Embed Size (px)
DESCRIPTION
tfchgkvjbkjn
Citation preview
Plagiarism Declaration Form
Name: Akshay Kumar
Enrollment Number: 105362542 Course: MSc-FT
1. I know that plagiarism is wrong. Plagiarism is to use another’s work and to pretend that it is one’s
own.
2. I will use a recognized convention for citation and referencing. Each significant contribution to,
and quotation in, my report/ project from the work, or works, of other people has been acknowledged
through citation and reference.
3. All reports / projects will be original work completed by myself. I will not use the same material in
all my submissions to the department.
4. I will not allow anyone to copy my work with the intention of passing it off as his or her own work.
________________________ 15th June 2012
Signature of student Date
FOOTWEAR DESIGN AND DEVELOPMENT INSTITUTE
(Ministry of Commerce & Industry, Government of India)
A-10/A, Sector 24, Noida – 201301, Gautam Budha Nagar, U.P.
A STUDY OF FOOTWEAR INDUSTRY AND ITS MAJOR PLAYERS (BATA, LIBERTY, ADIDAS AND NIKE)
This Dissertation work was completed in partial fulfillment of the requirements for the Masters Degree in Footwear Technology
Footwear Design & Development Institute
Presented by:
AKSHAY KUMAR
-----------------------------------------
(Signature of Student)
This coursework confirms that the study was completed by the student in his best capacity and under the institute’s interest in terms of ethical standards of writing which is free from issues of
Plagiarism or inappropriate ways of preparing the report.
PRESENTED TO:
Mr. A.K.Mathur
Date: 15th June 2012
ACKNOWLEGDEMENT
It gives me great satisfaction on completion of Project entitled “ A Study of Footwear Industry and its
major players(Bata, Liberty, Adidas and Nike)”
On the submission of my project report I would like to express my sincere gratitude to my guide Mr.
A.K. Mathur (FDDI, NOIDA) for mentoring me and taking active interest throughout the project.
I am again deeply indebted to Mr.A.K.Mathur for sharing his insights on the topics and for being
a constant source of inspiration andcourage during the entire project work. He was always
available, correcting mistakes, intelligently directing me to proper sources of information
advising to aim for simplicity, brevity, clarity and accuracy. I am indeed thankful to him for his va
luable guidance.
I would like to thank entire faculty members for sharing their immense experience and
extending their support in carrying out thisproject work. I am greatly acknowledged for their kind
help.
TABLE OF CONTENT
1) Introduction of footwear ..............................................................................................5
2) Footwear history..............................................................................................................................6
3) Classification of Footwear.........................................................................................................................8
Shoe Slippers,
Sandals,
Boots,
Chappals
4) Shoe......................................................................................................................8
History of Shoes…………………………………………………………………………..9
Parts of shoe……………………………………………………………………………..10
Types of shoes…………………………………………………………………………..13
5) Interesting Facts: ……………………………..………………………………………...…….21
6) Indian Footwear Industry ………………………………………………………………..…...23
Major Production Centers…………………………………………..25
Import, Export of Footwear & Leather Products………………….26
7) Indian Footwear Market Forecast 2014…………………………………31
SWOT Analysis of India Footwear Industry……………………..36
Current trends of Footwear Industry………………………………39
The future of the Footwear Industry……………………………….42
8) Major Players of Footwear Industry
1. Bata……………………………………………………………..432. Liberty…………………………………………………………643. Adidas…………………………………………………………814. Nike…………………………………………………………….95
FOOTWEAR INDUSTRY
Introduction of footwear
Spanish cave drawings from more than 15,000 years ago show humans with animal skins or furs
wrapped around their feet. The body of a well-preserved “ice-man” nearly 5,000 years old
wears leather foot coverings stuffed with straw. Shoes, in some form or another, have been
around for a very long time. The evolution of foot coverings, from the sandal to present-day
athletic shoes that are marvels of engineering, continues even today as we find new materials
with which to cover our feet.
Has the shoe really changed that much though? We are, in fact, still wearing sandals – the oldest
crafted foot covering known to us. Moccasins are still readily available in the form of the loafer.
In fact, many of the shoes we wear today can be traced back to another era. The Cuban heel may
have been named for the dance craze of the 1920s, but the shape can be seen long before that
time. Platform soles, which are one of the most recognisable features of footwear in the 1970s
and 1990s were handed down to us from 16th century chopines. Then, high soles were a
necessity to keep the feet off of the dirty streets. Today, they are worn strictly for fashion’s sake.
The poulaine, with its ridiculously long toes is not that different from the winkle-pickers worn in
the 1960s.
If one can deduce that basic shoe shapes have evolved only so much, it is necessary to discover
why this has happened. It is surely not due to a lack of imagination – the colours and materials of
shoes today demonstrate that. Looking at shoes from different parts of the world, one can see
undeniable similarities. While the Venetians were wearing the chopine, the Japanese balanced on
high-soled wooden shoes called geta. Though the shape is slightly different, the idea remains the
same. The Venetians had no contact with the Japanese, so it is not a case of imitation. Even the
mystical Chinese practise of footbinding has been copied (though to a lesser extent) in our
culture. Some European women and men of the past bound their feet with tape and squashed
them into too-tight shoes. In fact, a survey from the early 1990s reported that 88 percent of
American women wear shoes that are too small!
As one examines footwear history, both in the West and in other parts of the world, the
similarities are apparent. Though the shoemakers of the past never would have thought to pair a
sandal with a platform sole, our shoe fashions of today are, for the most part, modernised
adaptations of past styles.
FOOTWEAR HISTORY
Footwear is estimated to have started its long history of human use during the Ice Age some 5
million years ago. Unkind weather conditions are said to have created the necessity for footwear.
Other evidences show that footwear came to use at the end of the Paleolithic Period, at about the
same time the early humans learned the art of leather tanning.
Early pieces of footwear were made of wrappings, usually made of leather or dried grasses. Later
on pieces were developed from an oval piece of leather which is bound by a piece of strong
leather thongs. Sandals, which are the first crafted footwear, are the successors to these
wrappings.
In Egyptian funeral chambers, paintings show the different stages in the preparation of leather
and footwear. The images also show that in Egypt, footwear depicted power and class.
The Pharaohs’ sandals were distinguished by the turned up toes, a characteristic which is missing
in the commoners’ footwear. Egyptian sandals were crafted using straw, papyrus, or palm
fiber.Lateron, Egyptian women adorned their footwear with precious stones and jewels.
Material evidences showed that the Greeks loved and took good care of their feet by using
different footwear for different activities. Greek women began wearing sandals to signify their
social class. Their footwear signified beauty, elegance, refinement, and extravagance.
It has been said that Greek women of bad reputation attracted men by wearing elevated sandals.
These sandals create a “clacking” sound when the wearer moves, and this sound was considered
as a symbolic flaunting of sexual charms.
In Mesopotamia, leather wrappings are tied to the feet by a strip of the same material.
