Industry Analysis
PO Box 540764
Orlando, FL 32854
www.REBUILDglobally.org
Emily Glidden, Paige Ostos, Elizabeth Connett, and Kate Leahy
Rollins College, Department of Communication
Restoring Environments By Utilizing Innovative Local Development
TABLE OF CONTENTS
INTRODUCTION AND OVERVIEW......................................................................................................................... 3
FACT SHEET ................................................................................................................................................................. 4
BUYER PROFILES ................................................................................................................................................... 5-8
SWOT ANALYSIS .................................................................................................................................................. 9-10
SIX FORCES ANALYSIS .................................................................................................................................... 11-12
CONCLUSION ............................................................................................................................................................. 13
REFERENCES .............................................................................................................................................................. 14
Rebuild Globally Industry Analysis
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Introduction
The following report is an industry analysis on the 501[c][3] non-profit
organization, Rebuild Globally. Using the SWOT analysis, Porter’s Six Forces analysis and
various research and analyses this report gives insight into the industry.
Overview
In January 2010, one of the world’s most powerful earthquakes rocked Haiti. 10
days following the earthquake, American humanitarian Julie Colombino traveled to Haiti to
aid in disaster relief. While in Haiti, Colombino took note of two unfortunate circumstances,
shoeless street children and burning tires, which spawned the idea of REBUILD Globally.
Upon her return to her Orlando, FL residence, Colombino resigned from her position at
United Way, sublet her apartment, sold the majority of her belongings, and began the legal
paperwork to incorporate REBUILD Globally.
REBUILD Globally (RG) is a 501(c)(3) non-profit organization operating as a social
enterprise that works with community members to earn a sustainable income. Through
income-generation, artisans are empowered to reunite their families, provide themselves
with food and medical care, send their children to school, and accumulate savings for longterm stability.
For the purpose of this report, statistical data is provided by the MarketLine
Industry Profile Global Footwear, March 2013. This profile defines the global market as
consisting of North America, South America, Western Europe, Eastern Europe, Middle EastAfrica, and Asia-Pacific. The profile values the footwear market as consisting of the total
revenues generated through the sale of all types of men’s, women’s and children’s shoes.
For more detailed information and graphically support, please refer to Buyer Profile
section of this report.
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Rebuild Globally Industry Analysis
Buyer Profiles
The global footwear market has grown moderately in recent years. According to
research, the global footwear market had total revenues of $256.6 billion in 2012,
representing a compound annual growth rate of 3.5% between 2008 and 2012.
The Americas and Europe are reportedly responsible for more than half of the
geography segmentation of the global footwear market in 2012. The Americas accounted
for 38.4%, as did Europe. See Table 2 and Figure 2 below.
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The leading distribution channel in the global footwear market in 2012 is listed as
the clothing/footwear/sportswear/accessories retailers. This channel represents 67.4% of
the total market’s value, while department stores are credited for 15.9% of the market
share. See Table 3 and Figure 3 below.
As reported by MarketLine Industry Profile Global Footwear, in 2017, the global
footwear market is forecast to have of $326.5 billion, an increase of 27.2% since 2012. The
compound annual growth rate of the market in the period 2012-17 is predicted to be 4.9%.
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Target Market Analysis
Strides current target market caters to men and women of all different ages. It
targets fashion-oriented teens and adults with a need for a purposeful product. Strides can
be found at select retail locations and online at their shopping website.
REBUILD Globally has identified two different target markets for their Strides sandals,
which are thoroughly explained in the following descriptions.
Primary Target Market
The primary market is men and women ages 15-45. Similar products to Strides are
popular with this age group and if they become brand loyal it is hopeful that they will
continue to purchase/stay interested in the brand. These men and women live in the
United States, have a high school degree, and are either still enrolled in college or are
employed. They are interested in the arts and social causes and participation in different
activities. These men and women live a fast-paced lifestyle and are constantly on the go;
therefore, they need a comfortable, everyday shoe that can be a wardrobe staple.
Geographic
Predominately the United States
Demographics
15-45 men and women, Caucasian and minorities, high school or college degrees
Psychographics
Media savvy, interested in music and/or art, involved in social causes, middle class
Behavioral
Need fashionable, yet comfortable, everyday shoes at an affordable price, wearing shoes
with a purpose
Example of Consumer Profile:
Charlotte is a 21-year-old environmental studies major at Rollins College. In her spare time,
she goes to the beach and attends yoga classes. She is spontaneous in her decision making
whether it be the clothes she wears or the events she attends. She likes trying new things,
so there is never a dull moment. Going green is important in her daily lifestyle, and she tries
to influence those around her to contribute to the cause.
