Fashion Shoe Production Biggest Cities in India

Republic of india is the second largest footwear producer in the world, with footwear production accounting for approximately ix per cent of the global almanac production – 22 billion pairs as compared to Mainland china, which produces over threescore per cent of the global product.

India annually produces two.i billion pairs of which xc pc are consumed internally while the rest are exported primarily to Uk, Germany, USA, Italy and France

India annually produces 2.1 billion pairs of which 90 per cent are consumed internally while remaining are exported primarily to European nations which include United Kingdom, Federal republic of germany, Us, Italia and French republic, as per marketplace analysts.

Footwear exports from India have grown at a CAGR of twenty per cent in Indian Rupee terms during the last v year backed by growing need from European nations and increasing focus of main importing countries to shift sourcing from China to other low toll producing countries.

India is the third largest footwear consuming country in the world afterward Mainland china and United states, only with very piffling separating the three, India is very presently expected to be the second largest consumer as well.

In absolute terms, footwear exports from India have risen from Rs. 71.5 billion in FY10 to Rs. 180.0 billion in FY15.

The growth in Indian fashion and lifestyle marketplace has given an impetus to the footwear industry too. From a basic need-based manufacture, it has become an evolving fashion and manner category.

Market place Size, Growth & Segmentation

Every bit per the India Retail Report, India's total retail market is worth Rs three,893,425 crore, growing at eighteen per cent and is expected to cross Rs 6,156,333 crore past 2017. Modern retail is estimated at 42 per cent of this full market and is expected to grow by 21-23 per cent Y-o-Y. Retail expansion grew at an average of xvi-18 per cent in terms of number of outlets and retail space with same outlet growth being around 25 per cent.

The footwear market in India, like its international counterpart, has e'er been broadly classified into three segments, Men's, Women's and Kids. Men's market place is growing at a CAGR of x per cent. At present, men's market contributes around 60 per cent of sales in the footwear segment equally against women's share of 30 per cent. The women's segment, however, is growing at a much faster CAGR of 20 per cent.

Based on the usage, the market place can be divided into two sub categories:

• Regular (consisting of daily and sports footwear, material can be leather/not-leather)
• Occasional (consisting of premium and luxury, material can be leather/non-leather)

From price bespeak, the footwear industry in Republic of india can be divided into five parts:

• Mass (Rs 150-700)
• Mid/Economic system (Rs 700-thousand)
• Active Sports (Rs 1000-3000)
• Premium (Rs 3000-5000)
• Luxury (Above Rs 10,000) segment

The footwear market of the land is shared between organised and unorganised segment. The organised segment caters to about 1/3rd of the market place while the remaining market is fetched past unorganised players.

The unorganised segment gains prominence in the Indian context due to its price-competitive products, which are more suitable and attractive to the price witting Indian consumer. But with increased household income, shifting consumer behaviour from saving to spending, increasing make consciousness amongst Indian consumers, influx of large number of global brands and penetration in tier – II and Three cities by footwear companies, the organised retail in footwear market is rapidly evolving and expected to abound at a higher rate in the time to come.

The rural market of India is however largely untapped for footwear manufacturers. Companies are re-positioning themselves and launching specific products and price ranges to expand their presence and increment their consumer base of operations in rural areas.

The Evolution of the Indian Footwear Market

President-South asia, Bata, Rajeev Gopalakrishnan, analyses the development of footwear manufacture in his own way. He says, "As consumers' exposure to multi-channels on Tv, movies, content increased over years, their expectation from footwear accept evolved. Buying shoes for special occasions started condign a norm. Advent of digital technologies and penetration of smartphones brings instant awareness for Indian consumers nearly the latest global trends and makes them aspire for the latest. Footwear is non merely for utility anymore; they are more of a fashion statement. This has increased the per capita consumption from 1.6 to 2.4 in last five years. The market place is too likely to gain from the proliferation of the retail culture, which is expected to boost information technology at a CAGR of 11 per cent between 2015 and 2023. Since the global footwear market is highly fragmented, the focus at present lies in diversifying the product portfolio through enquiry and development to meet the changing client needs."

"The industry is at a very interesting crossroad. The demography and changing ownership behaviour are triggering enhanced need from the existing pie. Rising disposable incomes and new entrants into workforce, particularly women are pushing the domestic demand on the upside. On the other hand, the pain points of the manufacture – revenue enhancement component and incentives on investor assart are beingness worked upon. The organised sector will tend to exist big beneficiary of these trends," says COO, INC. five Shoes Pvt. Ltd., Rajesh Kadam.

He further says, "India is witnessing a modify in terms of its basic aspiration that has seen the buyer's preference move to more than of branded stuff. More international players will enter the market and they will offer a wide variety to the consumer. All these are way different when we started out when it was a basic demand that this industry fulfilled."

90 per cent of the footwear produce of Republic of india is all the same consumed by the domestic market and the residual is exported.

"Indian footwear manufacture is exploring ways to increment exports and the growth in export of footwear volition depend on quality and cost competitiveness," says MD Sreeleathers, Satyabrata Dey.

