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FOOTWEAR IN INDIA

Euromonitor International
April 2017
FOOTWEAR IN INDIA Passport I

LIST OF CONTENTS AND TABLES


Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 1
Prospects ..................................................................................................................................... 2
Category Data .............................................................................................................................. 2
Table 1 Sales of Footwear by Category: Volume 2011-2016 .................................... 2
Table 2 Sales of Footwear by Category: Value 2011-2016 ....................................... 3
Table 3 Sales of Footwear by Category: % Volume Growth 2011-2016 ................... 3
Table 4 Sales of Footwear by Category: % Value Growth 2011-2016 ...................... 3
Table 5 NBO Company Shares of Footwear: % Value 2012-2016............................ 3
Table 6 LBN Brand Shares of Footwear: % Value 2013-2016 .................................. 4
Table 7 Distribution of Footwear by Format: % Value 2011-2016 ............................. 5
Table 8 Forecast Sales of Footwear by Category: Volume 2016-2021 ..................... 6
Table 9 Forecast Sales of Footwear by Category: Value 2016-2021 ........................ 6
Table 10 Forecast Sales of Footwear by Category: % Volume Growth 2016-
2021 ............................................................................................................. 6
Table 11 Forecast Sales of Footwear by Category: % Value Growth 2016-2021 ....... 6

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FOOTWEAR IN INDIA Passport 1

FOOTWEAR IN INDIA
HEADLINES
 In 2016 footwear registers retail current value growth of 16% to reach sales of INR553 billion
 Internet retailing grows in importance thanks mainly to discounting
 Women’s footwear posts the strongest retail current value growth of 21% to exceed sales of
INR180 billion
 Bata India continues to lead the category with a retail value share of 5%
 Over the forecast period footwear expected to record a retail value CAGR of 7% at constant
2016 prices to surpass sales of INR778 billion in 2021

TRENDS
 Footwear continued to perform well in 2016, recording retail current value growth of 16% to
reach sales of INR553 billion. The major footwear players in the Indian market are facing
increasing competition from the internet retailing channel, which offers a large number of
affordable brands. In addition, although the major footwear brand manufacturers have also
made their products available through online retailers, their profit margins have taken a hit
due to the heavy discounts offered by internet retailers.
 Women’s footwear witnessed a trend towards platform shoes and espadrilles in 2016. Women
tend to purchase shoes more frequently than men and therefore women’s footwear continued
to outperform men’s footwear. In 2016, women’s footwear recorded strong current value
growth of 21% to exceed sales of INR180 billion. Women’s footwear, however, faces stiff
competition from the unorganised sector, which covers most cities and towns in India and
offers affordable prices.
 Men’s footwear remained the biggest category in 2016, recording retail current value growth
of 14% to reach sales of INR303 billion. Bata India, Paragon Group, Relaxo Footwear, Metro
Shoes and adidas India Marketing continued to perform well thanks to a focus on product
innovation and store expansion.
 Children’s footwear, albeit from a smaller base, continued to outperform men’s footwear in
2016. Children’s footwear recorded retail current value growth of 17% to approach sales of
INR70 billion. The penetration of branded children’s footwear continued to rise as all the major
brand manufacturers expanded their product portfolios for children.
 The share of internet retailing in footwear continued to rise over the review period, jumping
significantly from 1% in 2011 to 12% in 2016. The number of internet retailers operating in
footwear increased dramatically over the review period, thus helping to boost the channel’s
share of sales. In addition, most internet retailers offer periodic discounts on footwear, with
this also serving to support sales.
 Prominent online retailers of footwear in India in 2016 included jabong.com, myntra.com,
flipkart.com and snapdeal.com, with all benefiting from a strong product and brand portfolio.

