A PRESENTATION ON SHOE

INDUSTRY IN INDIA

BY

FAIZA EQBAL
SALMAN QAMAR
UTKARSH
SHOE INDUSTRY IN INDIA
 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.
 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.
INTRODUCTION
 The shoe factory is a standard and registered shoe manufacturing company .We
have been able to lease a facility that is big enough (a 20 thousand square foot
facility) to fit into the design of the kind of standard shoe and footwear
manufacturing company that we intend launching.
 The company will manufacture a wide range of footwear for men, women and
children. We will be involved in manufacturing shoe and footwear in different
forms such as rubber and plastic footwear, protective footwear (Safety boots),
house slippers and slipper socks.
 We are aware that there are several large and small shoes and footwear
manufacturing companies all around India, which is why we spent time and
resources to conduct a thorough feasibility studies and market survey so as to be
well positioned to favourably compete with all our competitors.
 The shoe factory will ensure that all the shoes and footwear that leaves of factory
are of the highest quality and highly durable and affordable. We want to build a
business with a wide range of clientele base cut across people of different financial
status. We have a CRM software that will enable us manage a one on one
relationship with our customers no matter how large the numbers of our
customers’ base may grow to.
 The shoe factory will at all times demonstrate its commitment to sustainability,
both individually and as a firm, by actively participating in our communities and
integrating sustainable business practices wherever possible.
 We will ensure that we hold ourselves accountable to the highest standards by
meeting our customers’ needs precisely and completely whenever they patronize
 Vision Statement
Our vision is to become the leading brand in the shoe and
footwear manufacturing industry in India and to establish a
one stop shoe and footwear manufacturing company.
 Mission Statement
Our mission is to establish a world – class shoe and footwear
manufacturing company whose products will not only be
retailed in India , but also be exported to other countries of
the world. 
SITUATION ANALYSIS
 MARKET OVERVIEW

The shoe factory is mostly targeted towards the athletes, selling related product such as shoes
The Demand for sporting goods is increasing over the period. In the next five years consumer
will becomes more health conscious, which will estimate demand for Athlete equipment’s. This
Athlete industry is highly fragmented and characterized by the high level of competition. The
shoe factory uses strong brand awareness among consumers to gain market share. Also few
sporting goods manufacturer have vertically integrated operations, which includes the
marketing, manufacturing, designing and retailing processes in their operations. The shoe
factory is using the vertical operations to examine the consumer trends and to implement new
technologies. In today’s world market of sport goods is increasing and this market is highly
growing in India as compared to other countries and it has been projected more than 30 billion
in 2018.Consumers purchase different products such as athletic footwear, licensed sports
merchandise athletic apparel, exercise equipment .Many of the products such as sporting
goods are sold through online channels over the internet and have highest growth in market
share of distribution channels. Despite of having online channels people more over prefer to
shop in stores for sport goods .
 MARKET TRENDS
 One common trend in the shoe and footwear manufacturing industry is that the
demand for its product is driven by fashion, demographics, and of course consumer
disposable income.
 The profitability of shoe manufacturing companies depends on their ability to
design and market shoe models that effectively target consumers’ tastes and
preferences.
 Going forward, shoes and footwear brands will have to position themselves to
cater to a stronger middle class market
 Developed Company placing their products in emerging markets will also have to
adjust their pricing strategies to compete with local low-price manufacturers.
 Lastly, as part of marketing strategies, shoe manufacturing companies now ensure
that they have showrooms at different locations where they display their shoes and
footwear. As a matter of fact, it is even cheaper to purchase directly from this
showrooms
 Target Market
 Perhaps it will be safe to submit that the shoe manufacturing industry is amongst
one of the industry that has the widest range of customers; almost everybody on
planet earth need one form of footwear or the other. It is pretty difficult to find
someone that don’t have shoes or other footwear.We have conducted our market
research and feasibility studies and we have ideas of what our target market would
be expecting from us. We in The shoe factory manufacture a wide range of shoes
and footwear for age group of 10-60
 Competitive strategy
 A close study of the shoe industry reveals that the market has become much more intensely
competitive over the last decade. As a matter of fact, we have to be highly creative with our
designs and market approach, customer centric and proactive if we have survive in this
industry.
 We are aware of the stiffer competition and we are well prepared to compete favourably
with other leading shoe and footwear manufacturing companies like Nike , Adidas and
Reebok. launching a standard shoe and footwear manufacturing company that will indeed
become the preferred choice at every location where our showrooms and outlets will be
opened.
 Our shoe manufacturing company is located in an ideal property highly suitable for the kind
of manufacturing company that we want to run. We have enough parking space that can
accommodate well over 30 cars / trucks per time.
 One thing is certain, we will ensure that we manufacture a wide range of shoe and footwear
products in our factory at all times.
 One of our business goals is to make a one stop shoe and footwear manufacturing company.
Our excellent customer service culture, showrooms, online store, various payment options
and highly secured facility will serve as a competitive advantage for us.
 Lastly, our employees will be well taken care of, and their welfare package will be among the
best within our category in the industry meaning that they will be more than willing to build
the business with us and help deliver our set goals and achieve all our aims and objectives.
 Company Strategy
 Its main focus is to gain leading role in athletic market and increase its market
share
 To produce quality and innovative products for target consumers
 It has following strategies in terms of following factors:
 Pricing strategy: The shoe factory has value based/price leadership strategy that
offers the customer with the price that customer value so it has medium prices for
its products as it has niche market to serve with valuable products.
 Market expansion strategy: The shoe factory has strategy to expand its distribution
channels all over the India through constant improvement in products lines.
 Outsourcing strategies: The shoe factory has relied on outsourcing of its product
manufacturing it has contracts with different countries like China, Japan, Indonesia,
Brazil, Vietnam .
MARKETING AND SALES STRATEGY

