When New York-based footwear company Common Projects released its minimalist white sneaker, the Achilles, in 2004, little could we have predicted that the brand would soon be generating over $10 million in annual sales and countless imitations would inspire.
With branding of gold numerals printed across the heel area of the shoe’s upper, the tennis shoe appeared to be reborn, although perhaps no one has made them as perfect as CP, as they are affectionately called by clientele.
But nearly two decades later, the luxury sneaker market appears to be losing traction. Earlier in the year, data from analytics firm Retviews showed a slowdown in sneaker shipments at luxury retailers. The analysis of the new arrivals over a period of three months showed a significant decrease in the share of sneakers in the assortment by 33 percent between 2021 and 2022.
Elegant shoes are in demand again
Despite the fact that footwear is an important category for luxury brands — Euromonitor International estimates that the luxury footwear sector will generate $40 billion by 2027, up 29 percent from 2022 — others are currently driving Shoe models the demand.
Retviews data shows that leading luxury brands are by default placing a greater focus on men’s footwear, which together make up 48% of their range. This is partly due to brands like Gucci and Prada embracing streetwear and offering a wider range of sneakers. Despite the continued prominence of sneakers in the luxury footwear category, Retviews data also shows that it is slowly declining in collections to make way for models such as loafers and heels.
While comfortable shoes and sneakers have been in demand during the pandemic, formal footwear is regaining desirability. In women’s fashion, heeled shoes have overtaken the sneaker category, with sandals and stilettos accounting for 34 percent of the women’s range. Heeled sandals are a particular winner in this category as their share of the range has increased by 25 per cent, as noted by Retviews.
A question of pricing
Retviews analyzed the pricing of sneakers versus men’s loafers, with Prada’s starting price for a more formal shoe being 22 percent higher than its tennis shoes. Similarly, the average price of Ferragamo sneakers is 23 percent lower than moccasins. And Prada’s brushed-leather slingback pumps are up 23 percent in price in 2022.
Balenciaga’s Triple S sneaker retailed for less than $1,000 in 2018 and helped the brand surpass €1 billion in sales. Today it retails for $1,250 as part of a collaboration with Adidas, but the brand has also expanded its range of dress shoes.
A report by Grand View Research has revealed that the global dress shoes market will decline at a CAGR of 4.5 percent from 2020 to 2027. However, this does not apply to all types of dress shoes, as more versatile and casual shoes such as loafers and oxfords are in demand again.
As people’s tastes and preferences continue to evolve, brands expanding their offerings of dress shoes could still see plenty of growth going into 2023.
This article was published on FashionUnited.com. Translation and editing: Barbara Russ