COMPETITIVE LANDSCAPE
 Footwear in India continued to be led by Bata India in 2016 with a retail value share of 5%.
The company plans to open 100 new stores during 2017. In 2016, Bata focused on improving
the operational efficiency of its existing stores in order to increase profitability and better serve

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consumers. The company is also focusing on increasing its presence in smaller third- and
fourth-tier cities as well as reaching more consumers through the online retailing channel.
 The Indian footwear category is characterised by the strong presence of the unorganised
sector as well as local and regional players. As a result, it is very fragmented.
 Second-ranked Relaxo Footwear recorded the strongest absolute volume growth in 2016. The
company has performed well over the past three years thanks to a focus on increasing its
penetration in the Indian market through store expansion as well as a strong online presence.
 During the 2016 festive season Bata India launched a new premium collection called AW’16.
This was promoted as a fashionable and stylish range for both the festive and wedding
seasons.
 Private label had only a marginal presence in footwear in 2016.

PROSPECTS
 Demand for footwear is expected to remain strong over the forecast period. The category is
anticipated to register a retail value CAGR of 7% at constant 2016 prices, with sales reaching
INR778 billion in 2021. The key drivers of growth will be aspirational consumers from smaller
third- and fourth-tier cities as more branded footwear becomes accessible to them thanks to
store-based expansion and internet retailing.
 The category’s performance over the forecast period will be slightly slower than the 8% CAGR
of the review period. This can be attributed to the fact that the footwear category almost
doubled in size over the review period, with sales hence now growing from a much larger
base.
 There are no major threats to the growth of footwear in India over the forecast period.
 Women’s footwear is expected to register the strongest retail value CAGR of 11% at constant
2016 prices over the forecast period. Women’s footwear faces the challenge of a large
unorganised sector in India. However, with rising disposable incomes and more women
entering the workforce, demand for branded women’s footwear is expected to rise
significantly.
 Internet retailing is fast becoming an important channel for footwear sales in the country. Over
the forecast period footwear players are expected to focus on this channel to drive sales.
Companies are predicted to make their products available via the leading online retailers. In
addition, footwear players are also likely to launch their own online platforms. Footwear
companies are also anticipated to invest in digital marketing over the forecast period so as to
create a strong identity for their brands.

CATEGORY DATA
Table 1 Sales of Footwear by Category: Volume 2011-2016

mn units
2011 2012 2013 2014 2015 2016

Children's Footwear 154.5 179.2 206.1 239.0 279.7 324.4


Men's Footwear 367.5 407.9 454.9 509.4 573.1 641.9
Women's Footwear 192.4 221.2 252.2 290.0 336.4 388.6
Footwear 714.3 808.3 913.1 1,038.5 1,189.2 1,354.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 2 Sales of Footwear by Category: Value 2011-2016

INR bn
2011 2012 2013 2014 2015 2016

Children's Footwear 33.2 37.9 43.4 50.5 59.6 69.5


Men's Footwear 165.4 185.7 208.9 236.3 268.2 303.1
Women's Footwear 69.3 84.0 101.3 122.9 149.7 180.4
Footwear 267.9 307.6 353.6 409.7 477.5 553.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Footwear by Category: % Volume Growth 2011-2016

% volume growth
2015/16 2011-16 CAGR 2011/16 Total

Children's Footwear 16.0 16.0 110.0


Men's Footwear 12.0 11.8 74.7
Women's Footwear 15.5 15.1 102.0
Footwear 13.9 13.7 89.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Footwear by Category: % Value Growth 2011-2016

% current value growth


2015/16 2011-16 CAGR 2011/16 Total

Children's Footwear 16.5 15.9 109.1


Men's Footwear 13.0 12.9 83.3
Women's Footwear 20.5 21.1 160.4
Footwear 15.8 15.6 106.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Footwear: % Value 2012-2016

% retail value rsp


Company 2012 2013 2014 2015 2016

Bata India Ltd 7.1 6.4 5.7 5.3 5.1


Relaxo Footwear Ltd 3.8 3.9 4.1 4.3 4.4
Paragon Group Ltd 3.5 3.8 3.8 4.0 3.8
Veekesy Rubber Industries 3.0 2.8 2.8 3.0 3.1
Metro Shoes Pvt Ltd 2.3 2.4 2.5 2.7 2.9
adidas India Marketing 2.6 2.3 2.2 2.0 1.9
Pvt Ltd
Aero Group 1.4 1.6 1.6 1.6 1.6
Puma Sports India Pvt Ltd 1.0 1.2 1.4 1.5 1.5
Khadim India Ltd 1.1 1.2 1.3 1.4 1.4
Nike India Pvt Ltd 1.0 1.4 1.6 1.6 1.4

