas market share 2018
= Adidas footwear segment revenue 2018 / total footwear market revenue * 100
= $12.78 billion / $85.45 billion * 100
= 14.96%
Therefore, the market share of the Puma and Adidas as part of the total footwear market revenue in 2018 is 2.9% and 14.96% respectively.
Part
04
of six
Part
04

Competitive Landscape - New Balance and Born: Columns H and I

New Balance was founded in 1906, they are a global brand that makes footwear and apparel. Born shoes are made with exquisite materials and are of high quality. Born started with the goal of making shoes that are comfortable and also lightweight. A full record of our findings has been made in the attached spreadsheet.

NEW BALANCE

  • Overview: New Balance was founded in 1906. It is a global brand that makes footwear and apparel.
  • Brands owned: WARRIOR, P.F. Flyers, Brine, and Newbalance.
  • Market share: The company has an estimated market share of 1.11%.
  • Company size: The company has 8,000 workers.
  • Company structure: The company is publicly traded.
  • Key sales channels: The company's key sales channels are NB online store, NB factory store, and NB stores.

BORN

  • Overview: Born shoes are made with exquisite materials and are of high-quality. The company started with the goal of making shoes that are comfortable and lightweight.
  • Brands under ownership: BORN brand.
  • Market share: Born has a market share of 0.0065%.
  • Company size: The company has 29 workers.
  • Company structure: The company is privately owned.
  • Key sales channels: The company's key sales channels are Born online Store, and Amazon.

CALCULATIONS

The following calculations were made to determine the market share of New Balance.
The company has a revenue of $4 billion. The market has a total size of $360 billion. Thus, market share = (100% * 4)/360 = 1.11%

The following calculations were made to determine the market share of Born shoes.
The company has a revenue of $5.8 million. The market has a total size of $89.065 billion. Thus, market share = (100% * 0.0058)/89.065 = 0.0065%.

Part
05
of six
Part
05

Competitive Landscape - Steve Madden and Johnston & Murphy: Columns J and K

Steve Madden is a public company that supplies footwear, handbags, and accessories, which is sold in more than 80 countries globally. The Johnston & Murphy Group is well-known brand providing footwear in the United States for over 150 years with a market share of 0.35%. The requested details for each company are available in rows three through eight, columns J through K of the attached spreadsheet.

STEVE MADDEN

  • Steve Madden is an exemplary footwear label that has transformed the shoe sector by consolidating years of expertise with imaginative designs that empowers individuality and are veritable. It has augmented to a preposterous destination for accessories, handbags, and footwear. Steve Madden's products are sold in more than 80 nations around the globe.
  • The wholesale footwear segment consists of owned brands such as: Blondo®, Steve Madden Women's®, Steve Madden Men's®, Madden®, Dolce Vita®, B Brian Atwood®, DV by Dolce Vita®, Mad Love®, Steven by Steve Madden®, Report®, Betsey Johnson®, Madden Girl®, Betseyville®, Steve Madden Kids®, Madden NYC, FREEBIRD by Steven®, and Stevies®.
  • The company is currently the licensee some footwear labels, such as Avec Les Filles Superga, Kate Spade, and Olsenboye Anne Klein.
  • Market Share: 1.93% in 2018 [Calculations available in the Research Strategy section]
  • Company Size: 3,900 employees
  • Company Structure: Publicly-held business
  • Its products are advertised through e-commerce sites, its retail stores, along with major department stores, better department stores, mid-tier department stores, luxury retailers, specialty stores, and online and catalog retailers, among other establishments.
  • Its private trademarked footwear is sold through mass market merchants and mid-tier chains.

