UNITED STATES ATHLETIC SHOE

INDUSTY REPORT

By: Brandon Hahn

November 28, 2018
BCOM 214 Section 2
Intro
The hardest part about choosing the right product in the clothing industry to produce is the fact
of not knowing what will be successful. The purpose of this report is to provide information on
the athletic shoe market and why it is a successful product to produce. This report will provide
information on the athletic shoe industry, style, material, and consumers.

Athletic shoe industry

The United States athletic shoe store industry is a 14.2-billion-dollar industry (O’Connor, 2017),
inside a 37.1-billion-dollar shoe store industry (Guattery, 2018). One of the key economic drivers
in this industry is people’s awareness of obesity resulting in demand for gyms. The other two
drivers are the increase in disposable income and participation in sports.

Styles of athletic shoes

Athletic shoes range in many different styles. The most common categories associated with
athletic shoes are running, court sports, field sports, track and field, specialty sports, outdoor
sports, and athleisure.

Running
Most people look for good shock absorption, a natural roll with the foot, good cushioning,
flexibility and is very light.

Court sports
Court sports such as basketball, volleyball, or tennis will need specific shoes. These shoes are
going to go through heavy abuse, so the shoes need to be made from durable material. The most
common aspect people look for in these shoes are good soles. Tennis shoes need to be a little less
shock absorption compared to running shoes but must have flexibility. Basketball shoes for
example usually have a high top to provide more stability around the ankles (American
Orthopedic Foot and Ankle Society).

Field sports
Field sport shoes are intended for baseball, football, and soccer. All these shoes have some sort
of cleat attached to the sole. The soles are going to be made from nylon, so the cleats or spikes
can be attached to them (American Orthopedic Foot and Ankle Society).

Track and field

These shoes are typically fitted just like a running shoe, but these shoes usually have steel spikes
inserted into the sole to allow runners a better grip (American Orthopedic Foot and Ankle
Society).

Specialty sports
These are shoes that are intended for golf, dance and bicycling. These specialized shoes are
created differently and serve a different purpose (American Orthopedic Foot and Ankle Society).

Outdoor sports
Outdoor shoes consist of shoes used in recreational activities. Activities can include hunting,
hiking, and fishing (American Orthopedic Foot and Ankle Society).
Athleisure
Athleisure shoes are shoes intended for running, basketball and other sports with the use of
fashion. According to Merriam-Webster dictionary, athleisure (2014) is defined as, “casual
clothing designed to be worn both for exercising and for general use”.

Materials
Different materials are used for different shoes depending on what the function of the shoe is
used for. Leather shoes have some advantages such as being flexible, durable and helps keep
somebody's foot warm. The drawbacks to using leather material is that leather is heavy, can
become warm making the feet overheat and is susceptible to weather damage. When using
textiles for materials such as polyester and nylon, shoes are able to have more versatilities in
their designs. The most common material used is synthetic, which is a mixture of leather and
textiles. Shoes get the benefits of having leather advantages while also having the advantage in
creating different designs from the textiles. The disadvantages to using synthetics are that the
shoes do not always have great quality and often wear out faster but is inexpensive for the
manufacturer to produce and the consumer to buy. Rubber is mostly used in the creation of the
sole of athletic shoes. In the production of all shoes, especially in athletic is the use of foam.
Foam helps with the tongue of the shoe and the support (Kicks Guide, 2017).

Consumers
Looking at the United States for Athletic footwear demand, men contribute to 48.4% of all
athletic footwear purchased. Women on the other hand only contribute to 15.6% of all athletic
footwear purchased seen in the chart below (Figure 1). Men’s shoes are mostly bought based on
the athleisure idea since men wear athletic footwear as fashion that can also be used in an
exercise setting as well. Women, on the other hand, do not own as many pairs of athletic shoes
so the contribute of women in the market is not as high as men but there has been an increase in
running shoes being bought by women.

Figure 1. Retrieved from http://clients1.ibisworld.com.ezproxy2.library.arizona.edu/reports/us/industry/default.aspx?entid=4605

The pie chart depicts the percentage of men, women, children and other for athletic shoes.
Consumers that buy athletic footwear can also be broken down by specific age groups. Of
consumers that bought athletic footwear, 36.6% of them are between the age 40-54 years old and
the next highest category being 20.7% which are between 30-39 years old seen in the chart
below (Figure 2).

