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    Footwear Industry of India-The Present Scenario, Scope and Challenges

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    Rajesh Kumar
    The document discusses the present state of India's footwear industry, including its scope, challenges, and segmentation. It notes that India ranks second globally in footwear production after China. The industry faces challenges from lack of standardization and competition from large multinational brands. However, there are opportunities for growth in the domestic market and through exports. The government has implemented supportive policies for the industry.

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    Footwear Industry of India-The Present Scenario, Scope and Challenges

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    Rajesh Kumar
    365 views32 pages
    The document discusses the present state of India's footwear industry, including its scope, challenges, and segmentation. It notes that India ranks second globally in footwear production after China. The industry faces challenges from lack of standardization and competition from large multinational brands. However, there are opportunities for growth in the domestic market and through exports. The government has implemented supportive policies for the industry.

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    Ankita Biswas (15)

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    The document discusses the present state of India's footwear industry, including its scope, challenges, and segmentation. It notes that India ranks second globally in footwear production after China. The industry faces challenges from lack of standardization and competition from large multinational brands. However, there are opportunities for growth in the domestic market and through exports. The government has implemented supportive policies for the industry.

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    365 views32 pages

    Footwear Industry of India-The Present Scenario, Scope and Challenges

    Uploaded by

    Rajesh Kumar
    The document discusses the present state of India's footwear industry, including its scope, challenges, and segmentation. It notes that India ranks second globally in footwear production after China. The industry faces challenges from lack of standardization and competition from large multinational brands. However, there are opportunities for growth in the domestic market and through exports. The government has implemented supportive policies for the industry.

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    of 32

    FOOTWEAR INDUSTRY

    OF INDIA-THE PRESENT
    SCENARIO ,SCOPE AND
    CHALLENGES

    SUBMITTED BY:
    ANKITA BISWAS (15)
    M.F.M. 2010-12

    UNDER THE GUIDANCE OF:


    Dr. SOUGATA BANERJEE
    OBJECTIVE OF THE STUDY

     To hunt for scope of its rise and to explore new means


    to increase exports.
     To implement the footwear industry in India by
    entering the fields that are still untouched.
    RESEARCH METHODOLOGY

     Thesource of information for the research


    has been secondary data.

     Information
    has been sourced from books,
    newspapers and websites.
    SCOPE OF THE STUDY
     If the suggestions are taken care of and are followed
    in a proper manner, the footwear industry and the
    local footwear market of India will be benefitted and
    will lead to better business prospective.
     This report provides extensive research and in-depth
    analysis on the Indian footwear market. The detailed
    data and analysis given in the report will help the
    client to evaluate the leading-edge opportunities
    critical to the success of the footwear market in
    India. 
    INTRODUCTION
     A significant segment of the leather industry
    in India.
     India ranks second among the footwear
    producing countries next to China.
     Concentrated in the small and cottage
    industry sectors.
     Churning out almost 1736 million pairs of
    shoes annually.
     While leather shoes and uppers are
    concentrated in large scale units ,the sandals
    and chappals are produced in the household
    and cottage sector.
     In the case of chappals and sandals ,use of
    non-leather material is prevalent in the
    domestic market.
     The major production centres of India are
    Chennai, Ranipet, Ambur in Tamil Nadu,
    Mumbai in Maharashtra, Kanpur in U.P.
    ,Jalandhar in Punjab, Agra and Delhi.
    THE ESTIMATED ANNUAL FOOTWEAR
    PRODUCTION CAPACITY REGION-WISE SHARE
    REGION LEATHER NON LEATHER LEATHER NON
    SHOES LEATHER SHOE SANDALS LEATHER
    SHOES UPPERS SANDALS
    TAMIL NADU 26 5 54 1 0

    DELHI & U.P. 10 77 4 1 60


    NORTH

    AGRA, 45 0 32 62 0
    KANPUR

    KOLKATA 12 0 2 3 0
    BANGALORE 3 3 4 0 0

    MUMBAI 4 2 1 32 0
    OTHERS 0 13 3 1 40
    TOTAL 100 100 100 100 100
    ETHNIC FOOTWEAR OF INDIA

     Ethnic footwear is sub-sector of leather products,


    which includes hand-crafted footwear produced by
    artisans and traditional families.
     The special natures of artisan products have
    distinctive features, i.e., aesthetic, artistic, creative,
    culturally attached, decorative, functional,
    traditional, religiously and socially symbolic and
    significant. 
     But today, ethnic footwear industry in India is in a
    quite miserable state.
    INDIAN STATE ETHNIC FOOTWEAR NAME

    Gujrat Bharwadi Desi Joda

    Rajasthan Mojari

    Karnataka/ Maharashtra Kolhapuri

    Punjab/ Haryana Jooti

    Himanchal Pradesh (HP) Phulla

    Ladakh/ Leh Pabu Shoe

    Uttaranchal/ Uttarakhand Lumba/ Mocha


    MAJOR PLAYERS
     Shoes manufactured in India wear brand names
    like Florsheim, Gabor, Clarks, Salamander and
    St. Micheals.
     Reebok, Adidas, Nike and Skechers. Planet
    Sports.
     Puma, Speedo, Converse and Wilson.
     The sportswear market is the only sector in India
    that has the presence of all three top
    international brands.
    EFFECT ON INDIAN BRANDS
     In the face of increasing competition from leading
    multinational players, domestic footwear retailers
    have also woken up to the opportunity that the
    segment beckons and are realizing that exposure to
    shopping standards abroad have made Indian
    consumers demand the same formats and experience
    here.
     Major domestic players like Bata and Liberty and are
    positioning themselves as vibrant and contemporary
    Indian brands.
    EXPORT