 Open our shoe and footwear manufacturing company and showroom in a grand
style with a party for all.
 Ensure that we manufacture a wide range of shoes and footwear
 Make use of attractive hand bills to create awareness and also to give direction to
our shoe and footwear showrooms
 Position our signage / flexi banners at strategic places a
 Position our greeters to welcome and direct potential customers
 Create a loyalty plan that will enable us reward our regular customers
 Engage on road shows within our neighbourhood to create awareness for our shoe
and footwear manufacturing company and showroom.
 List our business and products on yellow pages ads  (local directories)
 Leverage on the internet to promote our business
 Engage in direct marketing and sales
 Encourage the use of Word of mouth marketing
BUSINESS STRUCTURE
 We ensure that we hire people that are qualified, honest, customer centric and are
ready to work to help us build a prosperous business that will benefit all the stake
holders (the owners, workforce, and customers). As a matter of fact, profit-sharing
arrangement will be made available to all our senior management staff and it will
be based on their performance for a period of ten years or more.
 In view of that, we have decided to hire qualified and competent hands to occupy
the following positions;
 Chief Executive Officer (Owner)
 Factory Manager
 Human Resources and Admin Manager
 Merchandize Manager
 Sales and Marketing Manager
 Shoes and Footwear Designers and Making Experts
 Accountants / Cashiers
 Customer Services Executives
SWOT Analysis
 Strength: Our core strength lies in the high quality of our finished shoes . the power of our
team and the state of the art and well – equipped shoe manufacturing factory that we own.
We have a team of highly trained and experienced shoes and footwear designers and makers
and support staff members that can go all the way to produce top notch shoes and other
footwear. we know we will attract loads of clients from the first day we open our shoe and
footwear manufacturing company for business.
 Weakness: A major weakness that may count against us is the fact that we are a new shoe and
footwear manufacturing company and we don’t have the financial capacity to compete with
multi – million dollars shoe and footwear manufacturing companies such as Nike, Puma,
Adidas, Reebok when it comes to manufacturing shoes and footwear at a rock bottom prices.
So also, we may not have enough cash reserve to promote our shoe and footwear
manufacturing company the way we would want to do.
 Opportunities: We have been able to conduct thorough feasibility studies and market survey
and we know what our potential clients will be looking for when they visit our showroom; we
are well positioned to take on the opportunities that will come our way.
 Threat: Just like any other business, one of the major threats that we are likely going to face is
economic downturn. economic downturn affects purchasing / spending power. Another threat
that may likely confront us is the arrival of a new company in same location where ours is
located. So also, unfavourable government policies may also pose a threat for businesses such
as ours.
MARKETING MIX
 Product : The shoe factory manufactures a wide range of footwear for men, women and
children. We will be involved in manufacturing shoe and footwear in different forms such as
rubber and plastic footwear, protective footwear (Safety boots), house slippers and slipper
socks.
 Currently these are top selling product categories, all these products specialized for sports
 products
 Manufacturing of rubber and plastic footwear
 Manufacturing of house slipper
 Manufacturing of athletic shoes
 Manufacturing of ballet slipper
 Manufacturing of cleated athletic shoes

