Overview
Following smart watches and fitness bands, smart shoes have also drawn attention and now occupy a notable segment in the wearable market. Dozens of companies have entered the smart shoe space, including startups, internet giants, traditional shoe makers, and multinational corporations. Google, Nike, Adidas, Li-Ning, 361°, and many other companies, both well-known and lesser-known, are experimenting with smart shoes, seeking market opportunities in a product that is closely integrated with the human body.
Why are smart shoes attracting attention?
The reason so many startups and large companies are joining the smart shoe field is straightforward: shoes are one of the world's largest consumer markets, and their scale makes them hard to ignore as wearables gain traction.
Shoes are a daily necessity. People can go without a watch or a wristband, but they cannot go without shoes. Compared with most wearable products, shoes are among the most indispensable items in daily life. By conservative estimates, in China alone the adult shoe market exceeds RMB 200 billion, and annual production in the Chinese market surpasses 6 billion pairs. It is common for an individual to own three to four pairs of shoes. With China's population of about 1.3 billion, the market potential is substantial.
As wearable smart devices have risen in recent years, shoes—being natural wearables—have attracted startup teams that are experimenting with ways to make shoes smarter, turning them into connected products.
Shoes also share consumer-product characteristics similar to electronics: many users replace shoes periodically. This aligns with the product strategies of some modern device makers, whose business model depends on consumers updating and replacing products on a regular basis.
Who is developing smart shoes?
Current smart shoe products can be grouped roughly into two categories: step-counting shoes and location-tracking shoes. Companies such as Li-Ning and others have released step-counting shoes aimed at fitness enthusiasts, allowing users to train without carrying a phone. Combined with the recent fitness trend, these products have achieved respectable sales. For example, three step-counting shoe models launched via a crowdfunding platform in late July reached their funding targets, raising nearly RMB 1 million in total.
Another category is location-tracking shoes, primarily targeted at children. Companies including 361°, Cloud, and Phantom Orange have launched such products. Phantom Orange's smart location shoe received a $5 million Series A round earlier this year. Cloud's smart shoes also raised RMB 1.1 million through an online crowdfunding campaign at the end of last year.
Several internet platforms and technology companies have also participated in the smart shoe ecosystem. In addition to crowdfunding platforms, Xiaomi and Li-Ning established a strategic partnership to promote smart running shoes. 361° has cooperated with a major search technology company on location-tracking models, and other platform companies have invited smart shoe manufacturers to collaborate on related initiatives. While these large companies have not always launched their own smart shoe brands directly, their involvement has helped advance the industry.
To date, dozens of companies are active in the smart shoe field, encompassing technology giants, traditional shoemakers, and startups. Traditional shoemakers bring established supply chains and manufacturing resources to quickly produce designs. Technology companies offer internet resources that can support efficient product launches. Startups provide agility and faster iteration without the administrative overhead of large firms. Each type of company plays a role in developing this emerging product category, and competition will likely focus on which manufacturers can deliver smart shoes that best meet consumer needs.
