Industry Definition:

Operators in the industry manufacture footwear. This includes footwear for men, women and children. Operators may manufacture rubber and plastic footwear, plastics, or fabric uppers and rubber and plastics protective footwear. They may also manufacture house slippers and slipper socks. Operators may manufacture men's or women's footwear designed for dress, street and work.

Indusrty Activities (Products & Services): 1) The primary activities of this industry are:
Athletic shoes manufacturing Ballet slippers manufacturing Children's shoes manufacturing Cleated athletic shoes manufacturing House slipper manufacturing Infants' shoes manufacturing Men's footwear (except athletic) manufacturing Other footwear manufacturing Rubber and plastics footwear manufacturing Women's footwear (except athletic) manufacturing

2) The major products and services in this industry are:

Women's shoes (except athletic) Men's footwear (except athletic) Athletic shoes Rubber and plastic footwear Children's shoes Slippers Protective footwear Other

Indian Footwear Industry:

Footwear is a man made outer covering of foot. It is genially made out of leather but the same can be made with synthetic material. When the human being came into existence, they were needed to protect themselves from heat, cold dampness, dust and roughness of ground while walking, standing, or even running. So they innovate shoes for the protection of their feet.

The Footwear Industry is a significant chunk of the Leather industry in India. India ranks second among the footwear producing countries next to China. The industry is labor 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 worlds major production is in ladies footwear. In the case of chappals and sandals, use of non-leather material is used to manufacture these in the domestic market. The industry is on the edge of adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. The Indian Footwear Industry is all set for leveraging its strengths towards maximizing benefits. Strength of India in the footwear sector originates from Its command on reliable supply of resources in the form of rawhides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capital with expertise and technology base, skilled manpower and relatively low cost labor, proven strength to produce footwear for global brand leaders and acquired technology competence, particularly for mid and High priced footwear segments. India has the competitive advantage over other countries in the form of materials and skilled manpower. Assembly line production is organized, and about 90%of the workforces in the mechanized sector in South India consist of women. In fact, this sector has opened up plenty of employment opportunities for women who have no previous experience. Presently the key players in Indian market are Bata, Adidas, Liberty, Action, Relexo, Reebok and NIKE.

The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam.

 It must be noted that while ET has mentioned that leather shoes produced in India stand at 909 million pairs, data released by CSO shows that only 2.5 million pairs were produced in India during financial year 2010-11. This may mean that CSO statistics are underestimates. Indias footwear industry is valued at around $ 5 bn and nearly 1.8 bn pairs. The domestic market is highly competitive with few national players and multinational players present in the organized segment and a large unorganized segment characterized by chappals / sandals served by small scale players.

The growth rate of the Indian domestic footwear industry is around 8 % and is predicted to grow at around 7.5~8% in the near future.

Total Production 2065 million pairs (100%)

Leather Shoes 909 million (46.2%)

Leather Shoes Uppers 100 million

Non-Leather Footwear 1056 million (53.8%)

Export (93 mn pairs) (4.7%)

Domestic sales (816 mn pairs) (41.5%)

Export (57 mn pairs) (2.9%)

Domestic Sales (999 mn pairs) (50.8%)

India produces 2065 million pairs of footwear each year Leather Footwear 909 million pairs Leather Shoe Uppers 100 million pairsNon Leather Footwear 1056 million pairs Estimated size of the footwear market in India stands at Rs 16,000 crore Unorganized players account for almost 65% of the market Bata claims a market share of 25-30% in the branded market India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand. Accounting for 14% of global footwear production. Of 14.52 billion Pairs. The footwear sector is a very significant segment of the Footwear Industry in India. 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.

MNC Brands sourced from India

Acme, Clarks, ColeHann, Deichmann, Ecco, Elefanten, Florsheim, Gabor, Hasley, Hush Puppies, Double H, Justin, Marks & Spencer, Nautica, Nike, Nunn Bush, Reebok, Salamander, Stacy Adams, Tony, Lama, Next, Bally

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

Indian Brands sold in India

Red Tape, Bata, Liberty, Khadims, Lakhani, Metro, Action

The Indian Footwear Industry provides employment opportunities to a total of 1.1 million people, mostly from the weaker sections of the society. Out of this, about 0.2 million are employed in the organized sector, 40% of whom are women. Remaining 0.9 million people are engaged in unorganized footwear sector like rural artisans, cottage and household units etc. The Footwear Sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the Footwear Sector. The footwear industry is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China . Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Bata, Relexo, Puma, Ecco, Deichmann, Elefanten, St. Michaels, Hasley, Salamander and Cole Haan are manufactured under license in India. The strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capital with expertise and technology base, skilled manpower and relatively low cost labour, proven strength to produce footwear for global brand leaders and acquired technology competence, particularly for mid and high priced footwear segments. Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India are shoes, sandals and chap-pals made of rubber, plastic, P.V.C. and other materials. With changing lifestyles and increasing affluence, domestic demand for footwear is projected to grow at a faster rate than has been seen. There are already many new domestic brands of

footwear and many foreign brands such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have also been able to enter the market.

Footwear Sector Global:

The global footwear trade was valued at around US$100 bn in 2010. Organizations in the developed economies source footwear products from developing economies directly or through intermediaries while focusing on building brands.

footwear ComPanies

Companies in fashion and accessories segment

Suppliers to Brand Owners

Bata, Nikes, Reebok, Adidas, Gucci, Action, Etc...

Kasen Holdings, Yueyuen and numerous SMEs

USA, UK, European Countries, & African Countries.

China, India, and Other Countries.

Footwear is the engine of growth for the entire Indian Footwear industry and India is the second largest global producer of footwear after China, accounting for 14% of global footwear production. Countries

Zone
1. 2. 3. 4. 5.