Romans, on the other hand, created durable leather thongs so their legions can travel to places on
foot. It is also believed that foot fetishes began with the Romans when Senator Lucius Vitellus
frequently kissed the shoe of his mistress which was hidden in his tunic.
In Rome, footwear also exhibited social class. The consuls wore white shoes, the senators wore
brown shoes, and the uniform footwear for the rest of the region was a short pair of boots that
uncovered the toes.
But in all of these early civilizations, footwear indicated social status. Footwear consists of
garments that are worn over the feet. They are worn mainly for protection and hygiene, but also
for fashion and adornment.
Footwear items come from a wide range of materials including leather, rubber, canvass, wood,
and plastic. But early pieces were made from available materials like straw, leather, cowhide,
and grasses.
When footwear is assembled, the main components are adhesives, cushion, counterfort, heel,
hook, insole, laces, sole, steel shank, tack, toe puff, tread, and welt. Generally, footwear is
classified into: boots, industrial footwear, shoes, and sandals.
Boots are available as cowboy boots, galoshes, ski boots, thigh length boots, and so on. Industrial
footwear includes plastic boots and rubber loafers which are used in laboratories, construction
sites, and production lines.
Shoes include athletic shoes (or running shoes), climbing shoes, clogs, high heels, maryjanes,
moccasins, mules, loafers, tap shoes, and cross-training shoes. Sandals, on the other hand,
include espadrilles, flip-flops or thongs, slide-ons, and slippers.
Footwear is considered an extension of one’s personality. Well-maintained footwear says things
about the owner, with cleanliness as the most important concern. Although the intricacy of this
craft may have been lost to modernization, their influences are still present in shoes today.
The moccasins worn in early times by people in cold countries are still being worn there, while
the sandal patterned after the Egyptians’ creation is still frequently used in hotter countries.
Classification of Footwear.
Shoes, Slippers, Sandals, Boots, Chappals
Shoe
A shoe is an item of footwear intended to protect and
comfort the human foot while doing various activities.
Shoes are also used as an item of decoration. The design of
shoes has varied enormously through time and from
culture to culture, with appearance originally being tied to
function. Additionally fashion has often dictated many
design elements, such as whether shoes have very high heels or flat ones. Contemporary footwear varies widely
in style, complexity and cost. Basic sandals may consist of only a thin sole and simple strap. High fashion shoes
may be made of very expensive materials in complex construction and sell for thousands of dollars a pair. Other
shoes are for very specific purposes, such as boots specially designed for mountaineering or skiing.Shoes have
traditionally been made from leather, wood or canvas, but are
increasingly made from rubber, plastics, and other petrochemical-
derived materials.Until recent years shoes were not worn by most of
the world's population—largely because they could not afford them.
Only with the advent of mass production, making shoes available
very cheaply, has shoe-wearing become predominant.
History of shoe
The oldest known leather shoe, about 5500 years old, found in Armenia.
The earliest known shoes are sandals dating from about 8000 to 7000 BC and found in Oregon,
USA in 1938.[5] The world's oldest leather shoe, made from a single piece of cowhide laced with
a leather cord along seams at the front and back, was found in a cave in Armenia in 2008 and is
believed to date to 3,500 BC. Ötzi the Iceman's shoes, dating to 3,300 BC, featured brown
bearskin bases, deerskin side panels, and a bark-string net, which pulled tight around the foot.
However, tanned leather, the material most commonly used for making shoes, does not normally
last for thousands of years, so shoes were probably in use long before this. Physical
anthropologistErik Trinkaus believes he has found evidence that the use of shoes began in the
period between about 40,000 and 26,000 years ago, based on the fact that the thickness of the
bones of the toes (other than the big toe) decreased during this period, on the premise that
wearing shoes resulted in less bone growth, resulting in shorter, thinner toes.[9][10] The earliest
designs were simple affairs, often mere "foot bags" of leather to protect the feet from rocks,
debris, and cold. Since shoes use more leather than sandals, their use was more common in cold
climates. By the Middle Ages, turn-shoes had been developed with toggled flaps or drawstrings
to tighten the leather around the foot for a better fit. As Europe gained in wealth and power,
fancy shoes became status symbols. Toes became long and pointed, often to ridiculous
proportions. Artisans created unique footwear for rich patrons, and new styles developed.
Eventually the modern shoe, with a sewn-on sole, was devised. Since the 17th century, most
leather shoes have used a sewn-on sole. This remains the standard for finer-quality dress shoes
today. Until around 1800, shoes were made without differentiation for the left or right foot. Such
shoes are now referred to as "straights". Only gradually did the modern foot-specific shoe
become standard.
Since the mid-20th Century, advances in rubber, plastics, synthetic cloth, and industrial
adhesives have allowed manufacturers to create shoes that stray considerably from traditional
crafting techniques. Leather, which had been the primary material in earlier styles, has remained
standard in expensive dress shoes, but athletic shoes often have little or no real leather. Soles,
which were once laboriously hand-stitched on, are now more often machine stitched or simply
glued on.
Part of shoe
Sole
The bottom of a shoe is called the sole.
Insole
The insole is the interior bottom of a shoe, which sits directly beneath the foot under the footbed
(also known as sock liner). The purpose of insole is to attach to the lasting margin of the upper,
which is wrapped around the last during the closing of the shoe during the lasting operation.
Insoles are usually made of cellulosic paper board or synthetic non woven insole board. Many
shoes have removable and replaceable footbeds. Extra cushioning is often added for comfort (to
control the shape, moisture, or smell of the shoe) or health reasons (to help deal with defects in
the natural shape of the foot or positioning of the foot during standing or walking). Basically, this
is a main part of shoes which can absorb foot sweat. Footbeds should typically use foam
cushioning sheets like latex and EVA, which provide good wearing comfort of the shoe.
Outsole
The outsole is the layer in direct contact with the ground. Dress shoes often have leather or resin
rubber outsoles; casual or work-oriented shoes have outsoles made of natural rubber or a
synthetic material like Polyurethane. The outsole may comprise a single piece, or may be an
assembly of separate pieces of different materials. Often the heel of the sole has a rubber plate
for durability and traction, while the front is leather for style. Specialized shoes will often have
modifications on this design: athletic or so called cleated shoes like soccer, rugby, baseball and
golf shoes have spikes embedded in the outsole to grip the ground.
Midsole
The layer in between the outsole and the insole that is typically there for shock absorption. Some
types of shoes, like running shoes, have another material for shock absorption, usually beneath
the heel of the foot, where one puts the most pressure down. Different companies use different
materials for the midsoles of their shoes. Some shoes may not have a midsole at all.
Heel
The bottom rear part of a shoe is the heel. Its function is to support the heel of the foot. They are
often made of the same material as the sole of the shoe. This part can be high for fashion or to
make the person look taller, or flat for a more practical and comfortable use.
Vamp/upper
Every shoe has an upper part that helps hold the shoe onto the foot. In the simplest cases, such as
sandals or flip-flops, this may be nothing more than a few straps for holding the sole in place.
Closed footwear, such as boots, trainers and most men's shoes, will have a more complex upper.