 Pricing: The type of products to be marketed will affect the price of a product. The shoe factory
pricing strategy is considered to be competitive than other retailer shoe. The pricing is based
on the basis of target customers as a medium segmentThe target customers are those who are
niche and have almost have the financial capability of the product, Pricing strategy currently
used by company is like, it may continue to use it. The shoe factory current customers currently
specify what they would be willing to pay the cost of the product to ensure the quality and
service they receive On the basis of the services offered by company, to find that they can
compare the quality at a reasonable price from competitor service and prices are fairly charged
 Place: TSF town shop: In big cities of countries, TSF outlets are there to serve customers with
products.
 Flagship stores: THS has contracted with retail stores that has label of flagship of TSFwhich
serve with high volume of TSF products to consumers
 TSFid: It is a TSF online store that is website which serves the customers of all over the world
with customization services.
 Big retail discount stores: The big stores of country also serve with some high demand TSF
products for the target customers.
 Promotion:The marketing communications mix is effective because TSF attracts new customers
and creates balance between keeping existing customers .This is one of the strengths of TSF has
introduced its offers to almost any environment known to man and is extremely sensitive.Print
advertisement in general, simple but send a strong message. There is virtually no advertising
that appears on their price and TSF are almost always uses a popular athlete to promote its
product. The Advertisement exceeds the expectations of everyone with these shoes and they
are able to demonstrate on the rise for consumers
 Promotion of TSF is best; TSF uses Commercials, Newspaper ,magazinesas ways to make its
target customer aware about its offers. But TSF needs other ways for promotion as to
encourage more new products. Then it may use the maxi environment and can create brand
awareness. Marketing implication is that TSF is a marketing strategy for online ecosystem.
 Advertising
 Personal Selling
 Direct Marketing
 Sales Promotions and Public Relations  
STP (SEGMENTATION, TARGETING AND POSITIONING)
 Market Segmentation: It has following segmentation to create consumers groups to
target:
 Demographics segmentation: The shoe factory has segmented an Age and gender
group that is it has such products that serve male and female that has age range of
10-60.
 Psychographics and behavioural segmentation: The shoe factory has this
segmentation to answer that why consumers need its products and what the
consumers have interest and purchasing habits. So regarding this The shoe factory
segments its market which includes Sports or athletic oriented
 Geographic segmentation: On the basis of this, The shoe factory has segmentation to
serve its target customers all over the India. It has major markets in Jharkhand and
Bihar.
 Targeting : As for market segmentation, The shoe factory has niche market to serve
focuses and targets athlete or sportsperson segment and provides required products
to them as footwear and apparel products, which have quite specific and unique
feature as compared to other footwear products.
 Following are the some target strategies of The shoe factory:
 Its target strategies include aggressive marketing to make aware its target consumers
about its product .
 The shoe factory make its target consumers enable to get their desired products
through customization process .
 Apart from this, its targeting strategies include sponsorship of its products through
sports team or celebrities.
 Market Positioning
 The shoe factory has positioned itself in the mind of its target customers as
a leading in sports goods. It has made such products that satisfy its niche
market with all products related to sports. Company image has made an
appeal to target customers to buy the product with sense of inspiration and
confidence and which has made it major competitor in athlete industry.
 Its positioning statement is ‘For every serious athlete The shoe factory
provides perfect shoe or sports products that gives confidence for every
sport activity’ .
 It has following positioning strategies:
 • Enhancing athletic lifestyle or fantasy in consumers mind
 • Appealing style and attitude
 • Positions itself as premium brand with well-designed products
 • Appealing quality level and valuable products