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Luxury Footwear Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global luxury footwear market was valued at USD 45.6 billion in 2022 and is projected to expand at a CAGR of 8.9% from 2023 to 2030. The increasing demand for luxurious footwear products among the growing millennial population is one of the key factors driving market growth. Millennials are the most prominent consumer segment for luxury goods, and footwear is no exception. They are open to investing in luxury items and prefer the latest trends in footwear. Additionally, the increasing disposable income of the population is propelling the demand for luxury footwear products.
The growing demand for eco-friendly materials and designs among millennials is driving the demand for footwear made from sustainable materials, such as organic cotton and natural rubber. For instance, in March 2022, Adidas launched a new collection of eco-friendly shoes made from recycled ocean plastic. The new range is designed to be lighter and more durable than traditional shoes. Furthermore, the rising trend of athleisure is driving the luxury footwear market, as people prefer comfortable footwear with a stylish look.
Furthermore, the growing trend of customization is leading to an increase in the demand for luxury footwear. Consumers are increasingly searching for personalized footwear that is designed according to their tastes and preferences. For instance, in December 2021, Nike launched its Nike By You program that allows customers to customize their shoes with various colors, patterns, and logos.
The increasing adoption of internet and mobile devices is also driving the growth of the luxury footwear market. These devices have enabled customers to access a wider variety of products online, which is resulting in an increase in online sales of luxury footwear. Additionally, the rising trend of online influencers promoting luxury footwear is also driving market growth. Furthermore, the growing popularity of online payment methods such as credit cards and digital wallets is also contributing to the growth of the market.
Product Insights
The luxury footwear market is primarily driven by the increasing demand for fashionable, stylish, and comfortable footwear. According to an article by Deloitte, the average U.S. consumer spends more on footwear than on any other type of apparel, and this trend is likely to continue in the coming years. The growing popularity of athleisure and the increased demand for designer footwear are some of the other factors driving the growth of the luxury footwear market.
Furthermore, the increasing demand for customized and luxury products has been driving the demand for luxury footwear. According to a survey conducted by the Luxury Institute in 2018, 60% of luxury consumers prefer customized products over standard products, while 44% of the respondents admitted that they are willing to pay more for luxury items. The emergence of e-commerce platforms and the increasing availability of luxury shoes in the online space are some of the other factors driving the growth of the luxury footwear market.
Distribution Channel Insights
The specialty stores segment accounted for the largest share of over 42.3% in 2022. The growth of this segment is mainly attributed to the increasing presence of luxury brands in the market. Luxury footwear stores offer customers a wide range of products and services, such as personalized styling, custom-made shoes, and other services. Furthermore, customers have the flexibility to try on different styles and sizes of shoes and make their purchase decision at the store.
The online segment is anticipated to exhibit the highest CAGR of 13.2% over the forecast period. The growth of this segment is mainly attributed to the increasing preference of customers for purchasing luxury footwear products online. The convenience of online shopping, along with the increasing availability of e-commerce websites and apps, is expected to drive the segment growth. Furthermore, rising internet penetration and the increasing usage of connected devices are likely to fuel the segment growth. In addition, the availability of discount offers and other promotional activities on online platforms are expected to boost the demand for luxury footwear online.
Type Insights
The luxury segment accounted for the largest revenue share of 65.3% in the year 2022. The increasing demand for luxury products among customers is a major factor driving the growth of the luxury footwear market. The presence of established luxury brands such as Gucci, Prada, and Burberry, amongst others, is a major factor driving the market. Moreover, the presence of online platforms such as Farfetch, Vestiaire Collective, and Mytheresa, amongst others, is also driving the growth of the market. Furthermore, the growing trend of personalization and customization of luxury products is also driving the market.
