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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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