Key Issues in the Footwear Sub-Sector in the UK

This study explores the key issues associated with the footwear sub-sector in the UK, including rapid changes in consumer trends and technology, high levels of competition, and the positive and negative impacts on businesses like Nike and Marks and Spencer. It also discusses the challenges faced during the study.

Key issues in the footwear
sub-sector in the UK

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Key issues associated with the footwear sub- sector..................................................................1
TASK 2............................................................................................................................................2
PESTLE analysis.........................................................................................................................2
TASK 3............................................................................................................................................3
Positive and negative impact on the business.............................................................................3
TASK 4............................................................................................................................................4
Challenges faced by while carrying out the study......................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Footwear sub-sector are the manufacturer and distributor of the boots, shoes, sneakers,
sandals and various other type of footwear. This study helps in determining the key issues
associated with the footwear sub-sector. This study also includes PESTLE analysis for the
footwear sub- sector which in turn helps in critically analysing the external business environment
factors affecting the working of the business. This study report also helps in analysing the
positive and negative impact on the business. Furthermore, this study helps in determining the
challenges faced by the footwear sub- sector business.
TASK 1
Key issues associated with the footwear sub- sector.
The footwear industry tend to incorporate various distinct market sectors which mainly
consists of footwear manufacturing, leather production, leather goods manufacturing and shoe
repair. Footwear sub-sector are the manufacturer and distributor of the boots, shoes, sneakers,
sandals and various other type of footwear. UK footwear market intends to grow by 13.7% in the
year 2022 (The UK Footwear Market 2017-2022, 2017). This helps market to be driven by high
retail prices. It has been evaluated that, the women footwear tends to remain the largest.
However, the men footwear sub- sector tends to be growing with the rise in the spending by 15%
in the year 2022.
Rapid change in consumer trend and technology: Footwear sub- sector is changing at an
escalating pace with the advent of new advanced technology. Quality is considered to be one of
the biggest motivator for individuals to purchase the particular set of footwear. Consumer trends
and style is changing frequently (Roukova, Keremidchiev and Ilieva, 2016). The company within
this sub-sector must comply with the consumer trends which in turn helps in attracting large
number of customers from across the globe. It is very critical for the company to gain advanced
technology which in turn adds to large cost to the company (The challenges of footwear retail,
2015). Changing technology results in higher investment cost to the business which is considered
to be a major issue in the footwear sub- sector. Predicting fashion can be difficult which in turn
affects the operations of the business in footwear sub-sector (Shenoy and Rosas, 2018). This in
turn footwear retailers tends to focus on continuously developing new range of products in order
to resolve this issue.
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High level of rivalry competitors: High street competition is considered to be one of the
key issue associated with the footwear sub-sector. Competitors tends to adapt to new style which
helps in attracting large number of customers. They also intend to provide with effective supply
chain which in turn leads to long term sustainable growth and efficiency of the business (The
challenges of footwear retail, 2015). There are various footwear competitive players in the
market which mainly includes Clarks, JD sports, Asda, ASOS, TK Maxx, Sainsbury, River
Island, Marks and Spencer, Nike, Adidas, etc. Effective supply chain of the competitors in the
footwear sub- sector tends to result in effectively improving the functioning of the business.
They tend to focus on effectively improving the supply chain by delivering goods online which
in turn leads to long term sustainable growth and development of the business. Other competitors
providing products at a relatively cheaper price tends to affect the operations of the business
(Wright, and Robbie, 2016). Increase in the pace of changes tends to significantly shorten the
time available with the footwear manufacturers to keep up on quality control. The company
should focus on improving the quality of the footwear products which in turn is useful in
attaining a competitive position in the market and leads to higher customer base and profitability
for the footwear sub- sector in UK. The shortage of workers in the technical skills is considered
to be one of the major challenge which in turn affects the working of the business (Fernie and
Grant, 2019). Designers who tends to have specialist knowledge with the footwear and leather
technology, footwear and leather manufacturing operations, pattern cutting, matching and
footwear designing.
TASK 2
PESTLE analysis
Political and economic factors: Government rules and regulations, foreign trade policy,
tax policy, fiscal policy, political instability in national or international market, labour laws, trade
restrictions, etc. influence the footwear sub- sector n UK. High street competition is considered
to be one of the key issue associated with the footwear sub-sector. Expansion of free trade
policies helps footwear sub-sector to deliver goods to various other market which leads to higher
operational goals and efficiency (Roukova, Keremidchiev and Ilieva, 2016). Economic
instability, higher interest and inflation rate, high foreign exchange rate, etc. tends to affect the
operations of the business. Financial capability, disposable income of the customers play a
crucial role in influencing the footwear sub- sector in UK. Not sufficient designers and skilful
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competitors tend to affect the functioning of the business. This is considered to be as the major
economic issue which in turn affects the growth, operations and working of the business.
Technological and social factors: Change in the social and cultural lifestyle of the
individuals tends to influence the operations of the business. Customers tend to get attracted to
those company who are offering trendy products (Belso-Martínez, 2015). Predicting fashion can
be difficult which in turn affects the operations of the business in footwear sub-sector. Quality
of the footwear plays a crucial role in the footwear industry. Changing technology results in
higher investment cost to the business which is considered to be a major issue in the footwear
sub- sector. Footwear sub- sector in UK must focus on improving the functioning of the business
by effectively adapting to advanced technology by keeping in mind the preference and taste of
the customers. This in turn is useful for footwear sub- sector in UK to establish their market
