Stepping Up: Trends and Opportunities in Footwear

Footwear has proved itself to be one of the most dynamic, fast-moving markets of the fashion and apparel sector in recent years. Challenger brands continue to disrupt the established players, with merger and acquisition, partnership activity, and digital experimentation rife across the UK and Europe.

5 FOOTWEAR BRANDS TO WATCH

• Hoka. A French company but with global coverage and owned by Decker Brands, Hoka is building a big reputation in athletics and fashion circles. In 2022 it surpassed $1bn in sales for the first time and is looking to capitalise on its popularity – notably through launching what it described as its “most extensive globally integrated marketing campaign to date” in 2023.
• Allbirds. Built on an ‘eco-friendly’ materials message, this brand continues to try new things to  stand out in a crowded market. Its certified B-Corp status is a strong look, and despite a slowdown in sales growth in 2023, ‘pop up’ appearances in the likes of London’s Selfridges continue to introduce the business name to new demogaphics and keep the brand fresh.
• The Edit Ldn. By selling limited edition ‘drops’, allowing people to resell their goods through its platform, and running on a state-of-the-art website and app, this online marketplace finds itself at the intersection of three powerful marketforces – namely digital, sustainability, and newness. Big things are expected under the stewardship of BrandAlley, which acquired the brand in January 2023.
• Crocs. This unique take on foot comfort is the pandemic success story that keeps on running. Although established and successful since 2002, it capitalised on the move towards comfort and casualness in the Covid-19 lockdowns, with its popularity enduring and “record” sales reported in Q4 2023 and revenue of nearly $4bn for the full year. Crocs also picked up Best Footwear Marketing Campaign in Drapers Footwear Awards 2023, for its Crocs X Lazy Oaf Collaboration.
• Vivobarefoot. Another footwear brand looking to step up the sustainability message, Vivobarefoot has its core outdoor pursuits enthusiast customer base and now operates Revivo – a dedicated platform selling preloved and refurbished Vivobarefoot products, enabling its to keep its products in circulation for longer.

The footwear market is vast, of course, and there are new players emerging on the scene all the time ready to take the UK and Europe by storm. Increasingly, the leading players are embracing digital transformation to help drive their businesses forward, operating with a combination of fashion creativity and technogical nous.

BUILDING FOOTWEAR MARKET SHARE

Staying on trend. Going into 2024, trends in footwear include the “post-pandemic obsession with simple, timeless and classical design”, according to UK-based creative agency Touch Ldn, which made the comments in the British Footwear Association (BFA) AW23/24 Trend Report. Footwear balancing aesthetics and functionality, and the cowboy influence – referenced by multiple BFA members, including Marks & Spencer, Flora Harrison, Jacobson Group, Cole Haan, and T&A Footwear – are also hot looks for the sector eying up the year ahead, according to agency.

Louise Ryan, co-founder of Touch Ldn, says in the BFA report that, more than ever, items “must appeal to multi-levels of functionality, versatility and aesthetics”. People demand more from their products in terms usage and longevity, and brands are adapting to a consumer base with greater morals and ethics when purchasing items such as footwear, she argues.

E-Commerce and digital shopping experiences. Mintel’s 2022 report into the footwear market shows an industry becoming increasingly digitised. Shopper behaviours learnt in the pandemic when shops were forced to temporary close have endured, with the study saying 72% of consumers who purchased children’s footwear did so via online channels. According to Mintel, 17% of UK adults would be interested in trying on footwear virtually – for example using augmented or virtual reality.

Retailers and brands looking to support an increasingly digitally-minded shopper can connect their ERP with all e-commerce channels, from Amazon to Zappos. The BlueCherry® B2C Connector offers a seamless integration of BlueCherry® ERP with the leading e-commerce platforms, such as Shopify, Magento, and Big Commerce, and individual retailers’ websites. Integration is simple to configure and can be completely automated, which eliminates the need for manual processes to drive orders and update product description pages.

Traditional design and Web 3. Fashion’s future is increasingly gamified, and the same can be said for footwear. Mintel argues there is a real opportunity for the UK footwear market to “enter into the online space by connecting with consumers in a new, playful way that enables consumers to discover different footwear products”. Several big brands, including Adidas, Nike, and Gucci have experimented with developing virtual shoes that can be used by consumers to test how different styles suit them, or for usage in the gaming world.

