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What is the United States market-size (TAM) for the Women's Fashion/Lifestyle Sneakers industry?
Hello! Thank you for your question regarding the market size of women's fashion sneakers industry. We have mainly used trusted media sites like Wall Street Journal, Bloomberg and industry reports from Bain and NPD in order to answer your request. In short, the estimated market size of women's fashion sneakers in the USA is $1.3 billion. Below you will find an explanation of the methodology and findings in detail.
METHODOLOGY
Using publicly available data and resources, we were able to find the market size in terms of total number of fashion sneakers sold in the USA in 2015. However, there was no categorization of men vs women in this data. Hence we have used the categorization percentage of men vs women buyers in the overall sneaker market to provide an estimate. Also, we were able to find the global market for luxury sneakers from which we have estimated the USA's share and further then, the women's segment share. We have used the Euro to USD conversion rate of today, 1 Euro = 1.09 USD, when providing the global market value of luxury sneakers.
FINDINGS
According to Wall Street Journal, in 2015, fashion sneakers formed about 56% of the total sneakers market in the USA with about 49.8 million units sold. This was an increase of about 7.1 million units when compared to 2014. These sneakers which are fashion focused are usually sold at prices well below $100.
Assuming an average of $100 for a fashion sneakers so as to include for the high and the low prices of different varieties, the estimated market size of fashion sneakers as of 2015 is about $5 billion (49.8 million units * $100) (rounded figure). This is the total market without categorization.
We do not have any direct, public data available to segment the fashion sneaker market by men's and women's category. In order to estimate the women's segment of the market, we have used the statistic provided by NPD in a Bloomberg article which says that 26% of total sneaker sales in the USA fell under the Women's category. Since this statistic is for sneaker sales, we have assumed that it will be a reflection for fashion sneakers as well. Another reason that justifies the utilization of this data is because an article published by Forbes says that out of all athletic shoes purchased, 85% of them are not purchased for the intended purpose instead customers are guided by style.
Thus, 26% of the $5 billion fashion sneakers market can be attributed to women's fashion sneakers. This give us an estimated amount of $1.3 billion as the market size of women's fashion sneakers.
We were also able to find that the luxury sneakers market, typically worn for fashion and style, is estimated to be about $3.27 billion as of 2016 globally according to Bain research report. In order to estimate the USA market, I looked at the same research report which says that Americas contribute about 33% to the personal luxury goods market. Assuming this is a reflection for luxury sneakers as well, we can estimate that the Americas contribute about $1.07 billion to the luxury sneakers market.
Within this, since USA is the largest sneaker market in the world, we can assume that USA contributes about 25pp of the 33% Americas region. Thus, the estimated market size of the USA in luxury sneakers in about $817.5 million. Further, utilizing the same statistic of 26% contribution by Women's category to the sneakers market, we can estimate that the Women's luxury sneaker market is estimated to about $212.5 million.
Apart from this, the luxury market also increased its share in newness of the sneakers category from 15% in May-July 2014 to 25% in the same months in 2015.
Continued growth is seen in the women's fashion sneakers segment due to the growing athleisure fashion demand. According to NPD, the sales of pumps decreased by 12% in the USA due to the growth in sales of fashion sneakers and block-heels.
SUMMARY
1. About 49.8 million units of fashion sneakers were sold in 2015 according to Wall Street Journal.
2. The estimated market size of women's fashion sneakers in the USA is $1.3 billion.
3. The market size of women's luxury sneakers in the USA is estimated to be about $212.5 million.
Hope you find this information useful. Thank you for using Wonder! If you have any more questions, please let us know.