trends which leads to long term sustainable growth and efficiency (Razzaque and Vickers, 2016).
Change in technology at a regular pace tends to influence the operations of the footwear sub-
sector in UK. This in turn also results in higher cost to the business.
TASK 3
Positive and negative impact on the business.
a.) Positive impact on the Marks and Spencer business.
Rapid change in the trends of the customers tends to have positive effect on the Marks
and Spencer business because it helped company to develop those products which are in
compliance with their needs. Increase in the number of competition has led Marks and Spencer
to improve their supply chain which in turn helps in improved level of competition and this in
turn also lead to higher operational growth and efficiency (Wright, and Robbie, 2016). In order
to overcome this issue Marks and Spencer tends to focus on improving the quality of the
footwear products which in turn leads to higher operational growth and efficiency. The company
should focus on improving the functioning and operations of the business by continuous research
and development which in turn leads to long term sustainable growth and development of the
business (Razzaque and Vickers, 2016). The company should focus on effectively improving the
operations of the business which in turn leads to long term sustainable growth and efficiency.
Mark and Spencer helps in effectively determining the operations of the business by complying
with current and future trends and also by adapting to advanced technology.
b.) Negative impact on the Nike business.
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Change in the preference of the customers tends to negatively affect the operations of the
business. Customers were substituting to other brands who are offering trends footwear products
at a competitive price (Fernie, and Sparks, 2018). This in turn lead to lower operational goals and
efficiency of the business. Rapid change in the technology tends to result in higher investment
cost to the Nike company which in turn leads to lower operations, growth and profitability in
order to sustain in the market. High street rivalry competitors in the footwear sub- sector market
such as Clarks, JD sports, Asda, ASOS, TK Maxx, Sainsbury, River Island, Marks and Spencer,
Adidas, etc. tends to adversely affect the operations of the Nike business. This in turn leads to
lower customer base and profitability to the business (Roukova, Keremidchiev and Ilieva, 2016).
Change in the consumer trends requires regular research and development which in turn
negatively affects the operations of the business. Predicting fashion tends to be very difficult
which negatively hampers the footwear sub-sector in UK.
TASK 4
Challenges faced by while carrying out the study.
It was very interesting for me to carry out this report because it helped me in broadening
the knowledge on the particular subject matter. While carrying out this study, I have gaining
immense knowledge associated with the footwear sub- sector UK. It helped me in determining
whether the footwear sub- sector is increasing or not which in turn helps in determining the
competitive advantage of the company. This study helps me in effectively evaluating the various
key issues which in turn affects the footwear sub- sector in UK. I have sought to analyse the fact
that, the key issues are mainly associated with the rapid change in the trend and use of advanced
technology tend to affect the operations of the business. I have also evaluated that, high level of
rivalry competition tends to adversely affect the operations of the business which in turn leads to
lower operational growth, performance and productivity. The major challenge for me while
carrying out this study was to accomplish the project within the stipulated time frame. But I have
instead created a timeline in order to carry out each activity within a stipulated time frame which
in turn helps in attaining the goals and objectives of the study. Another major challenge was to
collect the true, reliable and valid information which in turn helps in finding answers to all the
relevant questions. In order to resolve this issue, I have collected all the information by ethically
complying with the data protection act. The information collected are from true and valid
sources. In order to ensure that the data is collected from valid sources, all the information is
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well cited which in turn helps in ensuring that the information collected is true and free from all
biasses. I was very excited to know that, how key issues impact the working and operations of
the Nike and Marks and Spencer. This report was very useful in determining the various business
environmental factors such as political, social, technological, economical, environmental and
legal factors which in turn affects the operations of the footwear sub sector in UK. This helped
me in determining the various different issues which in turn tends to adversely hamper the
footwear sub sector in UK. This study helped me determine that, predicting fashion can be
difficult which in turn affects the operations of the business in footwear sub-sector in UK. It is
very challenging to effectively determine the resources which is required to function all the
activities in a systematic and efficient manner. I have effectively analysed the issues which in
turn adversely hamper the performance of the footwear sector. I have also critically examined the
issues which in turn affects the operations of the business.
CONCLUSION
From the above study it has been concluded that, change in the technology and rapid
change in the needs of the customers tend to affect the business operations. Another key issue
associated with the footwear sub sector in UK is high level of rivalry competitors into the UK
market. I have also analysed that, shortage of technical workers and designers tend to affect the
operations of the business. This study helps in analysing the various macro – business
environmental factors which in turn affects the footwear sub sector in UK. Furthermore, this
study also helps in analysing the positive and negative impact of the key issues on the Nike and
Marks and Spencer business.
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REFERENCES
Books and Journals
Belso-Martínez, J.A., 2015. Resources, Governance, and Knowledge Transfer in Spanish
Footwear Clusters: Can Local Firms be Locked Out by Their Crucial
Partner?. International Regional Science Review. 38(2). pp.202-231.
Fernie, J. and Grant, D.B., 2019. Fashion logistics: Insights into the fashion retail supply chain.
Kogan Page Publishers.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Razzaque, M.A. and Vickers, B., 2016. Post-Brexit UK-ACP Trading Arrangements: Some
Reflections.
Roukova, P., Keremidchiev, S. and Ilieva, M., 2016. Footwear Industry: Delocalization and
Europeanization. In The Moving Frontier (pp. 227-250). Routledge.
Shenoy, D. and Rosas, R., 2018. Problems & Solutions in Inventory Management. Springer
International Publishing.
Wright, M. and Robbie, K., 2016. 8: Employee Buy-outs in the UK. ESOPS: Their role in
corporate finance and performance, p.152.
Online
The challenges of footwear retail. 2015. [ONLINE]. Available
through:<https://www.satra.com/bulletin/article.php?id=1463>
The UK Footwear Market 2017-2022. 2017. [ONLINE]. Available
through:<https://www.prnewswire.com/news-releases/the-uk-footwear-market-2017-2022-
300497345.html>
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