LEARNOUS

C A S E S T U D Y
C H A L L E N G E - S E A S O N 4

Method
Shoes and Footwear

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Indian Footwear
Industry
The footwear sector is a very significant segment of the
leather industry in India; rather it is the engine of growth for
the entire Indian leather industry.
India is the second largest global producer of footwear after
China, accounting for 13% of global footwear production of 16
billion pairs. India produces 2065 million pairs of different
categories of footwear (leather footwear - 909 million pairs,
leather shoe uppers - 100 million pairs and non-leather
footwear - 1056 million pairs).India exports about 115 million
pairs. Thus, nearly 95% of its production goes to meet its own
domestic demand.

1. The main markets for Indian Footwear are USA with a

share of 14.6%, UK14.4%, Germany12.2%, France6.4%,
2022
Italy4.8%, Poland4%, UAE3.7%, Spain 3.3%, Belgium3.2%
and Netherlands2.5%. These 10 countries together
accounts for 80.53% share in India’s total footwear export.
2. 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.

According to a report by the India Brand Equity Foundation,

the Indian footwear market is projected to reach $28 billion
by 2023, driven by factors such as increasing disposable
incomes, a growing population, and a rise in e-commerce.
 Domestic
Footwear Industry
in India
1. The Domestic Footwear Industry in India is valued at approximately
US$ 3200 million, projected growth at 11 – 12% p.a.
2. Organized retail is 25% and growing fast at 35-40% pa
3. Footwear retailing constitute about 9% in the total consumer
market.
4. Men’s footwear is about 50% of the market
5. Branded footwear (including store labels) is about 50% of the
market, driven by men’s footwear largely
6. Ladies and kids footwear, Sports Footwear also have vast potential
in the domesticmarket

Source: Private Study by Reliance

Milestones achieved/ footwear towering heights:

India is the second largest global producer of footwear after China,

accounting for 13% of global footwear production of 16 billion pairs.
India produces 2 billion pairs of different categories of footwear
constituting almost equal percentage of leather and non leather
footwear.
India is the third largest Footwear consuming country after China
and USA with consumption of nearly 1.66 pairs while average global
consumption is 3.0 pairs.
There are nearly 15000 units engaged in manufacturing footwear in
India with total turnover estimated at Rs. 50,000 crore including Rs
32,000 Crores for Domestic market and Rs 18,000 Crores for exports.
 Consumer
preference for
Footwear
Consumers purchase footwear throughout the
year and there is no fixed period/timing of
purchase. However, the beginning of an academic
session seems to be a peak time for purchase of
footwear.

A majority of consumers (over 75 percent) in metro

and non-metro urban areas showed their
preference for indigenous footwear and about 17
percent indicated no preference for indigenous or
imported footwear. Surprisingly more than 10
percent of consumers in non-metros towns
showed their preference for imported footwear as
against only 6 percent in metro cities.

About 55 percent of the consumers surveyed

indicated preference for leather footwear while 45
percent preferred non-leather footwear. However,
in non-metros town, more than 70 percent
consumers preferred leather footwear and less
than 30 percent preferred non-leather footwear.

Source: DMG Consulting Pvt Ltd, Noida

 Consumer
preference for
Footwear
A little over 53 percent of consumers expressed
their preference for branded footwear while
around 27 percent showed their preference for
non-branded footwear and 10 percent were found
to be brand neutral. Interestingly the preference
for branded footwear was more in non-metro
towns in as much as 62 percent of consumers
surveyed indicated preference for branded
footwear.

As against popular perception, price of footwear

apparently was not a major factor in influencing
consumers preference. A majority (60 percent) of
consumers would rather prefer quality of footwear.

Expectedly, majority of consumers (58 percent)

showed distinct preference for comfortable and
durable footwear, although a significant 42 percent
of consumers valued fashion and design of
footwear.
Footwear - A
status symbol
India is on the verge of a retail boom fueled by fast
evolving lifestyles and behavioural changes towards
shopping. With changing retail lanscape and advancing
styles, Indian footwear industy is set for a phenomenal
growth in future. Indian market is brand driven and
organised players dominate the sales.

The increasing penetration of internet and social media

to the lives of Indian consumers has dramatically
evolved their shopping behaviours. Urbanisation is also
a major contributor to influencing buying habits of
2022
consumers. Rising brand consciousness and increasing
discretionary incomes has resulted in enormous growth
in footwear consumption. Consequently, it can be
inferred that footwear besides being part of wardrobe,
has also become a huge status symbol these days.

The major driver of growth in the industry is the rising

disposable income of consumers in India. As more and
more people in the country become financially stable,
they are turning to high-quality, branded footwear. This
is especially true in urban areas, where people are
looking for fashionable, comfortable, and durable
footwear.

METHOD - COMPANY OVERVIEW

Method is a high-end Indian fashion brand which offers

shoes and footwear, established in 2022. Method
ensembles are intrinsically vivacious with varied hues
and colorful, lightweight comfort for any occasion and
every season.

