You are on page 1of 9

Footwear Retail in India

Banani Aich

which qualifies it as the second most organized retail category in India. With the Indian woman becoming more brand-conscious as opposed to the past state of being product-conscious. As footwear retailing in India has remained focused on men¶s shoes.8 percent of Footwear retail is in the organized segment.13. more and more internationally renowned players are expected to enter the Indian market to fill this need-gap. About 37. http://footwearsinfoline. Given India¶s very young population.750 Crore and constitutes just about one percent of Indian retail. The ladies footwear segment still remains the most untapped as nearly 80-90 percent purchases happen in the unorganized market largely due to the dressing habits of women for whom consideration of durability or comfort are less important than colours and designs that go with dress. there exists a whale of opportunity in the exclusive ladies and kid¶s footwear segment. Men's footwear comprises the largest share of the organized market accounting for about 52 percent in value terms.htm . the market for children¶s footwear is also attractive for new organized players to enter and earn supernormal profits. Volume Share of Products Segments in Footwear The children's and kids' segment also accounts for a significant share due to the increased emphasis on sporty looks. The Indian footwear market is estimated to be worth Rs. and is thus a segment with vast potential. This is especially surprising as women globally in line with global trends are the key decision makers for buying footwear.com/footwear_retail_overvw.tripod.Indian Footwear Retail Industry Footwear is a necessity to every person and at the same time is now a lifestyle as also a performance enhancement product. next only to Watches.

Volume Share in Footwear The footwear market today is showing a trend where more and more competitors within the segment are coming together and forming alliances through cross-promotions and tie-ups benefits for enhanced reach and offering the consumer access to a wider range of products and brands. is the licensee in India for leading sports brands such as Puma. Dunlop Sports and non-exclusive ones such as Reebok. Crore at 2003-04 Prices) The entry of specialty sportswear retailers such as Royal Sporting House. Planet Sports. It is the exclusive distributor of brands such as Mizuno.com/footwear_retail_overvw.tripod.htm . The London-based Carlton group became the first overseas player to enter the Indian women¶s footwear market when it set up its first store at the MGF Metropolitan Mall in Gurgaon recently. Converse and Wilson. TYR. many of which are placed in prime locations within shopping malls. Royal Sporting House has over 40 stores in India. with 20 outlets in the country. Nike and Skechers. Growth of Indian Footwear Retail (Value Rs. Caterpillar. among others. Adidas. http://footwearsinfoline. Speedo. Sports Station and Planet Sports providing the best shopping experience for customers and a platform to showcase the world¶s top sports and active lifestyle brands has transformed the organized retailing scenario in the country.

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.com/footwear_retail_overvw. Sketchers. Lotto. Lotus Bawa. Gaitonde. In recent years the market has seen entry of a host of new domestic and foreign brands like Drish.The sportswear market is the only sector in India that has the presence of all three top international brands. the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of the total footwear retail market. . Teva. Fashionable brands like Stryde and Red Tape and MNC brands like Allen Cooper. Playful promotion campaigns. there exists a plethora of opportunities in the exclusive ladies' and kids' footwear segment with no organized retailing chain having a national presence in either of these categories. In the face of increasing competition from leading multinational players. Lee Cooper. Gucci. Guess. . Few Interesting Facts: .htm .oriented and are positioning themselves as vibrant and contemporary Indian brands. Now. Timberland and Vans. Oakridge. Responding to this challenge. The year 1996 witnessed the entry of Nike. both for export and domestic market.As footwear retailing in India remain focused on men's shoes.Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07. and has huge consumption market.By products. . . http://footwearsinfoline. abundant raw material. Royal Elastic. .The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production. major domestic players like Bata and Liberty have significantly transformed their retail formats to become more lifestyle.The footwear component industry also has enormous opportunity for growth to cater to increasing production of footwear of various types. Teenage. are further developing the market by creating new segments. .tripod. Franco Leone. world class merchandising and the internationally styled stores enthused consumers to go for an extra pair of shoes and a couple of extra Tee Shirts and add a little bit of sporty images to their lifestyle.Presently. Reebok and Adidas that gave a new dimension to footwear and fashion retailing in the country. the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market.The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011.

com/footwear_retail_overvw. It is also known as Big Box Store. Factory Outlets: An outlet store or factory outlet or "Best Saving Outlet" is a retail store in which manufacturers sell their stock directly to the public through their own branded stores. Discount chains: Classification of the Footwear Market  Casuals  Formals  Economy range  Premium range  Sports / active wear  Reebok  Nike  Adidas http://footwearsinfoline. This type of store generally offers an extensive selection of merchandise at prices so low that smaller stores cannot compete. a factory outlet was a store attached to a factory or warehouse. The invention of the retail outlet store is often credited to Harold Alfond.htm . Traditionally.tripod. Often these stores are grouped together in outlet malls. The stores can be brick and mortar or online.Footwear Retail Formats  Category killers  The loft  Factory Outlets  Max retail  Landmark  The loot  Discount chains  The shoe factory Category Killer: A large retail chain store that is dominant in its product category. founder of the Dexter Shoe Company.