According to him, India is attracting various established manner brands of the world equally well as retailers who are re-orienting their focus on the domestic footwear market place. This has led to a significant increment in the number of retail outlets nationwide.

Fundamental Trends Shaping the Indian Footwear Marketplace

• Casualization and the Growth of Sports Shoes: According to Rajeev Gopalakrishnan, "The surging demand for designer yet comfy shoes amidst women and sportswear or athletic shoes amid men, have been bolstering opportunities for footwear sales."

It is true that, the pick of footwear, both for men and women in India is always dominated by the way of the season. However recently, comfort has been the determining cistron for the consumers in buying footwear. Casualization has kicked in as a big trend and with that sales of sneakers, converse likewise have picked upwardly, every bit these are preferred for everyday clothing. In fact, heels over three inches, near favourite in women'south segment, have recorded a decline of 17 per cent since last September.

MD & CEO Metro Shoes,Farah Malik, says, "The last year saw an upsurge in the casual category for men and in men'due south vesture saw an increased credence of brighter colours and quirkier patterns. We have also seen a spurt in kids wear."

• Increased Trust in Branded Footwear: Though the market share of branded and non-branded footwear in the country is almost the same till appointment, but brand consciousness of the Indians is increasing essentially.

Equally Rajesh Kadam of INC. 5 says: "A certain segment of Indian consumers is definitely get brand conscious, and the residue of the market place does accept an aspiration to get in that location."

Farah Malik adds, "A fast growing economy and a rising number of affluent consumers accept pushed Bharat into the league of most make conscious countries globally. However most consumers prefer a price indicate ranging betwixt Rs 999 – 4999 with regard to both national and international brands."

• Growing Opportunities in the Women'southward Segment: Women'southward footwear constitutes just thirty per cent market share currently. But the growth charge per unit of this segment is double than the men'south segment. Where the men'southward footwear market place has registered x per cent CAGR growth charge per unit in the last fiscal, it is twenty per cent for women's segment.
• Omni-channel Retailing: Retailers have started venturing into Omni-channel retailing and trying in-store marketing solutions such as beacons to enrich the shopping experience and trying to detect out ways to bridge the gap between offline and digital channels. In improver to appoint users on digital platform, and fifty-fifty influence their merchandising decisions, many retailers are using the platform not just to showcase products, but to actually sell them. The same goes for mobile. Companies won't just utilise the small screen to 'get in front end' of customers (i.e. through geo-fencing and mobile-enabled sites). In 2016, retailers have incorporated mobile into other parts of the client journeying, including order fulfilment, payments, and loyalty.

LEADING FOOTWEAR BRANDS IN INDIA

The First Wave: Indian Powerhouses

The great Indian footwear brands predate their glamorised wearing apparel cousins by a substantial fourth dimension margin. Indian powerhouses in general started operating in the state majorly since independence itself and the past decades have seen more and more brands being launched into the industry. A case in betoken is our almost loved Bata that nearly Indians will disbelieve its Italian origins. It was one of the earliest entrants and remains the market leader of Indian footwear.

Brand	Year of Establishment	Segment Presence	Product Portfolio	Retailing Format
Bata	1931	Mass/Economy/Agile sports/Premium	Men'southward, Women's, Kid's footwear with international brands such as Hush Puppies, Marie Claire, Scholls etc.	ane,250 stores beyond 500 cities, wholesale division, dealer-distribution network, own website and other e-commerce portals
Metro	1947	Mass/Economy/Agile sports/Premium	Men'due south, Women'south, Child'southward footwear with international brands similar Clarks, Steve Madden, Crocs etc.	310+ EBOs in 90 cities and online retailing through brand website and other e-commerce portals
Liberty	1954	Mass/Economy/Active sports/Premium	Men's, Women's, Kid's footwear	400 EBOs & 6000 multi-brand outlets
INC. 5	1954	Economy/Premium	Women's footwear	225 shop in shops and 32 stand-alone stores across the country
Ajanta	1956	Mass/Economy	Rubber, PU, PVC, EVA, canvas and leather footwear for men, women and kids	20 showrooms in Eastern part of the country, MBOs and distributors
Khadims	1965 (wholesale & distribution) 1993 (Retail journey)	Mass/Economy/Active/ sports	Men's, Women's & Kid's footwear	600 retail outlets in 21 states
Activity	1975	Mass/Economy/Agile/ sports	Men'due south, Women's, Child's footwear	Franchised EBOs, make website, leading e-commerce portals
Paragon	1975	Mass/Economic system	Rubber, PU, PVC, EVA and TPR footwear for men, women and kids	Distributed through 80 depots and 450+ distributers  across India
Relaxo	1976	Mass/Economy/ Active/Sports	Men'due south, Women's, Kid'southward footwear	EBOs, franchised outlets, own website and e-commerce portals
Sreeleathers	1987 (in Kolkata)	Mass/Economy/Active	Men'southward, Women'due south, Kid'southward footwear	6 EBO's and dealer network
Catwalk	1990	Economic system/Premium	Men's & Women's footwear	150 stores in 31 cities, partnered with retail chains like Pantaloons, Globus, Central, Hypercity, Mega Mart, Lifestyle, Reliance Footprint, Shoppers Terminate etc.
Mochi	2000	Economy/Premium	Men's, Women's, Kid'southward footwear	Footprints in more 35 cities through seventy retail outlets

Source: official website of the brands

The Second Wave: International Sportswear Giants

A significant shift mail service liberalisation was that lifestyles expanded to foster great value for the sports/active segment and for casualization every bit a whole. The technological prowess of global sportswear giants enabled them to functionally and fashionably entreatment to a immature India.