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FOOTWEAR IN INDIA Passport 4

Liberty Shoes Ltd 1.2 1.4 1.4 1.1 1.1


Footwear (klick) India 0.4 0.5 0.7 0.8 0.8
Pvt Ltd
Mirza International Ltd 0.6 0.6 0.7 0.7 0.7
Reebok India Pvt Ltd 0.5 0.5 0.5 0.5 0.5
Crocs India Pvt Ltd 0.2 0.3 0.4 0.4 0.5
Fila India Ltd 0.4 0.4 0.4 0.4 0.4
Action Footwear Pvt Ltd 0.6 0.5 0.4 0.4 0.4
Clarks Future Footwear 0.1 0.2 0.3 0.3 0.4
Ltd
Marks & Spencer 0.1 0.1 0.3 0.3 0.3
Reliance India Pvt Ltd
Trent Ltd 0.3 0.3 0.3 0.3 0.3
Arvind Lifestyle Brands 0.1 0.1 0.2 0.2 0.2
Ltd
Sports Lifestyle Pvt Ltd 0.1 0.1 0.1 0.1 0.1
Future Lifestyle 0.2 0.2 0.2 0.1 0.1
Fashions Ltd
Lakhani India Ltd 0.4 0.4 0.2 0.1 0.1
Others 67.8 67.4 66.9 66.9 67.0
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Footwear: % Value 2013-2016

% retail value rsp


Brand (GBO) Company (NBO) 2013 2014 2015 2016

Bata (Bata Ltd) Bata India Ltd 5.4 4.7 4.4 4.2
Paragon Paragon Group Ltd 3.8 3.8 4.0 3.8
Relaxo Relaxo Footwear Ltd 3.4 3.5 3.6 3.7
VKC Pride (VKC Group) Veekesy Rubber Industries 2.8 2.8 3.0 3.1
Metro Metro Shoes Pvt Ltd 2.4 2.5 2.7 2.9
adidas (adidas Group) adidas India Marketing 2.2 2.1 1.9 1.8
Pvt Ltd
Woodland Aero Group 1.6 1.6 1.6 1.6
Puma (Kering SA) Puma Sports India Pvt Ltd 1.2 1.4 1.5 1.5
Khadim Khadim India Ltd 1.2 1.3 1.4 1.4
Nike (Nike Inc) Nike India Pvt Ltd 1.3 1.5 1.4 1.3
Liberty Liberty Shoes Ltd 1.4 1.4 1.1 1.1
Lancer Footwear Footwear (klick) India 0.5 0.7 0.8 0.8
Pvt Ltd
Red Tape Mirza International Ltd 0.6 0.7 0.7 0.7
Sprax Relaxo Footwear Ltd 0.6 0.6 0.6 0.7
Hush Puppies Bata India Ltd 0.6 0.6 0.6 0.6
(Wolverine World
Wide Inc)
Reebok (adidas Group) Reebok India Pvt Ltd 0.5 0.5 0.5 0.5
Crocs (Crocs Inc) Crocs India Pvt Ltd 0.3 0.4 0.4 0.5
Fila (Fila Holding Fila India Ltd 0.4 0.4 0.4 0.4
SpA)
Clarks (C&J Clark Clarks Future Footwear 0.2 0.3 0.3 0.4
International Ltd) Ltd
Marks & Spencer Marks & Spencer 0.1 0.3 0.3 0.3
(Private Label) Reliance India Pvt Ltd
Trent (Private Label) Trent Ltd 0.3 0.3 0.3 0.3
Power (Bata Ltd) Bata India Ltd 0.3 0.3 0.3 0.3
Milano Action Footwear Pvt Ltd 0.2 0.2 0.2 0.2

