Market analysis C & J Clarks Ltd

Together the market is worth Just over EWE billion. The footwear industry accounts for 13. 7% (Been). (Source: Footnote 2006)The footwear industry is split up into 3 main categories:-children’s footwear which accounts for 23% (El . 4 billion pair) of the total marketer’s footwear has a higher market share at 31 . 1% (1. 9 billion pairs) madwoman’s total market share which is at 45. % (2. 9 billion pairs)(Source – Office of National Statistics)3. 2 Clacks has four main competitors. The largest competitor is Style PL. Which has 650 stores, trading mainly as Breasts, Bacon’s, Priceless and Shell’s.
Other significant competitors are Grids Group, famous for its Doc Martins Boots. Grids is privately owned and sells throughout the I-J in many major outlasted & Simpson Ltd. , which has over 400 outlets. They trade under the names of Peter Briggs, Stead & Simpson, Shoe Express and Lilly & Skinner andesine Zone, which has 370 locations in the I-J. Source: footnote 2006)More recently new competitors have emerged particularly some of the major Supermarket chains such as USDA, who have their own clothing and shoe range.
Other fashion outlets have also recently diversified into the footwear industry, e. G. ‘Arcadia’ which now sell its “own brand” shoes as well as known brands. ‘Oasis’, ‘Next’ and ‘New Look’ are also taking the same direction. The Internet has also increased competition from other parts of the world although this is not at present material. 3. 3 From my research, it has become evident that fashion in the footwear industry is coming important and consumers are becoming more fashion conscious when it comes to their feet.

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However trends change rapidly and it is difficult to forecast where the market is going. Predicting the trend correctly is the difference between success and failure. The majority of footwear sales in the UK are through retailers. A third of women admit to buying shoes and accessories on impulse (source -Minted). Only a small number of people buy over the Internet. Parents tend to take their children to recognized retailers to have their feet properly measured (source: Minted). Parents insist on buying the right shoe for their children.
In 2005 the average person spent around E. 60 per week on shoes (source: Family spending). Thirty to forty nine year olds were spending on average E. 20 (IEEE per annum) a week on shoes because they were buying for their children. B. MACRO ENVIRONMENT. 4 There are a number of political factors which impact Clacks’ business. The EX. has voted to impose a two year regime of tariffs on imported goods from China and Vietnam. Duties of 16. 5% and 10% respectively will now be applied to shipments (Source: Independent 05/10/06).
This will mean higher importing cost for Clacks which could put up prices. The European Commission also imposes rules re price fixing and protecting small suppliers against anti competitive behavior from the large operators. (Source: Principles and Practices of Marketing)3. 5 Social factors have affected the footwear marketplace such as dress codes. The 21st century is a period of fast changing fashion; for example under 35 year olds choose to replace their shoes with the newest and most fashionable pairs, rather than repairing their shoes or buying shoes that will last for years..
This is partly due to the fall in price of shoes recently enabling young people to be more fashionable. Such has been the interest in fashion amongst young and middle aged people that inadvertently, it has created enthusiasm in shoes (source: Minted Report 2007). 3. 6 There have been a number of technological changes which have affected the market. There is now the ability to mass produce shoes from a combination of natural and synthetic materials at low cost and to relatively high quality standards. 3. 7 The use of the Internet has meant that customers have a wider choice of where to ay their shoes from.

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