tripod. Taylor Made-Adidas Golf Company. which consist of Reebok Sportswear Company.Major Footwear Retailers in India Companies Profile: ADIDAS: Adidas ltd is a German sports apparel manufacturer and part of the Adidas group.com/footwear_retail_overvw.htm . It is the only Indian leather shoe brand that occupies fifth ranking among the top shoes manufacturing companies in the world. Adidas is the largest sportswear manufacturer in Europe and the second largest sportswear manufacturer in the world. Liberty: Liberty shoes ltd.6 billion. http://footwearsinfoline.625 billion and the 2007 figure was listed about $ 15. supplying and exporting of the footwear¶s. It has more than 170 subsidiaries guarantee marketplace presence for Adidas products around the world. is a leading leather shoes brand and is engaged in the manufacturing. and Rockport. Company¶s revenue for 2006 was listed at about US $ 13.

Bata India is a manufacturer of footwear. Bata: Bata industries are a specialized division of the world¶s largest shoe manufacturer: the Bata shoe Organization (BSO). The company has three main product categories: Rbk. as well as footwear and apparel for nonathletic use. Massachusetts. Performance.tripod. Relaxo has the capacity to manufacture over 100 million pairs. Bata India Limited is the largest footwear retailer in India. school and leather shoes. Power and Ambassador.46% 7. It is headquartered in canton. India. leather and plastic footwear. canvas. It started off with the manufacturing of Hawaii slippers and subsequently diversified into manufacturing casuals. The company also markets apparel under the brand names of North Star. Relaxo: Relaxo entered into footwear industry in 1976. Each of these product categories features product offerings for both men and women that are designed for specific consumer groups.16% Comparison of companies (PORTER¶S MODEL): Basis of comparison Barriers to Entry Bargaining Power of buyer Bargaining power of Nike Absent Adidas Absent Relaxo Absent Action Absent Bata Absent Liberty Absent Low Low High High High High Low Low High High High High http://footwearsinfoline. marketing and distribution of sports and fitness products including footwear. apparel and accessories. Reebok has operations in the UK. Types of footwear offered by the company include rubber. Comparison of companies: Companies Nike Adidas Bata Liberty Average Growth Rate(2005-08) 10.Reebok: Reebok specializes in the design.8% 11. Bata India has five manufacturing plants and acquires its leather from two tanneries in Mokamehghat (Bihar) and Batanagar. Europe and in various and in various Asian countries. per annum. It is headquartered in West Bengal. It has the customer base of around 100 million.5% 22.htm . The acquisition of Reebok by Adidas-Salomon was completed in January 2006. and Classic. Bata industries have operations and production facilities in most of the countries worldwide. joggers.com/footwear_retail_overvw.

suppliers Threats of Substitute Rivalry among the existing competitors Market Forecast High High High High High High High High High High High High Market Value Forecast: In 2010.2 billion pairs.4% 10. The compound annual growth rate of the market volume in same period is predicted to be 9. The compounded annual growth rate of the market in the period is to be 10.com/footwear_retail_overvw. India Footwear Market Value Forecast.7 3963.70% 9.1% In 2010.htm .4 3256 3589.10% 9.1% since 2005.40% 9.4 2.4 174.80% http://footwearsinfoline.5% 10. India Footwear Market Volume Forecast: Pairs billion.6 % Growth 8.2 130.2 2. 2005-10 Market Volume Forecast: $ Million 2701. the Indian footwear market is expected to have a value of $4.380.9 193. 2005-10 Year 2005 2006 2007 2008 Pairs billion 2.2 Growth 9.6 158.5 2960.3 INR Billion 119.80% 9. an increase of 62.1%. an increase of 59. the market is expected to have a volume of 3. $ million.0 2.2% since 2005.2% 10. 2005-10 Year 2005 2006 2007 2008 2009 2010 CAGR.6 143.8 4380.7%.3 million.tripod.60% 10% 10.

http://footwearsinfoline.2 9.tripod.90% 9.7% Prohibit employment of Children in Footwear Industry Provide hygienic environment for workers in the industry Indian Footwear companies should opt for modern technologies Companies like Bata. and Liberty should focus on Upper class customers also. Relaxo.htm .2009 2010 CAGR.com/footwear_retail_overvw.90% 9.9 3. 2005-10 Recommendations: y y y y 2.