Bags / Shoes & Accessories

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

2023 will be the 'reset' year for the footwear industry.

There will be no further growth in demand in 2023.

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

Casual shoes and sports shoes are most likely to be considered essential, while formal shoes, outdoor shoes, and slippers are more likely to be considered non essential. The main growth opportunity for footwear brands in this environment will be to seize market share.

The United States is the largest export market for Chinese footwear products. Knowing the current trend of the US footwear market in recent years, it should be possible to reverse the prospects of foreign shoe companies.

Recently, NPD Group, one of the world's largest market research companies, stated that after three years of fluctuations caused by the pandemic, sales in the US footwear industry are expected to stabilize in the next three years, according to Huacheng Import and Export Data Observation.

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

The prediction indicates that shoes suitable for "daily leisure" will become the primary reason for purchasing in the first half of 2023.

NPD's footwear and accessories analyst Beth Goldstein told the media that this is due to various factors, including a sustained slowdown in retail price increases, which will be offset by promotional activities. Goldstein also pointed out that due to economic pressure, consumers will prioritize spending, so it is expected that demand will not increase further in 2023.

For the shoe industry, this will be a year of restarting, "Goldstein said. After three years of ups and downs, we can expect that as consumers adapt to their familiar lifestyle and make strategic choices between their essential and optional products, sales and price trends will tend to stabilize macroeconomic pressures

The forecast indicates that as consumers weigh their priorities this year, casual shoes, sports shoes, and sneakers are most likely to be considered essential, while formal shoes, outdoor shoes, and slippers are more likely to be considered non essential, according to Huacheng Import and Export Data Observation.

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

Goldstein told the media that the same applies to formal footwear. By 2022, due to the resurgence of social occasions, the growth of formal footwear has surpassed that of other categories, but sales are still below pre pandemic levels

Goldstein added that looking ahead, there is no indication that demand for clothing styles will continue to remain at this level. For brands and retailers, it is important to make corresponding plans instead of overcorrecting, "she pointed out, as reported by Huacheng Import and Export Data Observation.

Goldstein added, "In a market that is expected to remain stable in the short term, the main growth opportunity for footwear brands in this environment will be to seize market share." "Part of this strategy will involve keeping up with consumer demand and becoming more cautious when making purchases. The other part will navigate a far from static channel landscape

This forecast was released a few days after US footwear distributors and retailers (FDRA) stated that inflation may continue to slow down in the coming months due to inventory exceeding demand in the footwear market. In 2022, footwear prices rose by 4.6% at their fastest pace in 40 years for the entire year.

The retail price increase of footwear slowed down in January, with a 0.4% increase compared to January last year, the lowest increase in 22 months. Compared to last year, men's shoes increased by 0.5%, women's shoes increased by 0.1%, and children's shoes increased by 0.9%, according to Huacheng's import and export data observation report.