Year
1960s 1970s-80s After 1980 After 1990 After 2000

Countries
USA, European Countries (Garmany, France, UK etc) Korea, Taiwan China, India Vietnam, Indonesia, Brazil African Countries (Ethiopia, Kenya etc)

India and China evolved as leading footwear producing nations during the same time period (around 1980s).

GLOBAL footwear MARKET

India ranked 2nd in production, 13thin share of exports World footwear production has crossed 20 billion pairs in 2010. The first World Footwear Yearbook Report, just released by APICCAPS (The Portuguese Footwear, Components, Leather Goods Manufacturers' Association), claims that global production last year was 20.18 billion

pairs, including shoes made from a like Leather, rubber, plastics, textiles, waterproof material, etc.)

variety

of

materials

China had the major share with 62.4% of all production, or 12.6 billion pairs. India is second on the list, with just over 2 billion pairs, followed by Brazil 894 million pairs, Vietnam 760 million, Pakistan 295 million and Mexico 244 million. Other countries making more than 200 million pairs of shoes a year are Thailand (245 million) and Italy (203 million). The Asian countries produced 87% of all footwear in 2010 and South America 6%, Europe 4%, Africa 2% and North America 2%. World footwear exports have reached 13 billion pairs worth $ 85 billion, a growth of 12% from the previous year. In exports China had a market share of 73.4% (9,930 million pairs) in 2010. But in value its share is only 38.5%.of the total earning $33.66 billion. India is ranked 13 in world trade with earnings of $1.4 billion. Average price realization per pair for China was $3.39, but for India it was $12.53. In terms of consumption, the two most populated countries in the world (China and India) represent, respectively, 15.2% and 11.7% of the total. However the US stands out even though it has a lot less consumers, registering the second position at world level with a 13.4% share of the 2010 total. Consequently, rubber and plastic footwear's share of world exports increased from 43% to 54%, in terms of volume, while leather footwear fell from 30% to only 17%. Given its high price, in terms of value

Worlds top 15 exporters of footwear Rank

1 2 3 4 5 6 7 8 9 10 11 12 13

Country
China Italy Hong Kong Vietnam Belgium Germany Indonesia Netherland Spain France Portugal Brazil India

Us$ (Million)
33665 8755 5244 4224 3717 3444 3002 2464 2411 1970 1718 1487 1434

World Share
38.5% 10.0% 6.0% 4.8% 4.2% 3.9% 3.4% 2.8% 2.8% 2.2% 2.0% 1.7% 1.6%

Average Price
$3.39 $39.51 $12.47 $15.79 $18.30 $19.99 $14.09 $16.64 $21.51 $28.32 $25.90 $10.40 $12.53

14 15

U.K Romania

1265 1121

1.4% 1.3%

$23.81 $19.36

Leading Footwear Clusters in Addition to India:

1 Vietnam / Indonesia
OEM production Focus on low costs segments mainly for the European market

2 China
OEM production Focus on low costs segments mainly for the US market

3 Romania
Production subsidiaries of Italian companies Focus on lower to medium price range

4 Italy
Design, marketing & production of premium shoes Export widely to the world market

5 Portugal
Production Focus on short-production runs in the medium price range

6 United States
Design and marketing Focus on specific market segments like sports and recreational shoe and boots Manufacturing only in selected lines such as hand sewn casuals shoes and boots

Country
Portugal Romania Italy China Vietnam Indonesia

Weakness
Predominantly catering to European markets High cost of labor Low value, high volume products Predominantly a footwear manufacturer (esp. Sports shoes) Unstable political system , currency depreciation forcing out companies from Indonesia High cost of labor

Threat
Competition from Chinese and other low cost countries Rising exports from the low cost countries Tariff barriers on Chinese exports by the European Union Tariff barriers on Vietnamese exports by the European Union Rising costs due to raw material imports, flooding of the domestic market by Chinese manufacturers Virtually no manufacturing of shoes except for defense units.

United States

Footwear Sector Indian:

The Footwear Industry is a significant segment of the Footwear Industry in India. India ranks second among the footwear producing countries next to China. India produces more of gents footwear while the worlds major production is in ladies footwear. The major production centers India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra and Delhi. The following table indicates concentration of units in various parts of the country:

Region
Tamil Nadu Delhi & up North Agra, Kanpur Calcutta Bangalore Mumbai Others

Large & Medium Scale

64 4 9 1 6 3 13

SSI
31 8 34 3 3 11 10

Household
7 25 14 19 4 32

In terms of volume, the market size of the footwear industry in the top 20 cities in the country is estimated to be 100 mn 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.

Leading Players (Footwear)

According to Indian Footwear Industry Analysis growth of 20% in year 2008 - 2011.As the trend is growing Indian footwear market relies on Men's Footwear and also Casual footwear's.

Retailers
Bata Liberty Khadims Woodlands Metro/Mochi

No of Stores
1400 334 260 200 52

Footwear industry in India can never be a heavy industry in general and small entrepreneurs with small investments in machinery and capital could remain for all purposes the backbone of industry. It is the ideal industry for entrepreneurs without much of investment in the industry assuring growing demand and profits. Availability of raw material and manpower is not a problem. So the small sector has to play a vital role in industry development. Depending upon the styles, type and purpose, the footwear can be broadly classified into three groups: Chappal or open type footwear. Sandal or strap attached footwear. Boot & shoe or closed type footwear covering most part of the feet.

