Indian domestic leather goods market is estimated to be worth Rs 16,300 crore and is expected to grow at a CAGR of 20%. Domestic footwear market is estimated to be over Rs 15,000 crore in value terms and has grown at the rate of 8. 8% over the last couple of years. Men’s footwear accounts for almost half of the total market, with women’s shoes constituting 40 percent and kids? footwear making up for the remainder. The domestic market is substantially price driven, with branded footwear constituting less than 42 percent of the total market size.
About 37. 8 percent of Footwear retail is the organized segment, which qualifies it as the second most organized retail category in India, next only to Watches. While the average spend on the footwear by urban consumers is Rs 240/annum, consumers in rural areas spend just about Rs 100/annum. The annual domestic consumption of footwear is approximately 1. 1 billion pairs per annum, and top 20 cities contribute about 450 Million pairs/annum. India is the second largest footwear manufacturer in the world, next only to China.
Nearly 58 percent of the industry, which is by and large labour intensive and concentrated in the small and cottage industry sectors, remains unbranded. However, as part of its effort to play a lead role in the global trade, the Indian leather industry is now focusing on key deliverables of innovative design, state-of-the-art production technology and unfailing delivery schedules. retail footwear segment in Indian is very price sensitive and has been steadily growing over the year.
The Term Paper on Marketing Mix And Retail Petrol Outlets
This report aims to address four elements that collectively create the marketing mix. These marketing tools will then be analysed and how these marketing elements are applied to retail petrol outlets within Australian will be discussed. The Marketing Mix elements collectively are made up of the four P’s; Product, Price, Place and Promotion. Marketing as often defined, utilises these four tools; ...
Major part of the demand is met by the un-organized sector and still there is a shortfall of 300 million pairs. Branded shoe market only account for 20% of the entire market. While international brands largely dominate the higher end of the spectrum, the lower end of the market is dominated by home-grown players as well as un-organized players. While men’s footwear is the biggest target category (contributing almost 48%), children’s (11%) and women’s lifestyle footwear (41%) is not behind in the race.
The kid’s footwear segment is one of the fastest growing segments in India. The Indian kid’s footwear segment is highly fragmented and dominated by the unorganized sector. The branded kid’s footwear segment has a big card to play as India has the world’s largest child population. The overall kid’s retail segment has a robust margin of 20 – 25 % which is huge potential opportunities for organized branded retail footwear players. S&M is one of the players who have ventured into kids wear segment which has 27 exclusive outlets through franchise model.
S&M sees a huge potential with age group of 3 – 16 years kids segment in the domestic market after the economic slowdown in the international market that hit the company’s revenues has now been targeting the growing consumers market of India. It has set up store in store format for optimized revenue flow. The store in store format of business model has been the trend among many retail footwear players in India. Disney kid’s is another international brand which has forayed into exclusive kids shoes in India and has targeted kids within the age group of 5-10 years.
Disney shoes have a tie-up with Sierra Industrial Enterprises to manufacture and market Disney shoes for kids in India. Disney aims to become the market leader in the kid’s footwear segment in India. The Disney shoe collection will include boots, sandals, slippers and sports shoes for boys and girls. The footwear’s has a price range from Rs 150 – Rs 850. Disney has targeted malls across the country and in prominent chain stores such as Lifestyle, Loft, Shopper’s Stop, Pantaloon and Central. Bata is one of the oldest brands which have a more than 50% share in the executive segment.
The Essay on Market Segments and Targets
Many organizations are utilizing target marketing to compete more effectively. Companies focus on the customers which they can most likely satisfy, instead of scattering their marketing effort. Effective target marketing requires identifying distinct groups who have different needs and preferences which is called market segmentation and select one or more market segments to enter which is called ...
As the young Indian executive class matures in terms of quality, design and brand, the preference will be more towards branded footwear and the growth is expected to be high in this segment with the migration of people from villages to cities for better career and profession. The footwear retail segment is currently one of the most organized sectors within the retail domain. However, this is purely due to the highly organized nature of the men’s footwear segment. The women’s category is largely unorganized, in fact close to 95% of the category is unorganized.
