The average gross margin for the athletic footwear industry is 45%. The
reason for this is simple- low input costs of raw materials. Nike Inc.
dominates the market of athletic footwear, with a market share of
approximately 48%. NIKE and Jordan brands together make up 59% of the
total footwear sales in America, with 330 basis points of market share
YoY.
Athletic footwear is divided into three categories, with the
'running' category taking over the bigger chunk of the market, precisely
35%.
Nike has been benefiting from the growth of the basketball category, which enjoys a growing 2.9%
market share. It is crystal clear the sales for Nike's basketball
footwear is going to shoot up. This current growth in this category has
resulted in a boost for Nike's Jordan brand of basketball shoes, which
alone make 58% of the revenues of the entire basketball footwear
category in America. Read More:
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