Sole salvation: Revenue is expected to improve, but wholesale bypass will limit growth

The depreciation of the Canadian dollar has fuelled the Canadian Footwear Wholesaling industry's sluggish growth over the five years to 2018. The industry's growth is primarily due to the nondiscretionary nature of footwear. Macroeconomic variables, such as the exchange rate, and supply chain management strategies, such as wholesale bypass, greatly influence demand for this industry. When the exchange rate appreciates, imported goods become less expensive on the domestic market, thereby increasing demand for such goods. Wholesalers tend to assume much of the risk associated with the supply of imported goods to the domestic market, including exchange rate fluctuation and its effect on valuation of more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • An appreciating Canadian dollar and improving economic conditions are expected to fuel industry growth
  • The exchange rate plays an important role in determining demand for this industry
  • Increasing per capita disposable income will boost domestic demand for consumer goods
  • Industry Report - Industry Analysis Chapter

    Despite improving economic conditions, a depreciating Canadian dollar has contributed to the Canadian Footwear Wholesaling industry’s sluggish growth over the past five years. Given the nondiscretionary nature of footwear, industry revenue is anticipated to rise at an annualized rate of 2.6% to $2.1 billion over the five years to 2018. With the dollar anticipated to bounce back and appreciate in 2018, IBISWorld expects industry revenue to rise a respectable 2.3% that year.Exchange rate and wholesale bypassThe exchange rate plays an important role in determining demand for this industry. Footwear wholesalers add little value to the product they aim to sell. Their main functions are quality assurance and distribution. Dom...purchase to read more.

    Additional Insights for the Footwear Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Footwear Wholesaling Industry are

  • Ability to avoid wholesale bypass
  • Establishment of brand names
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Canadian-dollar effective exchange rate index in the Footwear Wholesaling industry impact industry performance..

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    What's in this report

    What is the Footwear Wholesaling Industry?

    The Footwear Wholesaling industry in Canada wholesales footwear, including athletic shoes, made of leather, rubber and other materials. Businesses in this industry purchase shoes from manufacturers and resell them to retailers with minimal or no further development or processing. Most wholesalers in this industry undertake sales and administrative activities, such as establishing relationships with manufacturers and retailers.

    Industry Products
  • Men's and boys' footwear
  • Women's and girls' footwear
  • Infants' footwear
  • Footwear accessories
  • Industry Activities
  • Wholesaling men's footwear
  • Wholesaling women's footwear
  • Wholesaling children's footwear
  • Wholesaling footwear accessories
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Canadian-dollar effective exchange rate index
  • Consumer Confidence Index
  • Demand from shoe stores

  • Current Performance
  • Exchange rate and wholesale bypass
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving economic conditions
  • Industry landscape
  • Trans-Pacific Partnership and footwear wholesaling
  • Table: Footwear Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Footwear Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Shoe & Footwear Manufacturing in Canada

  • Key Selling Industries
  • Department Stores in Canada
  • E-Commerce & Online Auctions in Canada
  • Shoe Stores in Canada

  • Products & Services
  • Women's and girls' footwear
  • Men's and boys' footwear
  • Other
  • Infants' footwear
  • Footwear accessories
  • Chart: Footwear Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers and distributors
  • Discount stores
  • Specialty shoe stores
  • Department stores
  • Other
  • Athletic and sporting goods stores
  • Chart: Major Market Segmentation for the Footwear Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Footwear Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Footwear Wholesaling Industry

  • Industry Globalization
    Nike Inc., Adidas AG,
  • Table: Nike Inc. - financial performance
  • Table: Adidas AG - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Footwear Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Footwear Wholesaling Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The relocation of a company's business process, such as manufacturing or accounting, from one country to another, whether the work is outsourced or stays within the company.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Wholesale Bypass
  • The practice whereby manufacturers and retailers cut out intermediaries in a supply chain to establish a direct sales channel in order to obtain higher margins.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Footwear Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Footwear Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Footwear Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Footwear Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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