Industry Analysis & Industry Trends
Since shoes are generally discretionary purchases, demand for online shoe sales is heavily dependent on per capita disposable income and other macroeconomic factors that drive consumer spending. As such, the industry took a large hit during tough economic times, when consumers actively cut back on spending. Nonetheless, the online industry has been gaining wider acceptance among price-conscious consumers over the past five years. Today, the industry includes a wide range of retailers, including specialty stores (e.g. Foot Locker, Nike), online-only stores (e.g. ShoeBuy.com, Zappos.com) and general apparel stores.... purchase to read more
Industry Report - Industry Investment Chapter
The Online Shoe Sales industry has a medium level of capital intensity, with most investment requirements in the form of warehouse space, computer equipment and warehouse staff. The average operator will pay $0.25 on capital costs for every $1 of labor expenditures in 2012. Companies in the industry spend more on wages than they do on equipment, as the value of fixtures needed to run the business is marginal compared to the man-hours needed to manage websites and sales.
Online shoe shopping operators outlay capital on technology to establish, implement and maintain their websites on which consumers place orders. The establishment and maintenance of databases require computers, printers, software programs for electronic payment system, firewalls and more. Ope... purchase to read more