Running head: CONSULTANCY REPORT

Consultancy Report

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In general, for footwear store installation, several factors need to be considered. Just like any other

business, there is a need for consideration of the availability of the materials for the industry

(Robert et al., 2012). And therefore, the means of transportation of the products to the stall is also

considered. Further, the market condition of the product is surveyed. Succinctly, there is a need

for investment into a business in a market area where the demand for the product is high, and the

competition in the market for the selected product is relatively minimal. Nevertheless, two markets

have been selected and these are footwear stores as well as the types of products the clients would

wish to supply to the market (Tran & Jeppesen, 2016).

Discussion

In the footwear store field, we have a variety of groups for categorizing the products. We

have female footwear, male footwear as classified based on gender.

Shoes production based on Gender

800
700
600
500
400
300
200
100
0
1st period 2nd period 3rd period

Female footwear Male footwear Total

Figure 1. shows shoe production based on gender (Vuong et al., 2019).

Nonetheless, in figure 1, the shoe production for male footwear during the first period is higher

than that of the second period and hence posits that there is the need for investment in a business
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where competition is low but having a higher demand (Roukova et al., 2016). However, in the

second period, the demand for male footwear is slightly higher than that for female footwear and

hence it implies that the cost of raw materials and transportation costs were almost the same and

thus accelerated footwear production. Succinctly, the production of male footwear is high across

the trend while female footwear production increases with an increase in the number of periods

(Roukova et al., 2016).

On the other hand, classification was based on age. In this section, we have youth's footwear,

children's footwear, and adults' footwear.

Bar Chart showing shoe production based on Age in

thousands
450
400
350
300
250
200
150
100
50
0
Youth footwear Children footwear Adult's footwear Total

1st period 2nd period 3rd period

Figure 2. Bar chart showing shoe production based on Age (Roukova et al., 2016).

According to figure 2, in the first period, the production of shoes based on age across the trend is

highest typically for the youth's footwear, children's footwear as well as adult footwear. And

therefore, it implies that the ultimate demand for shoe products is highest at the initial period of

production due to affordable raw materials, proper distribution channels and also a ready market

for the articulated products (Roukova et al., 2016). Succinctly, according to the graph, the youth’s
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footwear production of shoes decreases with increase in production periods. However, children’s

footwear production is lowest during the second period and highest during the first period.

Nonetheless, the adult’s footwear production has become highest compared to other footwear

production due to proper supply chain to boost efficiency and effectiveness (Roukova et al., 2016).

Moreover, demand for the articulated goods has also become high especially for the adult’s

footwear.

However, based on shoe purpose, we have washroom shoes, which are open flat shoes; we have

sports shoes and official footwear. Further, on the sports shoes, we have the boots being classified

with those with un-knotted bases and knotted base (Robert et al., 2012).

And therefore, these have been well addressed according to the graph below.

Bar Chart showing shoe production based on Purpose in

thousands
150

100

50

0
Y1 Y2 Y3

Washroom shoes Sport shoes Official shoes Total

Figure 3. Bar chart showing shoe production based on purpose (Roukova et al., 2016).

Elaborately, according to figure 3, the production of washroom shoes is highest across the trend.

And hence implies that a larger percentage of the total population of the nation relies on washroom

shoes and hence they are the largest consumers of shoes. However, the production of sports shoes
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is highest during the last period. And therefore, this shows that a huge percentage of such

consumers are youths who engage in sports activities. Succinctly, the production of official shoes

is highest during the second period. Furthermore, this denotes consumers who are of the working

class to purchase the shoes (Roukova et al., 2016). Also, according to the study conducted in

Australia, there are many youths and children in society as compared to adults. And therefore,

these individuals have no income source, thus rely on their parents for footwear and other needs.

Ultimately, it is clear that the adults in the nation and youths also are actively participating in

various forms of sports in the government (Roukova et al., 2016). And therefore, the areas where

the games have actively attended are in the urban areas where the population is high and where

there is adequate space and resources for making the playing ground useful. Furthermore, it is in

the urban areas where society is relatively high, and the closeness of homes increases the support

for sports.

Nonetheless, the first location suitable to open a footwear store is in the urban area where

the population is relatively high. And hence, this is in consideration of the story buildings around

the city. Further, consider whether the location of the store is along the highway or close to the

road and thus increases the exposure of potential customers as they travel along the way (Vuong

et al., 2019). Succinctly, there is a further need to consider whether the location identifies is full

of developed people and therefore it is essential to survey the financial stability of the society.

Additionally, it is crucial to have the footwear store installed in a shop where you can quickly get

customers when the store is established in a land where the financial status of the populace is

minimal or below the required financial situation who are known to make more purchases of the

footwear.
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Nevertheless, the charges of the rental price of the store as well as other expenses that are

payable to the Municipal county of the selected region. Moreover, these charges are essential for

the calculation of the income and expenditure probability if the store was giving profit as compared

to chances of business recording loss. And therefore, a good example of a selected shoe wear store

is the Mollini stores. Furthermore, it is close to the shores, thus use sea transport means for goods

delivery to the stores as well as to the customers where it has to be shipped to online buyers within

and outside Australia (Vuong et al., 2019). Succinctly, the area is full of playgrounds and stadiums;

thus, the store is in a well-situated area. Moreover, the distance from the store location to the

highway is relatively minimal.