Secondary Target Market
The secondary market is focused on Strides’ distributors. Considering the data
supported by MarketLine’s Industry Profile for Global Footwear, RG targets companies
with retail locations in either the Americas and Europe, or both. RG is interested in
partnering with companies that support their general mission of producing sustainable
products. These companies attract the individuals belonging to the primary market listed
above. These companies give the primary market the option to visit their retail locations
and/or their online shopping website to purchase Strides. The average pricing of
merchandise sold at these stores are aligned with the price of Strides being listed at $49.
Rebuild Globally Industry Analysis
Geographic
Global—Americas and Europe
National—Florida, California, Hawaii, New Jersey, New York
Landscape—Urban, semi-urban, and rural
Climate Zones—Mediterranean, Humid Subtropical, Humid Continental
Demographic
Private and public companies
Psychographic
Corporate culture with the emphasis on product quality, customer loyalty, and employee
satisfaction
Behavioral
Organizational—centralized
Purchase loyalty—high
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SWOT Analysis
Strengths
Rebuild Globally is among many organizations entering into the market of social
enterprise. Despite RG’s recent entry to the market, the organization has already developed
a solid platform of strengths.
One of RG’s strongest suits is their emphasis on being environmentally friendly. All of
RG’s products are made from recycled material found in and around the streets of Haiti.
Particularly, their Strides sandals are made from recycled tires and leather, which are
artfully crafted into an array of different sandal designs by their artisans. It is important to
note that RG does not waste materials. The parts of tires that do not contribute to their
sandal making are attributed in other forms in their operation, such as tire gardens. These
tire gardens grow plants to not only add decoration, but to stimulate environmental growth
within the community.
RG does not give handouts. Rather, RG gives Haitians the opportunity to earn a
dignified wage for themselves. Colombino and her team were not looking to just provide a
quick fix after the earthquake; they wanted to provide the Haitians support and
opportunities with a long-term solution. Working for RG, not only gives the people jobs, but
also learning skills and work ethic that will be beneficial throughout their lives.
In conjunction to providing Haitians with employment opportunities, RG’s operations
also help stimulate the Haitian economy. Considering RG is based and operated in Haiti, all
the revenue deriving from Strides sandals is returned to RG employees, which ultimately
feeds into the Haitian economy. Instead of operating in United States and having to struggle
with sending the benefits back to Haiti, RG is fully immersed in the Haitian economy and
over time will gradually help it develop and flourish.
Another one of RG’s major strengths to highlight is the trendy and stylish quality of
their Strides sandals. Given today’s trends, it would impractical if RG did not consider
current fashions. Therefore, by knowing the market, Strides’ basic and durable product can
match up against other brands being sold in large retail chains.
Weaknesses
While RG presents much strength, they do show several areas needed of improvement.
One of these areas is their advertising and media exposure. In order to increase sandals
sales in the US and other international markets, RG needs to promote their products
through advertisements and activity on various social networks. Because RG is a fairly new
company, many people are unaware of their existence. By implementing a public relations
campaign, RG could gain considerable recognition.
Another weakness of RG is their limited funding, which restricts the opportunities and
services they can offer and the overall impact they can make. As much as RG wants to help
feed all the people who approach them, they are forced to turn down people because of
limited funding.
Along with limited funding, RG offers limited products. Strides’ online store, gives
customers only 5 different pairs of sandals to choose from. This could potentially be the
result as to why customers are not be purchasing Strides. Perhaps they do not see a style
that satisfies their fashion taste.
An additional weakness, that may not be as clear as the preceding weaknesses, is RG’s
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wide range of goals. Certainly, RG’s passion is visible through these goals. However, they
might be spreading themselves too thin and should consider focusing on specific areas at a
time in order to move forward effectively.
Opportunities
A major positive for being such a new and developing company is RG’s amount of
opportunities. For instance, Strides has the opportunity to expand their sandal designs. By
generating more designs, beyond their current five, RG could potentially appeal to more
customers’ taste.
Another opportunity for RG is to reach new customers by developing a stronger social
media presence. Social media is a great, free approach to market their products and build
recognition. According to a Pew Research Center’s “Social Media Fact Sheet,” 90% of the
people that they surveyed between the ages of 18-29 use some form of social media. This is
a huge market that RG could easily attract by creating and maintaining activity on various
social media networks.
One of RG’s greater opportunities is the convenience of forming a stronger connection
with U.S. buyers. This connection can be strengthened through social media and/or in
person speeches. For the past two years, RG has hosted the event Cocktails for a Cause in
Orlando, FL, which gives the attendees the opportunity to meet RG’s international staff and
to purchase their products. By organizing similar events, RG could greatly benefit from
these face-to-face interactions with potential buyers. For many buyers, they are interested
in products that appear relevant to their lives. Thus, making in person contact could boost
RG’s cliental.
