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INSIGHTS
The total market size (revenue) of the wholesale footwear market in 2018 is $38 billion, with expected revenue growth of 2% in 2019.
The key players in the athletic apparel market are Nike, Adidas and Under Armour.

INDUSTRY OVERVIEW
We have prepared an analysis of the wholesale footwear and wholesale apparel industry, including current market size, projected growth, and factors that make the wholesale market unique compared to other retail channels.

The total global apparel market is valued at $3 trillion, or 2% of the global GDP.  Based on 2017 revenue results, the athletic apparel segment of that market (including footwear) was $168 billion.  From 2015 to 2020, Morgan Stanley estimates that $83 billion in revenue would be added to that

THE ATHLETIC APPAREL WHOLESALE INDUSTRY
TRENDS AFFECTING THE GLOBAL WHOLESALE MARKET
market, resulting in a potential growth rate of 30%.  According to Euromonitor, the fastest growing segments in the market in 2016 were sports-themed apparel (6% growth) and athletic footwear (10% growth).  This represents a growth rate of more than two times that of the overall industry.  We were unable to find a break-down that isolates the size of the wholesale market but the overall industry revenue is expected to increase to $38.1 billion in 2018, a growth rate of 2% from 2017.

Globally, the Asia Pacific (APAC) region is expected to see the strongest growth rate with a CAGR of 6.9% by 2024.  Strong growth is also anticipated in China as the Chinese government plans to increase the number of recreation facilities by 60%, resulting to an additional 500 million people taking part in regular exercise (and in need of athletic apparel to do so).  The Middle East is expected to have the largest future growth potential; this region has seen some years with year-to-year growth of 15%.  Growth potential is weakest in Europe (about 1%), but even this region could see 5% growth in the coming years.  U.S. market growth is currently estimated at 4%.

The athletic apparel market can be further segmented into performance sportswear (including yoga pants and activewear products), sports-themed apparel, and athletic footwear.  The performance sportswear segment had the highest dollar value in sales in 2016 ($78 billion), experiencing a 7% increase. This increase is consistent with sales growth in this segment between 2014 and 2015. The total market size for the wholesale footwear market is $38 billion. This market is expected to grow by 2% in 2019.

1. Major wholesalers in the industry such as Nike, Adidas, and Under Armour also own a well-known brand. These wholesalers contract manufacturing firms to produce goods that they can sell through both wholesale and traditional retail channels.

2. For the shoe industry, barriers to entry are not insurmountable if a brand has a new, cutting-edge product that seizes the imagination of the consumers. Demand can surge based on fashion trends, and additional sales can be made by targeting product to specific demographic groups.  Having innovative product design can also pay off for brands (and indirectly, for

KEY PLAYERS

wholesale stores) since high demand products are an opportunity to maximize profit margins.

3. Wholesalers can take advantage of video-based brand marketing campaigns.  A study by Marketing Zeus found that 38% of potential customers in the 18-34 demographic claimed they decided to visit a store after seeing a product video.  The same study also found that 30% of customers spent more than $500 based on their online brand research (including product videos).  Another study by Sports Chump found that almost half of all consumers researched potential athletic apparel or footwear products using their mobile device. Consumers are more informed than ever and are actively seeking online marketing to make purchase decisions.

4.  Wholesalers entering the market have the best chance of success if they operate as a franchise of an established brand. Franchisees can take advantage of existing brand loyalty, and global brand marketing campaigns. For instance, Nike spent $804 million in 2016 on marketing expenses in 2016, which indirectly helped independent Nike franchises increase their sales. Wholesalers can also have some success differentiating themselves from the competition by focusing on a specific, niche target market group such as providing shoes for specific sports. Wholesalers can build their customer base by becoming expert sources of information for that target group, generating positive word-of-mouth.

The key players in the athletic apparel market are Nike, who increased sales by 12.3% between 2014 and 2016, Adidas and Under Armour.  Nike is considered the most valuable brand with a market valuation of $30 billion.  Under Armour forecasted a 12% increase in sales in 2017 with a brand value of $5.86 billion.

Major wholesalers include Brown Shoe Company (U.S.), Chinabrands (based in China but have customers from over 200 countries), Orange Shine (China, competing based on price), and Wholesale Shoe Warehouse (U.S., a low-cost provider that prides themselves on having a broad selection of shoes).

CONCLUSION
Wholesalers have a unique opportunity to capitalize on a growing market for athletic apparel and footwear. Through partnerships with brands that already have a strong online presence and video-based marketing campaigns, wholesalers can take advantage of that potential growth.