With respect to the rest of the world, this is an anomaly as the women’s category is majorly organized and forms a big chunk of the market. Thus for us as retailers in the women’s footwear category, the market is still largely untapped and hence a big opportunity for growth. At present, almost all of the organized retailers in the women’s footwear category are located in the metros and Tier I cities and towns. The Tier II and Tier III towns have over the last few years seen a spurt in income driven by the service industry boom. Hence these towns definitely are a potential target.
Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P. V. C. and other materials. 2. OBJECTIVES AND METHODOLOGY 2. 1 OBJECTIVES * Study of Indian Footwear Industry: – Indian leather industry is the core strength of the Indian footwear industry. It is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China. The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing benefits. * Market study based on :- . Delhi 2. Mumbai 3. Hyderabad These Markets are being studied as they have a huge potential to develop the existing and the forthcoming footwear market. Also the consumers in these cities have all the possible demographic nature that will help the Indian Footwear Industry to grow and develop. * Major players in Indian footwear industry: – Players of different footwear segment and their success stories which puts light on the development of the footwear industry in current times. * Study of luxury footwear brands: – This will highlight the awareness amongst masses about the luxury brands and their offerings. Organized vs. Un-organized footwear market: – Studying the organized and unorganized footwear market, wherein, the unorganized segment has a large chuck of share and the organized sector has a comparatively low share. However the numbers are changing due to various reasons. 2. 2 METHODOLOGY * Secondary:- Information will be sourced from books, newspapers, industry portals, government agencies and trade associations monitoring industry news and developments. * Primary:- Information will be sourced from interviews from the consumers. 3. LITERATURE REVIEW
The Essay on Footwear Industry Analysis
When you wake up and get dressed every morning, one of the first decisions you make is what shoes you will wear that day. Depending on the weather and the level of professionalism you are perceived to demonstrate, you make your decision. The footwear industry is a large and ever changing industry that caters to the needs of everyone. Although in some parts of the world people are lucky to have one ...
The Footwear Industry is a significant segment of the Leather Industry in India. India ranks second among the footwear producing countries next to China. The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and Chappals are produced in the household and cottage sector. India produces more of gents’ footwear while the world’s major production is in ladies footwear. In the case of Chappals and sandals, use of non-leather material is prevalent in the domestic market.
The Indian footwear industry is provided with institutional infrastructure support through premier institutions like Central Leather Research Institute, Chennai, Footwear Design & Development Institute, Noida, National Institute of Fashion Technology, New Delhi, etc in the areas of technological development, design and product development and human resource development. According to an ASSOCHAM recent study the Indian footwear industry is growing at a compound rate of 15 percent and it is likely to reach about Rs. 38,700 crore by 2015 from the current level of about Rs. 22,000 crore.
India produces nearly 300 crore pairs of footwear annually, exports over 10 per cent and accounts for about 15 per cent of annual global footwear production which is over 2,000 crore according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM),according to a study titled ‘Indian Footwear Industry: An Analysis’ The domestic footwear market is driven by growing fashion consciousness together with increased disposable income among India’s urban middle class which contributes about 45 per cent of overall footwear market making India the second largest global producer of footwear across varied segments after China.
The Essay on Rise of India’s Drug Industry
Many years ago, India’s pharmaceutical industry was suffering from number of international trade limits due to their violation of intellectual property rights. The Indian companies used to copy patents of drugs made by Western countries and Japan with no responsibility to property rights. This would discourage international investors from investing into India’s drug industry. India was only good ...
Low cost of production, abundant availability of raw material, ever-evolving retail ecosystem, buying patterns and a huge consumption market are certain basic features that sets apart the Indian footwear market. Driven by larger penetration into tier II, III cities and growing rural market various premium footwear brands are foraying into India’s non-metro market which holds enormous growth potential and account for about 55 per cent of the overall footwear industry.
Indian footwear market is dominated by men’s segment which accounts for about 55 per cent followed by ladies’ and kids’ segment which account for about 30 per cent and 15 per cent respectively. Nearly 70 per cent of the labour-intensive footwear industry in India is in the unorganized sector and employs about 15 lakh people majority of whom are rural artisans, cottage and household units, while the organized sector accounts for remaining 30 per cent and employs over five lakh people. The footwear industry is divided into various segements – formal, semi-formal, casual and sports.
