During 2002-2007, the U.S. athletic footwear market experienced slow growth of less than 3% per year at current prices. Advances in technology have always driven the athletic shoe market, yet a fusion of performance with fashion is becoming the predominant inspiration for new sales — most notably with young purchasers. Sports participation, and therefore shoes required to participate, are never static — men are exploring cross training more and more, and women are going to the gyms and studios.

This report offers discussion of the following topics:

*How athletic shoe brands have established distinct personalities, though some are trying to go through therapy for adjustments
*How women are helping to drive sales as they demand more fashionable options
*How a marketplace dominated by large companies such as Nike and Adidas can still have room for niche players that cater to specific needs
*How age and race/ethnicity figure prominently in purchase behavior and attitudes about athletic shoes
*How creativity and technological innovations can open up whole new worlds for manufacturers and consumers alike

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Overall sales growth steady, segment popularity shifts
New entrants, counterfeiting pose significant challenges to market
Largest segment experiences slowest growth
Men’s
Women’s
Children and teens
Retail channels
Age, activity level impact athletic footwear sales
Leading companies
Innovation and innovators
Athletes, races provide sponsorship opportunities
The people
Athletic shoe purchase
Brand commitment
Attitudes and purchase motivations
Teens and athletic shoes
The kiddie connection
Race and ethnicity
Market Size and Forecast
Key points
Basketball clangs the rim, fashion jumps ahead
Winners and losers
LFAs likely to have even greater appeal
Sales and forecast of athletic shoes
Figure 1: Total U.S. sales and forecast of athletic and rugged shoes, at current prices, 2002-12
Figure 2: Total U.S. sales and forecast of athletic and rugged shoes, at inflation adjusted prices, 2002-12
Competitive Context
Unconventional competitors seek market share
Shunning shoes altogether
Counterfeiting reaches a critical mass
Segment Performance
Key points
Sales and forecast of athletic shoes, by segment
Figure 3: U.S. sales and forecast of athletic and rugged shoes, by segment, 2002-12
Figure 4: U.S. sales and forecast of athletic and rugged shoes, by segment, 2005 and 2007
Segment Performance—Men’s
Key points
Narrow focus flattens sales
Versatile shoes also dampen sales
Sales and forecast of men’s athletic shoes
Figure 5: U.S. sales and forecast of men’s athletic and rugged shoes 2002-12
Segment Performance—Women’s
Key points
Yoga might bend the space out of shape
Fashion and sophistication look to be key
Sales and forecast of women’s athletic shoes
Figure 6: U.S. sales and forecast of women’s athletic and rugged shoes, 2002-12
Segment Performance—Children and Teens
Key points
Teens buy them, but won’t have much money
Figure 7: Athletic shoes/sneakers purchased in past 12 months, Spring 2007
But baby needs a new pair of shoes
Sales and forecast of children’s athletic shoes
Figure 8: U.S. sales and forecast of children’s athletic and rugged shoes, 2002-12
Athletic Shoe Categories
Figure 9: Manufacturer wholesale sales of athletic shoes by category, 2006-07
Retail Channels
Key points
Job cuts, challenging economy bolster sales at discount stores
Sales of athletic shoes by retail channel
Figure 10: U.S. sales of athletic and rugged shoes, by retail channel, 2005 and 2007
Retail Channels—Shoe Stores
Key points
Retail shoe stores will gain market share
Finish Line and Foot Locker battle it out
Branded athletic shoe stores hold their own
Sales of athletic shoes at shoe stores
Figure 11: U.S. sales of athletic and rugged shoes at shoe stores, 2002-07
Figure 12: U.S. sales of athletic and rugged shoes at shoe stores, by shoe store segment, 2005 and 2007
Retail Channels—Sporting Goods Stores
Key points
Green initiatives create cachet
Market share
Sales of athletic shoes at sporting good stores
Figure 13: U.S. sales of athletic and rugged shoes at sporting goods stores, 2002-07
Retail Channels—Discount Stores
Key points
A large selection and cheaper price tag allows discount stores to thrive
Sales of athletic shoes at discount stores
Figure 14: U.S. sales of athletic and rugged shoes at discount stores, 2002-07
Retail Channels—Clothing Stores
Key point
Slow and steady
Sales of athletic shoes at clothing stores
Figure 15: U.S. sales of athletic and rugged shoes at clothing stores, 2002-07
Retail Channels—Department Stores
Key point
Lack of expertise and competition from discount stores force sales down
Sales of athletic shoes at department stores
Figure 16: U.S. sales of athletic and rugged shoes at department stores, 2002-07
Retail Channels—Internet and Other
Key point
Online stores gain traction
Sales of athletic shoes at “other” outlets
Figure 17: U.S. sales of athletic and rugged shoes at other retail outlets, 2002-07
Market Drivers
Teen spending is important… but will decline
Figure 18: Total U.S. teen spending at current prices, 2002-12
