SNEAKER

CATEGORY ANALYSIS AND STRATEGY August 2016 OTB

BRANDS CATEGORIES
Analysis: Analysis:
2015 Top 10 Sneaker Brands
Brands with High Sneaker Sneaker Category Penetration
Penetration Pure Sneaker Brands
Prada Converse
% Revenue Change
Lanvin Puma Categories Spring 16 Spring 15 From 2015
Ben Sherman New Balance
Gucci Alphakilo
Low Tops 58% 60% 17%
Hugo Boss Fred Perry High Tops 18% 23% -8%
Camper Russell Park
Slip-Ons 12% 9% 63%
DSquared2 Generic Man
John V arvatos Star USA Slate & Stone Active/Trainer 9% 7% 67%
Gordon Rush Nick Point ( discontinued) *Based on placed revenue
Cole Haan Alejandro Ingelmo ( exit)
Conclusion:
*Based on placed revenue
Low tops continue to be the top sneaker category, making up
2015 Placed
Revenue $ 2,573,365 $ 1,847,991 ~60% of sales. Conversely, high tops has been declining.
Growth from Both categories still amount to ~80% of sneaker sales. Slip-ons
SP15 to SP16 20% 4%
and active/trainer are steadily growing.
Conclusion: Action:
Brands with high sneaker penetration are growing faster because There is the most growth potential in active/trainer.
of their brand recognition and strong customer base. 1) We should buy more from existing brands like New Balance
Action: and Puma.
The biggest growth opportunity is in pure sneaker brands. Although 2) We need to acquire brands like Asics and Brooks to compete
we have added new brands like Diadora Heritage and Golden Goose in this domain against Hautelook and Rue La La.
this year, we want to break big name brands like Asics and Nike. 3) We can partner with Active to create more lifestyle events.
PRICING SALE TYPE
Analysis: Analysis:
2015 Sneaker Price Buckets
Price Bucket Placed Rev. MMU % % TTL Spring 16 Sale Type Penetration
$1-$49 $ 832,730 33% 14% Footwear Sneakers
$50-$99 $ 1,602,190 46% 26% Branded Sales 31% 38%
67%
$100-$149 $ 1,247,985 45% 20%
Theme Sales 28% 27%
$150-$199 $ 440,062 45% 7%
$200-$249 $ 222,019 38% 4% Personal Offers 31% 28%
$250-$299 $ 407,662 37% 7% Shops 9% 7%
$300-$349 $ 306,845 34% 5% *Based on placed revenue

$350-$399 $ 441,715 31% 7%

Conclusion:
$400-$449 $ 192,192 36% 3%
$450-$499 $ 239,490 32% 4% Branded sale penetration in sneakers is 38% versus 31% in total
$500-$599 $ 134,648 37% 2% footwear. For theme sales, personal offers, and shops, sneaker
$600-$699 $ 37,305 37% 1% sale penetration is relatively in line with total footwear.
$700-$799 $ 7,070 38% 0% Action:
$800-$899 $ 1,778 49% 0%
*Based on 2015 data 1) Since sneaker sales depend heavily on branded sales, we
Conclusion: need to acquire more pure sneaker brands to keep our
67% of sales were <$200 AUR. There is a trend of MMU% brand-centric customers excited. We only have 3 major
degradation >$200 AUR. The biggest bucket was $50-99, which also sneaker brands, which we have had for years (Converse,
had the healthiest MMU%. Puma, and New Balance). To compete in the market, we
Action: need to reinvigorate customers with fresh brands.
1) When seeking new brands other than designer brands, we should 2) Since theme sales comprise ~1/3 of sales, we should test
target an AUR <$200. smaller brands like Saucony in sneaker theme sales.
2) We should price styles <$99 when feasible, especially for 3) There is a growth opportunity in shops. We could create
commodity styles to feature in The Shoe Shop. For example, we will 2 sneaker subsales in The Shoe Shop and periodically run a
test pricing some Official Program styles at <$99 for the next sale. week-long Sneaker Shop.