Adidas, Bata, Balujas, Converse, Da Milano, Lee Cooper, M&B, Metro, Nike, Provouge, Puma, Reebok, Red Tape and Relaxo are certain well known footwear brands in India. Most of these brands have their exclusive outlets and account for about 55 per cent of the footwear market while multi-brand retail outlets account for about 30 per cent. In the non-leather footwear segment there is huge demand for slippers as it is cheap, convenient and suits the needs of the rural consumer as it can be used as multi-purpose footwear. Rural India accounts for about 60 per cent of slippers manufactured in Indian footwear market.
Online shoe shopping is a significant segment that is fast emerging in terms of footwear sale and currently accounts for about eight per cent of the overall industry and is expected to reach about 20 per cent by 2015. Also, consumers in India have become more fashion and brand conscious and due to fast changing fashion trends young professionals tend to update their footwear collection every two to three months and maintain a separate budget of their salary only for shoe shopping. With organized retail on the rise and increase in the disposable income retailing certainly looks a promising option.
The Essay on Marketing strategies of the mass-market chocolate industry
This report is an evaluation of the marketing strategies used in the mass-market chocolate confection industry in the United Kingdom (UK). The four brands this report studies in detail are Cadbury, Galaxy, Kit Kat, and Maltesers. The UK mass-marker chocolate confectionary market is the biggest in the European Union and sales are heavily reliant on a solid marketing strategy. Using the four brands ...
Potential opportunity for value added products in the domestic leather market is high; opportunity to cater to the domestic market with a blend of traditional, western fashion can bring in huge market in the footwear segment in India. Success depends upon consistent strategy linking location, product range and execution. Success in domestic market requires listening to the customer, adapting the product and price, and managing the cost of operations. Scale is important to survive and grow, and low risk models such as franchise or store-in-store may prove be effective.
In the final analysis success depends on each company’s willingness to take risks and implement required changes. 4. RESEARCH AND FINDINGS 4:1. Source: Secondary 4. 1. 1 SIZE OF THE INDIAN FOOTWEAR INDUSTRY Footwear is the engine of growth of the leather industry in India. India’s export of Footwear touched US$ 2077. 27 million in 2011-12, accounting for a share of 42. 67% in India’s total export from the leather sector of US$ 4868. 71 mn India’s Footwear export (leather, uppers & non-leather) is growing at a CAGR of 8. 67% in the last five years ending 2011-12 * India’s export of leather footwear had increased from US$ 1174. 3 million in 2007-08 to US$ 1715. 17 million in 2011-12 * India’s export of footwear components had increased from US$ 269. 30 million in 2007-08 to US$ 281. 83 million in 2011-12 * India’s export of non-leather footwear has increased from US$ 46. 02 million in 2007-08 to US$ 80. 27 million in 2011-12 The following points highlight the development of the Indian footwear Industry Major Markets: During 2010-11, the main markets for Indian Footwear are UK with a share of 19. 16%, Germany 16. 15%, Italy 12. 46%, USA 8. 04%, France 8. 93%, Spain 6. 45%, Netherlands 4. 51%, Portugal 1. 1%, U. A. E 2. 45% and Denmark 0. 97. %. These 10 countries together accounts for 80. 53% share in India’s total footwear export. Nearly 90% of India’s export of footwear goes to European Countries and the USA. Future growth of Indian footwear in India will continue to be market driven. The European countries and the US are major consumers for the Indian footwear. Indian footwear industry poised for growth:- India has state-of-the-art manufacturing plants. The footwear sector has matured from the level of the manual footwear manufacturing method to the automated footwear manufacturing systems.
The Essay on How Has the Personification of India and the Indian Woman Been Reflected in the Various Paintings of Mother India?
“I am India. The Indian nation is my body. Kanyakumari is my foot and the Himalayas my head. The Ganges flows from my thighs. My left leg is the Coromandal Coast, my right is the Coast of Malabar. I am this entire land. East and West are my arms. How wondrous is my form! When I walk I sense all India moves with me. When I speak, India speaks with me. I am India. I am Truth, I am God, I am Beauty.” ...