Today, these international giants dominate the sports footwear category. The market is held past Adidas, Nike, Puma, Lotto, Reebok, and nosotros expect the newer entrants ASICS, Sketchers, Crocs, Salomon etc to begin posing challenges to the Big 5 presently. A highly notable home grown success story however is Woodland that is a peak of mind proper name in the run a risk and outdoor segment in India.

Brand		Time of Launch	Retailing Format In Bharat	Fundamental Indian Partners
Reebok		1995	Franchise outlets, MBOs	Bones Wearable, CS Retail, Comfortable Shoemakers, Emdee,  Mayur Associates Retail (Sri Devi), Uttam Trading
Nike		1995	Franchise outlets, MBOs	Mystore, RJ, SSIPL Group, Saffron Group etc
Adidas		1996	Franchise outlets, MBOs	Adi Sports, Comfy Shoemakers, Goodwill Enterprises, Mayank,  Swaranbhadra etc
Salomon		2002	MBO	A&S Creations, Hindustan Army Store, Planet Sports and Central Stores
Puma		2006	Franchise outlets, MBOs	Bhawar, Ethix, Kapsons, Samarth, Shreyas
Lotto	2007		Stand lone stores and 200+ MBOs	Sports Lifestyle Pvt. Ltd.
Crocs	2007		Through Metro Shoes and EBOs	Metro Shoes
Paul & Shark	2009		EBO, Palladium, Emporio, Bombay Airport, Hyderabad Taj Krishna Hotel	l:l JV with Reliance Retail
ASICS		2010	Through MBO only till beginning of 2015, started opening franchised stores since and so	Reliance Retail/Footprint
Sketchers		2012	Mono Brand Retail through JV	Future Retail
Airwalk	2012		Through MBOs only	Reliance Footprint

Source: IMAGES F&R Research, indiaretailin.com, official website of the brands

Emergence of an Infant High Terminate & Luxury Footwear Market

Though compared to the other footwear segments in India, the premium and luxury segment is very minor and in terms of sales information technology amounts only approx Rs 450 crore as per ASSOCHAM data, but this has not prevented many international players from making an India entry. In fact their entry has hugely helped in raising the aspiration level of the consumers really high.

Many major international brands in premium and luxury segments like Aldo, Charles & Keith, Pavers England, Hush Puppies, Clarks, Steve Madden, Tod, Bally, Ralph Lauren, Ermenegildo Zegna, Burberry, Chanel, Gucci, Salvatore Ferragamo, Bottega Veneta, Armani, Versace, Hugo Boss, Dolce and Gabbana, McQueen and YSL (available through TSG's Kitsch), Kenneth Cole all are available in India either through sectional stores or through MBOs.

Peak luxury footwear brands in the world, Louis Vuitton and Jimmy Choo accept opened their exclusive stores in Republic of india. Very recently French luxury make Longchamp has also forayed in India and opened its kickoff store at DLF Emporio. The brand fifty-fifty has a plan to open 3-4 more stores in the state in coming few years.

Major MBOs in Footwear Manufacture

Curation of footwear for consumers is even so greatly valued in Republic of india. Multi brand retail in footwear non simply remains pop but is growing in forcefulness solar day past twenty-four hours. Apart from own in-house brands, almost all the popular brands are visible at leading MBOs as well every bit in the major departmental stores today.

Reliance Footprint is perchance the biggest player in this category. It has 225 stores beyond 24 states and has brands like Buckaroo, Franco Leone, Ganuchi, Hush Puppies, ID, Lee Cooper, Mancini, Pavers England, Moss Dunes, Provogue, Cerise Tape, Samsonite, Woodland, Catwalk, Custini, Hi Mental attitude, Inc 5, Luciano, Jove, Orange, Bonjour, Enroute, Piccadilly, Rocia, Tosca, towlips, Viviana, Hi Mental attitude, Levis, Lilliput, Mardi Gras, Spiderman, Adidas, Admiral, Fila, Lotto, Monza, Nike, Puma, Reebok, Scholl, Catwalk, Tresmode, Cocoon, Franco Leone, Gas, Louis Philippe, Roush, Alberto Torresi, Valentino, Sketchers, Airwalk, Barbie etc in its kitty. Pantaloons, Shoppers Stop and Lifestyle are another important MBOs dealing with footwear.

Determination

India is often referred to as the sleeping giant in footwear terms. With changing lifestyles and increasing affluence, domestic demand for footwear is projected to grow at a faster rate than has been seen. India is witnessing buyer'south preference towards branded stuff. More international players will also enter the market and they will offer a wide variety to the consumer. All these are indications that Indian footwear industry might exhaust its full potential and grow exponentially.

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