Facts about Indian Footwear MarketsIndian footwear market is estimated at about Rs 19,900 crore with a growth rate of 8-10 per cent.
The category covers casual, formal, and semi-formal and sports shoes along with sandals for men and women. Mens segment accounts for 59 per cent of the market, while womens segment contributes 41 per cent The overall share of organized retail is 20 per cent and is expected to reach 25-30 per cent by 2015. Urban India is estimated to contribute 70 per cent to the overall footwear market in FY 2011. Exclusive-brand outlets account for over 50 per cent of the footwear market followed by multi-brand outlets at 28 per cent. Key brands in India are Bata, Liberty, Clarks, Woodland, Khadims, Metro, Red Tape, The Loft, M&B Footwear, Da Milano, Timberland, Puma, Nike, Adidas, Reebok, M&B, Rockport, Provogue, Lee Cooper, Converse, Nine West, Aldo, Relaxo etc

Women's footwear market in India

The womens footwear market is estimated to be Rs 8,000 crore which is projected to grow at a CAGR of 10 per cent to reach Rs 12,900 crore by 2015. Of this, 65 per cent is the unorganized segment and the rest 35 per cent, totaling Rs 2,800 crore, is the organized segment. The casual footwear segment forms the maximum (60 per cent) share in the total market, followed by formal shoes at 30 per cent. The major brands present in the formal and party wear segments include Catwalk, Aldo, Charles & Keith, Bata, Red Tape, Metro etc.

The major growth driver is the increase in career women (doubled from 5 to 10 million in the last decade). The number of career women is estimated to increase fourfold to an estimated 45-50 million working women in the age group of 20-40 years in urban India by 2020.

Men's premium footwear market in India

Mens footwear market in India is estimated to be Rs 13,000 crore in 2011. It is 50 per cent of the total footwear market. The category is growing at about 9 per cent a year

Footwear industry expands, steps into non-metro markets

Reebok, a part of Adidas, the worlds second largest sportswear maker, said last month it would make a $1 shoe for India. Even with a less valuable rupee, thats 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 Indias 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 Indias non-metro market.

Sizeable-unorganized-market
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.

Organized Sector vs. Unorganized Sector

Footwear is a necessity to every person and at the same time is now a lifestyle as also a performance enhancement product; and is thus a segment with vast potential. Indian footwear market is estimated at about Rs 19,900 crore with a growth rate of 8-10 per cent. The ladies footwear segment still remains the most untapped as nearly80-90 percent purchases happen in the unorganized market. Organized Market Unorganized Market as are under;

Indian Footear Market

80.00% 60.00% 40.00% 20.00% 0.00% Organised Market Unorganised Market Indian Footear Market 65.00% 35.00%

Marginal share of 2.44 percent in global trade worth US$ 97.606 billion. Estimated target of 12 bn $ (7bn $ export + 5 bn $ domestic) trade by the year 2012 overseas economies and trends. Growing middle class and growing buyer power leading customers to look for branded shoes. Seasonality issues sports is more of a rage in summers. Lack of targeting of market segments for kids and women.

A Few Interesting facts: The Indian footwear retail market is expected to grow at a CAGR (Compound Annual
Growth Rate) of over 20% for the period spanning from 2008 to 2011. Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07. The Indian footwear market is dominated by Mens footwear market that currently accounts for nearly 58% of the total Indian footwear retail market. It is dominated by casual footwear products, which make up for nearly two-thirds of the total footwear retail market As footwear retailing in India remains focused on Mens shoes, there exists a plethora of opportunities in the exclusive ladies and childrens footwear segment with no organized retailing chain having a national presence in either of these categories The Indian footwear market scores over other footwear markets as it offers benefits like low cost of production, abundant raw materials, and has a huge consumption market.

 In a Nutshell: There are nearly 4000 units engaged in manufacturing footwear in India. The industry is
dominated by small scale units with the total production of 55%. The total turnover of the footwear industry including leather and non-leather footwear is estimated at Rs.8500-9500 crore (Euro 551.3-1723.1 Million) including Rs.1200-1400 crore (Euro 217.6-253.9 Million) in the household segment. India's share in global leather footwear imports is around 1.4% Major Competitors in the export market for leather footwear are China (14%), Spain (6%) and Italy (21%). Assembly line production is organized, and about 90% of the workforces in the mechanized sector in South India consist of women. In fact, this sector has opened up plenty of employment opportunities for women who have no previous experience. They are trained to perform a particular function in the factory itself.

MAJOR TYPE OF FOOTWEAR The major products and services in this industry are: 1) Women's footwears

The casual footwear segment forms the maximum (60 per cent) share in the total market, followed by formal shoes at 30 per cent.

 The major brands present in the formal and party wear segments include Catwalk, Aldo, Charles & Keith, Bata, Red Tape, Metro etc. The major growth driver is the increase in career women (doubled from 5 to 10 million in the last decade). The number of career women is estimated to increase fourfold to an estimated 45-50 million working women in the age group of 20-40 years in urban India by 2020. 1. Sandals - open shoes consisting of a sole and various straps, leaving much of the foot exposed to air. They are thus popular for warm-weather wear, because they let the foot be cooler than a closed-toed shoe would. 2. Saddle shoe - leather shoe with a contrasting saddle-shaped band over the instep, typically white uppers with black "saddle"

2) Men's footwear

Men's footwear (excluding athletic) should account for about 50% of the industry's revenues. Slower changes in the styles of men's footwear allow existing machinery, equipment and inputs to be used each year. This product has increased in recent years at the expense of women's footwear. Men's footwear is more generic and is better suited to mass production in low labor cost countries.

Men's shoes can be categorized by how they are closed:

1. Balmorals: the vamp has a V-shaped slit to which the laces are attached; also known as
"closed lacing". In England, the balmoral is known as the Oxford. The word "Oxford" is used by American clothing companies to market shoes that are not balmorals, such as rubber-sole bluchers. 2. Bluchers : the laces are tied to two pieces of leather independently attached to the vamp; also known as "open lacing". In England, the Blucher is known as the Derby shoe. 3. Monk-straps: a buckle and strap instead of lacing various other closings exist but are less popular such as side-elastic closings.

