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Breeze Technology, Inc.
Appendix VI - US Market Data

The US athletic shoe market generates nearly $12 billion of annual retail sales as detailed in Exhibit l. Premium brands such as Nike and Reebok generate average gross margins to retailers of 47% making this segment highly attractive to retailers.

U.S. Athletic Shoe Manufacturers Market Share and Volume of Sales by Category

(in millions of pairs of shoes)

Brand

Mkt%

Number

Womens

Mens

Girls

Boys

Nike

32

120

52

37

18

13

Reebok

24

89

39

28

13

9

Keds

6

22

10

7

3

2

L A Gear

5

19

8

6

3

2

ASICS

4

15

6

5

2

2

Others

29

l08

na

na

na

na

TOTAL

100

373

115

83

39

28

The top five manufacturers account for over 70% of the 373 million pairs of shoes sold annually and enjoy gross margins of 38.2% to 40.8% and operating margins of 13.3% to 15.7%. The $11.6 billion in retail sales translates into wholesale sales of in excess of $5 billion. The Exhibits below detail further market information.

The average wholesale shoe price for the top five manufacturers is approximately $30.00 with their market share heavily skewed towards the more expensive end of the market.

U.S. Athletic Shoe Manufacturers Market Share and Dollar Sales by Category

($ millions)

Brand

Total

Womens

Mens

Girls

Boys

Nike

3,715

1,505

1,613

277

320

Reebok

2,785

1,128

1,209

208

240

Keds

696

282

302

52

60

L.A Gear

580

235

252

43

50

ASICS

465

188

202

35

40

Others

3276

na

na

na

na

TOTAL

11,607

3,338

3,578

615

710


Breeze Technology, Inc.
Table of ContentsAppendices
0. Executive Summary
1. The Company
2. Market Analysis
3. Strategic Options
4. Marketing Strategy
5. Research & Development
6. Organizational Structure
7. Risk Reduction Strategies
8. Exit & Harvest Strategies
9. Financials
10. Summary
I. Focus Group Analysis
II. Competitor Content Analysis
III. Product Test Results
IV. Inventor's Test Results
V. Resumes of Directors
VI. US Market Data
VII. Technical Drawings


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