Industry facts and figures

Buyers reveal their top brands

Fashion and sport walk together as far as most footwear buyers are concerned: they not only source more well-known athletic footwear brands than any other brands, but their customers also seem to prefer the lifestyle ranges from well-known athletic brands like adidas, Nike and Puma.

Since most of the thousand plus 15-17 year olds we surveyed last year (Sports Trader April, June & August 2005) indicated that they are quite fond of wearing these brands — especially adidas — it was no surprise to find that most stores stock adidas, Puma and Nike, and that they are amongst the top three sellers in most stores. These brands, after all, do have lifestyle ranges.

We were lulled into thinking: so what’s new? Until we looked at the difference between the brands sourced for the bigger chains (more than 20 stores) and the independent buyer sourcing for less than 10 stores.

The difference in brands stocked is significant.

Firstly, the chains stock far fewer brands than the independents: the 21 brands in the chart (All the Brands Sourced by Chains) were all the brands that the respondents said they stocked. The independents, however, indicated that they source 89 different brands ... which could be expected, since 50 individual buyers are bound to all have different customers and therefore source different brands.

Secondly, all the chains stock adidas, Nike and Puma — and are much more likely to stock these brands than any other — and most (88%) stock Reebok. The brand next most popular with chain store buyers is Converse (50%), followed by New Balance (38%).

The brands sourced by most independents look completely different: most stock Jordan (although we can not say with 100% conviction that the respondents understood this brand as the specific shoe, or were referring to the company that distributes many different brands).

This is followed by adidas, Bronx and Soviet (66%). Thirteen brands are more often purchased by independent buyers than Puma (49%), including Reebok (51%). Sixteen other brands are more often sourced by independent buyers than Nike (38%). This could, however, be a strategy determined by the brands themselves, namely that they only supply selected stores and that they would therefore not supply many independents.

The top 20 brands sourced by independent and chain store buyers do, however, make interesting reading when compared to the twenty brands that are the top 3 sellers for the buyers who source them (Top 3 Sellers when Sourced, according to buyers). In other words, these brands might not necessarily be available everywhere, but those who purchase them find that they are good sellers.

Levi’s, one of the top sellers when sourced (according to 68% buyers), is not in the chains that responded. Nor are brands like Loxion Kulcha or Soviet, amongst the top sellers for about a third of the buyers who source them, represented in these chains. Not to mention DC (50%) or Volcom (33%), although it could be argued that these two brands appeal to a niche market.

Performance brands

Another result that we found surprising, was the popularity of performance brands amongst buyers as well as customers of the athleisure stores we targeted — bearing in mind that we did not include buyers for general sport or outdoor stores.

For example, Asics, a specialist running brand and not one you would expect to see on the feet of someone who is lounging around, is in 9th position under Top 3 Best Selling Brand (according to buyers), doing better than brands with a 100% athleisure focus, for example, Hush Puppy or Vans.

Another athletic performance brand that does well is Hi-Tec. However, people do buy certain models of this footwear brand when they are looking for a comfortable (brown) shoe — they often consider the fact that you can go hiking with them as an added perk.

Perhaps this is the same reason why New Balance, which trades on being a purely performance brand, is all over the show. New Balance is one of the ten brands that is a Top 3 Selling Brand in many stores, and a #1 seller in some. It is the brand that is stocked the 6th most in the stores surveyed, and purchased by the 11th most buyers.

Are the sales of these athletic shoes an indication that the country is becoming more fitness orientated? Or is it the comfort provided by athletic technologies that consumers want? Or is it just cool to wear sporting brands and look like you are on your way to a training session? Whatever reason — the sport shoe is still very much a fashion item.

Popularity stakes

You would expect that the footwear brands that ended up under the Top 20 Brands Stocked would be those that are the most popular brands. For some footwear brands this is true, but not for others.

Some brands are not that widely stocked — for instance, footwear brands that have not been in the market for that long, or they may appeal to a very specific market — yet, where they are stocked, they are amongst the best sellers.

On that note, take a look at what percentage of buyers/stores that stock a brand also list it as one of their top selling brands (Top 3 seller when stocked).

Take Levi’s footwear as an example: it is purchased by less than half the buyers that responded and stocked in less than half the stores ... yet it is one of the top three best sellers for the second most buyers. And nearly 70% of the buyers who do purchase the brand say that it is one of their three best sellers. In fact, it does better for the buyers who do purchase it than brands like Nike and Puma.

Saucony is another example of a performance brand that is one of the top three sellers where it is stocked, but it does not feature in the Top 20 Brands Stocked — in fact it is only stocked by 12.7% of all the buyers and 9.1% of the stores they buy for.

What influence does numbers have?

How much difference does it make whether a buyer represents one store, or several? The answer is reflected in the differences between the according to stores and the according to buyers tables.

Taking a look at the Top 20 Brands Stocked tables, you see that Nike is stocked in nearly three-quarters of the stores surveyed, which is considerably more stores than most other brands. But, a far smaller percentage of individual buyers purchase the brand — the same number of buyers who purchase brands like Fila, Millé or Skechers. This indicates a stronger presence where a buyer represents several stores, but not in single stores.

On the other hand, brands like Jordan, Hi-Tec and Dickies, purchased by more than half of the indiviual buyers, are in relatively fewer stores.

But how much of an influence does the fact that a brand is stocked in more stores have on its popularity? Surprisingly little. The brands that are most popular in individual stores (Top 3 Best Selling Brands tables) are equally popular when more stores are taken into account, give and take a few percentage points. The same goes for the Nr 1 Best sellers.

However, when one looks at the popularity (Top 3 sellers) of brands only where they are stocked or purchased by buyers, the picture changes.

As discussed above, Saucony sells well where it is available. The same goes for alternative brands like DC and Volcom, who also seem to have a specialist appeal. Zoom is another brand that is one of the best sellers in the stores that stock it, but is not amongst the 20 brands most often purchased.

Popular with buyers

So chain stores dictate the popularity of a brand with regards to sales? Wrong!

Several brands do not feature on the lists of buyers for chains, yet they are amongst the best sellers in a high percentage of stores and amongst buyers.

See, for instance, the popularity of canvas lifestyle brand Levi, or Olympic, which is one of the top three sellers for about 10% of the buyers that purchase it, but is stocked in less than a quarter of the stores. Loxion Kulcha is another local brand that is not only popular amongst buyers who source it, but is a top seller in many stores. It is one of the top three sellers in a quarter of the stores where it is stocked.

This is a good sign for local brands and international brands that cannot (or that do not want to) get into the big chain stores. It is also a good sign for independent stores looking to attract brands that do not compete with chains.

Apart from certain beach styles — and the exception of one or two brands — the surfing labels supply clothing, not footwear. While surf brands therefore hardly make an impact on footwear sourced, they will play a much more signifant role in the next issue when we look at clothing brands.