3) Athletic
Men's and women's athletic shoes and special function shoes often have less difference between the sexes than in dress shoes. In many cases these shoes can be worn by either sex. Emphasis tends to be more on function than style.

1. Sneakers/trainers (also called gym shoes or tennis shoes) - general purpose

athletic shoes; made out of rubber, cloth, and/or plastic to be lightweight, flexible, and have good traction. Special varieties available for basketball or tennis.

2. Running shoes - very similar to above, with additional emphasis on cushioning. 3. Track shoes - lightweight; often with plastic or metal cleats 4. Cleats 5. Golf shoes - with "spikes" for better grip in grass and wet ground. Originally the spikes or
"cleats" were made of metal but replacable "soft spikes" made of synthetic plastic-like materials with prongs a type of shoe featuring molded or removable studs. Usually worn while playing sports such as rugby, football, American football, or baseball distributed radially around the edge of each spike are much more common today (and are required on many golf courses since they cause less damage to the greens)

6. Bowling shoes - intermediate style between ordinary dress shoes and athletic shoes. They have harder rubber soles/heels so as not to damage bowling alley floors. They are often rented or loaned at bowling alleys. 7. Walking shoes - have a more flexible sole than the running shoe, lighter in weight than the hiking boot, may have air holes, may not be water proof.

4) Children's shoes

Children's shoes should account for around 8.0% of industry revenue. Most children's shoes are produced in low labor cost countries as only a very small percentage of consumers purchase children's shoes for design, quality and brand names.

5) Rubber and plastic

Rubber and plastic footwear should make up about 8.2% of industry revenue. These products, which exclude sandals and slippers, have vulcanized, molded or cemented components.

6) Slippers

Footwear in the slippers segment usually includes house slippers, slipper socks and leather slippers. This segment should account for 4.1% manufactured footwear. Work and protective footwear, which typically includes steel cap shoes, water shoes and overshoes, should account for 3.3% of industry revenue. The other segment is expected to include, ballet slippers, hiking boots, golf shoes, moccasins and theatrical shoes. These product categories are further segmented into: fashion shoes, work shoes (including school shoes), work boots, sports shoes, and footwear components.

7) Others 1 Pointe Shoes: Designed for ballet dancing. These have a toe box
that is stiffened with glue and a hardened sole so the dancer can stand on the tips of their toes. They are secured by elastic straps and ribbons that are tied to the dancer's ankles.

Pointe Shoes 2 Ballet Shoes: Heel-less slippers made of canvas or leather, with
either continuous or two-part sole (i.e., split-sole). The sole is typically made of leather, with thicker material under the ball and heel of the foot, and thinner and thus more flexible material under the arch so that the foot can be pointed to its utmost. Ballet slippers are usually secured by elastics that cross over the top of the foot.

Ballet Shoes 1. Jazz Shoes: These typically have a two-part,

rubberized sole (i.e., split-sole) to provide both

flexibility and traction, and a low (one inch or shorter) heel. They are secured to the foot by laces or elastic inserts.

2. Dance sneakersAlso known as dansneakers, these are a combination of a sneaker and a dance shoe, with a reinforced rubber toe.

3. Character shoesShoes with a one to three inch heel, which are usually made of leather, and often have one or more straps across the instep to secure the foot during dance. They may come in soft-soled (suede) or hard-soled varieties. They may be converted to tap shoes by attaching taps.

4. Work Shoes:
Work shoes are designed to stand heavy wear, to protect the wearer, and provide high traction. They are generally made from sturdy leather uppers and non-leather outsoles. Sometimes they are used for uniforms or comfort by nurses, waitresses, police, military personnel, etc. They are commonly used for protection in industrial settings, construction, mining, and other workplaces. Protective features may include steel-tipped toes and soles or ankle guards.

Brands in indian footwear market

MNC Brands sourced from India
Reebok, Laurent, 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, Hugo Boss, Hush Puppies, Kenneth Cole, Liz Claiborne, Marks & Spencer, Nautica, Next, Nike, Nunn Bush, Pierre Cardin, Salamander, Stacy Adams, Tommy Hilfiger, Tony Lama, Versace, Yves St.

MNC Brands Sold in India

Adidas, Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West, New Balance, Reebok, Rockport, Stacy Adams, Levi Strauss , Lee Cooper, Puma, Bata

 Indian Brands sold in India Red Tape, Liberty, Khadims, Lakhani, Metro, Action, Provogue, ID, M&B Footwear, Firangi

] Existing Footwear Chains - Domestic: Bata India Ltd:

Bata India is the largest company for the Bata Shoe Organization in terms of sales pairs and the second largest in terms of revenues, with 1250 stores across the country. By the time Bata had come to India in 1931, it was already recognized as a leading shoe brand. Its manufacturing and marketing operations heralded the rise and the development of a modern footwear industry in India. Today, backed by a brand perception of experience, the company is working towards positioning itself as a vibrant and contemporary young brand. It has significantly transformed its retail formats to become more lifestyle-oriented, which has helped change consumer perceptions to a large extent. The company currently sells over 45 million pairs of shoes every year and has an annual sales turnover of more than Rs 8000 million.

Reliance Footprints:
A specialty footwear store offering formal and sportswear in men, women and children's footwear, was launched in Hyderabad and Bangalore. They launched another Footprint store in New Delhi.

Woodlands:
The brand Woodland was introduced to the Indian market in 1992 through two exclusive outlets in New Delhi. At present, there are 200 exclusive Woodland stores across the India in addition to a distribution network covering over a thousand stores across the country.

Action:
Action Shoes has more than 5,000 retail outlets all over India. Action also has exclusive showrooms in Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana, Uttaranchal, Delhi, Uttar Pradesh, Bihar, Rajasthan and Madhya Pradesh.