Footwear production units are installed with world class machines. Manned by skilled technicians, these machines help to turn any new innovative idea into reality. Support systems created for the sector have indeed served the footwear industry well. India has a well developed footwear component manufacturing industry. The future growth of the footwear industry in India will continue to be market-driven, and oriented towards EU and US markets. With technology and quality of the footwear improving year after year, Indian Footwear industry is stamping its class and expertise in the global footwear trade.
FDDI is the only institute in the country providing specialized programmes in footwear design, creative designing and CAD/CAM of footwear, leather goods and accessories. Findings from the above data The Indian Footwear Industry has been constantly growing at an annual rate of 10%. Also, the leading markets like Europe and USA import their footwear from India giving India and opportunity to develop immensely. Indian footwear industry is showing growth due to the state-of-the-art manufacturing processes.
The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production, abundant raw material, and has huge consumption market. 4. 1. 2 BRANDED FOOTWEAR INDUSTRY IN INDIA Global premium and luxury footwear brands are queuing up for an entry into the Indian market. These brands are more than enthusiastic with the approval of 100 per cent FDI in single brand retail and are not worried about the local sourcing clause. Small wonder, it was an English footwear brand Pavars England to be the first to apply for 100 per cent FDI.
This category will be seeing lot of action in the coming days — with several brands entering the market, many others forming joint ventures and many going it alone. Consider this, in the past few years India has been witnessing a rush of footwear brands. These include some of the well-known and also not-so-known brands such as Kenneth Cole, Cole Haan, Wolverine, Tommy Hilfiger, ASICS, Skechers, Aokang, Steve Madden, Timberland, Alberto Torresi, Diesel and Zara. Some of them have been licensing or franchising the brand, while other have formed partnership with leading business houses.
Steve Madden, Timberland and Kenneth Cole have partnered with Reliance, Wolverine with Tata, and Clarks with Future Group. The ones that are doing the groundwork to enter the market include French brand Mephisto and the US sports shoe brand Airwalk. Technova India, the consulting firm that has been facilitating the entry of several brands like Christian Louboutin, RG Berry and Allen Admond is currently working with over 10 brands, of which many are interested in having wholly-owned retail stores. Most of the foreign brands that are entering the country fall into the premium-to-luxury segment of the market.
Of the total market of one billion pairs a year, mass market and unbranded female footwear account for 50 per cent, around 30 per cent are men’s branded shoes and the remaining 15-20 per cent is currently the share of premium and luxury shoes. This segment will be growing at a rate of around 35 per cent and will be occupying 30 per cent of the market in the coming years. Reliance Brands, a part of the Reliance Industries Group has signed an exclusive long-term franchise agreement to launch Stuart Weitzman, a global, high-end footwear brand in India.
Recently billionaire Mukesh Ambani’s Reliance Brands inked a deal with UK’s footwear and accessories group Dune. The Indian group has been pushing its fashion play and will have more than 100 stores of global brands this fiscal, a significant milestone in India’s nascent luxury and high end retailing space. Stuart Weitzman’s styles have been seen on celebrities, including Angelina Jolie, Eva Mendes, Jennifer Aniston and Reese Witherspoon at various Hollywood events. The India launch of the brand will be in spring summer of 2013 with stores in Delhi & Mumbai.
The price range is expected to be between Rs. 25,000 to Rs. 75,000. Apart from the shoes with the sole of the devil, the recent entrants are Steve Madden, Paul & Shark, Tod’s and Bally. Ermenegildo Zegna, Louis Vuitton, Burberry, Hermes, Chanel, Gucci, Salvatore Ferragamo, Bottega Veneta, Armani, Versace, Hugo Boss offer their line of shoes. McQueen and YSL are available through TSG’s Kitsch. Multi-brand designer shoe store Mumbai-based La Scarpa, meaning the shoe in Italian, also offers exclusive brands starting at Rs 15,000 to Rs 1,20,000. Findings from the above data
FDI has played an important role in setting up a niche for footwear brands in India. Most of the foreign brands that are entering the country fall into the premium-to-luxury segment of the market. Also, changing consumer lifestyle and growing incomes have lead to a rise in demand for the branded footwear markets. Globalization has played an equally important role in growing branded segment. 4. 1. 3 INDIAN FOOTWEAR INDUSTRY EXPANDING BY STEPPING INTO NON-METRO SEGMENTS Reebok, a part of Adidas, the world’s second largest sportswear maker, said last month it would make a $1 shoe for India.