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US Polo (US Polo Arvind Lifestyle Brands 0.1 0.2 0.2 0.2
Association) Ltd
Lotto (Lotto Sport Sports Lifestyle Pvt Ltd 0.1 0.1 0.1 0.1
Italia SpA)
Trèsmode (Future Future Lifestyle 0.2 0.1 0.1 0.1
Retail Ltd) Fashions Ltd
Converse (Nike Inc) Nike India Pvt Ltd 0.1 0.1 0.1 0.1
adidas Kids (adidas adidas India Marketing 0.1 0.1 0.1 0.1
Group) Pvt Ltd
Lakhani Lakhani India Ltd 0.4 0.2 0.1 0.1
Florina Action Footwear Pvt Ltd 0.1 0.1 0.0 0.1
Others Others 67.7 67.2 67.1 67.2
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Distribution of Footwear by Format: % Value 2011-2016

% retail value rsp


2011 2012 2013 2014 2015 2016

Store-Based Retailing 98.7 98.1 97.4 94.2 92.1 87.7


- Grocery Retailers 2.1 2.3 2.5 2.7 2.9 3.0
-- Modern Grocery 1.7 1.8 2.0 2.2 2.3 2.3
Retailers
--- Convenience Stores - - - - - -
--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 0.5 0.5 0.5 0.6 0.6 0.6
--- Supermarkets 1.2 1.3 1.5 1.6 1.7 1.7
-- Traditional Grocery 0.5 0.5 0.5 0.6 0.6 0.6
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small - - - - - -
Grocers
--- Other Grocery 0.5 0.5 0.5 0.6 0.6 0.6
Retailers
- Non-Grocery Specialists 95.7 94.9 93.9 90.5 88.1 83.6
-- Apparel and Footwear 64.6 63.0 61.9 60.5 58.1 58.0
Specialist Retailers
-- Leisure and Personal 6.5 5.7 4.8 4.7 4.7 4.7
Goods Specialist
Retailers
--- Sports goods stores 5.6 4.7 3.7 3.6 3.5 3.5
--- Other Leisure and 0.9 1.0 1.0 1.1 1.1 1.2
Personal Goods
Specialist Apparel
Retailers
Other Non-Grocery 24.5 26.1 27.2 25.2 25.4 20.9
Apparel and Footwear
Specialists
- Mixed Retailers 0.9 0.9 1.0 1.0 1.1 1.1
-- Department Stores 0.9 0.9 1.0 1.0 1.1 1.1
-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
Non-Store Retailing 1.3 1.9 2.6 5.8 7.9 12.3
- Direct Selling - - - - - -

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- Homeshopping 0.1 0.1 0.1 0.1 0.1 0.1


- Internet Retailing 1.2 1.8 2.5 5.7 7.8 12.3
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Forecast Sales of Footwear by Category: Volume 2016-2021

mn units
2016 2017 2018 2019 2020 2021

Children's Footwear 324.4 374.0 429.0 486.9 544.4 598.8


Men's Footwear 641.9 711.2 779.5 845.7 906.6 961.0
Women's Footwear 388.6 444.1 501.0 559.1 616.1 671.6
Footwear 1,354.8 1,529.4 1,709.5 1,891.7 2,067.1 2,231.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 9 Forecast Sales of Footwear by Category: Value 2016-2021

INR bn
2016 2017 2018 2019 2020 2021

Children's Footwear 69.5 76.3 83.8 91.3 98.2 104.1


Men's Footwear 303.1 321.6 339.0 354.6 367.7 377.6
Women's Footwear 180.4 203.8 227.5 251.4 274.5 296.5
Footwear 553.0 601.8 650.3 697.2 740.4 778.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 10 Forecast Sales of Footwear by Category: % Volume Growth 2016-2021

% volume growth
2016/17 2016-21 CAGR 2016/21 Total

Children's Footwear 15.3 13.0 84.6


Men's Footwear 10.8 8.4 49.7
Women's Footwear 14.3 11.6 72.8
Footwear 12.9 10.5 64.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 11 Forecast Sales of Footwear by Category: % Value Growth 2016-2021

% constant value growth


2016/2017 2016-21 CAGR 2016/21 TOTAL

Children's Footwear 9.9 8.4 49.9


Men's Footwear 6.1 4.5 24.6
Women's Footwear 13.0 10.4 64.3
Footwear 8.8 7.1 40.7

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Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

© Euromonitor International