This part is often decorated or is made in a certain style to look attractive.
Lateral/medial
The outside part of the shoe is referred to as the lateral and the inside facing part of the shoe is
the medial. This can be in reference to either the outsole or the vamp.
Welt
A welt is a strip of leather, rubber, or plastic that is stitched to the upper and insole of a shoe, as
an attach-point for the sole.
Types of shoes
Dress and casual shoes
Dress shoes are characterized by smooth and supple leather uppers, leather soles, and narrow
sleek figure. Casual shoes are characterized by sturdy leather uppers, non-leather outsoles, and
wide profile.
Some designs of dress shoes can be worn by either gender. The majority of dress shoes have an
upper covering, commonly made of leather, enclosing most of the lower foot, but not covering
the ankles. This upper part of the shoe is often made without apertures or openings, but may also
be made with openings or even itself consist of a series of straps, e.g. an open toe featured in
women's shoes. Shoes with uppers made high to cover the ankles are also available; a shoe with
the upper rising above the ankle is usually considered a boot but certain styles may be referred to
as high-topped shoes or high-tops. Usually, a high-topped shoe is secured by laces or zippers,
although some styles have elastic inserts to ease slipping the shoe on.
Men's
This male dress shoe, known as a blucher, is distinguished by its open lacing.
Men's shoes can be categorized by how they are closed:
Oxfords (also referred as "Balmorals"): the vamp has a V-shaped slit to which the laces are
attached; also known as "closed lacing". The word "Oxford" is sometimes used by American
clothing companies to market shoes that are not Balmorals, such as Blüchers.
Blüchers (American), Derbys (British): the laces are tied to two pieces of leather
independently attached to the vamp; also known as "open lacing" and is a step down in
dressiness.
Monk-straps: a buckle and strap instead of lacing
Slip-ons: There are no lacings or fastenings. The popular loafers are part of this category, as
well as less popular styles, such as elastic-sided shoes.
Men's shoes can also be decorated in various ways:
Plain-toes: have a sleek appearance and no extra decorations on the vamp.
Cap-toes: has an extra layer of leather that "caps" the toe. This is possibly the most popular
decoration.
Brogues (American: wing-tips): The toe of the shoe is covered with a perforated panel, the
wing-tip, which extends down either side of the shoe. Brogues can be found in both balmoral
and blucher styles, but are considered slightly less formal.
Men's shoes on display in a shopping outlet.
Formal high-end men's shoes are manufactured by several companies around the world, most
notably in England, France, Italy, and America. Notable British brands include: Church's English
Shoes (est. 1873), John Lobb Bootmaker (est. 1849), Edward Green Shoes (est. 1890), and
Crockett & Jones (est. 1879). Both John Lobb and Edward Green offer bespoke products. In
between the world wars, men's footware received significant innovation and design, led by
cobblers and cordwainers in London's West End.[11]The most notable French product is made by
J.M. Weston. Armani of Italy was a major influence on men's shoe design in the 1960s-1980s
until they returned to the larger proportions of its forebears, the welt-constructed Anglo-
American dress shoe originally created in Edwardian England. Another well-known Italian
company is Salvatore Ferragamo Italia S.p.A.. The remaining elite American companies are
Allen Edmonds and Alden Shoe Company. Alden, located in New England, specializes in
genuine shell cordovan leather from the only remaining horse tannery in America (Chicago) [12]
and is completely manufactured in America, whereas Allen Edmonds, of Wisconsin, is a larger
company that outsources some of its production.[13]
Women's
Women's shoes on display in a shop window, 2005
There is a large variety of shoes available for women, in addition to most of the men's styles
being more accepted as unisex. Some broad categories are:
High-heeled footwear is footwear that raises the heels, typically 2 inches (5 cm) or more
above the toes, commonly worn by women for formal occasions or social outings. Variants
include kitten heels (typically 1½-2 inches high) and stilletto heels (with a very narrow heel
post) and wedge heels (with a wedge-shaped sole rather than a heel post).
Sneaker boot or sneaker pump: a shoe that looks like an athletic shoe, but is equipped with a
heel, making it a kind of novelty dress shoe.
Mules are shoes or slippers with no fitting around the heel (i.e. they are backless)
Slingbacks are shoes which are secured by a strap behind the heel, rather than over the top
of the foot.
Ballet flats, known in the UK as ballerinas, ballet pumps or skimmers, are shoes with a very
low heel and a relatively short vamp, exposing much of the instep. They are popular for
warm-weather wear, and may be seen as more comfortable than shoes with a higher heel.
Court shoes, known in the US as pumps, are typically high-heeled, slip-on dress shoes.
Women's high heel pump
Unisex
The flip-flop sandal, worn both by men and women
Clog
Platform shoe: shoe with very thick soles and heels
Moccasin: originated by Native Americans, a soft shoe without a heel and usually made of
leather.
Sandals: open shoes consisting of a sole and various straps, leaving much of the foot exposed
to air. They are thus popular for warm-weather wear, because they let the foot be cooler than
a closed-toed shoe would.
Espadrilles are casual flat warm-weather shoes of a style which originated in the Pyrenees.
They usually have a cotton or canvas upper and a flexible sole of rope or rubber. There are
high-heeled versions for women.
Saddle shoe: leather shoe with a contrasting saddle-shaped band over the instep, typically
white uppers with black "saddle".
Slip-on shoe: a dress or casual shoe without laces; often with tassels, buckles, or coin-holders
(penny loafers).
Boat shoes, also known as "deck shoes": similar to a loafer, but more casual. Laces are
usually simple leather with no frills. Typically made of leather and featuring a soft white sole
to avoid marring or scratching a boat deck. The first boat shoe was invented in 1935 by Paul
Sperry.
Boots: Long shoes (covering the ankle) frequently made of leather. Some are designed to be
used in times of bad weather, or simply as an alternate style of casual or dress wear. Styles
include rubber boots and snow boots, as well as work boots and hiking boots.
Slippers: For indoor use, commonly worn with pajamas.
VibramFiveFingers, meant to simulate the "natural" experience of going barefoot, while
protecting the foot
Sneakers or Canvas shoes
Athletic
Today the most popular shoe globally: the sports shoe adapted for everyday use
Men's and women's athletic shoes and special function shoes often have less difference between
the sexes than in dress shoes. In many cases these shoes can be worn by either sex. Emphasis
tends to be more on function than style.
Running shoes: very similar to above, with additional emphasis on cushioning.
Track spikes: lightweight; often with plastic or metal cleats
Cleat (shoe): a type of shoe featuring molded or removable studs. Usually worn while
playing sports such as rugby, football, American football, or baseball.
Golf shoes: with "spikes" for better grip in grass and wet ground. Originally the spikes or
"cleats" were made of metal but replaceable "soft spikes" made of synthetic plastic-like
materials with prongs distributed radially around the edge of each spike are much more
common today (and are required on many golf courses since they cause less damage to the
greens).
Bowling shoes: intermediate style between ordinary dress shoes and athletic shoes. They
have harder rubber soles/heels so as not to damage bowling alley floors. They are often
rented or loaned at bowling alleys.
