As we have seen again recently on the catwalks of fashion shows, sneakers are on the decline, even if they remain preponderant in the offer of the houses, while moccasins and high heels return to the front of the stage. An evolution which pushes the claws to review their strategy in terms of price and assortment on this increasingly important segment for the luxury sector, as illustrated by a study carried out by the specialist in data analysis Retviews by Lectra.
According to Euromonitor International, luxury footwear will generate 40 billion dollars (37.4 billion euros) by 2027, 29% more than in 2022. “Shoes have become the champion category of brands, because they made it possible to build the identity of the brand”, estimates Retviews, according to which “retailers enlarge their assortment of shoes by 12% each year”. But while the demand for shoes increases with the houses, the sneakers are in decline. As demonstrated by the drop in prices on the resale sites of certain star models, such as Nike Air Jordan 1 sneakers, now resold below their original value.
The United States, main market, with China and Great Britain
The analyst’s data clearly shows that luxury retailers are gradually shifting away from sports shoes, with the category’s share of new arrivals in stores having decreased by 33% between 2021 and 2022. Over the period, they are from 52% to 48% in the supply of luxury shoes on the American market for men and from 24% to 19% for women. The United States also now accounts for 40% of the world’s luxury shoe market, one of the main outlets alongside China and the United Kingdom.
Sneakers still constitute nearly half of the men’s offer, with brands like Gucci and Prada still riding the streetwear trend and successful collaborations with the biggest equipment manufacturers. Adidas has notably signed with Balenciaga and Prada, while Nike has partnered with Dior and Jacquemus. But the moccasin has made a remarkable breakthrough since 2021, notably at Gucci, Louis Vuitton, Prada and Ferragamo, jumping 12% in the fall-winter 2022/23 collections compared to the previous winter edition.
For women, the trend has been even more marked since the end of the Covid crisis with the return to outings, parties and other social events, with a strong desire to dress up and renew their wardrobe. Sandals and pumps have now overtaken the share of sneakers in the label’s offering, accounting for 34% of the total assortment of women’s shoes. The share of stiletto heels has risen by 25% over one year, underlines Retviews.
Regarding the strategy implemented on prices, tennis shoes are logically positioned lower compared to street shoes. In the men’s offer, the entry-level price of loafers is 22% higher than that of sneakers at Prada, and 23% at Ferragamo, whose shoe constitutes 25% of its total sales.
Louis Vuitton offers the most expensive sneakers
Looking more closely at the prices of sneakers on the American market, it appears that Celine practices the lowest. Gucci’s are slightly higher with an average price around $920, while Louis Vuitton’s are the highest (apart from Prada’s most expensive models), with its entry-level prices being 59% higher than to those of Celine.
The evolution for 2022 shows a meteoric rise in prices for dress shoes compared to a more moderate progression for sneakers. For example, at Prada, still in the United States, the Cloudbust Thunder model only increased by 5%, while its famous brushed leather slingback pumps saw their price soar by 23% from January 2022 to February 2023.
The strategy differs by region. Retviews reports that “high-end luxury players maintain significantly higher prices in China for their men’s footwear offering. Louis Vuitton prices there are almost double those in Europe, while prices for Bottega Veneta’s men’s shoes are only 14% higher in China”. A carefully considered choice, since Louis Vuitton, Prada and Salvatore Ferragamo are among the top ten most desired shoe brands by the wealthiest Chinese consumers.
It is interesting to note how Louis Vuitton has applied this last year the strongest increases in China (+72%) and in the United Kingdom (+42%), being satisfied with a +15% in Japan, against +25 % for Prada and +20% for Ferragamo on the Japanese market. In the United States, the prices of the French brand only changed by 8%, while they jumped 23% at Ferragamo and 24% at Prada. These strong differences from one market to another would tend to prove that the increases are much more linked to strategic reasoning than to the economic situation (inflation, rise in raw materials).
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