Project Report International Marketing Management (Shoe Export)

Submitted to Prof. Amit Kumar

Submitted By Antara Mukherjee Sabyasachi Panda Vipul Mittal Vishal Goyal (coordinator)

and in accordance with the latest trends.34 798. plastic. and other materials. Reputed global brands like Florsheim. quality finished leather. Leather footwear exported from India are dress shoes. Besides. Hasley.60 3428.80 915. The export targets from 2007-08 to 2010-11 (In Million US$) Product 2006-07 2007-08 2008-09 2009-10 2010-11 Actual Export Leather 688. Ecco. It is the engine of growth of entire Indian leather industry and India is the second largest global producer of footwear after China.06 948.05 726.85 105. Nunn Bush. large human capital with expertise and technology base. Nike. sandals.88 2597. India.66 127. proven strength to produce footwear for global brand leaders and acquired technology competence. Clarks. boots. Sandals and Chappals made of rubber.19 Total 2981.66 733. .85 785.V. Deichmann. P. Stacy Adams.79 3892.70 187. Gabor.69 870.83 4526.C.30 Leather Goods 690.04 Saddlery & Harness 81. Salamander and Colehaan are manufactured under license in India.63 Footwear 1212. sport shoes.85 154. moccasins.00 847. Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins.26 4682. Non-leather footwear exported from India is Shoes. St Michaels. which between them take about 55% of total exports.25 1967.01 5689. skilled manpower and relatively low cost labor.53 372. particularly for mid and high priced footwear segments.87 387. many global retail chains seeking quality products at competitive prices are actively sourcing footwear from India. Elefanten. large installed capacities for production of finished leather & footwear.Overview of Shoe Industry Indian leather industry is the core strength of Indian footwear industry.78 403. One of the major factors for success in niche international fashion markets is the ability to cater them with the latest designs.98 358.05 Garments 308.17 6980. has gained international prominence in the area of Colours & Leather Texture. The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that footwear sector is the most significant segment of the Leather Industry in India.21 The main markets for Indian leather shoes are UK and USA. casuals. Reebok.

6 billion). On the other hand. waterproof footwear) Town shoes . the UK continues to be one of the main consumers of footwear in the EU.883 million with volumes decreasing by a lesser extent to 328 million pairs.2% per annum on average. 2004 Value 7993 Volume 329 Value 7986 2006 Volume Value 333 7946 2008 Volume 331 Population ( million) 61. while production fell by an annual average of 6.3 billion. 2009 probably shows continued falling market values. The share of imports by developing countries is up from 46% in 2004 in value (€ 1. the UK imported footwear valued at € 3. but volumes were up by an average annual rate of 3. Since 2004. The UK footwear market will contract by around 1% in value to € 7. British people bought 331 million pairs in 2008. Growth in 2011 is likely to be very modest. The great diversity in footwear being available in different retail outlets may encourage impulse buying. or 415 million pairs.4 Consumption per capita € 129 By volume. spending € 129 per year. the attitude towards the ‘throw away fashion’ has changed and people tend to buy quality footwear that lasts longer.9 billion in 2008. values were down by 1. The UK has one of the highest shares of developing country imports of all EU countries.18% Specialist footwear . down 0.12% (Flip-flops.3% to € 217 million.50% (Casual and formal footwear sometimes referred to as ‘Trotters’) As unemployment is expected to rise and the recession continues. and up from 69% (251 million pairs) in volume terms.9 billion) came from developing countries (82% by volume or 342 million pairs).20% (used to be 15% in the past) Sports footwear . According to Keynote.2 pairs). More than 59% of imports by value (€ 1.5%. In 2008. or 331 million pairs.2%. being well-above the EU average of € 100 per capita (4. or 11 million pairs. indoor slippers. the UK market by volume was roughly sub-divided in 2008 as follows: Boots (from above the ankle) . which meant 5. The economic recovery in the UK is very fragile in 2010.Shoe Industry in UK (United Kingdom) Market a brief overview This CBI market survey discusses the following highlights for the footwear market in the United Kingdom (UK): The UK consumption of footwear was € 7. Areas for further growth beyond 2010/2011 will be in young fashionable footwear at . safety. By value expenditure per capita.4 pairs per capita.

