Group 18 Macro-Market Assessment Bristol, Cuozzo, Holz, Lyman, Patibandla, Sexton.

Shoe SkinsGroup 18

Macro-Market AssessmentBristol, Cuozzo, Holz, Lyman,

Patibandla, Sexton

Macro Market Size

Macro trends indicate a huge potential for Shoe Skins beyond Children’s Shoes

Market size in Volume Sales:• Growing at CAGR of 5.1% during year 2001-06• Expected to grow at 6.4% during year 2006-11• Children’s market represents 22% of overall US footwear market• Both Children’s and Women’s footwear market is expected to grow at a faster rate compared to Men’s market

Macro Market Size

Market size in Value Sales:• Growing at 3.2% during year 2005-06• Expected to grow at 1.9% during year 2006-11• Children’s market represents 13% of overall US footwear market • Both Children’s and Women’s footwear market is expected to grow at a faster rate compared to Men’s market

Political Trends

Regulatory Environment U.S. Consumer Product Safety Commission imposes strict regulations on children’s

products around materials, potential for choking hazards, etc…

Cons • Requires increased vigilance

around product design and manufacturing standards.

Pros• None obvious

Economic Trends

Economic Down Turn US economy is expected to be contracted by 3% in 2009 with a slow recovery of

1.5% in 2010.

Cons • Less spending on fashion goods

Pros• Potential for increased spending

on affordable fashion goods• Reusable nature of shoe skins

reduces TCO for shoe system

Social Trends

Going Green Continuous focus on saving the planet by “Green Initiatives” in the US as well as

around the world.

Cons • Less spending on disposable

goods

Pros• Redirecting the spending towards

environmentally friendly products i.e., reusable shoes skins

Social Trends

Rising Obesity in the USA Increasing focus on ways to combat childhood obesity.

Cons • None obvious

Pros• Opportunity for sport related tie-

ins• Potential growth for exercise

related equipment• Demand for more athletic shoes

Technological Trends

Increased online shopping Many retailers continue to respond to the increased online shopping trend by

providing both online and retail stores.

Cons • Competition from a wide range of

vendors• Questionable usage of online

shopping by target customers

Pros• Access to wide customer base • Feasibility to effectively use online

marketing • Expand offerings through online

presence

Technological Trends

Online Social Networking Growing online social networking services continue focus on building effective

virtual communities with friends, families and businesses.

Cons • None identified

Pros• Access to virtual communities

through friends and families• Effective marketing• Instant connection between

buyers and sellers of similar interests

Macro Market Summary

Overall Assessment: Favorable

• Easy access to large customer base• Opportunity for effective/focused marketing • Favorable social trends to re-usable and

fitness related products

Appendix

Shoe Skins

Shoe Skins is a unique system that makes footwear fun by allowing children to easily change the look of the their shoes any time they want.

The Shoe Skin System Web site mock-up

The System• The Shoe Skins system comprises a base model casual shoe

(or line of shoes) plus a removable “skin,” such as those available for laptops and cell phones.

• The skin will affix to a special surface on the shoe.• Shoe Skins will be sold separately in many different colors and

patterns and contain robust potential for licensing opportunities.