An aging population could further slow sales
Figure 19: Participation in activities at least once per week, by age, March 2008
Obesity further threatens sales, yet presents new opportunities
Figure 20: Prevalence of overweight and obesity among Americans, 1988-2002
Sports participation
Figure 21: Top 15 most popular U.S. sports among those aged 7+, by participation, 2000-06
Hispanics will be an increasingly important customer
Figure 22: Population, by race and Hispanic origin, 2002-12
Figure 23: Buying power by ethnicity, 1990-2011
Leading Companies
Key points
Puma and Skechers benefit from changing tastes
Acquisitions change the face of the market, create opportunities
Nike finishes strong
Converse gets its game back
Worldwide revenues of select athletic shoe manufacturers
Figure 24: Select athletic shoe manufacturers’ worldwide revenues, 2005 & 2007
Brand Qualities
Introduction
Nike appeals to younger Americans
New Balance is about balance
Reebok and the everyday exerciser
Innovation and Innovators
Nike+ iPod
Toe then heel, instead of heel then toe
adidas is cooking
Advertising and Promotion
Overview
adidas “It Takes 5ive”
Nike looks beyond TV
New Balance
Reebok blurs lines between advertising and entertainment
K-Swiss stumbles
Television commercials
Style
Figure 25: Ecko television ad, 2007
Figure 26: K-Swiss television ad, 2007
Personal achievement
Figure 27: adidas television ad, 2007
Figure 28: New Balance television ad, 2007
Iconoclast
Figure 29: Nike 6.0 television ad, 2007
Figure 30: K-Swiss sports television ad, 2007
Street “cred”
Figure 31: Under Armour television ad, 2007
Figure 32: Vans television ad, 2007
Athletic Shoe Purchase
Key points
The impact of age on purchase incidence
Figure 33: Athletic shoes purchase incidence, by age, April 2008
Presence of children
Figure 34: Athletic shoes purchase incidence, by presence of children in HH, April 2008
Types of Shoes Purchased
Key point
Reasons for purchasing athletic shoes
Figure 35: Reason for athletic shoes purchase incidence, by age, April 2008
Types of shoes determine where to get them…
Figure 36: Types of sneakers/athletic shoes purchased in past 12 months, by age, spring 2007
Brand Commitment
Key points
How frequently brands are purchased
Figure 37: Athletic shoe brand purchasing behavior, topline, April 2008
Brand popularity
Figure 38: Brands of sneakers/athletic shoes purchased in past 12 months, by age, April 2008
Attitudes and Motivations
Key points
Comfort and price key to purchases
Figure 39: Factors that influence athletic shoe purchase, April 2008
Attitudes towards athletic shoes
Figure 40: Attitudes towards athletic shoe purchase, by age, April 2008
Fashion versus leisure
Figure 41: Reasons for athletic shoe purchase, by age, April 2008
Teens
Key points
Athletic shoes purchased among teens
Figure 42: Type of athletic shoes/sneakers purchased in past 12 months, by gender and age, April 2008
Teens and brands
Figure 43: Teen athletic shoe brand purchasing behavior, April 2008
Figure 44: Brand of athletic shoes/sneakers purchased in past 12 months, by gender and age, April 2008
Attitudes towards athletic shoes
Figure 45: Teens’ attitudes towards athletic shoe purchase, topline, April 2008
Kids
Key points
Shoe selection
Figure 46: Incidence of children choosing shoes, age, April 2008
Kids brands
Figure 47: Brand of athletic shoes/sneakers owned by kids, by gender and age, April 2008
Race and Ethnicity
Key points
For whom are you purchasing?
Figure 48: Athletic shoes purchase incidence, by race/ethnicity, April 2008
Race and ethnicity play a part in where people shop
Figure 49: Retail locations of athletic shoe purchase, by race/ethnicity, April 2008
Reasons for purchasing
Figure 50: Reasons for athletic shoe purchase, by race/ethnicity, April 2008
Simmons Cohort Analysis
Incidence of purchase
Figure 64: Athletic shoes purchase in past 12 months, by cohort, April 2008
Types of shoes purchased
Figure 65: Cohorts most likely to purchase jogging/running or cross training sneakers/athletic shoes, spring 2007
Brands
Figure 66: Cohorts most likely to purchase Nike, spring 2007
Appendix: Other Useful Consumer Tables
Athletic shoe purchase incidence
Figure 67: Athletic shoes purchase in past 12 months, by age, April 2008
Figure 68: Athletic shoes purchase in past 12 months, by presence of children in HH, April 2008
Types of athletic shoes purchased
Women’s share
But men more likely…
Figure 69: Reason for athletic shoes purchase incidence, by gender, April 2008
The factors for teens
Figure 70: Factors that influence teen athletic shoe purchase, topline, April 2008
The role of race/ethnicity on type of athletic shoes teen purchase
Figure 71: Type of athletic shoes/sneakers purchased in past 12 months, by race/ethnicity, Spring 2007
Teens brand purchase
Figure 72: Brand of athletic shoes/sneakers purchased in past 12 months, by race/ethnicity, Spring 2007
Racial/ethnic impact on kids brand ownership
Figure 73: Brand of athletic shoes/sneakers owned by kids, by race/ethnicity, Spring 2007
Kids’ choice
Figure 74: Incidence of children choosing shoes, by race/ethnicity, Spring 2007
Appendix: Trade Associations<