Khadim's:

Khadim India Limited forayed in footwear retailing in 1993. it has more than 260 Exclusive stores out of which 52 are owned by the company and the remaining are exclusive dealers are located across 22 states.

Liberty:
Liberty Shoes Ltd. has more than 365 retail stores across India. Liberty markets its products are the network of 150 distributors, 350 exclusive showrooms.

M & B Footwear:

Delhi-based M&B Footwear has 75 stores including 26 exclusive concept stores located in premium malls and high streets and 6 shop-in-shop modules placed within Central and Pantaloons. The company's brand portfolio comprises of Lee Cooper, ID, Provogue, Geox, Firangi, Rider and MB Sports. The company has planned to open 100 stores by 2008 and take it to 275 stores by 2010.

Red Tape:
Red Tape is the flagship brand of Mirza International. It was launched in 1996. Red Tape retail markets its products through multiple brand outlets, chain stores and exclusive Red Tape showrooms. Its countrywide network of exclusive showrooms spans 30 cities in India.

Existing Footwear Chains - International / MNCs: Crocs India:

It is a US footwear brand, launched in India in 2007. At present, the company retail products through 500 stores across India & also selling through 5 company owned stores in metros like, Delhi, Mumbai, Pune and Gurgaon.

Adidas:
German sportswear and apparel major Adidas is planning for a major expansion across India in 2008, which would involve setting up around 160 new stores. Post the planned expansion, Adidas would have 450 franchise stores and presence in 140 cities as against 119 cities currently.

Nike:
Nike entered into India through a seven year license agreement with Sierra Industrial Enterprise. In 2004, Nike Inc formed its 100 per cent subsidiary, Nike India. Nike has 1,000 retail outlets including exclusive stores and shop-in-shop.

 Reebok:
Reebok India is planning to expand its retail presence in India by the end of 2008. The number of exclusive Reebok stores is expected to go up from 675 to 800 by December 2008. The company has plan to tap tier II and Tier III cities. Reebok is planning to add 55 new lifestyle stores by the end of this year.

GUCCI:
GUCCI has 2 stores in Delhi, 1 in Mumbai and 1 in Bangalore it is planning to open more stores in other metros.

Carlton London:
UK's shoe brand Carlton London operates 7 stores in Ludhiana, Gurgaon, Noida, New Delhi.

Factors that make Indian Footwear market attractive A. Rising disposable incomes:
India has a large and growing middle income class constituting 350 million persons. The penetration level for footwear (both leather and non-leather) is only around 60%4 B. Abundance of raw material: India has the largest livestock population in the world. It has 22% of the worlds large animals (cows, buffaloes, camels) and 10% of the small animals (goat, sheep, calves).

C. Improved access to new designs:

With the Indian economy opening up there has been rapid influx of foreign technology through foreign collaborations with indigenous firms which has resulted in improved access to new designs for domestic firms

D. Indias emergence as a low cost manufacturing base:

There is an abundance of labour in our country available at competitive rates.

E. Government policy:

The government policies in the footwear sector are conducive to the easy setting up and operation of footwear producing units. The footwear clusters in the country enjoy numerous set-up and export incentives. MAJAR MARKET FOR Indian Footwear Industry , 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 1.41%, U.A.E 2.45% and Denmark 0.97.%. These 10 countries together accounts for 80.53% share in Indias total footwear export. Nearly 90% of Indias 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.

Footwear Exports To major markets 2013 -2014 EU 79.15%, USA 8.04%, Australia 0.72% and others 12.09% A Statement showing Indias Export of Footwear to different countries: Country Germany UK Italy USA France Spain Netherlands Portugal UAE Denmark Australia Sweden Canada South Africa Japan Others Total 2008-09 170.97 195.78 134.35 131.07 74.48 63.7 32.96 22.15 25.78 18.37 11.58 6.77 11.95 8.26 3.17 133.9 1045.24 (Value in Million US$) 2009-10 2010-11 2011-12 2012-13 2013-14 % Share 217.23 246.84 229.65 224.27 279.80 16.15% 208.2 241.37 247.06 296.45 331.92 19.16% 186.11 229.81 221.09 209.95 215.81 12.46% 127.15 136.92 163.03 123.6 139.21 8.04% 99.81 116.03 119.2 144.45 154.72 8.93% 64.57 76.69 91.86 95.99 111.74 6.45% 48.57 72.91 76.2 65.13 78.19 4.51% 35.03 37.34 28.21 22.63 24.38 1.41% 34.64 39.23 39.4 39.61 42.36 2.45% 14.65 17.48 14.78 17.02 16.74 0.97% 10.11 12.52 13.34 15.49 12.54 0.72% 7.99 12.04 12.64 12.2 13.76 0.79% 10.91 10.41 8.96 9.3 10.40 0.60% 12.11 8.52 8.49 9.87 11.07 0.64% 3.07 4.63 8.23 5.45 7.17 0.41% 156.76 226.61 252.18 216.37 282.23 16.29% 1236.91 1489.35 1534.32 1507.51 1732.04 100.0%

