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Application trend of TPU in athletic footwear

Application trend of TPU in athletic footwear
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  • Categories:Industry news
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  • Time of issue:2020-09-29 09:06
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(Summary description)

Application trend of TPU in athletic footwear
Top

(Summary description)

  • Categories:Industry news
  • Author:
  • Origin:
  • Time of issue:2020-09-29 09:06
  • Views:
Information

2019 has entered the fourth quarter. For TPU, there are too many things to sum up in 2019. In the macro background of global economic slowdown and Sino-us trade friction, TPU has performed well compared with other polyurethane products, but it still has to face the situation of declining demand growth.

 

TPU is widely applied in many fields, but according to the statistics of Shuijieji consulting, more than 50% of the consumption is applied in the sneaker service industry, whether it is outsole, midsole, air cushion, shoe decoration, waterproof and moisture permeable film or hot melt film. Therefore, the performance of sneaker service plays an important role in the TPU business cycle. Therefore, as the largest consumption area of TPU, the performance and future trend of TPU should be reviewed from this area.


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Earnings start, appreciate macro


A glimpse at the overall performance of the sports shoe and clothing market in 2019 can be objectively reflected from the operating conditions of typical sports brands. As of October, both domestic and foreign sports brands have released their business results for the first half of 2019.

 

According to Nike's fiscal 2019 fourth-quarter earnings data, Nike's revenue in Greater China reached $6.208 billion in fiscal 2019, representing a 24% year-on-year increase on the basis of unchanged exchange rate (26% in the second quarter and 24% in the third quarter).

 

Adidas reported a 4% year-on-year increase in sales to 5.51 billion euros ($6.153 billion) in the second quarter of 2019. Net profit was 531 million euros ($594 million), up 34 percent from a year earlier. Greater China, excluding currency, saw revenue rise 14 per cent.

 

As for domestic brands, the financial report of Anta in the first half of 2019 shows that the revenue of Anta Group has exceeded 14.8 billion yuan, with a year-on-year growth of 40.3%.

 

Li Ning's financial report for the first half of 2019 shows that its revenue in the first half of the year reached 6.255 billion yuan, up 32.72% year on year.

 

According to xteP's 2019 interim financial report, its revenue in the first half of the year increased by 23% to 3.357 billion yuan.

 

According to the financial report of 361 Degrees in 2019, the turnover reached about 3.237 billion yuan, with a year-on-year growth of 7.3%;

 

According to the company's mid-term financial report in 2019, its operating revenue reached 810 million yuan, down 47.27% from the same period last year. According to pathfinder's financial report for the first half of 2019, the company realized an operating income of 691 million yuan, down 21.16% from the same period last year.

 

(Note: Nike calculates and releases fiscal year differently from other companies.)

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It can be seen that domestic and foreign sports brands have mixed feelings. Under the background of the trade war between China and the United States, the consumer market in 2019 appears to be extremely sluggish, and the orders of terminal brands are affected to different degrees. However, even under the background of the trade war, the overall sports brands are still remarkable.

 

According to Euromonitor big data statistics, China's sneaker and apparel market totaled about 40.1 billion US dollars in 2018, with a year-on-year growth of 19.5%. It is expected that this market will maintain a compound growth rate of more than 9% in the next five years. Sneaker apparel accounts for 10.6% of China's overall footwear apparel market, compared with 7.6% in 2014, indicating that the penetration rate of sports products in China is gradually increasing. China currently accounts for 12% of the global sneaker apparel volume, making it the world's second largest market.

Under the macro trend, how does TPU perform?


So for TPU, in this situation, the sector, TPU more than 30% of the consumption in the downstream of the shoe soles, shoe bottom shoes application domains such as, air cushion, shoe accessories, and mainly shoes, as the best in shoes are shoes branch, 2014-2018 average annual compound growth of 12%, far higher than about 5% of the whole shoes clothes market level.

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Considering the large number of materials used in sports shoes, TPU only accounts for about 3%. The overall growth rate of comprehensive sports shoes and material substitution.

 

Footwear bottoms is expected in 2019, is mainly used in football shoes, growth is expected to 2-3%, mainly used in shoes, sports shoes in the bottom recreational shoe, the growth rate of 10-15%, air cushion is mainly used in basketball shoes, casual shoes, the growth rate of 5-10%, shoe accessories growth is 5-10%, considering that a trade war with China over the last two factors, consumption growth is slowing, in TPU material industry consumption growth is expected to 5%;

 

Film: outdoor shoes, more than 65% of the TPU film is mainly used in sports clothing field, so also can maintain shoes suit under the demand of high growth, although not all shoes suit to use TPU film, TPU in permeability is growing in this area, especially in the membrane in the use of outdoor shoes clothes, consider a trade war with China, growth in 10-12%.

What will the next five years look like?


Although the trade war between China and the United States has not ended, but the sneaker clothing market boom will not be a flash in the pan.

 

(1) Policy first. In 2019, the Healthy China Action Plan (2019-2030) and other relevant documents were released, encouraging 30 minutes or more of moderate intensity exercise three times a week or more. This is another policy opinion on health and sports following the National Fitness Plan 2016-2020 and opinions on Vigorously Developing Ice and Snow Sports on the opportunity of The 2022 Beijing Winter Olympics.

 

(2) Compared with other countries in the world, China's per capita clothing consumption expenditure still has a large room for improvement. With the deepening development of Urbanization in China and the continuous increase of per capita disposable income, it is expected that the per capita clothing consumption expenditure will also gradually increase. According to statistics, in 2018, the average consumption expenditure of shoes and clothing in the UK reached $1,500, while in the US it reached $1,300, while in China it was only $300. This is also the development potential of the shoe and clothing industry in the future.

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(3) With the consumption upgrading and the increasingly mature consumption concept, consumers' demand for sports shoes and clothing is becoming more specialized and differentiated. Instead of a pair of sneakers and a tracksuit covering all types of sports, different equipment will be available for different sports scenarios and types. Sports such as running, yoga, football, basketball, ice and snow will be equipped with different professional equipment and shoes.

 

(4) Sports shoes wear high-tech materials, powder absorption strength. In each sub-field of shoes and clothing, the technology content of sneakers and clothing is higher, with high requirements for research and development, and the research and development expenses account for a relatively high proportion of operating costs. Sneaker and apparel companies and industrial chain materials companies continue to increase the audience through continuous investment in research and development. Accordingly again how look, market of domestic athletic shoe to wear does not resemble this to have withered sign. Therefore, the industry should be full of confidence and expectations for the future athletic shoe and clothing market.

 

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