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FOOTWEAR INDUSTRY

OF INDIA-THE PRESENT
SCENARIO ,SCOPE AND
CHALLENGES

SUBMITTED BY:
ANKITA BISWAS (15)
M.F.M. 2010-12

UNDER THE GUIDANCE OF:


Dr. SOUGATA BANERJEE
OBJECTIVE OF THE STUDY

 To hunt for scope of its rise and to explore new means


to increase exports.
 To implement the footwear industry in India by
entering the fields that are still untouched.
RESEARCH METHODOLOGY

 Thesource of information for the research


has been secondary data.

 Information
has been sourced from books,
newspapers and websites.
SCOPE OF THE STUDY
 If the suggestions are taken care of and are followed
in a proper manner, the footwear industry and the
local footwear market of India will be benefitted and
will lead to better business prospective.
 This report provides extensive research and in-depth
analysis on the Indian footwear market. The detailed
data and analysis given in the report will help the
client to evaluate the leading-edge opportunities
critical to the success of the footwear market in
India. 
INTRODUCTION
 A significant segment of the leather industry
in India.
 India ranks second among the footwear
producing countries next to China.
 Concentrated in the small and cottage
industry sectors.
 Churning out almost 1736 million pairs of
shoes annually.
 While leather shoes and uppers are
concentrated in large scale units ,the sandals
and chappals are produced in the household
and cottage sector.
 In the case of chappals and sandals ,use of
non-leather material is prevalent in the
domestic market.
 The major production centres of India are
Chennai, Ranipet, Ambur in Tamil Nadu,
Mumbai in Maharashtra, Kanpur in U.P.
,Jalandhar in Punjab, Agra and Delhi.
THE ESTIMATED ANNUAL FOOTWEAR
PRODUCTION CAPACITY REGION-WISE SHARE
REGION LEATHER NON LEATHER LEATHER NON
SHOES LEATHER SHOE SANDALS LEATHER
SHOES UPPERS SANDALS
TAMIL NADU 26 5 54 1 0

DELHI & U.P. 10 77 4 1 60


NORTH

AGRA, 45 0 32 62 0
KANPUR

KOLKATA 12 0 2 3 0
BANGALORE 3 3 4 0 0

MUMBAI 4 2 1 32 0
OTHERS 0 13 3 1 40
TOTAL 100 100 100 100 100
ETHNIC FOOTWEAR OF INDIA

 Ethnic footwear is sub-sector of leather products,


which includes hand-crafted footwear produced by
artisans and traditional families.
 The special natures of artisan products have
distinctive features, i.e., aesthetic, artistic, creative,
culturally attached, decorative, functional,
traditional, religiously and socially symbolic and
significant. 
 But today, ethnic footwear industry in India is in a
quite miserable state.
INDIAN STATE ETHNIC FOOTWEAR NAME

Gujrat Bharwadi Desi Joda

Rajasthan Mojari

Karnataka/ Maharashtra Kolhapuri

Punjab/ Haryana Jooti

Himanchal Pradesh (HP) Phulla

Ladakh/ Leh Pabu Shoe

Uttaranchal/ Uttarakhand Lumba/ Mocha


MAJOR PLAYERS
 Shoes manufactured in India wear brand names
like Florsheim, Gabor, Clarks, Salamander and
St. Micheals.
 Reebok, Adidas, Nike and Skechers. Planet
Sports.
 Puma, Speedo, Converse and Wilson.
 The sportswear market is the only sector in India
that has the presence of all three top
international brands.
EFFECT ON INDIAN BRANDS
 In the face of increasing competition from leading
multinational players, domestic footwear retailers
have also woken up to the opportunity that the
segment beckons and are realizing that exposure to
shopping standards abroad have made Indian
consumers demand the same formats and experience
here.
 Major domestic players like Bata and Liberty and are
positioning themselves as vibrant and contemporary
Indian brands.
EXPORT

 India’s export of leather footwear touched US$ 331


million in 2008-09, recording an increase of 4.01%
over the preceding year.
 The major markets for Indian leather footwear are
the U.K., the U.S.A. ,Germany, Italy, France and
Russia.
 Nearly 71% of India’s export of leather footwear is to
Germany, the U.S.A., the U.K. and Italy.
INDIA’S FOOTWEAR EXPORT
GROWTH OVER THE LAST FOUR
DECADES 
PROBBLEMS FACED BY THE
ETHNIC FOOTWEAR OF INDIA
 Lack of standardization, product deficiencies, lack of
innovative and improved designs, competition from
organized and cheap footwear producing firms, lack of
proper marketing channels.
 Change of profession by the artisans is too a major
cause.
SEGMENTATION
PEST ANALYSIS
 Recent merger between Adidas and Reebok.
 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.