Partnerships that spell success

 Formas Kunz Brazil - This facility is coming up in the Footwear Component Park. Chennai, India. Feng-Tay Enterprises Co. Ltd., Taiwan - This is an SEZ-proposed facility in an area of 275 acres, coming up in SIPCOT Industrial Estate, Cheyyar (TN). Feng Tay is a manufacturer of sports shoes, skate shoes and casual shoes for Nike and other global brands. Apache Footwear, China - This FDI is coming up in Tada Mandal, Nellore (AP), in an area of 340 acres. Apache is a supplier of shoes for Adidas and has manufacturing facilities in China. A few other examples are, Mondial (Italy), Suolificio Malaspina (Italy), Fagus(Germany), Zahonero Virgili SL, (Spain), Top Fondi (Italy), Xie Zhan Moulds (China) Footwear is the engine of growth of the leather industry in India. Indias export of Footwear touched US$ 1732.04 million , accounting for a share of 45.05% in Indias total export from the leather sector of US$ 3844.86 mn. Indias Footwear export (leather, uppers & non-leather) is growing at a CAGR of 8.78% in the last five years ending Indias export of leather footwear had increased from US$ 974.33 million US$ 1460.42 million Indias export of footwear components had increased from US$ 219.84 million US$ 215.03 million Indias export of non-leather footwear has increased from US$ 42.74 million US$ 56.59 million Indias Footwear Export Growth over the last Four Decades Export of footwear from India increased manifold over the last four decades. Today, Indias footwear export is valued at US$ 1732.04 million, constituting 45.05% share in total export of leather & Footwear products.

Footwear exports has increased from US$ 99.77 million in 1980-81 to US$ 1732.04 million in 2010-11

Footwear is the engine of growth of the leather industry, currently accounting for an export value of US$1212 million, holding a major share of 41% in Indias total leather trade.

Future growth of Indian footwear industry in India will continue to be market driven and oriented towards the European and the US markets. Technology partnerships with major merchandising houses in USA and market leaders in Europe are decided advantages in the integrated developmental plan of India. Investment backed technology support for footwear component industry is being sought to be outsourced.

Footwear is the engine of growth of the leather industry, currently accounting for an export value of US$1212 million, holding a major share of 41% in Indias total leather trade.

An ambitious target of US$ 4.5 billion in respect of Footwear export from India by 201011where the overall export of leather products will reach US$7 billion, wherein footwear alone will account for a share of 65% in Indias total leather export trade.

 Bata:-

Registered Office address of the Company Bata India Limited 6A, S. N. Banerjee Road Kolkata 700 013, West Bengal Tel: (033) 2244 3416-18 Fax: (033) 2227 7418 E-mail: batacal@bataindia.com Brief History

The Company was originally incorporated as Bata Shoe Company Limited on December 23, 1931 under Indian Companies Act, 1913 for the purpose of manufacturing and marketing of all types of footwear, footwear components, leather and products allied to the footwear trade. Subsequently, the Company changed its name to .Bata Shoe Company Private Limited. on April 6, 1956 upon conversion into private company. The Company changed its name from .Bata Shoe Company Private Limited. To Bata Shoe Company Limited., upon conversion to a public company on April 18, 1973. The name was once again changed to the current name, i.e. Bata India Limited, on April 23, 1973. The Company was promoted by Leader A.G., St. Moritz, Switzerland, a member of the multinational Bata Shoe Organisation (BSO) with a 100% Equity Shareholding, and consequently, the Company too is a member of the BSO. The BSO consists of independently run companies operating in several countries acrossthe world. Bata Limited, Toronto, Canada acts as the headquarters of BSO. Bata Shoe Organisation provides an important interchange of new manufacturing technologies, machine design, factory lay-out plans advertising market forecasts, fashion trends, modern marketing techniques, new material testing and also information on the most advanced machinery and technology for production of shoes are made available to the Bata group of companies, including Bata India Limited. Bata India is the largest company for the Bata Shoe Organization in terms of sales pairs and the second largest in terms of revenues. With 1250 stores across the country, it also has the widest retail network within the BSO. By the time Bata had come to India in 1931, it was already recognized as a leading shoe brand. Its manufacturing and marketing operations heralded the rise and the development of a modern footwear industry in India.

Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for the first building of Bata's operation - now called the Bata. In the years that followed, the overall

site was doubled in area. This township is popularly known as Batanagar. It was also the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification. The Company went public in 1973 when it changed its name to Bata India Limited. Today, Bata India has established itself as one of Asia's largest footwear retailer. It has cornered around 35per cent market share in the organized sector (and approx. 8.5% of the total footwear market) Almost 98 percent of the company's revenue is from the domestic market while the rest is from exports. The company currently sells over 45 million pairs of shoes every year and has an annual sales turnover of more than Rs 8000 million (USD 178 million). Over the years, Bata India has established a leadership position in the footwear industry and is easily the most trusted name in branded footwear. Its retail network of 1250 stores gives it a reach/ coverage that no other footwear company can match. The stores are present in good locations and can be found in all the metros, mini-metros and towns

In terms of products, the company has now built a good, market-oriented collection that is in line with fashion trends and offers a good quality to price ratio. Its product range now encompasses classic shoes such as Ambassador for Men and comfort shoes such as Comfit for ladies, as well as a more trendy collection for ladies in the Marie Claire range and a sporty fashion collection for young adults in the North Star range.

Bata's smart looking new stores supported by a range of better quality products are aimed at offering a superior shopping experience to its customers. And the new face of Bata India is now visible to the industry as well as its customers. Today, backed by a brand perception of experience, the company is working towards positioning itself as a vibrant and contemporary

young brand. It has significantly transformed its retail formats to become more lifestyle-oriented, which has helped change consumer perceptions to a large extent.

Liberty:Liberty Shoes Ltd. is the only Indian company that is among the top 5 manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million. Company produces more than 50,000 pairs of footwear a day covering virtually every age group and income category. Products are marketed across the globe through 150 distributors, 350exclusive showrooms and over 6000 multi-brand outlets, and sold in thousands every day in more than 25 countries including fashion-driven, quality-obsessed nations like France, Italy, and Germany.

