Ryka: Lightweight Athletic Shoes for Women
Demand is one of the most important economic characteristics of the athletic footwear industry. In 1987 the footwear industry grew at about a 20% rate showing great demand. By 1993 the annual growth rate of the athletic footwear industry had decreased to 4%, indicating saturation and a mature market (Gottfried, Hoffman, Porciello, 1994, 501).
Several segments of the industry, shaped by technological innovation, image and fashion appeal continue to expand and thus represent additional key economic characteristics of the athletic footwear industry (Gottfried, Hoffman, Porciello, 1994, 501). The popularity of various footwear-related activities such as basketball, tennis, running, aerobics, cross training, and walking support the idea of footwear specialization. Therefor being able to advertise as the company that specializes in certain subcategories of athletic footwear must be considered another key economic characteristic of the athletic footwear industry (Gottfried, Hoffman, Poricello, 1994, 501).
For example, Reebok pioneered the aerobic segment of the athletic shoe industry. Because this subcategory is made up primarily of women, Ryka which specializes in athletic shoes designed for women, was able to split off a section of the athletic shoe market as its own (Gottfried, Hoffman, Porciello, 1994, 501). Using the same marketing rationale, Ryka also has captured a certain segment of the walking and cross training markets.
Technological innovation has also become a key economic factor in regard to an athletic footwear company's success. Ryka's introduction of nitrogen filled micro balloons in the construction of several of their shoe models, was followed closely by other companies variations of 'the pump.'
Image and fashion appeal are not as important as performance in a product's overall acceptance. However, fashion and image are equally important in moving shoes ...