The mid-level segment is anticipated to expand at the highest CAGR of 8.2% over the forecast period. The mid-level segment comprises of various brands such as Nike, Adidas, and Reebok, amongst others. The mid-level segment is gaining traction due to the availability of a wide range of designs and colors at a relatively lower cost. Moreover, the availability of a wide range of options to choose from is another factor driving the growth of the mid-level segment. Additionally, the availability of e-commerce platforms such as Amazon, Zappos, and ASOS, amongst others, is also driving the growth of the mid-level segment.
Regional Insights
Europe is expected to witness the fastest growth in the coming years. The presence of a large number of luxury footwear brands, such as Gucci, Prada, and Louis Vuitton, has resulted in a high demand for luxury footwear products in the region. Increasing demand for high-end fashion and technology-driven sneakers is expected to drive growth in the region. For instance, in April 2021, Gucci launched its new 3D-printed sneaker line.
North America is expected to witness significant growth in the coming years. Growing interest in luxurious and designer footwear is expected to drive the market in the region. Furthermore, increasing demand from consumers for sustainable fashion is expected to boost market growth. For instance, in April 2021, Nike launched its first-ever vegan sneaker made with sustainable materials.
Financial Projections
In this part of the luxury footwear products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your luxury footwear products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a luxury footwear products business comes from sales of shoes and other related products such as accessories, apparel, and handbags. Here you will find a list with a description of each of them and other possible sources of profit such as online sales, wholesale sales, and collaborations with other brands.
Projecting Expenses
In this section, all the regular expenses related to keeping the luxury footwear products business running will be described. The list of operating expenses includes material and labor costs, rent, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the luxury footwear market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In July 2022, Gucci launched a new range of luxury sneakers for men and women.
– In August 2022, Prada launched a new range of luxury boots for men and women.
– In October 2022, Salvatore Ferragamo launched a new range of luxury shoes for men and women.
Some of the prominent players in the luxury footwear market include:
– Gucci
– Prada
– Salvatore Ferragamo
– Louis Vuitton
– Christian Louboutin
– Versace
– Miu Miu
– Jimmy Choo
– Hogan
– Bally
Global Luxury Footwear Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global luxury footwear products market based on product type, distribution channel, material type, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Athletic Shoes
– Sandals & Slides
– Boots
– Loafers & Slip-Ons
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Online
– Offline
– Specialty Stores
– Departmental Stores
– Others
3. Material Type Outlook (Revenue, USD Million, 2017 – 2030)
– Leather
– Synthetic
– Others
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Major Segments within the Global Luxury Footwear Market?
[A]: The global luxury footwear market is divided into product type and distribution channel. The product type segment is further divided into sports shoes, casual shoes, boots, sandals, and slippers. The distribution channel segment is further divided into online and offline retail stores.
[Q]: What are the Factors Driving Growth in the Luxury Footwear Market?
[A]: Factors such as increasing disposable income, changing lifestyle and growing preference for designer footwear, rising popularity of athleisure, growing e-commerce sector, and increasing demand for luxury footwear from emerging economies are driving the growth of the luxury footwear market.
[Q]: Who are the Key Players in the Luxury Footwear Market?
[A]: Some of the key players in the luxury footwear market are Nike Inc., Prada S.p.A., Adidas AG, Kering S.A., Salvatore Ferragamo S.p.A., Louis Vuitton, Christian Louboutin SAS, Gucci, and Burberry Group plc.
[Q]: What are the Strategies Being Adopted by Companies to Increase Their Market Share?
[A]: Companies in the luxury footwear market are focusing on strategies such as product launches, collaborations, mergers & acquisitions, and expansions to increase their market share.
[Q]: What are the Opportunities for New Entrants in the Luxury Footwear Market?
[A]: There are a number of opportunities for new entrants in the luxury footwear market. These opportunities include increasing disposable income, changing lifestyle and growing preference for designer footwear, and the growing e-commerce sector. Additionally, the increasing demand for luxury footwear from emerging economies, especially in Asia Pacific, is expected to provide a lucrative opportunity for new entrants.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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