Liberty has developed a spectrum of 10 exclusive brands, each of which has been given that extra edge to cater to a specific target group. Today, the new range from Liberty is all about style, design, and comfort. The range imbibes the spirit of fun and is trendy to the core. Liberty has something for every occasion, for every income bracket & every age group. It pampers its customer by keeping pace with global footwear fashion trends and by going that extra mile which is why, special care has been taken to make sure that the outlets' design meets the specific needs and taste of the target grou

Apart from the existing brands, Liberty is busy fashioning the look of the future in footwear. Introducing new designs that redefine styles and comfort associated with the finest in workmanship. These are the brands of Liberty

Steeped in a philosophy that has at its core innovation, technology and advancement, we at Liberty, pride ourselves over and above everything else on our healthy and heart-felt respect for the human ethos, which projects itself in the expectancy and excitement with which one greets the arrival of the new combined with a sincere and deep regard for the old, which is appreciative of and adopts at every stage the unique balance between modernization and tradition. Liberty as a brand is constantly evolving to keep pace with the changing trends, styles, beliefs, and aspirations of people while maintaining the sanctity of certain traditions like workmanship and good value. Liberty Shoes, a manufacturer of footwear, is broadening its market by establishing specialized retail stores called Revolutions. The introduction of an entirely new product range to cater to a wider income group along with diversifying their focus from mens shoes and children school shoes to catering to the entire family which will help increase Libertys addressable market. The company has introduced shoes for fashion conscious consumers

Khadim:The Registrar of Companies, West Bengal Nizam Palace IInd MSO Building 234/4, A J C Bose Road, Kolkata 700 020 West Bengal About UsWe were incorporated as S.N. Footwear Industries Private Limited, by taking over the business of S. N. Industries Limited, a partnership firm on December 03, 1981 under the provisions of the Companies Act, 1956 vide registration no. 21-034337. The name of the Company was subsequently changed to Khadim Chain Stores Private Limited pursuant to a fresh certificate of incorporation dated April 17, 1998. We, Khadim India Limited (Khadims), are the 3rd largest footwear retailer in India (based on the number of stores) and our flagship brand Khadims is considered the most preferred footwear brand in Eastern India (as per IMRB survey). We have more than 260 retail outlets (including owned and exclusive dealers) across 22 Indian states. We offer a wide range of footwear for the entire family, at various price points, catering to the different income groups. Our expertise in footwear retailing dates back to 1993 when we started three high street stores at Kolkata. We are into footwear retail since 1993. Before that we were into wholesaling and distribution of footwear. Currently we are engaged in manufacturing, wholesaling and retailing of footwear. We are present across 22 Indian states with over 260 plus retail outlets which makes us the 3rd largest footwear retailer in India. On an average we have 4000 SKUs at any point of time. Right from our foray in footwear retailing, Khadim's is synonymous with quality products at affordable prices. We use a mix of outsourced product and manufactured products that help us to provide the consumers the best, not only in terms of style and quality, but also in terms of price. The Rs 120-crore Khadim group of companies, one such player now emerging as a market leader in the region, has already gone into manufacture, along with 100 per cent outsourcing, and is now poised to expand in a big way, particularly in eastern region and South, mainly Tamil Nadu, Andhra Pradesh and Karnataka.

Established in Kolkata in 1953 by a Bengali businessman, Mr Satya Prosad Roy Burman, as a small trading outfit involved in footwear wholesale business, Khadims has grown steadily and today commands brand premium in several States. Khadim have grown mainly through our outsourcing strengths and today have as many as 27retail outlets in both urban and semi-urban centers and some 150 franchisee shops. The Khadim group of companies, with a significant presence in the footwear segment, especially in the east and south regions, has redefined its business plans to leverage the Khadim's brand and register a major presence in lifestyle retailing in the semi-urban markets. The company plans to launch 10 superstores initially in district towns, under `Khadim's Khazana' brand entailing an investment of Rs 50 crore in the next three years The first such store, housed in 30,000 sq ft and spread over four floors, has been launched at Kanchrapara town in North 24 Paraganas district.

Mission: Ensuring customer delight and stakeholders return by delivering quality product at
affordable price through extensive retail network

Vision: To be in every Indian step.

About UsThe patriarch started this commendable journey in 1966 with the inception of Lakhani Rubber Works, a small venture to manufacture rubber components. His hardship and commitment made Lakhani Rubber Works an acclaimed name in the industry. Eight years later, he expanded his vision further when the group diversified into the manufacturing of Beach Slippers and that signaled a new dawn in

the history of Indian Shoe Industry. And three years later, the Canvas Shoes followed. His endeavor and systematic approach helped the group expanding its horizons to sports shoes manufacturing in the year 1982. This never ending saga of success continued with their tie-up with Adidas India for the manufacturing of sports shoes. the group is the largest manufacturer of beach slippers in India with a production capacity of 40 million pairs per year. Also, it is the largest manufacturer & largest exporter of canvas and vulcanized shoes in India, with a production capacity of 3.5 million pairs per year. For over 80 years the adidas Group has been part of the world of sports on every level, delivering state-of-the-art sports footwear, apparel and accessories. Today, the adidas Group is a global leader in the sporting goods industry and offers a broad portfolio of products. Lakhani Armann group has been manufacturing sports shoes for adidas for the last 10 years and it is the only suppliers in India. The group is manufacturing more than 1 million pairs per year for the brand adidas including all the latest high tech shoes. Beside this, the group also has the distinction of being the largest suppliers of rubberized auto components to major automobile players in the Indian market. Year of tracking key industries extensive experience and knowledge coupled with primary research has enabled the group to deliver specified products to their customer. Some of the names, Lakhani Rubber Work is supplying to, are :Maruti Udyog Limited, Honda Siel Cars India Pvt. Limited, GKN Invel Transmission Limited, Sona Koyo Steering Systems Limited, Escort Limited (Tractor Division), Escort Limited (Farmtrac Division), Escort JCB Limited, Escort Construction Equipment Limited, LML Limited, New Holland Tractors Ltd, Subros Limited, Ford India Limited, Krupps JBM Ltd, Fiat (India) Ltd, Motherson Sumi Systems Ltd and QH Talbros etc. And the clients in the domestic appliances are:IFB Ltd, Intron Ltd (Electrolux Group) and Samsung Electronics (India) Ltd Lakhani Armaan group is the largest manufacturer of beach slippers in India with a production capacity of 40 million pairs per year. Also, it is the largest manufacturer & largest exporter of canvas and vulcanized shoes in India, with a production capacity of 3.5 million pairs per year. The eminence of the company, in the International Footwear Industry, is apparent from the fact that it has been manufacturing sports shoes for the global sports apparel manufacturing giant, adidas.