Even with a less valuable rupee, that’s a pair at roughly Rs 52. Though Reebok has cautioned that this is not the final price, the market is agog. It is clear the company is seeking volumes in India’s growing rural market, where a lot of people do not wear footwear at all. Reebok is not the only brand targeting the rural consumer. A number of footwear makers say they have discovered the enormous growth potential of India’s non-metro market. Reebok is not the only brand targeting the rural consumer. A number of footwear makers say they have discovered the enormous growth potential of India’s non-metro market.
Growing use India’s per capita shoe consumption or the number of footwear (shoes, chappals, sandals) worn by an individual has gone up from 1. 4 shoes a year in 2004 to 2. 2 shoes per year in 2011, according to data from the commerce ministry. An interesting detail of India’s complex footwear industry is that it is a fairly big manufacturer of shoes as well. These shoes are used within the country. About 2. 2 billion pairs of shoes are made in the organized and unorganized sector. Findings from the above data:-
The footwear industry has seen exponential opportunity in the non-metro markets and is leaving no stone unturned by tapping it effectively by use of low pricing techniques, etc. The growing use has also led to a rise in the demand of the footwear in the country leading the footwear players to engage in activities that will increase their market share 4. 1. 4 EXPORT DATA India’s Footwear Export Growth over the last Four Decades Export of footwear from India increased manifold over the last four decades. During 2011-12, India’s footwear export is valued at US$ 2077. 27, constituting 42. 7% share in total export of leather & leather products. Footwear exports has increased from US$ 119. 72 million in 1981-82 to US$ 2077. 27 million in 2011-12 A Statement showing India’s Export of Footwear to different countries: (Value in Million $)| | | | | | | | | Country| 2005-06| 2006-07| 2007-08| 2008-09| 2009-10| 2010-11| 2011-12| % Share| Germany| 170. 97| 217. 23| 246. 84| 229. 65| 224. 3| 286. 7| 353. 77| 17. 03%| UK| 195. 78| 208. 2| 241. 37| 247. 06| 296. 45| 339. 65| 360. 48| 17. 35%| Italy| 134. 35| 186. 11| 229. 81| 221. 09| 210| 219. 72| 219. 79| 10. 58%| USA| 131. 07| 127. 15| 136.
92| 163. 03| 123. | 143. 02| 183. 1| 8. 81%| France| 74. 48| 99. 81| 116. 03| 119. 2| 144. 56| 154. 95| 159. 27| 7. 67%| Spain| 63. 7| 64. 57| 76. 69| 91. 86| 95. 94| 112. 05| 113. 85| 5. 48%| Netherlands| 32. 96| 48. 57| 72. 91| 76. 2| 65. 13| 6. 19| 101. 72| 4. 90%| Portugal| 22. 15| 35. 03| 37. 34| 28. 21| 22. 63| 25. 69| 28. 77| 1. 38%| UAE| 25. 78| 34. 64| 39. 23| 39. 4| 39. 45| 41. 82| 62. 06| 2. 99%| Denmark| 18. 37| 14. 65| 17. 48| 14. 78| 17. 01| 16. 55| 24. 3| 1. 17%| Australia| 11. 58| 10. 11| 12. 52| 13. 34| 15. 5| 12. 82| 15. 59| 0. 75%| Sweden| 6. 77| 7. 99| 12. 04| 12. 64| 12. 2| 12. 07| 14. 08| 0. 68%| Canada| 11. 5| 10. 91| 10. 41| 8. 96| 9. 3| 10. 56| 15. 01| 0. 72%| South Africa| 8. 26| 12. 11| 8. 52| 8. 49| 9. 87| 11. 33| 14. 75| 0. 71%| Japan| 3. 17| 3. 07| 4. 63| 8. 23| 5. 45| 7. 51| 14. 63| 0. 70%| Others| 133. 9| 156. 76| 226. 61| 252. 18| 216. 2| 358. 04| 396. 10| 19. 07%| Total| 1045. 24| 1236. 91| 1489. 35| 1534. 32| 1507. 59| 1758. 67| 2077. 27| 100. 00%| Future Trends: – Keeping in view its past performance, current trends in global trade, the industry’s inherent strengths and growth prospects, the footwear industry aims to augment production, thereby enhancing its exports from the current level of US$ 2. 7 billion. Brands sourced from India: Acme, Ann Taylor, Bally, Charter Club, Clarks, Coach, Colehann, Daniel Hector, Deichmann, DKNY, Double H, Ecco, Elefanten, Etienneaigner, Florsheim, Gabor, Geoffrey Beene, Guess, Harrods, Hasley, Hush Puppies, Kenneth Cole, Liz Claiborne, Marks & Spencer, Nautica, Next, Nike, Cole Haan, Nunn Bush, Pierre Cardin, Reebok, Rockport, Salamander, Stacy Adams, Tommy Hilfiger, Tony Lama, Versace, Yves St.