Nevertheless, to this location, tourism activities have become every day in the region due

to the shore features. Therefore, starting a footwear store here would be highly suitable in areas

close to the water body and the many restaurants in the region. To be precise, the appropriate shoes

in this store would be flat open shoes, which are mostly preferred by many tourists globally.

Further, the region's statistical results show a high financial class dominating the area (Robert et

al., 2012). Due to the financially stable society, there is an expectation for fewer bargains from the

purchaser’s, thus maximum profitability being achieved.

Consequently, this footwear is readily manufactured in regions around New South Wales

(Vuong et al., 2019). This area is not too close to the store as a way of increasing the chances of

customers. The goods, therefore, can easily be transported to the stores. Nonetheless, a survey

needs to be conducted in an isolated location for the installation of the store as a way of identifying

the customer’s preference for appropriate stock collection. Therefore, this store will be in an urban

area close to the shore where tourism activities re high. AL’s, it is in this region where sports

activities are every day in the part. Succinctly, the population is highly financially stable, with
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sales being maximum across all genders, all age groups, and all-purpose shoes being on high

demand as compared to shoes used for specific sports or formal wear (Roukova et al., 2016).

The second identified location for the footwear store opening is a region with a populace

of middle-class financial status. The area ought to be near educational centers, to be specific, the

universities and colleges where most of the institutions barely have a distinct uniform. Near

colleges and universities, different individuals are assembled in the institutions for training. Their

financial stability can be said to be an averagely middle class since we have all sorts of financially

status people in the region — these cuts across the poor, middle class, and the rich in the society.

Most of the scholars depend on their parents for sustainability (Robert et al., 2012).

Therefore, opening a footwear store selling new and updated footwear sneer the gates of

the learning institutions with a label of available products being in the front of the stall (Roukova

et al., 2016). The stock should highly include shoes for both male and female genders, sports shoes

as well as shoes for other co-curricular activities, which most of the scholars are indulged into.

The value of the footwear in the store should be considered realistic based on the financial stability

of the primary clients (Vuong et al., 2019).

Nonetheless, in a bid to answer the question considering the products that the client needs

to supply to the market, analysis of the available products in the market should be done. And hence

after their isolation, one needs to know the status of the market demand for shoes that are not

flooded in the market, where the competition is minimal (Roukova et al., 2016). However, there

is demand varying for regular wear as well as high-end fashion footwear as well. Therefore, for

effective sales, its advice that the stores include both the proper footwear as well as the fashion-

end footwear. And hence will increase the chances of being competitive in the market. As a result,
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the customers will be allowed to make choices of couples of available designs of shows and themes

of the footwear open in the stock. Besides, the clients can as well drift from what they had in

preference to a better solution possible in the stall at a price that suits their pockets. Offering a

discount on goods purchased is essential as well in the footwear store installing (Robert et al.,

2012).

Conclusion

Footwear’s are highly sensitive, with different groups of people having varied preferences

are highlighted in the paper. We have a gender-based variation of footwear, variation based on the

purpose of the shoe as well as modification based on the age of the users. Therefore, before

isolation of the stable positions for opening a footwear store, there is a need for assessment of the

market stability as well as customer preference. Further, the location of the store from the roads

and tourism sites matters. Also, the population of a town and the statistics of footwear stores and

the products sold by other stores in the region are considered. And hence, this is to ensure there is

the identification of a loophole in the market, which develops a strong market entry chance. The

gap, therefore, is a stability point for market entry with more of the rare products in the market

whose emend is relatively high. As a result, the competitors are outdone in the market. Thus,

maximum profitability is achieved within the shortest time possible.

Further, it is necessary to investigate the fashion highly demanded in the market for

appropriate stock selection. Besides, it is required to have such products sold high in regions where

students are highly popular since scholars are rushing with the changes in fashion, thus a guarantee

for optimum sales to be made. From the consultation, near colleges and universities as well as a
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store near a road or in a shopping mall in a highly populated urban center with the more high and

middle class financially stable populace.

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References

Roberts, M. J., Xu, D. Y., Fan, X., & Zhang, S. (2012). A structural model of demand, cost, and

export market selection for Chinese footwear producers. NBER Working Paper Series,

17725.

Roukova, P., Keremidchiev, S., & Ilieva, M. (2016). Footwear Industry: Delocalization and

Europeanization. In The Moving Frontier (pp. 227-250). Routledge.

Tran, A. N., & Jeppesen, S. (2016). SMEs in their own right: The views of managers and workers

in Vietnamese textiles, garment, and footwear companies. Journal of business

ethics, 137(3), 589-608.

Vuong, Q. H., Vu, T. H., Doan, Q. H., & Ho, M. T. (2019). Determinants of Vietnamese footwear

exporting firms’ market selection: A multinomial logistic analysis of panel

data. Heliyon, 5(10), e02582.