Revolution in Footwear Industry

• India is standing on the threshold of a retail

revolution.
• Financial crisis is unlikely to have any
significant impact.
• India is the only major source for supplying
medium and low-priced footwear.
• European shoe makers looking to India
manufacturing in China is no longer cheap.
 Few Interesting Facts
• Market is expected to grow at a CAGR of over 20% for the period spanning
from 2008 to 2011.
• Footwear comprised about 60% of the total leather exports by 2011 from
over 38% in 2006-07.
• Dominance of Men's footwear market-nearly 58% of the total Indian
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.

• Enormous opportunity for growth to cater to increasing production of

footwear of various types, both for export and domestic market.
 OPPORTUNITIES FOR FOOTWEAR
INDUSTRY
• Growing international and domestic markets.
• Exposure to newer markets.
• Use of modern technology
• Growing fashion consciousness globally.
• Retain customers through quality supplies and
timely deliveries
• Huge opportunity exists, especially in semi-
rural and rural areas.
• Fastest growing tourist market in India.
• The competitive advantage over other
countries in the form of materials and skilled
manpower.
 CURRENT TRENDS(BY OBSERVATION)
• RFID-Latest technology for quicker and safer
transactions.
• Sports and activity specific laddering- Tennis,
Cricket, Football, Basketball, Training, Running.
• Online stores-Catalogues available online.
• Preference display-A list is prepared by a
company and the best is displayed
• Outsource manufacturing-To concentrate on core
competencies
 BATA- MARKET LEADER
• India’s largest manufacturer, sells 60 million pair per year.
• Created strong brand value by connecting to shoe
manufacturing company.
• Company’s own tanneries are the core competencies,
does not depend on third party for raw materials.
• BIL has the most modern leather shoe factory geared to
make international footwear for export.
• Operates through exclusive chain of executive own &
franchise stores in prime location countrywide.
• First Indian company to introduce shoes using latest
technology under its brand Bata Tech & quot.
• It uses dynamic spring pads that act as cushion for feet.
• Targets a wide range of customers with its 8 renowned
brands.
• Easy-to-shop store layout with clear product display by
category and by style.
• Guaranteed customer satisfaction in any Bata in the
world, they repair, exchange or refund any products with
defects.  
COMPANIES TARGETING THE CONSUMERS
BASED ON INCOME PER ANNUM

PUMA, NIKE RICH CLASS

ADIDAS

UPPER MIDDLE
ACTION, LIBERTY,
CLASS
NIKE, ADIDAS

LOWER MIDDLE
BATA, ACTION, LIBERTY,
CLASS
NIKE, ADIDAS, RELAXO

LOWER INCOME
BATA, ACTION, RELAXO
GROUP
 MAJOR PLAYERS
• Nike
• Adidas
• Reebok
• Puma
• New Balance
• Converse
• Bata
• Liberty
• Crocs
• Walk in M& B
 NIKE
• Has been present in India for over a decade
• The company realized India's potential-
targeted cricket.
• Became sponsors for the Indian cricket team
• Focus mainly on middle and upper class
segments
• Display of shoes according to particular sports.
• Higher the price-higher on the ladder.
 ADIDAS
• First came into the country with a license
agreement with Bata in 1989
• Then with a joint venture with Magnum
International in 1996
• Focus mainly on middle and upper class
segments
• Display of shoes according to particular sports.
• Higher the price higher on the ladder.
 REEBOK
• Second leader in market with 16% market
share.
• Use an oustourcing strategy
• Strength: focus on core competencies and try
to foster a global brand
• Facing issues related wages
 PUMA
• In 1924, Foundation of ´Gebrüder Dassler
Schuhfabrikµ, by Rudolf and Adolf(Adi) Dassler
• In 1986, became a public company, listed on
the Frankfurt Stock Exchange
• Outsourcing manufacturing facilities.
• It generates nearly 70% from footwear
 PUMA
• Stores in 19 states in india
• Has a online store-PUMA.com
• Sports fashion-alexander
mcqueen,starck,mihara,nuala and 96 hours
• Targets mainly the rich and the young
consumers.
 Future of Indian Footwear
Industry
• Leather foot wear industry is most significant Industry in India.

• Indian is the second largest global producer of footwear after China,

accounting for 14% of global footwear production.

• 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.

• Future of Indian Footwear lies in exported of Dress Shoes, Casuals, Sport

Shoes, Sandals, Boots, Sandals and Chappals made of rubber, plastic.
• Nearly 75% of India’s Export of Footwear is to the
European Countries and the USA.

• Government has permitted 100% Foreign Direct

Investment through the automatic route for the Footwear
Sector.
 Summarization
•  The Footwear Industry is a significant segment of
the Leather Industry in India.

• � India ranks second among the footwear

producing countries next to China.

• � India produces more of gents’ footwear while the

world’s major production is in ladies footwear.

• �  In the case of chappals and sandals, use of non-

leather material is prevalent in the domestic market.
• India in itself has a huge domestic market, which is largely
untapped.

•  The availability of abundant raw material base, large domestic

market and the opportunity to cater to world markets makes
India an attractive destination for technology and investments.