Laurent, Zara, Johnston & Murphy, Docksteps, Timberland, Armani, Geox, Diesel, Ted Baker, Lacoste, Kickers, Calvin Klein, Sioux, Brasher, Zegna, Massimu Dutti, Buggatti, Lloyd, Christian Dier, Salamander, Camper, Bata, Espirit, French Connection, Legero, Mercedez, H & M and many more famous brands . Findings of the data:- The major importers for the products Indian Footwear Industry are the European Countries majorly UK and The United States. The earnings from the export of the Indian Footwear export is truly recommendable. It has contributed a lot to the total export earnings.
There are numerous famous brands that source their products from India. 4. 1. 5 CUSTOMER SEGMENTATION Retail footwear segment in Indian is very price sensitive and has been steadily growing over the year. Major part of the demand is met by the unorganized sector and still there is a shortfall of 300 million pairs. Branded shoe market only account for 20% of the entire market. While international brands largely dominate the higher end of the spectrum, the lower end of the market is dominated by home-grown players as well as unorganized players.
While men’s footwear is the biggest target category (contributing almost 48%), children’s (11%) and women’s lifestyle footwear (41%) is not behind in the race. Segment wise classification of price ranges in the men’s footwear segments: Segments| Price Ranges in Rs| % of growth| Mass market| 185 – 700| 60% (Liberty and Bata)| Economy Market| 700-1000| 30% (Bata and Liberty)| Sports Market| 1000-3000| 7% (Nike and Adidas)| Premium Leathers| 3000-5000| 5% (Charles & Keith)| Luxury| 10000-50000| 1% (Gucci and Louis Vuitton)|
Segment wise classification of women footwear segment: Segments| Price Ranges in Rs| % of growth| Traditional footwear| 699-999| 5%| Designer Footwear| 599-799| 10%| Formals| 299-699| 40%| Casual Wear| 499-799| 25%| Sports Shoes| 500-699| 20%| Expansion plans of some major retailers** Bata and Liberty: 100 outlets per year Metro shoes: 200 stores in three years Woodland : 60 to 70 stores per year Louis Phillippe: 20 to 25 stores in three years Reliance Footprint: 36 stores in four months MNC Brands Sold in India:-
Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West,New Balance, Reebok, Rockport, Stacy Adams, Tod’s, Geox , Louis Vuitton Indian Brands sold in India:- Red Tape, Bata, Liberty, Khadims, Lakhani, Metro, Action. 4. 1. 6 E-TAILING Apart from bricks-and-mortar stores, online shoe shopping is fast emerging in terms of footwear sales, currently accounting for about eight per cent of the overall industry. It is expected to reach about 20 per cent by 2015. Apart from various e-retailers including fashionandyou. com, myntra. com, jabong. om, yepme. com, bestylish. com and others, brands themselves are launching e-retail sites for their brands. The recent entrants in this arena are Woodland and Puma, offering the latest collections and convenience to its customers. 4. 1. 7 SIZEABLE UNORGANIZED MARKET Consultant Technopak Advisors pegs the footwear market in India at Rs 25,000 crore. The market, is growing at 10 per cent per year. About 40 per cent is in the organized segment while close to 60 per cent of the market is dominated by unorganized players. Also, almost 70 per cent of the market comes from small towns to rural areas.
