Bags / Shoes & Accessories

According to Huacheng Import and Export Data Observation, NPD Group, one of the world's largest market research companies, predicted the future of the shoemaking industry in an interview with the media recently, focusing on the following five points:

2023 will be the "reset" year of the footwear industry.

The demand will not increase further in 2023.

The shoemaking industry is expected to stabilize in the next three years.

Casual shoes and sports shoes are most likely to be regarded as necessities, while formal shoes, outdoor shoes and slippers are more likely to be regarded as non-necessities. The main growth opportunity of footwear brands in this environment will be to seize market share.

The United States is the largest export market of Chinese footwear products. Knowing the current trend of the United States footwear market in recent years, it should be able to reverse the prospects of foreign trade footwear enterprises.

Recently, NPD Group, one of the largest market research companies in the world, said that after three years of fluctuations caused by the pandemic, the sales of the United States shoemaking industry is expected to stabilize in the next three years, Huacheng Import and Export Data Observation Report.

According to the latest "Footwear Future" forecast of the market research company, the sales revenue will increase slightly at the rate of 1% by 2025, and the unit sales will begin to improve in 2024.

It is predicted that shoes suitable for "daily leisure" will become the primary reason for purchase in the first half of 2023.

NPD footwear and accessories analyst Beth Goldstein told the media that this was due to a variety of factors, including the continued slowdown in the rise of retail prices, which would be offset by promotional activities. Goldstein also pointed out that due to economic pressure, consumers will give priority to spending, so it is not expected that demand will increase further in 2023.

"This will be a new year for the shoe industry," Goldstein said. "After three years of ups and downs, we can predict that as consumers adapt to their familiar lifestyle and continue to make strategic choices between their necessities and necessities, the sales and price trends will tend to stabilize macroeconomic pressures."

The forecast points out that as consumers weigh their priorities this year, casual shoes, sports shoes and sports shoes are most likely to be regarded as necessities, while formal shoes, outdoor shoes and slippers are more likely to be regarded as non-necessities. Huacheng Import and Export Data Observation Report.

The sales of sports and leisure products will be the highest in 2022, but fashion shoes will be the biggest growth force. "Although the fashion footwear market will continue to benefit from these social behaviors in 2023, their impact will begin to stabilize, because the replenishment demand driving this category will slow down after 2022," Goldstein said.

Goldstein told the media that the same is true of formal footwear. "By 2022, due to the social occasions again, the growth of formal shoes has exceeded that of other categories, but the sales volume is still lower than the level before the pandemic."

Goldstein added that looking into the future, there is no sign that the demand for clothing styles will continue to remain at this level. "For brands and retailers, it is important to make corresponding plans, not overcorrect them," she pointed out, according to the Huacheng Import and Export Data Observation Report.

Goldstein added: "In the market that is expected to remain stable in the short term, the main growth opportunity of footwear brands in this environment will be to seize market share."

The forecast was released a few days after the US footwear distributors and retailers (FDRA) said that the inflation might continue to slow down in the coming months due to the inventory of footwear market exceeding demand. In 2022, the price of footwear rose 4.6% at the fastest rate in 40 years.

The retail price of footwear slowed down in January, rising 0.4% compared with January last year, the lowest increase in 22 months. Compared with last year, men's shoes rose 0.5%, women's shoes rose 0.1%, and children's shoes rose 0.9%. Huacheng Import and Export Data Observation Report.