JOHNSTON & MURPHY

  • For over 150 years, Johnston & Murphy has satisfied the footwear requirements of scrupulous professional males with relevant styling, high-level craftsmanship, superior quality materials. The company presents footwear for casual, dress casual, and dress circumstances. It continued its dedication to innovation, craftsmanship, and style by revealing a brand-new selection of shoes, leather goods and accessories for women in the year 2008.
  • Brands: Johnston & Murphy, H.S. Trask
  • Market Share: 0.35% in 2018 [Calculations available in the Research Strategy section]
  • Company Size: 535 employees
  • Company Structure: Public-held business
  • Its products are available in company-owned retail establishments within outlets, airports, and better malls throughout the United States. Additionally, Johnston & Murphy sells its merchandise via a direct mail catalog and an e-commerce store on its website, as well as through specialty and department establishments internationally and across the United States.
  • The company's women's and men's wholesale operations for accessories and footwear are mostly sold to e-commerce stores, independent specialty locations, and better department stores.
  • Furthermore, it provides access to H.S. Trask, under the Johnston & Murphy Group with leather accessories and footwear supplied chiefly through department stores, an e-commerce site, catalog, better independent retailers, and the Trask website.

Research Strategy:

Our research began by analyzing the company website and annual reports to obtain insights on the company. With this research strategy, we were able to find information for an overview of the brands. We then examined the annual reports to get the companies' structure, size, and key channel details and to acquire revenue details to get the market share. According to their annual filings with the SEC, Steve Madden and Johnston & Murphy are both public traded companies.
Key channel details were readily available in the annual reports for both the companies. For Steve Madden, we found the company size (i.e the employee count details) from its 2018 annual report. Johnston & Murphy is a subsidiary of Genesco, so the employee count was not accounted separately for them. Hence, we have taken the employee count details from the company profile on Zoom Info to estimate the company size.

To determine their market share as part of the total footwear market, we applied the following computations:

Steve Madden
U.S. footwear market size in 2018 - $85.45 billion. [As determined during the strategy phase]
Revenue of Steve Madden in 2018 - $1.65 billion.
Market share of Steve Madden in 2018 -(($1.65 billion/$85.45 billion)*100) = 1.93%
Johnston & Murphy
U.S. footwear market size in 2018 - $85.45 billion.
Revenue of Johnston & Murphy in 2018 - $304 million
Market share of Johnston & Murphy in 2018 - ((0.3/85.45)*100) = 0.35%

Part
06
of six
Part
06

Competitive Landscape -Jimmy Choo and Tory Burch: Columns L and M

Jimmy Choo has over 182 stores and is present in the most prestigious department and specialty stores worldwide and has a market share of 0.28%. Tory Burch is known for its color, print and eclectic details, includes ready-to-wear, shoes, handbags, accessories and beauty collections, the company has a market share of 1.25%. Our findings have been presented in the attached spreadsheet columns L and M.

JIMMY CHOO

  • Jimmy Choo company is a pioneer in the art of celebrity dressing and was among the first to bring shoes and handbags to Hollywood.
  • The company was founded in 1996 by Jimmy Choo and Sandra Choi, has over 182 stores and is present in the most prestigious department and specialty stores worldwide and has an estimated 1,177 employees.

Market share

  • 0.50%

Key sales channels

TORY BURCH

  • Tory Burch LLC is a boutique clothing retailer that designs, style clothing and accessories for women and known for its color, print and eclectic details, includes ready-to-wear, shoes, handbags, accessories and beauty collections.
  • The company was founded in 2004 and currently has more than 120 freestanding boutiques and a presence in more than 3,000 department and specialty stores.

Market share

  • 1.25%

Key sales channels

RESEARCH STRATEGY

We calculated the market share of the companies using their estimated 2019 revenues and the 2019 U. S footwear market size.