Whichever way designs are brought to life – either virtually or in the traditional manner, from concept though to factory to the warehouse and the shopfloor, footwear brands need to track, monitor, and enable team collaboration. BlueCherry® Next™ PLM is a best-in-class PLM software that users can tailor to their specific needs. This PLM solution is configurable to each company’s individual targets and processes, and can offer footwear brands product information management, product data management, technical specifications/packs, bill of materials, integrated line planning, design, product development, sourcing and production capabilities.

Consistency and efficiency rule. As retailers navigate one supply chain disruption after another – from the additional red tape introduced to pan-European retailers and brands after the UK formally departed the European Union in 2020 to the pandemic and the inflationary environment in the immediate aftermath – there is a need to tighten inventory control and bring supply chain clarity. BlueCherry® Omnichannel Merchandise Planning gives footwear brands assortment planning tools including those that support cluster planning and forecasting on a style-by-style basis down to the SKU level. This planning capability can be tied in to their integrated ERP-PLM, creating a comprehensive set of technologies to aid the management of stock and merchandising, as well as reduce stockouts and markdowns, which can optimise business performance and protect margins.

Far and near-shoring balance. From Inditex to John Lewis, and from Dr Martens and Marc O’Polo to Mango, there is a cohort of retailers reducing their reliance on sourcing from China – which has been hotbed for fashion manufacturing for decades. Many brands are moving some of their manufacturing closer to their home territories, for reasons of cost, control, and the need to boost speed to market. This flux in where and how goods are procured and made requires a fresh approach to maintaining quality control. Much like the rest of the fashion retail industry, footwear firms are eyeing production options closer to consumer markets, so they can ship goods quicker and feed the demand for new styles sufficiently. This whole process, which entails onboarding new suppliers, opening new manufacturing sites in different regions, and strengthening or evolving long-term partnerships, can be supported with supply chain digitalisation.

BlueCherry® Shop Floor Control (SFC) provides a clear view to factory floor efficiency, anywhere in the world. Integrated with ERP and PLM, SFC can give footwear brands and retailers a competitive advantage. BlueCherry®’s combined ERP, PLM and SFC capabilities equip footwear businesses to:

• Make sourcing and production more efficient
• Provide greater collection control and consistency
• Drive collaboration across the entire supply chain
• Monitor and use real-time factory performance data to drive decision making
• Analyse key performance indicators
• Closely track orders
• Control quality, and identify any problems as early as possible
• Have visibility of supply chain machines and maintenance

SUSTAINABILITY STRATEGIES

Whether it is consumer demand or growing legislation in this space, there are several factors driving footwear retailers and brands to put a focus on sustainability. New strategies are being forged around the circular economy, social responsibility across the supply chain, recycling, and reconditioning for charity use. In fact, at 2023’s seventh annual World Footwear Congress in Istanbul, Turkey, these themes were key areas of focus of the main conference sessions, highlighting just how high up the agenda it is.

Brooks Running and Schuh are two examples of footwear brands investing in technology to map their full supply chains to ensure they have a central view of supplier and materials data so they can uphold their respective codes of conduct. Businesses across all sectors are being tasked with reporting on their carbon emissions and meeting ever-evolving legislation around ESG compliance – and footwear brands, which often have expansive and complex manufacturing supply chains, are certainly no different.

The BFA report states consumers are looking for “eco-conscious” footwear options made with compelling design and longevity. They also increasingly want to buy from companies offering repair, take-back, and resale options, according to the report – so today’s brands looking to resonate with modern consumers need to take this into account.

CGS BlueCherry®’s experienced consulting team can support brands as they work towards ESG goals by:

• Developing supplier records for each supply chain tier
• Maintaining supplier records and activity in a single technology platform, alongside other crucial product and development information
• Gathering and analysing third-party assessments and audits
• Mapping connections in the extended supply chain
• Helping with compliance when it comes to international laws and regulations.

Step forward now to hear about more opportunities for you and your footwear brand. Contact CGS today to discuss your priorities and how we can help your brand continue to grow.