Climbing shoes: a shoe designed for rock climbing. They typically have a close fit, little if
any padding, and a smooth sticky rubber sole with an extended rubber rand.
Hiking shoes or boots: usually have a high somewhat stiff upper with many lace eyelets, to
provide ankle support on uneven terrain, with extra large traction on the sole.
Walking shoes: have a more flexible sole than the running shoe, lighter in weight than the
hiking boot, may have air holes, may not be water proof.
Skating shoes: typically called skates. They have various attachments for skating on the
bottom of the shoe portion.
o Ice skates
o Roller skates
o Inline skates
Ski boot: a large, thick plastic boot specially designed for attachment to the ski.
Skate shoes: specifically designed for use in Skateboarding, the shoes are manufactured with
flat soles as to allow a skateboarder to have better grip when riding a skateboard. They are
very wide and have extra layers of padding to protect the skateboarders feet.
Cycling shoes are equipped with a metal or plastic cleat to interface with clipless pedals, as
well as a stiff sole to maximize power transfer and support the foot.
Snowshoes are special shoes for walking in thick snow. In temperate climates, snowshoes
are used for mostly recreational purposes in winter.
Wrestling shoes are light, flexible shoes that mimic bare feet while providing additional
traction and protection.
Orthopedic
Orthopedic or "comfort" shoes are made with pedorthic and anatomically-correct comfort
qualities, such as padded removable footbeds, wide toe boxes and arch support are made
especially for those with problematic feet.
Dance
Pointe shoes are designed for ballet dancing. These have a toe box that is stiffened with glue
and a hardened sole so the dancer can stand on the tips of their toes. They are secured by
elastic straps and ribbons that are tied to the dancer's ankles.
Ballet shoes are soft, highly pliable shoes made of canvas or leather, with either continuous
or two-part sole (also called split-sole). The sole is typically made of leather, with thicker
material under the ball and heel of the foot, and thinner and thus more flexible material under
the arch so that the foot can be pointed to its utmost. Ballet slippers are usually secured by
elastics that cross over the top of the foot. They are most commonly pink, white, black, or
pale tan, although they may be made in specialty colours such as red or blue.
Ghillies are soft shoes that are used in Irish dance, Scottish country dance, and highland
dance.
Jazz shoes typically have a two-part, rubberized sole (also called split-sole) to provide both
flexibility and traction, and a low (one inch or shorter) heel. They are secured to the foot by
laces or elastic inserts.
Tango and Flamenco shoes are used for dancing the tango or flamenco.
Ballroom shoes fall into two categories: Ballroom and Latin American. Both are
characterised by suede soles. Men's ballroom shoes are typically lace-ups with one-inch
heels and patent leather uppers. Ladies' ballroom shoes are typically court shoes with two-
inch heels, made of fabric that can be colored to match the dancer's dress. In contrast to the
low Ballroom heel, which evenly distributes weight across the foot, Latin American shoes
have higher heels designed to shift weight onto the toes. Latin shoes are also more flexible
than ballroom shoes. Men's Latin shoes typically have 1.5- to 2-inch high, shaped heels,
while Ladies' Latin shoes have 2,5-inch to 3-inch heels. Ladies shoes are typically open-toed
and strapped.
Dance sneakers. Also known as dansneakers, these are a combination of a sneaker and a
dance shoe, with a reinforced rubber toe.
Character shoes have a one to three inch heel, which is usually made of leather, and often
have one or more straps across the instep to secure it to the foot. They may come in soft-
soled (suede) or hard-soled varieties. They may be converted to tap shoes by attaching taps.
Foot thongs are known by various names depending on the manufacturer, including dance
paws, foot undies, and foot paws. They are slip-on, partial foot covers that protect the ball of
a dancer's foot from skin abrasions while executing turns. From a distance, flesh colored foot
thongs give a dancer the appearance of having bare feet.
Tap shoes have metal plates mounted to the bottoms of the toe and heel. The metal plates,
which are known as taps, make a loud sound when struck against a hard performance
surface. Tap shoes, which are used in tap dancing, may be made from any style of shoe to
which taps can be attached.
Few Interesting Facts:
- The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period
spanning from 2008 to 2011.
- Footwear is expected to comprise about 60% of the total leather exports by 2011 from over
38% in 2006-07.
- Presently, the Indian footwear market is dominated by Men's footwear market that accounts for
nearly 58% of the total Indian footwear retail market.
- By products, the Indian footwear market is dominated by casual footwear market that makes up
for nearly two-third of the total footwear retail market.
- As footwear retailing in India remain focused on men's shoes, 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.
- The Indian footwear market scores over other footwear markets as it gives benefits like low
cost of production, abundant raw material, and has huge consumption market.
- The footwear component industry also has enormous opportunity for growth to cater to
increasing production of footwear of various types, both for export and domestic market.
Indian footwear industry
Indian leather industry is the core strength of the Indian footwear industry. It is the engine of
growth for the entire Indian leather industry and India is the second largest global producer of
footwear after China.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok,
Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured
under license in India. Besides, many global retail chains seeking quality products at competitive
prices are actively sourcing footwear from India.
While leather shoes and uppers are produced in medium to large-scale units, the sandals and
chappals are produced in the household and cottage sector. The industry is poised for adopting
the modern and state-of-the-art technology to suit the exacting international requirements and
standards. India produces more of gent’s footwear while the world’s major production is in
ladies footwear. In the case of chapels and sandals, use of non-leather material is prevalent in the
domestic market.
Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes,
horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India are Shoes,
Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.
With changing lifestyles and increasing affluence, domestic demand for footwear is projected to
grow at a faster rate than has been seen. There are already many new domestic brands of
footwear and many foreign brands such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport,
etc. have also been able to enter the market.
The footwear sector has matured from the level of manual footwear manufacturing methods to
automated footwear manufacturing systems. Many units are equipped with In-house Design
Studios incorporating state-of-the-art CAD systems having 3D Shoe Design packages that are
intuitive and easy to use. Many Indian footwear factories have also acquired the ISO 9000, ISO
14000 as well as the SA 8000 certifications. Excellent facilities for Physical and Chemical
testing exist with the laboratories having tie-ups with leading international agencies like SATRA,
UK and PFI, Germany.
One of the major factors for success in niche international fashion markets is the ability to cater
them with the latest designs, and in accordance with the latest trends. India, has gained
international prominence in the area of Colours & Leather Texture forecasting through its
outstanding success in MODEUROP. Design and Retail information is regularly made available
to footwear manufacturers to help them suitably address the season's requirement.
The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing
benefits.
Strength of India in the footwear sector originates from its command on reliable supply of
resources in the form of raw hides and skins, quality finished leather, large installed capacities
for production of finished leather & footwear, large human capital with expertise and technology
base, skilled manpower and relatively low cost labor, proven strength to produce footwear for
global brand leaders and acquired technology competence, particularly for mid and high priced
footwear segments. Resource strength of India in the form of materials and skilled manpower is a
comparative advantage for the country.