For over 80 years the adidas Group has been part of the world of sports on every level, delivering state-of-the-art sports footwear, apparel and accessories. Today, the adidas Group is a global leader in the sporting goods industry and offers a broad portfolio of products. Lakhani Armann group has been manufacturing sports shoes for adidas for the last 10 years and it is the only suppliers in India. The group is manufacturing more than 1 million pairs per year for the brand adidas including all the latest high tech shoes.

A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as Strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). such an analysis of the strategic environment is referred to as a SWOT ANALYSIS. The SWOT analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:

strengths
A firms strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Example of such strength includes:

1) Markets:
Strong presence in the domestic market. Traders/Wholesalers are present in the local market. Ancillary arrangement with medium/SSI units. Development trust and relationship in the long run. No import is requiring as all items are indigenous.

2) Technology:
Availability of customized and local made machines. Machinery is available at low price. Tools & equipments locally manufactured and available at low price.

3) Inputs availability:
Raw materials are available in sufficient quantity. Availability of other inputs like Adhsives, chemicals, last, Punch, Grainderies and packing materials (Boxes) etc.

4) Innovation capability:
Ability to develop duplicate and customized machines. Flexible operating practices.

5) Skills:
Workers are very skilled and working like machines. Workers are specialized in specific field.

 Most of the job is learnt while doing in house hold units. Vast pool of skilled laborers.

6) Business Environment: Stable business environment till today and increasing day by day. Existence of more than sufficient productive capacity in tanning. Easy availability of low cost of labour. Exposure to export markets. Managements with business background become quality and environment conscious. Presence of qualified leather technologists in the field. Comfortable availability of raw materials and other inputs. Massive institutional support for technical services, designing, manpower development
and marketing.

Exporter-friendly government policies. Tax incentives on machinery by Government. WEAKNESSES: The absences of certain strength may be viewed as a weakness. For example, each of the following may be considered weaknesses:

1) Markets:
Loosing ground in the domestic market due to mechanisation and set up Mechanised units at different part of the country. Imports started coming in especially from China. Middlemen/traders enjoying most of the profits in the value chain.

2) Technology:
Tradition method of production. Low level of technological development. Manufacturing defects and use of substandard materials. Problem with quality and productivity.

3) Inputs availability:
Most of the raw materials are indigenous. Imported materials are also used.

4) Innovation capability:
Very frequently changes in design, technology, process and marketing due to foreign branded footwear availability in the market.

5) Skills:
Skilled workers are specialized in particular types of operation. No skill up gradation training for the workers. 6) Business Environment: Business Environment is changing. Competition is going to increase.

OPPORTUNITIES
The external environmental analysis may reveal certain new opportunities for profit and growth. Some example of such opportunity includes:

1) Markets:
The domestic market has tremendous market potential and can be utilized at the maximum. Globalizations can user tremendous market potential for the competitive firms (entire globe is the market global village). Tariff and non-tariff barriers are depleting. Quality and productivity is the rule of the game. Enterprises can join hands together for international marketing, brand buildings and participation in trade fairs.

2) Technology:
Advent of latest technology with the intervention of CLRI, FDII, CFTI and foreign country. Creation of technological awareness among entrepreneurs. Tremendous enthusiasm on the part of the cluster actors. Possibility of establishing consider for providing technical knowhow.

3) Inputs availability:
Competition is going to make availability of inputs cheaper and sufficient.

4) Innovation capability:
Exposure visits, participating in exhibitions may make the entrepreneurs and technicians more innovative and problem solving. Demonstration effect /awareness program.

5) Skills:
Increased awareness is likely to improve the skill base of the workers.

6) Business Environment:
Changing business environment and marketing channel can provide opportunity for enterprising firms. Abundant scope to supply finished leather to multinationals setting up shop in India. Growing fashion consciousness globally. Use of information technology and decision support software to help eliminate the length of the production cycle for different products Product diversification - There is lot of scope for diversification into other products, namely, leather garments, goods etc. Growing international and domestic markets. Exposure to newer markets through Fairs/ BSMs Retain customers through quality supplies and timely deliveries Aim to present the customer with new designs, infrastructure, country & company profiles. Use of modern technology Exhibit strengths in manufacturing, for example, strengths in classic shoe manufacturing, hand crafting etc. De-reservation of the footwear sector

THREATS: 1) Markets:
Competition is going to increase because of setting up modern units elsewhere in the country. Overseas importers are smart enough to change their sourcing country. Survival of the fittest.

2) Technology:

 Low level of technological development. Technology can impose a major threat unless it is changed/ modernised. Technology is an ever changing process.

3) Inputs availability:
Difficulty in encountering competition unless raw materials are made cheaper. Quality of raw materials. Quality of footwear components.

4) Innovation capability:
Innovation is required in every facets of business operations.

5) Skills:
Skill base of the workers needs up gradation to adopt latest technology.

6) Business Environment:
The changing business environment is always a problem for the less enterprising firms.