Footwear Industry Essay

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Complementary goods, most of the time, are directly proportional to each other in terms of prize and demand. For example when one product has to be consumed with other product, then the rise in demand of one product will surely affect the demand of another product. So this relationship creates reasonable linkages between many industries. In case of footwear manufacturing industry, in general terms, Shoes are being used for many occasions in different styles and for different purposes. So there are many products from other industries, which are associated with footwear industries.
A drop in Canadian dollar exchange rate may cause the benefit for this industry but due to increase in disposable per capita income, from last five years, the industry
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During the year 2015, the increase in the price of rubber is squeezing the profit margin to some extent. On the other hand, there is a trend with very slow increase in the consumer disposable income. Due to decrease purchasing power of consumers; this industry is facing revenue (Haider, january 2015). After looking at the competitive environment of the footwear industry, there are convinced complementary industries that have a straight influence on price sensitivity and demand within the industry. (Investopedia, 2013) states that, “a product can be considered a compliment when it shares a beneficial relationship with another product offering. In an economic sense, when the price of a good rises, the demand for its complement will fall because consumers don 't want to use the complement…show more content…
For instance, the industry’s gross profit declined about 1.50 % points in 2011, next a 15% rise in the price of synthetic fiber. Freshly, synthetic rubber values have been on a decreased since the second quarter of year. (S, N. 2015). Over the 5 years to 2014, the Synthetic Fiber Manufacturing industry has practiced a small interval from the general reduction that has clear the industry in preceding years. If this industry stabilizes, it may put very good impact on the footwear industry. And recovery of leather industry is done in Canada’s situation after recession and playing a vital role in footwear industry of Canada, however profit remains low in current year. (S,
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