At Dillip’s Stall in Kolkata’s New Market, chappals with a Facebook motif, priced for Rs 200, sell in blue, pink and red, rubbing shoulders with those with sequins and colourful bows. College students, most living on pocket money, throng here for bargains. The stall is one among the 300 roadside footwear vendors in the city’s historic market, replicated in Delhi’s Lajpat Nagar and Sarojini Nagar markets and Mumbai’s Lincoln Road. Much of the footwear is imported from Hong Kong, Bangkok and China by wholesale dealers who in turn sell to local retailers. Besides imports, a lot of this footwear is manufactured in Agra.
Industry watchers expect more footwear brands to enter the organized segment in India though the unorganized segment is unlikely to shrink. India is standing on the threshold of a retail revolution and witnessing fast changing retail scenario, with footwear market set to experience phenomenal growth in the coming years. The entry of numerous international players has also resulted in providing a significant boost to the Indian footwear market and the demand for Indian footwear will continue to grow in future as well. Organized footwear market Vs Unorganized footwear market
The average growth in the industry has been estimated at 12% and is estimated to touch Rs 47000 crore by 2025. Presently the Indian organized foot wear market is dominated by men’s footwear segment that contributes for nearly 60% of the market where the casual footwear has been better off with two thirds of the share in the men’s segment. The unorganized players have the lions share in the ladies and kids segment with 80 percent share. The organized footwear brands have less penetration in the ladies footwear segment mainly due to the complex buying behaviour of Indian women.
The ladies and kids segment is one of the fastest growing segments in the branded footwear market and many foreign brands like Catwalk have ceased the opportunity and have set their footprints in this segment which has been untapped by major traditional Indian footwear brands. Considering this many of the Indian footwear brands have seen growing opportunities in the segment to widen their product portfolio, widen their risk appetite and increase their market share in the footwear segment by contributing to newer growing consumer segment which will boost the bottom lines of the retail players.
The business models of the footwear retail players have been different with a wide popularity of stores in high streets, malls and new formats such as store in store has been catching up even with international brands having gone the store in store model which has been the most cost effective model in terms of testing the markets. Findings from the data:- The organized and the unorganized market in India have always played an important role in serving various segments of the consumers in the society. Indian footwear market is a price sensitive market mainly dominated by male footwear.
The organized footwear brands have less penetration in the ladies footwear segment mainly due to the complex buying behaviour of Indian women. Much of the street-wear footwear are imported from China and Bangkok due to its advantage of low price with variety according to the consumers requirement. E-tailing is helping the industry to grow further and has provided shopping convenience to the consumers, thereby, increasing sales and scope of the industry and the market. 4. 2 Source: Primary 4. 2. 1 Questionnaire: What do you look for while buying footwear? Affordability Durability Design and style Brand
The above bar graph shows that majority of people in Delhi and Hyderabad prefer design and style over brand, affordability and durability, whereas, majority of people in Mumbai prefer durability over Affordability , design and style and brand. Which is the feature that your current footwear brand lacks? Quality Style quotient Value for Money The above bar graph shows that majority of people in Mumbai and Hyderabad prefer footwear that offer value for money, whereas, majority of people in Delhi offer quality and style quotient. Does the Indian Footwear industry offer a wide range of variety? Yes No
The above bar graph shows that the industry offers good variety in Mumbai, however, larger part of the people surveyed in Hyderabad feel the industry doesn’t offer good variety in the state. Do you always opt for branded footwear? Yes No Majority of people in the three cities do not always opt for branded footwear. How much is the maximum money that you are willing to spend on branded footwear? 500-1000 1000-1500 1500-2000 2000 and above The above bar graph shows that majority of people in Delhi and Hyderabad would spend around Rs. 1500-2000 on branded footwear, whereas, in Mumbai majority of people would spend around Rs. 000. Where do you prefer buying shoes from? Showroom Street Malls Online The above bar graph shows that majority of people in Hyderabad and Delhi prefer showrooms, whereas, people in Mumbai prefer Malls as their shopping destination. Would you like your shoes to be customised? Yes No Majority of people in all the three cities would prefer customized shoes. Would you buy shoes only because it is stylish and not comfortable? Yes No People in Mumbai prefer comfort over style majorly, majority of people in Hyderabad prefer style, and people in Delhi would prefer both style and comfort Do you buy shoes for every season?