The footwear is ideal for casual wear, as well as for

professional use and recreational activities making it a
meaningful and ideal footwear that could be worn for a
variety of lifestyle occasions. They target men and
women in the age group of 18 - 45 mostly in tier-1 and
tier 2 cities. The brand has manufactured 25 models of
footwear as of now and launched 12 models in 2022.
The other models are in testing phase and expected to
be launched in 2023. Being a startup, their sales figures
are 450-500 pairs of footwear/month both online and
offline. The price range of shoes varies between
Rs.3000 - Rs.6000 and footwear varies between
Rs.2500 - Rs.5500

Feel free to take necessary assumptions and state it

clearly.
METHOD - COMPANY OVERVIEW
AND PRODUCT FEATURES

THE IDEA
We at Method passionately craft footwear with flexible
functionality, so customers do not have a choice to make
between utility and style. We are here to revolutionise
the footwear market by producing a perfect footwear
that strikes a balance between product and personality.
Functionality combined with style making it a go-to-
footwear for every occasion thereby promoting
minimalism. Method can be positioned as a high-end
everyday footwear for any occasion, defining it a
functionality centric brand. The brand makes its identity
through its signature footwear and styles. Its minimalistic
approach aligns not only in its designs but also in
purchasing power of consumers making it the only
footwear you need for any occasion. By this approach,
the brand is letting their customers express themselves
freely through fashion and be the one who makes the
fashion statement. The Method produces footwear that
conform to their personalities and lifestyles, taking
Minimalism and sustainability to the next level.
“One footwear for all occasion in today’s world seems to
be an interesting idea, Right? Fashion evolves, let the
customer be the one who defines it!”
 METHOD - COMPANY OVERVIEW
AND PRODUCT FEATURES

TECHNOLOGY AND INNOVATION

Leonardo da Vinci described the human foot as "a
masterpiece of engineering and a work of art". And to make
sure we can look after it better than anyone else, we've
studied it. From the cradle to old age. We've looked at the
way it develops. We've scrutinised its biomechanics, the way
it moves at work, rest and play. We've deliberated on what it
takes to keep feet healthy and happy. And what we've
learned is what helps us make the perfect shoes for you.

Each pair of footwear is built with advanced construction

techniques, long lasting technologies and contempory
materials. Waterproof and Sweatproof technologies,
massaging footbed, long-lasting soles with frictional
resistance are what set us apart.

Method is also working on shoes with built-in sensors to

track the speed, distance covered, and calories burned. Also
innovative running shoe which boasts of a carbon-fiber
spring-like flange under the sole that helps propel a runner
forward is in testing phase. These innovations if passes the
test, is expected to make a revolution in global footwear
market.
METHOD - COMPANY OVERVIEW
AND PRODUCT FEATURES

COMFORT
In today’s world, the definition of fashion is evolving each
day. Fashion according to majority of consumers today is
comfort with minimal features which serves its purpose.
Method produces footwear which is light-weight, flexible,
water & sweat resistance features in a boost of bright
colours. METHOD loves to be a synonym for COMFORT
and designed for people who spent much of their time on
their feet.

DESIGN
The most common feature consumers look for after
comfort is design. Method produces footwear with
Minimalistic design and features, emphasising on “LESS IS
MORE”. Each feature in the footwear is designed with a
specific purpose as we believe every detail has a purpose.
We make designs which always have a intention making it
a functionality centric brand which appeals to customer’s
personality. With evolving fashion and the need to update
every single time when something new is launched, this
fashion stays relevant to the ever evolving world.
CASE STATEMENT
Being a start-up the company is unsure of the
strategy it should follow to grow the brand further. So
Method’s Chief Executive Officer approaches a
Consultant I.e you to address the company’s
problems. Please help them to curate the following
strategies

1. Build innovative strategies on marketing and

branding aspects for the Method brand, without
altering their vision and values
2. You have to come up with the marketing strategy
for the next one year (Go To Market strategy) The
execution plan should be feasible and scalable
considering the early stage of the business.
3. Curate the Business value proposition for the
brand.

Note: The strategies curated must be feasible for the

start-up. The ask is broad but the possibilities are
unbounded. Feel free to take necessary assumptions
and call them out clearly in your submissions.
Submission
Guidelines:
1. The assumptions if any should be called out clearly
2. The business case solution must be submitted as a
slide deck with a maximum of 10 slides including
appendix but excluding references, cover, and closing
slide.
3. Mention your name, team member name, college/
organization name, E-mail address, and phone number
in your first slide.
4. The file name should be < team name
>_Learnous_2023.
5. The file has to be mailed on or before 18th June
2023,11:59 PM IST by any one of your team members.
6. The solution submitted must represent the team’s own
words, ideas, and work. Any references/sources should
be listed separately at the end.
7. Only the submissions made before the deadline will be
considered.

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Mail your solutions at learnouscasesolution@gmail.com