Figure 2. Retrieved from http://clients1.ibisworld.com.ezproxy2.library.arizona.edu/reports/us/industry/default.aspx?entid=4605

The pie chart depicts the age of consumers who by athletic footwear.

Consumers under 30 years old

People that fall into this category usually are in high school/college and have more free time to
take up sports and other recreational activities. This age group also has a low disposable income
which is why consumers under 30 years old and younger only make up 16.4% of consumers
buying athletic footwear because their parents are most likely buying the shoes for them. Athletic
shoes are also becoming a fashion statement for people in this category, which is making these
shoes more common to buy (O’Connor, 2017).

Consumers 30 to 54 years old

This age group is the largest sector of the athletic shoe market. 30-54 year old’s make up about
57.3% of the athletic shoe market, which means that this age group is the target market for
companies. Most people in the United States have children during this age group so it makes this
group responsible for buying athletic shoes for their children (O’Connor, 2017).

Consumers over 55 years old

People in this category often have a reduced disposable income because people this age are
retired. This means that consumers are less likely to splurge on athletic footwear. But due to the
health movement in the United States people this age are more willing to buy athletic footwear
so their bodies can remain active as their age increases which is why people over 55 make up
26.3% of the market (O’Connor, 2017).
Reason for buying athletic shoes
Based on a survey that was taken by Mintel, out of 1,784 internet users over the age of 18, 60%
of the consumers buy new athletic shoes because a new pair of athletic shoes will replace an old
pair of shoes. Of the 60% buying to replace an old pair, 63% were men while 57% were women.
40% of the surveyors said buying new athletic shoes was because the individuals wanted to treat
themselves and of that 40%, 32% were men and 46% were women. 32% of the surveyors were
put into the category “wanted a shoe that was more comfortable”. The lowest was 15% which
people said were for a specific occasion meaning that more people are buying shoes for
athleisure (Mintel, 2018).

Reason why women are buying athletic shoes

Women are ditching heels and other dress shoes because women are looking for shoes that are
better for their feet. In a recent survey by Mintel (2018, October), women were 43% more likely
to buy athletic shoes over dressier footwear. And when asked what is the most important when
choosing a shoe, 55% of women prefer comfort over the style when purchasing shoes.

2020 outlook
By the year 2020 the United States athletic shoe market is predicted to produce $15.45 billion
dollars which is a growth of about 2.4% (O’Connor, 2017).

Conclusion
The best ways to target consumers is by finding out what objective the consumer is desiring. The
focal target strategy is to find out if the customer is sporty in ways the consumers want a good,
quality shoe. Questions to keep at hand is if the consumer participates in an elite sport resulting
in a specific shoe design for a particular sport. Additional aspects for uncovering the consumer's
needs for the intent of the shoe. Is the purpose of the shoe for everyday casual wear, or is it for
fashion? Is an individual looking for protection and comfort? The last objective when targeting
consumers is how much money is one willing to spend for a shoe. Based upon the data provided
in this document, the athletic shoe industry is not going anywhere and is continuing to grow. By
finding out what the consumer wants, and the reasons consumers are buying athletic shoes a
company will be able to bring in higher revenue than expected.
References

American Orthopedic Foot and Ankle Society. How to Select the Right Athletic
Shoes. Retrieved from https://www.apastyle.org/learn/faqs/web-page-no-author
Athleisure. (2014). In Merriam-Webster.com. Retrieved from Merriam-Webster
dictionary
Guattery, M. (2018, April). IBISWorld Industry Report 44821. Shoe Stores in the US. Retrieved
from IBISWorld database.
Kicks Guide. (2017, September). Top 5 Most Common Materials Used to Make
Shoes. Retrieved from http://www.kicksguide.com/top-5-materials-used-to-make-shoes/
Mintel. (2018, May). Men’s and Women’s Footwear-US-May 2018. Retrieved from Mintel
Reports database.
Mintel. (2018, October). Sneaker sales surge while more women kick off their heels- 1st October
2018. Retrieved from Mintel Reports database.
O’Connor, C. (2017, November). IBISWorld Industry Report OD4605. Athletic Shoes Stores in
the US. Retrieved from IBISWorld database.