 Life style trends- upward shift

 Competing technology development


POSITIONING

 The global footwear market is estimated to be worth


$192.3 bn in 2008, a growth of 2% over the 2007 value.
 The Indian footwear industry is estimated to be worth
just INR 160 bn or $4 bn
 It is the second largest global producer of footwear after
China, accounting for more than 14 % of global footwear
production of 14.52 bn pairs.
0.08% luxury

3.5% premium
non leather

7.3% premium
leather

9.6% active
sports

26.5% mass
market

53% mid
economy
TARGET CUSTOMERS

 With all the major and minor brands selling in the


local market, the industry caters to the needs of the
widest range of customers from the lower in come
group to the luxury seekers.
SWOT ANALYSIS
 Opportunities
 Rising potential in the domestic market

 Growing fashion consciousness globally

 Use of information technology and decision support


software to help eliminate the length of the production
cycle for different products
 Use of e-commerce in direct marketing

 De-reservation of the footwear sector, growing use of


modern technology, exhibits strengths in manufacturing,
eg. Strength in classic shoe manufacturing
 Strengths
 High Growth

 Ready availability of highly skilled and cheap manpower

 Large raw material base

 Policy initiatives taken by the Government

 Capability to assimilate new technologies and handle


large projects
 Continuous emphasis on product development and design
upgradation
 Existence of more than sufficient productive capacity in
tanning, easy availability to export market, export
friendly government policies, well established linkage
with buyers inEU and USA
 
 Weaknesses
 Lack of warehousing support from the government

 International price fluctuation

 Huge labour force resulting in high labour charges

 Lack of strong presence in the global fashion market

 Unawareness of international standards by many players


 Threats
 Major part of the industry is unorganised

 Limited scope for mobilising funds through private


placements and public issues (many businesses are
family-owned)
 Difficulty in obtaining bank loans resulting in high cost
of private borrowing
 Stricter international standards

 High competition from East European countries and


other Asian countries
 Lack of communication facilities and skills
ROLE OF THE FOOTWEAR
INDUSTRY IN THE INDIAN
ECONOMY
 Apart from a significant foreign exchange earner,
leather industry has tremendous potential for
employment generation. Direct and indirect
employment of the industry is around 2 million. The
skilled and semi-skilled workers constitute nearly
50% of the total work force.
 Full Shoe:1,75,000

 Shoe Uppers:75,000

 Chappals & Sandals:4,50,000


CHALLENGES FACED BY THE
INDIAN FOOTWEAR INDUSTRY
 Varying levels of technology in the factories
depends on the size of the factories.
 Low quality of shoes ,threat of shift in
production to other areas or countries
where wages level are low if the quality is
maintained at same level.
 Component selection and methods of
production are given by the buyers and
manufacturers do not provide their own
fashion collections.
GOVERNMENT POLICIES IN
SUPPORT OF THE INDUSTRY
 The entire leather sector is now de-
licensed and de-reserved .
 100% foreign direct investment and joint
ventures permitted through the automatic
route.
 Funding support for establishing design
studios.
 Duty free import of raw materials and of
embellishments and components under
specific scheme.
 Concessional duty on import of specific
machinery for use in leather sector.
FUTURE STRATEGY OF STUDY
 Visit to major footwear industries of kolkata.
 Interaction with the workers engaged in the
footwear industry.
CONCLUSION
 The Indian footwear market is set to experience
the phenomenal growth in coming years. The
study will help to realise it.
 As footwear retailing in India remain focused on
men’s shoes, there exists a plethora of
opportunities in the exclusive ladies and kid’s
footwear segment with no organised retailing
chain having a national prance in either of these
categories. This study will help to explore these
opportunities.
REFERENCES
www.footwear-industry.com
www.indianshoebazaar.com
www.researchandmarkets.com
www.trademart.in
 From Fibre to Fabric

 IILF 09 Happenings

 Indian Footwear Industry – A Vision Document 2010

 National Highways Authority of India

 IMAGES F&R Research, INDIA RETAIL REPORT 2007

 Images report on Indian Footwear industry 2007-08

 www.marketsmonitor.com

 www.highbeam.com

 www.fibre2fashion.com

 www.businessworld.in

 www.indiaretailing.com

 www.leatherindia.org

 www.business-standard.com

 www.catwalk.co.in
H A N K
T
Y O U

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