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The IFF's S/Q rating formula calls for a 1-star reduction in the S/Q rating on all unsold branded pairs carried over in inventory to the following year since they represent last year's styles. Ratings are updated annually IFF personnel then take the S/Q ratings at each plant and, based on where each plant's output is shipped and on the S/Q ratings of pairs in unsold inventory, calculates S/Q ratings for each company in each geographic region where its shoes are available for sale. Companies thus have as many as 8 S/Q quality ratings—one each for branded and private-label shoes offered for sale in North America, Europe-Africa, Asia-Pacific, and Latin America. Company's S/Q rating in each market segment is a weighted average of the S/Q ratings at the plants from which the pairs were shipped, adjusted up or down for the S/Q ratings of unsold pairs in inventory. All forecasts are averages per company and assume that market growth averages 6% in North America and Europe-Africa (the midpoint of the 5-7% projected range) and 10% in Asia- Pacific and Latin America (the midpoint of the 9-11% projected range). The IFF's S/Q rating of shoes produced at each plant is a function of five factors: (1) current-year spending per footwear model for new features and styling, (2) the percentage of superior materials used, (3) current-year expenditures for Total Quality Management (TQM) and/or Six Sigma quality control programs, (4) cumulative expenditures for TQM/Six Sigma quality control efforts (to reflect learning and experience curve effects), and (5) current-year expenditures to train workers in the use of best practices. S/Q rating of 0 to 10 stars to each company's branded footwear offerings Retail markups over the wholesale prices of footwear manufacturers can run anywhere from 40% at discount chains to as high as 100% at premium retailers. Online sales to individuals are projected to grow from 5% to 15% of total branded sales in each geographic region by Year 20.