APAC to lead global footwear retail market growth

Retailers are urged to consider opening new stores in smaller cities and towns.

Asia-Pacific is set to have the fastest-growing footwear retail market across the globe through 2024, owing to heightened awareness and affinity for a wider variety of footwear styles, especially amongst men’s shoes, according to a report from GlobalData.

The region accounted for 32.9% of the global footwear market in 2019 and is projected to contribute nearly 40% of sales by 2024, backed by strong growth markets like India, the Philippines and China.

It is also expected to grow at a projected compound annual growth rate (CAGR) of 5.0% to reach a market value of $172b in 2024. Retailers can consider opening new stores in smaller cities and towns to attract new customers, according to GlobalData’s retail analyst Rukmini Durge.

“Retailers found respite from an early recovery in China, especially for luxury and premium footwear segments through a shift in travel expenditure to off-shore duty-free areas like Hainan and even Mainland shops. Louis Vuitton and Gucci saw a strong sales rebound in China during the second half of 2020,” Durge said.

Demand for casual and sports footwear remained robust during the pandemic, due to widespread stay-at-home orders and the rise in popularity of running, jogging, cycling activities and home workout routines during lockdowns.

The report noted that consumers became more accustomed to wearing casual styles, as their personal preferences transformed to include mostly comfortable and functional footwear, which is expected to see rising demand even as restrictions are eased.

“The trend of casualization and rise of sports footwear is clearly demonstrated by the popularity of Bata, Nike, Li Ning and Anta Sports amongst Asian consumers,” Durge added.

Exclusivity is another driving factor for the global footwear market, GlobalData found, noting that brands like Toesmith are banking on the hype for unique products especially amongst millennials who are looking for items that can set them apart from the crowd.

“Brands that offer some degree of customization or one-of-a-kind features can create sales by tapping into the ‘drop’ culture that builds excitement around buying footwear and creates sales opportunities especially aided by the online channel,” Durge said.