Finish Line Competition
Now Viewing Finish Line's competition in: Footwear Manufacture, Wholesale, and Retail (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How does the company market to specific demographic segments, like teenagers? - Larger footwear companies are targeting teenagers more, both in product design and marketing.
How does the company compete in a more price-oriented and promotional marketplace? - To target certain market segments, manufacturers and retailers have created special outlets, like Niketown concept stores and Nike Goddess outlets for women.
For Producers: -
How many retail accounts does the company sell to? -
Does the company sell mainly to shoe chains or to department or discount stores with shoe departments? -
Does the company use an internal sales force or independent representatives? -
Does the company exhibit at trade shows? -
Does the company issue special limited edition products? - Manufacturers are increasingly issuing limited editions of high-fashion or high-tech models. These limited editions, treasured by a small group of fashion insiders, are frequently released in small quantities without advance warning, reports Footwear News.
Does the company have exclusive rights agreements with retail chain stores? - Manufacturers and retailers are increasingly collaborating, with agreements for some retail chains to have exclusive rights to special shoe designs or colors.
For Retailers: -
Who are the major competitors? Who is the price leader? -
What type of customer is the company trying to sell to? - Sex, age, income, fashion consciousness are key categories.
What price points does the company sell to? - Different brands usually have styles with prices within a well-defined range.
What sort of marketing does the company do? - Print, TV, and radio advertising are heavily used. Instore promotions and promotional events are used mainly by athletic shoe stores.
What methods of differentiation can the company use other than price? - Fashion design, branding, and comfort are three methods of differentiation.
Competitive Landscape
Demand is driven by fashion and demographics. The profitability of individual companies depends on their ability to design and market attractive shoe models. Big companies have economies of scale in distribution and marketing. Small companies can compete successfully through superior design or marketing.
Full Industry Overview For Footwear Manufacture, Wholesale, and Retail
Business Challenges
CRITICAL ISSUES
Flat Prices: Greater Emphasis on Marketing - The profitability of US shoe companies depends on marketing skills because retail shoe prices have essentially been flat. In the last 10 years, retail prices declined 3 percent. With prices flat, manufacturers and retailers have had to rely on superior styling and marketing to increase sales.
Reliance on Foreign Manufacture - US retailers depend on foreign manufacturers for most of their product, primarily from China, Italy, Brazil, and Spain. Almost all athletic shoes are imported into the US. Total shoe imports increased more than 40 percent between 1998 and 2008. Because of the high labor content, most manufacturing is in low-cost countries. The large dependence on foreign manufacturers increases the risk of supply disruptions and political interference.
Industries Where Finish Line Competes
- Retail
- Apparel & Accessories Retail
- Footwear & Related Products Retail(primary)
- Nonstore Retail
- Internet Retail
- Apparel & Accessories Retail