Threats
In light of RG’s startup phase, there are many preexisting and potential threats
connected to this market. Although Strides represents high-quality, durable footwear, there
are many well-established companies who offer similar products in the market. In order for
RG to compete with these companies, they must provide customers with viable reasons as
to why Strides is their best option. Strides does provide the buyer with the shoe’s backstory and the means of supporting a good cause. However, there are a multitude of
companies in the market that have a similar charitable dynamic connected to their
products.
As previously noted, RG utilizes recycled materials to create their sandals. Because
RG does not purchase their materials and depends solely on their finding throughout the
streets of Haiti, there is a potential for a supplies shortage. Despite RG’s abundance of tires
and other materials, if their sandal demand increases beyond what they can produce, RG
could be faced with serious challenges. While this considered as being a future threat, it is
definitely situation RG should plan for and discuss possible sponsorships and/or
alternatives for recycled materials.
One of RG’s major focuses is to provide employment opportunities to Haitians.
While this is a great objective, there is the possibility that RG will be unable to
accommodate all who approach RG wanting work. With having too many workers and not
enough work, RG could pay out more than what they are bringing in and ultimately lead
into a financial downturn.
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Six Forces Analysis
Rivals
Two of Rebuild Globally’s main rivals are Haitian Design Co-Op (formally known as
Haitian Creations) and Indosole. Haitian Design Co-Op and Rebuild Globally are similar in a
variety of ways, making them serious competitors of each other in the market. Alike RG,
Haitian Design Co-Op is a start-up company that is based out of Port-au-Prince. The
company focuses on artisan based social enterprise with the focus of creating jobs for their
Haitian artisans. The main difference between the two organizations is the products they
produce. Haitian Design Co-Op has approximately 40 artisans in the production of
children’s and women’s accessories, handbags and signature fabric bead jewelry.
In addition to Haitian Design Co-Op, IndoSole is another one of RG’s close rivals.
IndoSole is a fairly new company that is based in San Francisco, CA that has production in
Indonesia. IndoSole produces environmentally friendly footwear, t-shirts and tote bags.
Their footwear is made from used motorbike tires and is crafted from local Balinese
people. IndoSole geological focus is across the globe; they have retail locations in California,
Tokyo, New Jersey, Germany, British Virgin Islands, Florida, Austria, Bali, Hawaii and
Colorado. Their mission for job creation is very similar to that of RG, making them strong
competitor.
While Haitian Design Co-Op and IndoSole are two specific examples of rivals, there
are many other organizations selling products that have similar products and/or and
missions to RG, which creates an abundance of rivals in the market.
New Entrants
The possibility of new entrants is extremely high as the barrier to entry to RG’s
market is extremely low. RG’s main product is their Strides sandals. The footwear is hand
crafted from left over tires and leather found on the streets of Haiti. The high quality and
craftsmanship of the sandals is a unique feature of RG that separates them from potential
new entrants in the market.
Substitutes
There are many products that could be considered substitutes for Strides. The
substitutes for Strides fall into two different categories:
Charitable footwear brands and those sold solely for profit. Consumers who want to
purchase and wear brands that are associated with some act of charity could substitute
Strides such as TOMS, BOBS or GreenSoul Shoes. However, if the consumer is not
concerned with purchasing charitable brands, they can substitute Strides with footwear
from companies such as Reef, Rainbow and Tevas, or other types of footwear such as
sneakers, espadrilles, or moccasins.
Buyer Bargaining
RG faces an extremely high of level buyer bargaining because of the array of
substitutes and rivals. Due to the size and popularity of the market, both primary and
secondary buyers have a wide spectrum of products and companies to chose from. Because
RG is still in the start-up phase and new to the market, buyers have a greater bargaining
power.
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Supplier Bargaining
As previously mentioned, one of Strides’ major selling points is their handcrafted
products solely made out of recycled materials. Given that RG does not currently purchase
the tires and leather used to make their sandals, there is a potential strain of a supply
shortage in the future. Under these circumstances, RG will have to find a different source to
provide the necessary materials to produce their products.
Another stressor, RG currently faces is their stolen inventory due to the poverty level and
crime rate of Haiti. Much of the Strides’ inventory is stolen during the process of exporting
the products.
Complements
The complements to Strides include accessories and clothing that could be used
during casual, everyday activities in a warm climate. Sandals are typically worn in casual
situations when the weather is warm; therefore, any product that would be worn in a
similar situation and could be worn in conjunction with flip-flops is a complement to RG’s
sandals.
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Conclusion
In reviewing the many aspects of Rebuild Globally’s operations, we were able to
highlight the organization’s strong suits and areas for improvement. Although RG is still in
the start-up phase and new to the market, they have a solid foundation for becoming a
globally recognized NGO.
Rebuild Globally Industry Analysis
References
Global Footwear Industry Profile. (2013). Footwear Industry Profile: Global, 1-28.
(2013). Social Networking Fact Sheet. Pew Research Internet Project. Retrieved from
http://www.pewinternet.org/fact-sheets/social-networking-fact-sheet/
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