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.
India has emerged in recent years as a relatively sophisticated low to medium
cost supplier to world markets –The leather industry in India has been targeted
by the Central Government as an engine for economic growth. Progressively, the
Government has prodded and legislated a reluctant industry to modernise. India was noted as a
supplier of rawhides and skins semi processed leather and some shoes.
In the 1970’s, the Government initially banned the export of raw hides and skins,
followed this by limiting, then stopping the export of semi processed leather and
encouraging local tanneries to manufacture finished leather themselves. Despite
protestations from the industrialists, this has resulted in a marked improvement in
the shoe manufacturing industry. India is now a major supplier of leather footwear
to world markets and has the potential to rival China in the future (60% of Chinese exports are
synthetic shoes).
India is often referred to as the sleeping giant in footwear terms. It has an installed
capacity of 1,800 million pairs, second only to China. The bulk of production is
in men’s leather shoes and leather uppers for both men and ladies. It has over 100 fully
mechanised, modern shoe making plants, as good as anywhere in the world (including Europe).
It makes for some upmarket brands including Florsheim (US), Lloyd (Germany), Clarks (UK),
Marks and Spencer (UK).
India had mixed fortunes in its recent export performance. In 2000, exports of
shoes were US$ 651 million, in 2001 these increased to 663 million but declined
in 2002 to 623 million dollars (See Statistics).
The main markets for Indian leather shoes are UK and USA, which between them
take about 55% of total exports.
India has not yet reached its full potential in terms of a world supplier. This is due
mainly to local cow leather that although plentiful, has a maximum thickness of 1.4
– 1.6mm, and the socio / political / infrastructure of the country. However, India
is an excellent supplier of leather uppers. Importation of uppers from India does not infringe
FTA with Europe or the USA.
The potential is set to change albeit slowly, but with a population rivalling China for size, there
is no doubt the tussle for world domination in footwear supply is
between these two countries.
Major Production Centers
The major production centers for footwear and leather products are located in:
Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dtndtgul
West Bengal - Kolkata
Uttar Pradesh - Kanpur, Agra & Noida
Punjab - Jallandhar
Karnataka - Bangalore
Andhra Pradesh - Hyderabad
Haryana - Ambala, Gurgaon, Panchkula and Karnal,Delhi
Import ,Export of Footwear & Leather Products
Indian Footwear Industry in a Nutshell: -
-Second largest footwear producer after China
-2.06 billion pairs produced in an year
-16 % of the global production is produced in India
-Contract manufacturers supply to leading global brands
- 644 Member produces situated as clusters at Chennai, Ambur, Ranipet, Kanpur, Agra,
Mumbai, Delhi and Karnal
The export of Leather and Leather Products for the period April-March 2007-08 touched
US$3477.52 million against the performance of US$3059.43 million in the corresponding
period of last year, registering a positive growth of 13.67% in Dollar Terms. In rupee terms
the export touched Rs.140007.33 million against the previous years performance of
Rs.138437.84 million showing a positive growth of 1.13%.
The export value during 2006-07 was revised upwards by DGCI&S, from US$2981,79
million (Rs.134924.39 million) to US$3059.43 million {Rs.138437.84 million).
A Statement showing the Product-wise Export performance during April-March 2007-08 vis-
a-vis April-March 2006-07 is given below:
(In Million Rs.)
Major Highlights
Export of Footwear (leather, footwear components & non-Leather footwear) has increased
from US$1236.91 million in April-March 2006-07 to US$1475.83 million in April-March
2007-08, registering a growth of 19.32%
In Dollar terms, Leather footwear has alone grown by 19.45%, footwear components by
21.05% and Non-Leather footwear by 7.39%
Export of Leather Garments has increased by 11.00%, Saddlery& Harness by 28.53%, and
Leather Goods by 11.14%
Export of Finished Leather has increased by 5.93
The export targets from 2007-08 to 2010-11
(In Million US$)
Product 2006-07 2007-08 2008-0 2009-10 2010-11Actual Export
Leather 688.05 726.85 785.00 847.80 915.63Footwear 1212.25 1967.88 2597.60 3428.83 4526.05Garments 308.98 358.53 372.87 387.78 403.30Leather Goods 690.66 733.34 798.69 870.06 948.04Saddlery & Harness
81.85 105.66 127.85 154.70 187.19
Total 2981.79 3892.26 4682.01 5689.17 6980.21
686.05
1212.25
308.979999999999
690.6681.85
2981.79
export target from 2007-8 to 2010-11
productleatherfootweargarmentleather goods saddlery & harnesstotal
INDIA ’S FOOTWEAR EXPORT GROWTH OVER THE LAST FOUR
DECADES
Current Export of Footwear and Projections by 2010-11
Port-wise Export Performance
As per the Port-wise compilation for the period April-March 2007-08, export of Leather and
Leather Products from South, West, East and Central Regions are showing positive growth.
However, there is a decline of 0.16% from Northern Region.(In Million US$)
Indian Scenario:
The Footwear Industry is a significant chunk of the Leather industry in India. India ranks second
among the footwear producing countries next to China. The industry is labor intensive and is
concentrated in the small and cottage industry sectors. While leather shoes and uppers are
concentrated in large-scale units, the sandals and chappals are produced in the household and
cottage sector. India produces more of gents footwear while the world’s major production is in
ladies footwear. In the case of chappals and sandals, use of non-leather material is used to
manufacture these in the domestic market.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok,
Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured
under license in India. Besides, many global retail chains seeking quality products at competitive
prices are actively sourcing footwear from India.
The industry is on the edge of adopting the modern and state-of-the-art technology to suit the
exacting international requirements and standards. The Indian Footwear Industry is all set for
leveraging its strengths towards maximizing benefits. Strength of India in the footwear sector
originates from its command on reliable supply of resources in the form of raw hides and skins,
quality finished leather, large installed capacities for production of finished leather & footwear,
large human capital with expertise and technology base, skilled manpower and relatively low
cost labor, proven strength to produce footwear for global brand leaders and acquired technology
competence, particularly for mid and high priced footwear segments. India has the competitive
advantage over other countries in the form of materials and skilled manpower.
The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period
spanning from 2008 to2011. Footwear is expected to comprise about 60% of the total leather
exports by 2011 from over 38% in 2006-07. Presently, the Indian footwear market is dominated
by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market.
By products, the Indian footwear market is dominated by casual footwear market. As footwear
retailing in India remains focused on men's shoes, there exists a plethora of opportunities in the
exclusive ladies' and kids' footwear segment. The Indian footwear market scores over other
footwear markets as it gives benefits like low cost of production, abundant raw material, and has
huge consumption market.
India is now a major supplier of leather footwear to world markets and has the potential to
rivalChina in the future (60% of Chinese exports are synthetic shoes).
