Footwear Industry (India)

                                 Footwear Industry (India) 


                         Demand for high quality footwear produced in Europe and other parts of the world is expected to slow-down as people will look for medium or lower priced products. This is a good sign for the Indian footwear industry since India along with China is the main supplier of low-priced footwear. However, Chinese producers are facing serious problems due to rising labor cost, which has risen by around 40 percent since January 2008, and currency appreciation. Chinese products, which used to be cheaper by around 10 percent compared to the Indian products, are no longer cheaper.
                          Under these circumstances, India is a source for supplying medium and low-priced footwear. Moreover, most of the global footwear manufacturers, particularly European manufacturers who were sourcing from China, have now turned to India. Nike, Adidas and Puma are some of the footwear majors are expected to route parts of their production and purchase out from China to India.
                           The annual domestic consumption of shoes in India is 1.1 billion pairs and it is estimated that the footwear market is around Rs 10, 000 crore and will grow at 10% pa, this offers great opportunities for a company like Bata to expand.
  > India produces 2065 million pairs of Different Categories of Footwear 
  > Leather Footwear 909 million pairs
  > Leather Shoe Uppers 100 million pairs
  > Non Leather Footwear 1056 million pairs

Exports – 
 
% Share of Leather Products in Export Performance  
(Council of Leather Exports)

Export Targets for footwear (In Million US$)
2008-09        2009-10        2010-2011
2597.60          3428.83           4526.05



Brands in Indian 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


Facts about Indian Footwear Industry-
 The Indian footwear retail market is expected to grow at a CAGR 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.
 Presently, the Indian footwear market is dominated by Men’s footwear market that accounts for nearly 58% of the total Indian footwear retail market.
 By products, the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of the total footwear retail market.
 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.
 Lee Cooper shoes are recognized as the market leader of Casual Footwear, for both Men & Women.

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 sports wear 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 -
  > Low Cost of Production
  > Variety & Abundance of Raw Material
  > Large Domestic Consumption Market
  > World Class Institutional Support for Designing & Testing
  > Growing Fashion & Brand Consciousness
  > Rising Living Standard
  > Increasing Use of Credit Cards
  > Government Support
  > Low brand loyalty in case of casual wears.