Jimmy Choo

Tory Burch


Sources
Sources

From Part 02
Quotes
  • "Famous Footwear is your place for athletic and casual shoes for the whole family from hundreds of name brands. You'll find styles for women, men and kids from brands like Nike, Converse, Vans, Sperry, Madden Girl, Skechers, ASICS and more! With stores in the U.S. and Canada and even more selection online at Famous.com and FamousFootwear.ca, Famous Footwear is a leading family footwear destination for the famous brands you know and love."
  • "Famous Footwear is part of Caleres Inc., a diverse portfolio of global footwear brands. Combined, these brands help make Caleres a company with both a legacy and a mission. Caleres' legacy includes more than 130-years of craftsmanship, a passion for fit and a business savvy, with a mission to continue to inspire people to feel good…feet first."
Quotes
  • "Our Famous Footwear segment includes our Famous Footwear stores, Famous.com and FamousFootwear.ca. Famous Footwear is one of America’s leading family-branded footwear retailers with 992 stores at the end of 2018 and net sales of $1.6 billion in 2018. Our core consumers are women who seek leading national brands of athletic, casual and fashionable footwear at a value for themselves and their families."
  • "Famous Footwear stores feature a wide selection of brand name athletic, casual and dress shoes for the entire family. Brands carried include, among others, Nike, Skechers, adidas, Vans, Converse, Under Armour, New Balance, Sperry, Asics, Bearpaw, Sof Sole and Puma, as well as company-owned and licensed brands including, among others, Dr. Scholl's Shoes, LifeStride, Naturalizer, Fergie Footwear, Blowfish Malibu, Carlos by Carlos Santana, Circus by Sam Edelman and Vionic. "
  • "We believe our diversified business model provides us with synergies by spanning consumer segments, categories and distribution channels. A combination of thoughtful planning and rigorous execution is key to our success in optimizing our business and portfolio of brands. Our business strategy is focused on continued market share gains, growing our e-commerce business and leveraging our recent investments, while remaining focused on changing consumer demand. "
Quotes
  • "Our principal business activity is the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services. NIKE is the largest seller of athletic footwear and apparel in the world. We sell our products through NIKE-owned retail stores and through digital platforms (which we refer to collectively as our “NIKE Direct” operations), to retail accounts and a mix of independent distributors, licensees and sales representatives in virtually all countries around the world."
  • "As of May 31, 2018, we had approximately 73,100 employees worldwide, including retail and part-time employees."
  • "Our operating segments are evidence of the structure of the Company’s internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand sales activity."
From Part 05
Quotes
  • "On February 1, 2019, we employed approximately 3,900 employees,"
  • "Our Wholesale Footwear segment is comprised of the following brands: Steve Madden Women's®, Madden Girl®, Steve Madden Men's®, Madden®, Madden NYC, Dolce Vita®, DV by Dolce Vita®, "
  • "Brands included are Mad Love®, Steven by Steve Madden®, Report®, Superga® (under license), Betsey Johnson®, Betseyville®, Steve Madden Kids®, Stevies®, Brian Atwood®, Blondo®, Kate Spade® (under license), Anne Klein® (under license) "
Quotes
  • "For the full year ended December 31, 2018, net sales increased 7.0% to $1.65 billion from $1.55 billion in the prior yea"
Quotes
  • "Johnston & Murphy retail shops are located primarily in higher-end malls and airports nationwide and sell a broad range of men’s dress and casual footwear, apparel, and accessories. The Company also sells Johnston & Murphy products directly to consumers through an e-commerce website and a direct mail catalog. The website is johnstonmurphy.com"
  • "Johnston & Murphy Wholesale Operations. Johnston & Murphy men’s and women's footwear and accessories are sold at wholesale, primarily to better department stores, independent specialty stores, and e-commerce. Johnston & Murphy’s wholesale customers offer the brand’s footwear for dress, dress casual, and casual occasions."
  • "Additionally, the Company offers the H.S. Trask brand, with men's and women's footwear and leather accessories offered primarily through better independent retailers and department stores, an e-commerce website, trask.com, and catalog"
  • "Johnston & Murphy Group net sales increased 5.1% to $304.2 million for Fiscal 2018 from $289.3 million for Fiscal 2017. "