     India’s export of leather footwear touched US$ 331


    million in 2008-09, recording an increase of 4.01%
    over the preceding year.
     The major markets for Indian leather footwear are
    the U.K., the U.S.A. ,Germany, Italy, France and
    Russia.
     Nearly 71% of India’s export of leather footwear is to
    Germany, the U.S.A., the U.K. and Italy.
    INDIA’S FOOTWEAR EXPORT
    GROWTH OVER THE LAST FOUR
    DECADES 
    PROBBLEMS FACED BY THE
    ETHNIC FOOTWEAR OF INDIA
     Lack of standardization, product deficiencies, lack of
    innovative and improved designs, competition from
    organized and cheap footwear producing firms, lack of
    proper marketing channels.
     Change of profession by the artisans is too a major
    cause.
    SEGMENTATION
    PEST ANALYSIS
     Recent merger between Adidas and Reebok.
     Marginal share of 2.44 percent in global trade worth US$
    97.606
     billion.

     ‡ Estimated target of 12 bn $ (7bn $ export + 5 bn $


    domestic) trade by
     the year 2012 overseas economies and trends.

     Life style trends- upward shift

     Competing technology development


    POSITIONING

     The global footwear market is estimated to be worth


    $192.3 bn in 2008, a growth of 2% over the 2007 value.
     The Indian footwear industry is estimated to be worth
    just INR 160 bn or $4 bn
     It is the second largest global producer of footwear after
    China, accounting for more than 14 % of global footwear
    production of 14.52 bn pairs.
    0.08% luxury

    3.5% premium
    non leather

    7.3% premium
    leather

    9.6% active
    sports

    26.5% mass
    market

    53% mid
    economy
    TARGET CUSTOMERS

     With all the major and minor brands selling in the


    local market, the industry caters to the needs of the
    widest range of customers from the lower in come
    group to the luxury seekers.
    SWOT ANALYSIS
     Opportunities
     Rising potential in the domestic market

     Growing fashion consciousness globally

     Use of information technology and decision support


    software to help eliminate the length of the production
    cycle for different products
     Use of e-commerce in direct marketing

     De-reservation of the footwear sector, growing use of


    modern technology, exhibits strengths in manufacturing,
    eg. Strength in classic shoe manufacturing
     Strengths
     High Growth

     Ready availability of highly skilled and cheap manpower

     Large raw material base

     Policy initiatives taken by the Government

     Capability to assimilate new technologies and handle


    large projects
     Continuous emphasis on product development and design
    upgradation
     Existence of more than sufficient productive capacity in
    tanning, easy availability to export market, export
    friendly government policies, well established linkage
    with buyers inEU and USA
     
     Weaknesses
     Lack of warehousing support from the government

     International price fluctuation

     Huge labour force resulting in high labour charges

     Lack of strong presence in the global fashion market

     Unawareness of international standards by many players


     Threats
     Major part of the industry is unorganised

     Limited scope for mobilising funds through private


    placements and public issues (many businesses are
    family-owned)
     Difficulty in obtaining bank loans resulting in high cost
    of private borrowing
     Stricter international standards

     High competition from East European countries and


    other Asian countries
     Lack of communication facilities and skills
    ROLE OF THE FOOTWEAR
    INDUSTRY IN THE INDIAN
    ECONOMY
     Apart from a significant foreign exchange earner,
    leather industry has tremendous potential for
    employment generation. Direct and indirect
    employment of the industry is around 2 million. The
    skilled and semi-skilled workers constitute nearly
    50% of the total work force.
     Full Shoe:1,75,000

     Shoe Uppers:75,000

     Chappals & Sandals:4,50,000


    CHALLENGES FACED BY THE
    INDIAN FOOTWEAR INDUSTRY
     Varying levels of technology in the factories
    depends on the size of the factories.
     Low quality of shoes ,threat of shift in
    production to other areas or countries
    where wages level are low if the quality is
    maintained at same level.
     Component selection and methods of
    production are given by the buyers and
    manufacturers do not provide their own
    fashion collections.
    GOVERNMENT POLICIES IN
    SUPPORT OF THE INDUSTRY
     The entire leather sector is now de-
    licensed and de-reserved .
     100% foreign direct investment and joint
    ventures permitted through the automatic
    route.
     Funding support for establishing design
    studios.
     Duty free import of raw materials and of
    embellishments and components under
    specific scheme.
     Concessional duty on import of specific
    machinery for use in leather sector.
    FUTURE STRATEGY OF STUDY
     Visit to major footwear industries of kolkata.
     Interaction with the workers engaged in the
    footwear industry.
    CONCLUSION
     The Indian footwear market is set to experience
    the phenomenal growth in coming years. The
    study will help to realise it.
     As footwear retailing in India remain focused on
    men’s shoes, there exists a plethora of
    opportunities in the exclusive ladies and kid’s
    footwear segment with no organised retailing
    chain having a national prance in either of these
    categories. This study will help to explore these
    opportunities.
    REFERENCES
    www.footwear-industry.com
    www.indianshoebazaar.com
    www.researchandmarkets.com
    www.trademart.in
     From Fibre to Fabric

     IILF 09 Happenings

     Indian Footwear Industry – A Vision Document 2010

     National Highways Authority of India

     IMAGES F&R Research, INDIA RETAIL REPORT 2007

     Images report on Indian Footwear industry 2007-08

     www.marketsmonitor.com

     www.highbeam.com

     www.fibre2fashion.com

     www.businessworld.in

     www.indiaretailing.com

     www.leatherindia.org

     www.business-standard.com

     www.catwalk.co.in
    H A N K
    T
    Y O U

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