India is often referred to as the sleeping giant in footwear terms. It has an installed capacity of
1,800 million pairs, second only to China. The bulk of production is in men’s leather shoes and
leather uppers for both men and ladies. It has over 100 fully mechanized, modern shoe making
plants, as good as anywhere in the world (including Europe). It makes for some up market brands
including Florsheim (US), Lloyd (Germany), Clarks (UK), Marks and Spencer (UK)
Major Markets for Indian Footwear:
The European Union and the USA are the major markets for Indian Footwear accounting for
79.95% and 9.22% share respectively in India’s total footwear export. The major markets for
Indian Footwear are Germany 16.66%, UK 16.31%, Italy 15.32%, USA 9.22%, France 7.81%,
Spain 5.10%, Netherlands 4.91%, Portugal 2.50%, UAE 2.48% and Denmark 1.18%. These 10
countries together accounts for nearly 81.49% of India’s total leather products export
Indian Footwear Market Forecast 2014
India is standing on the threshold of a retail revolution and witnessing fast changing retail
scenario, with footwear market set to experience phenomenal growth in coming years. Besides,
the entry of numerous international players has had a significant impact on the Indian footwear
market and the demand for Indian footwear will continue to grow in future as well, says our
recent report, “
According to our latest study on the sector, Indian footwear industry possess significant potential
with overall market anticipated to grow at a CAGR of around 9% during 2011-2014. The report
thoroughly discusses factors, which will drive the growth of the footwear market during the
forecast period.
Our research highlights that, the success mantras for footwear market in India lies in the
advantages offered by the country, such as low labor cost, skilled working professionals, etc.
Footwear industry in the country ranked second across the globe after China in terms of
production. Additionally, it is the main growth driver of the overall leather exports from the
country, with majority of the share acquired by footwear components and leather & non-leather
footwear.
The report covers various aspects of the Indian footwear market. It presents detail analysis of the
footwear market in terms of segment (men, women, and kid), category (casuals, mass, sports,
premium). Each section sufficiently explains the current and future market trends, and
developments in the Indian footwear market. Our research foresees immense opportunities for
various industry players including domestic as well as international.
Besides, we have comprehensively analyzed the emerging trends, like medical shoe and e-
commerce, which are expected to prevail in near future. This will help clients in understanding
the present and future outlook of the footwear market and developments in the country. Further,
the study also evaluates various strategies that will boost the footwear market in India.
Positive Outlook for footwear and leather industry:
The National Manufacturing Competitiveness Council (NMCC) has identified the sector
as one of the twelve focus manufacturing sectors in terms of competitiveness and
untapped potential in the country.
The sector is one of the top eight foreign exchange earners of the country worth Rs.
10,000 crores per annum and accounting for 2.5 percent of the global leather-related trade
of Rs. 387,200 crores. An estimated 15 percent of total purchase of leading global brands
in footwear, garments, leather goods & accessories, in Europe, and 10 percent of global
supply is outsourced from India.
Deliberating upon the current scenario, the Report states that the leather industry employs
about 2.5 million people and has annual turn over of Rs. 25,000 crores. Nearly 60-65
percent of the production is done by small / cottage sector.
In tune with the whole sector, the Indian footwear industry too obtains 90 percent
production in SMEs, having about 42,000 units registered under SSI, concentrated largely
in Agra, Kanpur and Tamil Nadu. Most of the SSI units are also into the production of
non-leather footwear.
The footwear segment is the pride of India's leather industry, and ranks second in the
world, next to China. The global trade in leather footwear is US$ 30 billion and in non-
leather footwear is US$ 18 billion; however India's share in both segments is only
marginal -1.4 percent and 0.15 percent respectively.
In the last five years, the leather footwear and footwear component production increased
by 60 percent, the consumption of footwear in rural India is 75 percent of the total. An
interesting aspect of India's footwear industry is that India produces more of gents'
footwear while the world's major production is in ladies footwear.
Analyzing the export - import potential of the sector, the Report informs that imports
mostly comprise of hides and skins, semi finished and finished leather. Product imports
are low.
On the other hand, almost 50 percent of the total domestic production is exported. Nearly
75 percent of the total export of footwear components is from the Southern Region, the
Northern Region, being a poor second with 13 percent. Increased value of export of
footwear from Rs 2957.5 crores in 2005 to Rs. 11,000 crores by 2012 is envisaged.
Annual export earnings from the Footwear and Leather sector were US$ 2.1 billion in
2003-04 and the sector ranks 8th among the top 10 sectors in India's export list at 2.74
percent.
In addition to the global market, Indian Leather Industry is yet to capture the existing
untapped potential in the domestic market. India has a large and growing consumer class
(annual income > US$ 449), estimated to constitute nearly 90 million households by
2006 - 07, having with a CAGR around 12 percent. This is a large and growing market
for Footwear and Leather goods, the Report further stressed.
The distinct advantages of the Footwear & Leather industry in India, highlighted in the
Report are low costs; variety & abundance of raw material; quality consciousness and
back up; R & D facilities with extension support enables India as a significant participant
in the world Footwear & Leather market. As per the current scenario; the Footwear &
Leather Industry in India is spread largely over unorganized sector, comprising tanning &
finishing, footwear & footwear components, leather garments, leather goods including
saddlery& harness, etc.
Stressing on the improvement areas in infrastructure and investment in the Sector, the
Report states that an estimated investment in the entire footwear and leather sector in
India is approximately Rs. 4,500 crores and annual production is at Rs. 22,000 crores.
However, India seems to have missed out the investments in the footwear industry with
China getting most of the benefit by attracting 10 times more investments than India in
the last 20 years.
It can be said that India has not been alive to its potential in this matter. India's loss has
been China's gain. India's lack of awareness of its potential and its belated recognition of
this sector have been to be made good speedily.
Though the Leather Industry, especially the Footwear industry has made a strong
contribution to the Indian economy, India's share in global trade remains low, however
being a labour intensive industry, its contribution to employment is significant.
In a recent study carried out by NMCC, it was highlighted that total employment in this
sector would amount to 2.5 million (30 percent of which are women).
Footwear industry provides employment to the uneducated population - 40 percent of
employment is represented by unskilled workers doing table work operation in the
assembly line.
Large employment opportunities on the input side - minority community and low caste
people have their sole source of livelihood from collecting carcasses, skinning dead
animals and tanning leather.
The Footwear industry has potential to provide employment across all sections of the
economy Industry estimates of employment potential 3 lakh jobs in next 3 years.
The potential for employment is across all skills to the tune of semi-skilled and unskilled
labourers - 92 percent; technical supervisory, shop floor - 7 percent; entrepreneurs, senior
managers and technologists - 1 percent.
Indian Footwear and Leather industry is clearly optimistic about the future. To protract
this optimism, State Governments must ensure that they are able to create an attractive
and enabling environment. CII believes this can be achieved through openness to
investments, good governance and robust infrastructure.
SWOT Analysis of Indian Footwear Industry
STRENGTHS: -
Existence of more than sufficient productive capacity in tanning.
Easy availability of low cost of labour.
Exposure to export markets.
Managements with business background become quality and environment conscious.
Presence of qualified leather technologists in the field.
Comfortable availability of raw materials and other inputs.
Massive institutional support for technical services, designing, manpower development
and marketing.
