NPD Reports Footwear Industry is Changing; Casualization of America Kicks In
Casual Footwear Sales Take a Leap; Dress Footwear Buyers Drag Their Feet
PORT WASHINGTON, NEW YORK, January 26, 2004 – Jogging suits, flip flops and pajamas as street wear, are all part of America's migration into casual wear. Like the apparel market the footwear market is changing. According to The NPD Group, Inc., a marketing information company, consumers are looking for value, comfort and function when it comes to their feet.
As casual footwear becomes increasingly mainstream, it means bad news for the creators of the sexy three-inch heel. According to NPD, dollar sales of dress footwear for women and men are down five and nine percent respectively, December 2002 to November 2003 versus the same time a year ago. While dollar sales for casual shoes for women and men are up 11 and 22 percent respectively for the same time period.
| Women's Fashion Footwear Categories |
| Dec. 2002 - Nov. 2003 vs. Dec. 2001 - Nov. 2002 |
| Dollar Sales |
| Categories | Dec. '01 – Nov. '02 | Dec. '02 – Nov. '03 | % Change |
| Dress | $2.8 Billion | $2.7 Billion | -5% |
| Dress Casual | $7.4 Billion | $7.2 Billion | -4% |
| Casual | $2.7 Billion | $3.0 Billion | 11% |
| Active Casual/Leisure/Low Performance | $2.3 Billion | $2.2 Billion | -1% |
| Source: The NPD Group / NPD Fashionworld Consumer |
| Men's Fashion Footwear Categories |
| Dec. 2002 - Nov. 2003 vs. Dec. 2001 - Nov. 2002 |
| Dollar Sales |
| Categories | Dec. '01 – Nov. '02 | Dec. '02 – Nov. '03 | % Change |
| Dress | $1.6 Billion | $1.5 Billion | -9% |
| Dress Casual | $2.2 Billion | $2.0 Billion | -7% |
| Casual | $1.6 Billion | $2.0Billion | 22% |
| Active Casual/Leisure/Low Performance | $2.6 Billion | $2.7 Billion | 4% |
| Source: The NPD Group / NPD Fashionworld Consumer |
"The term, 'casual' has become a buzzword in today's market. Any style that is categorized as
'dressy' is suffering these days. Dress, evening shoes and dress casual options are
all showing negative growth from last year. Shoe shoppers want comfort and versatility –
footwear that can take them from the office to dinner out, without a change," said NPD Chief
Industry Analyst Marshal Cohen.
"The dress-up pump is out and the comfort shoe is in. Both men and women are purchasing comfort and lots of it. The injection of comfort into fashion is a lifestyle change that is here to stay," said Cohen.
According to Cohen, several factors come into play in the changing footwear market:
- Erosion of the low-end value market by the mid- to high-end luxury market
- Infiltration of athletic into casual
- Injection of comfort into fashion
- Polarization of purchasing
"Similar fashion is being offered at substantially lower prices. You can buy a designer shoe in Bloomingdale's for $120 or get a shoe that looks very similar for $30 at Target," said Cohen.
"Today every store is selling what I call the next generation of 'hybrid footwear'," continued Cohen. "Consumers are redefining the dress casual market. In recent years manufacturers have taken the dress shoe top and put a rubber sole on it; now they're taking the performance function and mixing it with fashion," said Cohen.
"There are still consumers out there who will go out and purchase a $300 pair of designer shoes and wear them with a pair of $25 jeans or vice versa, NPD calls it the 'polarization of purchasing'," said Cohen.
"Basically it is all about fashion at a price, the merging of fashion and function, the importance of comfort, and the continuation of the casualization of America," said Cohen.
About The NPD Group, Inc.
Since 1967, The NPD Group has provided reliable and comprehensive sales and marketing information for a wide range of industries. NPD provides critical knowledge on what is selling, where, to whom and why to help our clients make more successful, fact-based business decisions. Today more than 1,300 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their business and positively impact sales and revenues. Information from The NPD Group is available for the following major vertical sectors: apparel, appliances, automotive, beauty, cellular, consumer electronics, food and beverage, foodservice, footwear, home improvement, housewares, imaging, information technology, music, software, travel, toys and video games.
About NPD Fashionworld®
NPD Fashionworld, the fashion-tracking division of The NPD Group, provides sales and marketing information for manufacturers, retailers and related services in the apparel and footwear industries. NPD Fashionworld provides the most accurate market intelligence available, including what is selling, where, to whom and why. Information is delivered online in a secure, Web-based environment via interactive delivery tools that make information accessible and actionable to a wide range of users – from executives to sales and marketing to research. Today more than 100 market-leading companies in the industry rely on NPD Fashionworld for the knowledge they need to drive better, fact-based decision making.
For more information:
| Dora Radwick | | Cristina Hilsenrath |
| dora_radwick@npd.com | or | cristina_hilsenrath@npd.com |
| 516-625-6190 | | 516-625-2443 |
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