Sports shoes market in China

When it comes to sports shoes, one must segment the market: Athletic Footwear (Aerobic, Baseball, Basketball, Cricket, Cross-Training, Soccer, Running, Tennis, Walking, Hiking, Hockey, Athleisure & others), Outdoor/Rugged, Casual, Dress/Formal and Footwear Accessories. China has become the world’s largest production base and exporter of shoes, thanks to the fast growing shoe industry. The Chinese shoe producers can make more than 10 billion pairs of shoes annually, making up nearly 70% of the world’s total output. Bolstered by China, Asia has become the world’s manufacture center of shoes and is still enlarging its market share. With rising per capita disposable income, the demand for sportswear including sports shoes and garments among consumers is soaring in recent years. In 2011, the sportswear market size in China hit RMB124.7 billion.

Brief market situation of sports shoes

In the Chinese sportswear market, international brands like Nike, Adidas, Kappa, Puma and FILA occupy high-end market, while medium-end market is dominated by domestic companies such as Anta (安踏) and Li-Ning (李宁). In the below-200-yuan low-end consumer market, leading players include Xtep (特步), PEAK (匹克), 361° and ERKE (鸿星尔克).

In China’s sports shoes market, the major overseas brands are Nike, Adidas, Puma, Reebok, FILA, Mizuno, UYBTO, and Kappa. Domestic brands include Li-Ning (李宁), Anta (安踏), Xtep (特步), 361°, ERKE (鸿星尔克), PEAK (匹克), Jordan (乔丹), Deerway (德尔惠) and GRN. The high-end market is held by Nike, Adidas, Reebok, while in the medium-end market major players are Kappa and Li-Ning.

Pricing of sports shoes

Pricing of shoes depends mainly on cost, competition, and other elements of the marketing factors.  Materials and workmanship are the major factors affecting the cost.  For example, a pair of sandals can be marked up lower than a pair of pumps, on the other hands, a pair of long boots can be marked up double as a pair of pump shoes.  Each company has its own mark-up calculation that usually around 2 – 4 times of the cost.  Compare with other fashion goods, the price range of shoes in Hong Kong does not have a big variance.   For imported shoes, the retail price of medium to high range shoes is from around HK$600 to HK$2500.  For those made in China and Taiwan, the price range is usually set around below HK$400.  Here the price range is divided into Premium, Middle-high, Middle-low and Inexpensive.