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  • New Balance

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    Kshitiz
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    The document summarizes key aspects of the US shoe industry, including expected growth rates, manufacturer market shares, marketing spending, manufacturing locations, and distribution channels. It notes that the industry is expected to grow at 6.3% annually through 2009, with women's shoes growing faster. Major manufacturers like Nike, Adidas, and Reebok spend heavily on marketing. Manufacturing has increasingly moved offshore, especially to China, contributing to the trade deficit. Distribution occurs through large big box retailers, national specialty chains, smaller urban stores, and brand flagship stores. Retailers wield significant control over sneaker companies.

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    New Balance

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    The document summarizes key aspects of the US shoe industry, including expected growth rates, manufacturer market shares, marketing spending, manufacturing locations, and distribution channels. It notes that the industry is expected to grow at 6.3% annually through 2009, with women's shoes growing faster. Major manufacturers like Nike, Adidas, and Reebok spend heavily on marketing. Manufacturing has increasingly moved offshore, especially to China, contributing to the trade deficit. Distribution occurs through large big box retailers, national specialty chains, smaller urban stores, and brand flagship stores. Retailers wield significant control over sneaker companies.

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    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
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    59 views1 page

    New Balance

    Uploaded by

    Kshitiz
    The document summarizes key aspects of the US shoe industry, including expected growth rates, manufacturer market shares, marketing spending, manufacturing locations, and distribution channels. It notes that the industry is expected to grow at 6.3% annually through 2009, with women's shoes growing faster. Major manufacturers like Nike, Adidas, and Reebok spend heavily on marketing. Manufacturing has increasingly moved offshore, especially to China, contributing to the trade deficit. Distribution occurs through large big box retailers, national specialty chains, smaller urban stores, and brand flagship stores. Retailers wield significant control over sneaker companies.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Significant focus on NB2E- goal to increase quality and efficiency of company�s

    operational processes through the application of lean manufacturing

    US Shoe Industry:
    50% of $32billion
    2004-09 expected growth rate 6.3% p.a.
    8.4% p.a. Growth in women, 58% sales
    Expected 530million pair(athletic shoes) per year in 2009
    $9 billion branded market to grow by 8% in 2005 in the US
    Slow growth because of customer maturation
    Manufacturer�s response: P2 PINK
    Nike 43% global and 36% US
    Adidas, Reebok, New Balance 8-12%
    Broader trend towards consolidation in athletic footwear industry (Nike acquiring
    Converse, Stride Rite acquiring Saucony P2 GREEN)
    Marketing(2004): Nike $213mill, Adidas $89mill, Reebok $42mill, New Bal $17.3 mill
    Manufacturing: Mostly outside US unlike N.B. China 58% of US market. Trade deficit
    increased to 7%per year since 1999, i.e. 379 million pairs in 2004. 2.2 billion
    purchased in 2004. Deficit expected to increase duw to more offshore production.
    Distribution Channel:
    Big box($12 billion in athletic): Walmart, Sear, Target
    National sellers: Footlockers, The sports authority
    Smaller urban chains: sold at heavy discount to young customers or catered high end
    customers woth specific needs
    Showcase stores of brands like Nike, Adidas
    Footlocker: 4000 worldwide store,
    Sports Authority: 400 US stores,
    Finish Line:598 US stores, sold at $5 less than other stores
    Retailers have large control on sneaker companies P3 Blue

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