In this assignment, you need to prepare a report that looks specifically at the footwear market and online shopping (or both) in New Zealand. As a background, each group is expected to investigate and learn how the footwear industry works.
Market Study is the research of any of the product that is available in market like shoes.shoes is a part of footwear industry .Now there are many footwear companies of new zealand .Now we discuss only two factors which are key success factors and competitors.These two factors are very important factors of market study as discussed below :
Key success factors:
Major brands in New zealand footwear industry are Kumfs, Skechers, Diana Ferrari,Minx, Hush Puppies, Clarks, Arche, Josef Siebel, Sperry, New Balance, Timberland,Ecco, Moda, Keds, Jandals, Sebago, Converse, Swim with Sharks and multiple smaller brands.
New Zealand shoe manufacturers are capable enough for designing, fitting and assembling footwear for multiple ranges of footwear available in market. These include casual shoes for men and women, fashion shoes for men and women, shoes for children and footwear used for industrial purposes. Since they don’t have the scales of production, New Zealand shoe manufacturers have to make more concentrated efforts for giving higher value products as well as services (Bateson,1995). New Zealand shoe manufacturers also plugged in agile methods of production. They have been focussing on creating higher value products and differentiating in terms on brands so that they can receive brand premiums for the same in pricing of their products (Astley & Zammuto 1992).
New Zealand shoe manufacturers have been focussing on diversification of pure local suppliers to become broad based supplier. This increase in flexibility has helped them to strengthen their efforts on facing the shifts in customer preferences as well as local and foreign markets. They have invested heavily in automation techniques like computer aided design (CAD) and computer numerical control (CNC) systems (Barnett & Hansen 1996). This has reduced time needed by them for creation of new products from moulds. Hence, they have employed “just in time” practices which has made them reduce holdings of their inventory as well as be responsive for trends in fashion and changing customer preferences. Some manufacturers like Robins, Shoe Lasts have been working on adding higher value add services and niche procedures using technology for development of very less turnaround time for products (Bateson,1995).
New Zealand shoe manufacturing industry is small in itself as there are about 500 establishments which have hired around 2500 people all across New Zealand. New Zealand shoe manufacturing industry is shrinking also as reiterated above; they are focussing on lower volume higher value products. Lower cost products are produced at offshore and majority onshore products are medium to high value products (Astley & Zammuto 1992). They have been wishing for higher growth in Australian resource sector will help in expansion of domestic supply of work for footwear. Labour costs also make up the highest cost factor which was around 20%. But, since, higher technology aspect has been used in production, domestic firms can compete with low labour cost country products coming from Asia and Latin American manufacturers (Barry & Elmes 1997).