Exporter-friendly government policies.
Tax incentives on machinery by Government.
Well-established linkages with buyers in EU and USA.
WEAKNESSES: -
Low level of modernisation and upgradation of technology, and the integration of
developed technology is very slow.
Low level of labour productivity due to inadequate formal training / unskilled labour.
Horizontal growth of tanneries.
Less number of organised product manufacturers.
Lack of modern finishing facilities for leather.
Highly unhygienic environment.
Unawareness of international standards by many players as maximum number of leather
industries are SMEs.
Difficulties in accessing to testing, designing and technical services.
Environmental problems.
Non availability of quality footwear components
Lack of fresh investment in the sector.
Uneconomical size of manufacturing units.
Competition among units vying for export orders leading to undercutting.
Little brand image.
Poor labour productivity. Lack of awareness about consistent in
plant training and retraining- Inconsistent quality high rejection rate
Lack of quality job work units
Delayed deliveries
Weak support infra- structure for exports Low machine and material productivity.
OPPORTUNITIES: -
Abundant scope to supply finished leather to multinationals setting up shop in India.
Growing fashion consciousness globally.
Use of information technology and decision support software to help eliminate the length
of the production cycle for different products
Product diversification - There is lot of scope for diversification into other products,
namely, leather garments, goods etc.
Growing international and domestic markets.
Exposure to newer markets through Fairs/ BSMs
Retain customers through quality supplies and timely deliveries
Aim to present the customer with new designs, infrastructure, country & company
profiles.
Use of modern technology
Exhibit strengths in manufacturing, for example, strengths in classic shoe manufacturing,
hand crafting etc.
De-reservation of the footwear sector.
THREATS: -
Entry of multinationals in domestic market.
Stiff competition from other countries.(The performance of global competitors in leather
and leather products indicates that there are at least 5 countries viz, China, Indonesia,
Thailand, Vietnam and Brazil, which are more competitive than India.)
Non- tariff barriers - Developing countries are resorting to more and more non – tariff
barriers indirectly.
Improving quality to adapt the stricter international standards.
Fast changing fashion trends are difficult to adapt for the Indian leather industries.
Limited scope for mobilising funds through private placements and public issues, as
many businesses are family-owned.
Current trends of footwear industry
The Indian economy has shown a positive growth with gross domestic product expected to grow
at a rate of over 9 per cent in 2011-12. The leather and footwear industry has been growing at
over 20% for the period spanning 2008 to 2011. Footwear alone has been projected to make up
about 60% of the total leather exports in the current fiscal.
Given this growth, India's position as a manufacturing footwear centre and a producer of leather
and fashion accessories has been gaining international recognition. To help boost the Indian
economic and business environment, fMM&T 2011 provides an ideal platform to meet business
prospects, clients & partners all in one location.
Delcam's new technology revolotionises the footwear Industry
Delcam, one of the world's top suppliers of CADCAM software product development solutions
for the manufacturing industry, has developed rapidly since its establishment in 1977. Also
being one of the largest software companies, Delcam witnessed its business expansion in the
Asia-Pacific region, particularly in China in recent years.
With the launch of Delcam Crispin OrthoScan, a 3D laser foot scanner, many people, especially
those who need orthopaedic repair and refurbishments have benefited a lot from this
customized service. OrthoScan scans the foot, ankle and lower leg using the I-Ware USB 3D
laser scanner, and provides an STL template of the scanned foot, then to import into OrthoLast,
which imports the scanned foot data in STL format.
OrthoLast imports the scanned foot STL, template, then modifies the shape from an existing
last into a new customer last, in relation to the scanned foot. It exports the new last for milling
and transfers the last data to OrthoStyle and/or Ortho Design that builds on the functionality of
Ortho Style to provide a comprehensive 3D footwear design system.
The advanced technique collects accurate information and provides a template of each foot,
then the data will be used to help create customer's last, and sometimes, more economically,
the insoles.
"I have been wearing these insoles since last summer, proximately one year now. As a distance
runner, I run a hundred miles every week, so I am in pain in my knees and hips because I am
getting older, " said Stuart Stokes, a British steeplechaser who won the 4th place in the last
Commonwealth Games.
"Since I put these insoles in, it comforts my body and my pain has gone. So because the pain in
my knees and hips has gone, it allows me to train harder, mentally as well. Every day when you
are in pain, it is very different," added Stokes.
"Now with the insole, I can train longer. I hope this summer it will increase my performance and
hope to have better results in the Beijing Olympics. I have quite a few of personal
performances. Sometime winning races means a lot to you; other time you don't win the race,
and you know you did you best. That can be equally as good. " noted the steeplechaser.
The future of the footwear industry
Representatives from some of the most influential names in footwear and leather attended to hear
industry experts provide insight into the rapidly changing global marketplace. Opening the event,
Johs Knudsen, ECCO’s Vice President of Business Development, discussed how complete
ownership of the supply chain can become a competitive advantage, enabling quick reaction to
retail demand. He highlighted a general industry shift from production push and sell commercial
models to better identification of market demand to generate supply, while using time zones as a
global production advantage.
Pittards’ Chief Executive, RegHankey, then stressed how maintaining a source of good quality
material is a global challenge and revealed that, post-recession, there could be 5 million fewer
cattle hides available. He suggested that an important role for SATRA is to help companies
better understand legislation, including REACH and DMF, and determine the most appropriate
testing throughout the supply chain. MrHankey concluded with two thought-provoking
questions: will oil-based synthetic materials be impacted by diminishing global oil reserves, and
what will global population growth mean for supply and demand of leather and materials?
Exploring ethical issues
The next speaker was Lesley Roberts, Director of Corporate Responsibility at the Pentland
Group, which claims to have reduced its landfill waste by 50 per cent in 12 months. Ms Roberts
explored a variety of ethical issues, including how climate change will affect the amount of
available leather, and how synthetic materials require considerable energy to produce. She
suggested that China is no longer so focused on footwear exports, increasingly finding local
markets more interesting. Ms Roberts pointed out that the industry needs help from SATRA with
restricted substances and the environment, and left delegates with a probing question: ‘What will
you do if you find child labour in the supply chain?’
Steve Smith, Supply Chain Director at Clarks, described his company’s online presence and
revealed how control of stock for home delivery and in-store use has been combined to provide
an integrated control procedure. Mr Smith commented that wholesale customers are starting to
look for retail-type support models, and that his main challenge is to balance minimal stock
levels with high availability – never easy at the best of times.
DESMA’s General Manager, Klaus Freese, picked up on China’s possible shift from footwear
export to a domestic market, and proposed that modern technology, production processes and
quality control at source will mean competitive footwear production anywhere in the world. He
highlighted that there is currently no cost advantage in using recycled materials in footwear
production.
The conference closed with a question and answers to a panel of speakers and members of the
SATRA Research Team, a conclusion being reached that the industry is probably not currently
investing enough in research and innovation to turn challenge into opportunity. SATRA’s
Research Team Leader, John
Hubbard, commented that investment in innovation will provide the future products demanded
by future markets. There was a consensus that the whole supply chain has collective
responsibility for consumer needs and future generations.
