Footwear

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FOOTWEAR RETAIL SCENARIO INDIA

Centro Estero delle Camere di Commercio del Veneto Representative Office in India

The Indian footwear market is estimated to be over INR 10,000 crore in value terms and has grown at the rate of 810 percent over the last couple of years. Menʹs footwear accounts for almost half of the total market, with womenʹs shoes constituting 40 percent and kidsʹ footwear making up for the remainder. The market is substantially brand-driven, as is evident from the fact that branded footwear constitutes more than 42 percent of the total market size.

Centro Estero delle Camere di Commercio del Veneto Representative Office in India

One-fourths of the total footwear sales (i.e. INR 2,500 crore) happen through organised retail outlets, and this makes it the second most organised retail segment in the country, next only to watches. Credit goes to players like Bata and Liberty for having set the ball rolling. In terms of volume, the market size of the footwear industry in the top 20 cities in the country is estimated to be 10 crore pairs per annum. For the country as a whole, the annual domestic consumption of footwear is approximately 1.1 billion pairs per annum, as per government statistics. With a population base of 1 billion, this translates to a per capita consumption of 1.1 pairs per person per 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. Globally, the trend towards sourcing to countries with low-cost production continues. Overall, the Far East continues to be the key area for footwear sourcing, but Eastern Europe (Romania and Bulgaria) has become more important as closer proximity helps European retailers to move faster. India and Vietnam are also considered important for sourcing. India is especially strong in the menʹs footwear segment though the worldʹs major production is in ladies footwear. This not only limits the scope for footwear exports, but also points to a huge potential in the domestic market. Proper branding and promotion can greatly increase the domestic demand in ladies footwear. Indiaʹs footwear exports have shown a growth of 35.2 percent over 2002-03 registering a cumulative export of US$ 608.7 million in both the Leather and non-leather segments taken together. The leather segment accounts for 89 percent of footwear exports.

Trend Towards Casual, Cleaner, Younger Styles
Manufacturers normally update their brands every year to reflect new directions in fashion. However, during the past couple of years or so, it has become obvious that the current trend toward more casual, cleaner, younger styles represents the mainstream. This is primarily attributable to enhanced global travel coupled with increased media penetration leading to heightened awareness of international trends and lifestyles among the Indian consumers. ʹWorkplace actualisationʹ has also had a significant role to play in the rise in demand for casual apparel and footwear. Unlike in the past, this trend is not restricted to women alone as Indian men are also waking up to the need for a wider range of fashion accessories to differentiate them from their co-workers. Their buying habits are becoming more like womenʹs, in that they care more about the apparel and accessories they choose.

Centro Estero delle Camere di Commercio del Veneto Representative Office in India

In recent years the market has seen entry of a host of new domestic and foreign brands like Drish, Lotto, Lotus Bawa, Now, Oakridge, Royal Elastic, Sketchers, Teenage, Teva, Timberland and Vans. Fashionable brands like...
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