ethical footwear and functional or wellness footwear. The duty free entitlement for the import of trimmings. such as printed and non printed shoeboxes. embellishments and footwear components for footwear (leather as well as synthetic).No 168 of Customs Notification No 21/2002 dated 01. They are expected to make up a larger proportion of the British population.2002   . Re-export of unsuitable imported materials such as raw hides & skins and wet blue leathers is permitted CVD is exempted on lining and interlining material notified at S. tin or plastic materials for packing footwear Machinery and equipment for Effluent Treatment Plants shall be exempt from basic customs duty.competitive prices and comfortable footwear for people of 50 years and older.03. gloves. travel bags and handbags shall be 3% of FOB value of exports of the previous financial year. Major Competitors in UK Market UK companies in UK market Clifford James Fitness Footwear FYFO Samuel Windsor Indian companies in UK market Metro and Metro Gupta Overseas Foot On shoes Aryan Shoes Rohit Surfactants Mirza Export Footwear M & B Footwear Rojer Export Export Policies in Shoe Industry   Duty free import entitlement of specified items shall be 5% of FOB value of exports during the preceding financial year. Another impulse to the UK market is a further development of market niches such as footwear for pre-teens. small cartons made of wood. The entitlement shall also cover packing material. ethnic groups. well-designed green footwear.

09 127.78 134.06 186.58 6.34 7.11 8. With technology and quality of the footwear improving year after year.02 15.27 296.07 4.2 9.81 221.32 Country Germany UK Italy USA France Spain Netherlands Portugal UAE Denmark Australia Sweden Canada South Africa Japan Others Total Source: DGCI&S 2005-06 170.04 12.45 95.69 91.37 247.03 119.52 8.32% 1.78 10.9 1045.66% market share.35 131.34 28.3 9.65 208. Indian Footwear industry is stamping its class and expertise in the global footwear trade.15 136.03% 0.99 12.88% 19.37 11.63% 1.45 209.Footwear industry growth in UK market The future growth of the footwear industry in India will continue to be market-driven.65 17. .62% 0.2 241.36% 14.58% 6.92 163.87 5.13% 1.00% From the above table we can interpret that UK market is one of the most suitable and growing country in terms of export of shoes.91 76.64 10.81 116.91 1489. From the past data we can say that that every year shoe export is increasing. India’s Export of Footwear to different countries: (Value in Million US$) 2006-07 2007-08 2008-09 217.03 37.26 3.52 13.41 8.65% 0.93% 8.23 39. UK has 19.63 39.91 10.4 14.48 63.61 252. and oriented towards EU and US markets.61 17.23 246.24 2009-10 224.13 22.84 229.81% 0.15 25.03 99.11 229. So we can say that future is very bright for expand our shoe business in UK market.07 74.96 12.7 32.96 22.23 156.45 216.99 65.20% 9.51 % Share 14.97 195.17 133.57 72.48 14.21 34.78 18.86 48.2 35.76 226.18 1236.95 8.35 1534.11 12.64 39.2 64.63 8.49 12.6 144.49 3.66% 13.95 123.77 11.50% 2.57 76.35% 100.37 1507.37% 4.

Stage 2 After 5 yrs of understanding the uk market and knowing the demands of the customer regarding the product.Entry Mode Stage 1 We initially expand the business internationally through exports. we will enter the uk market directly by opening the wholly owned subsidiaries unit. opening several retail stores as per the requirement. the process starts selling the shoes to some export houses or through agents/intermediaries which provide us a platform in UK market and our product can be reached to the target customer by their distribution channel. .

. activists. Environmental activities We will build our success through a strong focus on environmental product responsibility. and the media now hold companies accountable for the social consequences of their actions..Sanitation . The company is completely integrated in its community in the middle of the city centre. where our products would have minimum environmental and ecological impacts from ‘cradle to grave’.design self supporting vocations avenues .Promote education .Corporate social responsibility Corporate social responsibility has become an inescapable priority for business leaders across the energy is a very good solution ..Clean drinking water . we have built an ecological factory.Medical facilities and Medical help We will organize a camping drive for physically disables and give them Prosthetic Arms and Legs so that they can enjoy their freedom from wheel chairs and may be earn their lively hood . more radically.. they are frequently counterproductive. All the ingredients the company uses are ecologically grown in the local region and all the energy used is from renewable sources. Philanthropy We will adopt a nearby Village or a colony and address: .Communication . Sustainability and social responsibility are important aspects of company’s strategy – not least to help the business find a niche in a highly competitive market dominated by larger companies...Entertainment . Governments. and favorable publicity is often bestowed on companies with prominent CSR programs. Yet for all the hype surrounding CSR efforts.Create means for livelihood. This naturally also involves the packaging of our products but. paying attention to the healthcare and safety of its workforce and the people in the local area.

the target audience is given attention and contact is made with them.Product launching and Promotion strategy 5 year down the line we will launch our product in the leather trade fair. . Trade fair promotion is vital to fully benefit from the event that commands a global level of participation with wider reach. We will launch our product in the very famous MODA shoe exhibition so that we can get maximum contact from there and in the later stage we will promote through hoarding and some CSR activities. Through this we can get maximum benefits.

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