The development of the shoe store industry in China has been driven by substantial and steadily growing domestic demand for footwear from China’s large population, says IBISWorld.

Rising income levels and the promotion of a wider range and higher quality footwear products have also boosted domestic sales for the industry. Industry revenue has been increasing 11 per cent annually over the past five years, to an estimated US$26 billion in 2012.

There are over 63,000 shoe store outlets in China and the industry market share concentration level is low. However, there have been a number of mergers and acquisitions in recent years, slightly increasing industry concentration.

Industry concentration is expected to increase further, as large shoe stores, such as Belle International, Saturday Shoes, and Yunbai Footwear, expand their outlet numbers.

The appreciation of China’s yuan can undermine the price advantage of domestically produced clothing and footwear products, which may result in weaker export levels for shoe manufacturers in future years.

Footwear trade centers are expected to remain the dominant business model; however, footwear chain stores and footwear supermarkets will grow in popularity.

GB