China footwear market to grow at a CAGR of 9% between 2012 and 2016

Press Release   •   Jun 04, 2013 11:31 BST

The China footwear market is suggested to have reached a value of around RMB290.9 billion in 2012, growing at a CAGR of 12% between 2008 and 2012. The period 2012 to 2016 is forecast to see the CAGR growth rate fall to a modest 9%.

2012 saw the average unit price of footwear in China continue to rise, up from RMB95 per unit in 2011 to RMB99 per unit in 2012. This can be seen as a direct result of the rising costs of raw material, labour and distribution costs, combined with the increased demand for more upscale and well-tailored products. Despite the growth in price, the increase is actually slower than in previous years, due to the low inflation rate in China. Also, a general slowing down of the economy in China has lead to some retailers offering increased promotional discounts, leading to offset price increases in 2012.

Leadership of the China footwear market was retained by Belle International Holdings Ltd, securing 7% of the retail value share of the industry. The continued leadership of Belle International is thought to be down to a successful multi-brand strategy and strong distribution network. Belle International's major brands, such as Belle, Teenmix, Tata and Staccato have penetrated at both city and town levels in China. Second place in the market is Nike (China), which is aided by its domination of the domestic sports footwear sector, along with its widely known branding among consumers in China.

The footwear market in China is forecast to see CAGR growth of 9% between 2012 and 2016. China's economy is forecast to see increased GDP growth in 2013, from 7.8% in 2012 to 8.5% in 2013, and this is expected to aid growth in the industry. With increased growth in the economy, consumers will be more willing to pay a higher premium for higher quality and more fashionable footwear when disposable incomes increase.

For more information on the China footwear market, see the latest research: China footwear market

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