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Market Analysis (S.W.O.T Analysis)

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Skechers U.S.A Inc have their fair share of assets that allow them to flourish and drawbacks being their lack of advertisement strategy compared to their competitors.

Strengths:

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  1. Skechers offer footwear occasion and high-quality footwear for everyone, elderly and children who benefit from wearing their memory foam footwear.
  2. Comfort, Skechers make sure their consumers feel comfortable in their light-weight quality.
  3. Loyalty, customers maintain their loyalty towards the brand because of their good trend awareness.
  4. Designed with durable outsole rubber to be resistant from wear and tear from excessive road running.
  5. Affordable option in comparison to Nike and Adidas.
  6. Trendy, Skechers keep sustained with trends that in demand.
  7. Up-To date website and offer world-wide delivery.

Weakness:

  1. Skechers lack in advertising.
  2. Skechers designs cater to a much older market than their set market.
  3. Are not a sustainable brand.

Opportunities:

  1. Sketchers organise charity and inspiring event like “About the walk, an annual friendship walk that brings together all walks of life for one common purpose to support children with special needs and education.” (Skechers friendship walk,2018)
  2. The 90’s fashion is coming back in trend and Skechers have had a strong impact in the 90’s with their designs. Collaborating with former celebrities would create a great flashback and increase popularity.
  3. Skechers in 2018 became aware of the medical day to day demands, this made them directly involved with medical professionals and how shoes are an important part of their job, so they designed The Skechers Work Heath Care Pro SR Series to target the medical market. The shoes were designed to “, repel water, liquid and stains, air-cooled memory foam and slip resistant soles”

Threats: Image: Skneakerindustry.com

  1. Copying (Left: Adidas, right: Skechers), Skechers have been targeted for copying its competitor brands Nike, Reebok, Adidas and others, “Skechers had knocked off the Nike Air 90, Nike Lunar Epic and Adidas Spring-blade. In the past Skechers have been taken to court by the brands they allegedly stolen from.” (Adidasetel,2018)
  2. False Advertisement/ False Claims, “Skechers as a company can expect lawsuits in various markets” (fernfortuniversity,2017). These lawsuits have made the company received a lot of negative attention and ultimately decreased their product standard.
  3. “The federal commission announced that Skechers USA Inc, has agreed to pay $40 million to settle charges that the company deceived customers by making unfounded claims that Shape-Ups would help people lose weight and strengthen and tone their buttocks.” (federalcommission,2012).

  4. Competition also with local cheaper casual footwear brands like Shoe-zone in Ireland.
  5. Nike and Adidas have a stronger loyalty base that Skechers don’t, in the survey the author discovered that most people who shop at Skechers are people who prefer quality over looks, unlike people who shop at Nike who buy based on their overall image. This could be a threat as their competitors gain more consumers when it comes to trendsetting.

Market Position and Target Market

Skechers USA Inc, have made their mark in the footwear industry as the leading footwear brand. Their target market is set to be from the ages 10-24 men and women, but mostly young mothers and middle-aged adults with a stable income. The average cost of their footwear is between €28.99 to their most expensive €69.99 meanwhile the quality of their products is no less than a pair of Nike sneakers. Nike and Adidas have a bigger audience with a younger target market, from ages 10-24 also. Under Armour and New Balance footwear are also tough competition from Skechers as share the same price ranges and apparel selection.

Skechers although it’s labelled as an athletic footwear brand, it is unpopular with teens and young adults as its seen as “old style” and considered to be more for their parents or grandparents from my survey research. Nike founded 54 years ago, and Adidas founded 94 years ago speaks for itself, they have been in the industry for years and have raised their standards throughout the years to dominate the athletic footwear industry to offer sneakers for a variety of sports, compared to Skechers that have only existed for 26 years and still have a lot of proving to do after their legal lawsuits. In the pie chart from The NPD Group Skechers have been placed at 4.7% number 4 after Adidas which is 6.7% more than Skechers. Image: The NPD Group.com.

Brand Identity 4P’s

Product:

Skecher’s are significantly cheaper than its competitors. Skechers also is not a fully sustainable brand but they have achieved the E-Label, that is their lowest possible sustainable choice. The company offers kids footwear, Medical Work Health care pro series, performance as well as work and casual footwear. Since 2017 Skechers have designed a Go Golf line, that cost €140/£139. Their range also include unisex, men’s and women’s “Bags, watches, sunglasses, socks and hats”. (Skechers.com,2018), these products cost between €10-€50.

  1. Their casual’s category for women are “Dress casual’s, stylish contemporary comfort, casual fusion, all year-round sandals and boots.” (Editorial,2018),
  2. For men the casuals include shiny leather, for occasion wear and other stylized boots. The designs are designed to be light-weight with comfort and elasticity. Kids footwear come in a variety of bright colours with built in LED lights for effect to attract a kid’s market.

  3. The lifestyle sports series offer “Skechers Sport, Skecher Active and Skechers Street.” The performance footwear brands are Skechers Performance, kids, men’s, women’s and Skechers Work “(Editorial,2018). These products are designed to be durable, water resistant and are made or various fabric combinations for e.g. Canvas, Linings, Memory Foam plus with different closure options like “zip, lace, zig-zag and cross strap”, The sports shoes also cater to many sports footwears like golf, football, walking, running, hiking and medical work wear. (Editorial,2018). 2018]. These designs are trendy sports footwear and come in several bright colours.
  4. Skechers Kids line section hold a variety of infants, toddlers, boys and girl’s sneakers, boots high-tops and sandals which are inspired by athletic footwear with” memory foam, Twinkle toes, game kicks and elastika by Skechers. This kids line is designed to be kid friendly with inbuilt sound and lights perfect for kids. These shoes come in fresh, vibrant colours for kids and young teens.

Price:

Skechers market price varies depending on each country, manufactured in China and other developing countries ultimately increases their international sales and keep the price of their products at a much reasonable price than its competitors. Average price for sneakers €28.99 – €70.99.

Promotion:

Skechers have always tried to produce trendy products and have successfully maintained as a tasteful brand by celebrity-driven advertisement. Many popular faces in the glitz and glamour business such as Kim Kardashian and Britney Spears have appeared on posters and magazines advertising Skechers sneakers, in addition Skechers have also partnered with athletes Colin Montgomerie and Matt Kuchar for sponsorships for their golf collection. Skechers also offer discounts at 1 one Irelands best sports retailer Sports Directs.

Place:

Skechers U.S.A have in total of 196 stores, including concept stores, factory outlets and various warehouse outlets across the globe. The statistics show that from 2016 to 2017 concept stores around the world increased by 19 stores, factory outlets increased by 16 and warehouses outlets went from 5 to 9 within a year. (Statista,2018).

According to Business Wire “The earliest international stores were in the year 2001 in Paris, London and Tokyo.”, also earlier this year Skechers USA have successfully opened stores in developing countries such as “Algeria, Romania, Slovakia, Nepal and Zimbabwe”, etc. (Businesswire.com, 2018).

In Ireland, Skechers U.S.A can be found in popular shopping spots such as Blanchardstown Shopping Centre, Liffey Valley, The Square, Pavilions Shopping Centre, Henry Street Dublin and more. Skechers also have an international delivery service that they provide, an online website that allows Irish customers to shop online without leaving their house.

Conclusion and Recommendations

In conclusion Skechers have gained popularity within the street culture and is slowly making its way to reach more people through their athletic designs for sporty/ young consumers.

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