Yes No Majority of people in these three cities do not prefer shoes in every season. Findings of Primary research:- * The Indian Footwear Industry caters different markets with different varieties. * People’s attitude towards the Indian footwear industry is changing and they are open to more experimentation. * Consumers are ready to spend a reasonable amount of money on branded footwear. * Consumers are keen on the value footwear product provided to them along with the physical features. Hence, attention needs to be paid on all aspects of the product. * Needs of people in different regions are different. Standards and benchmarks should be set to cater consumers throughout the country in an appropriate manner 5. SUGGESTIONS AND RECOMMENDATIONS *
It has been seen that retail formats give preference to their company managed EBO’s rather than franchisees. Hence, the key challenge for franchisees is to get their share in terms of merchandise, marketing etc. * Also footwear business involves storing a large inventory of products keeping in mind varying consumer preferences, variety due to fast evolving fashion trends and the sizes. Therefore, there is a requirement of large working capital and extra effort to manage the logistics. Proper Infrastructure should be developed for attracting the foreign brands in India so that India doesn’t lag behind as an efficient market for footwear industry. * Footwear franchises can be placed in both large cities and small towns. Malls and strip shopping centres are ideal to take full advantage of high traffic areas. And street front locations offer a convenient destination for pedestrians, tourists or vacationers. * Lack of skilled and trained manpower, hence, focus should be put on providing training * Awareness of International standards should be created amongst the manufacturers * Deliveries in most cases are delayed.
This should be taken care of * Modern finishing facilities should be established * Up gradation of technology should be brought in. * The determinants of success for new entrants, depends on factors like location, product focus, business model, information technology and pricing model. * Successful brands are realizing that while malls offer higher footfalls, the advantages of high street are many. Average Cost/sq ft would be almost 40% less than the Malls, and considering the overhead costs of parking, energy, etc high street is more suited for “youth” targeted products.
It is also more suitable for layers with wide product assortment. * Successful brands are realizing a focused product portfolio (with even fewer products) is better off at managing customer expectations and experiences. * While tradition wisdom recommends, floor pricing to penetrate into markets, the successful companies have pursued premium pricing targeted towards the middle high and high income group people. Selecting a particular segment with an affordable price has been the key underlying the success of major brands. * Encouraging FDI in the leather ector would ease capital constraint and also improve the quality of Indian leather products. However, in order to increase FDI in the Indian leather sector it is essential to encourage good governance and global bench mark of best practices and provide good infrastructure for the sector. * There should be timely and a purposeful review of the policies implemented by the government for the leather sector from time to time. * There is a need for developing a coherent statistical data base on the leather sector with regular updating * Reduction in excise duty for Leather and Footwear Industry should be considered. 6.
CONCLUSION The Indian fashion Industry has a lot of scope to reach to the next level of development. A lot of Multinatiionals are entering the domestic market, hence, there is a lot of scope for the industry to supply finished leathers to the multinationals setting up shop in India. Also, the development in his industry is aided by the growing fashion conciousness amongst the masses. Use of proper information technology and decision support software has helped to help eliminate the length of the production cycle for different products. The international and domesic market for footwear are also growing trmenduously. he curent aim of the footwear industry is to present the customer with new designs, infrastructure, country & company profiles. the government policies also are also exporter-friendly helping the footwear Industry in India to emerge inspite of various odds. Also the Indian Footwear Industry has well established linkages with buyers in EU and USA. This industry should take care of the modernisation and upgradation of technology, and the integration of developed technology. The industry should also try to look into different approaches in accessing to testing, designing and technical services.
The quality of work job units should be improved. The footwear industry, which for centuries had used traditional methods of manufacture, has clearly taken technology to heart in recent decades, and this has greatly benefited both shoemakers and shoe wearers. Many changes have been evident – in all aspects of design, materials and manufacture – but perhaps the greatest difference is where most of the world’s footwear is now made. Many European and North American companies in shoemaking and ancillary trades have either closed down or moved their plants to the Far East.