Feedback from the day showed that all in attendance found the event and the subjects discussed
useful – even essential. Members see SATRA as being central to the debate and will look to the
Technology Centre to play an important part in helping the industry face the challenges and
opportunities.
Major Players Of Footwear Industry
ABOUT BATA
Bata is one of the world's leading footwear retailers and manufacturers with operations across 5 continents
managed by 4 regional commercial business units (CBUs). The MBU approach provides quality resources
and support in key areas to the companies operating in similar markets such as product development,
sourcing or marketing support. Each MBU is entrepreneurial in nature, and can quickly adapt to changes in
the market place and seize potential growth opportunities.
Bata's strength lies in its worldwide presence. While local companies are self-governing, each one benefits
from its link to the international organization for back-office, systems, product innovations and sourcing.
Although Bata operates in a wide variety of markets, climates and buying power Bata companies share the
same leadership points. Two important ones are product concept development and constant improvement of
business processes in order to offer customers great value and the best possible service.
Management - Bata India
Name Designation
P M Sinha Director
Rajeev Gopalakrishnan Additional Director
U Khanna Director
J G N Clemons Director
Akshay N Chudasama Independent Director
Name Designation
M Villagran Managing Director
F M Hussein Director (Finance)
J Carbajal Director
Atual Singh Independent Director
UdayKhanna Chairman / Chair Person
History of Bata footwear Industry
1931
- Bata India Limited the Company was incorporated at Calcutta.
The Company Manufacture and market of all types of footwear,
footwear components, leather and products allied to footwear trade.
Bata was originally promoted as Bata Shoe Co Pvt Ltd by Leader
AG, Switzerland, a member of the Toronto-based multinational,
Bata Shoe Organisation (BSO). It became a public limited
company in 1973 and the name was changed to Bata India Ltd.
1952
- In Mokamehgat, a tannery was established and a hide purchasing
centre was also set up there. Another factory was constructed
at Faridabad.
1973
- With the public issue of capital in June, Leader A.G. St.
Moritz, Switzerland offered for sale 5,00,000 shares out of
their holdings at a premium of Rs 20 per share (2,00,000 shares
each to LIC and UTI and 1,00,000 shares to the public).
1977
- Leader A.G. St. Moritz, Switzerland offered for sale 8,00,000
shares at a premium of Rs 8 per share to resident Indian
nationals thereby reducing their holdings to 12,00,000 shares or
40% of the issue capital.
- Another 47,14,000 No. of equity shares of Rs 10 each at a
premium of Rs 25 per share were issued to Bata (BN) B.V.,
Amsterdam, a wholly owned subsidiary of Leader A.G. St. Moritz,
Switzerland, in order to raise their holding in the Company from
40% to 51%.
1979
- 7,50,000 bonus shares issued in prop. 1:4.
1984
- 15,00,000 bonus shares issued in prop. 2:5 in April.
1987
- The Company privately placed with financial institutions (UTI,
LIC, GIC & its subsidiary) 15% debentures worth Rs 5 crores.
The Company also allotted debentures worth Rs 1.75 crores to the
Army Group Insurance Fund.
- The Bata Shoe Organisation consists of 96 independently run
companies in 90 countries throughout the world.
- 52,50,000 bonus shares issued in prop.
1988
- Agreement was arrived at with Adidas of West Germany for
manufacture and marketing of sports and special application
footwear, spots goods and sports wear in India and the products
were expected to be launched in December, 1989.
- Marketing of `Star' clothings designed by Murjani
International, New York, U.S.A. and sourced through Inmark
Brands Pvt. Ltd., was launched.
- A new brand of shoe, `Tigre' was introduced during the year
for sales through wholesalers and independent retailers.
1989
- The Company sucessfully launched `Adidas' collection of
hi-tech sports footwear.
- As a result of the R&D activities, special leather board was
developed as a substitute for insole leather.
1990
- A highly versatile sample 18-station bicolour injection
moulding plant was installed in the Bangalore factory for
production of `State-of-the-art' injection moulded shoes with
synthetic and textile uppers and specially developed PVC
compounds as soleing material.
- Pursuant to a Scheme of Arrangement between the Company and
Bata Properties, Ltd. a wholly-owned subsidiary of the Company,
certain properties constituting the real estate division of the
Company were transferred to BPL for better development and
management with effect from 1st July.
1991
- A promotional brand `Tigre' was launched to keep the factories
full at all times and thereby reduce losses due to under
recovery of overheads.
- The Company issued non-convertible debentures aggregating Rs
3.50 crores to SBI Mutual Fund. These debentures are redeemable
in three equal instalment at the end of 6th, 7th and 8th year
from the date of allotment. Negotiations were in progress for
private placement of the remaining debentures.
1992
- The workers at Batanagar factory went on strike from 3rd
January, to 23rd May, which resulted in a substantial loss of
production during the initial 6 months of the year.
- The Company undertook to set up a green field export oriented
unit at Hosur in Tamilnadu with the State-of-the-art technology.
- Over the years, the Company with the collaboration of Bata
Development, Ltd., London, U.K., and its association with Bata,
Ltd., Toronto, has been building up its own well-equipped and
up-to-date R&D organisation.
1993
- The Company undertook to expand and modernise its existing
plants for capacity optimisation to become cost efficient on a
global basis. Apart from it also undertook expansion and
upgradation of its retail stores. Export Oriented Unit was also
to be set up at Hosur in Tamil Nadu.
- During January, the Company issued 105,00,000 No. of equity
shares of Rs 10 each at a premium of Rs 20 per share on rights
basis in the proportion of 1:1. Allotment of 1,856 No. of equity
shares was kept in abeyance since the matter was
sub-judice. The balance 104,98,144 shares were allotted.
1995
- 13,114,000 No. of equity shares allotted to Bata (BN) BV
Amaterdown, The Northerlands the holding company.
- The Long Term Agreement with the Bata Mazdoor Union
representing employees of Batanagar and Calcutta Offices was
signed at bipartite level satisfactorily without any disruption
of work.
1996
- The Company has received a notice in writing from a member of
the Company under Section 257 of the Companies Act, 1956
signifying his intention to propose the appointment of Mr Thakur
as a Director of the Company.
1997
- India's largest shoe company Bata India (BIL) has performed
admirably to stage a remarkable turnaround for the year ended
December 1996.
- Bata has entered into a marketing tie-up with Nike wherein the
latter's products will be offered from select Bata outlets.
- The company's debt-equity ratio is also set to improve
dramatically to 0.60:1 from 1.90:1 in December 1996, and 2.06:1
in December 1996.
- Bata India, a 51 per cent subsidiary of Canada based Bata Shoe
Organisation, had last revalued its buildings in 1969, and the
latest exercise which will cover all fixed assets is expected to
substantially prop up its reserves.
1998
- Bata India, a subsidiary of the Canadian multinational Bata
Shoe Organisation, has suspended its after-sales service.
- Every Bata outlet, 1,000 owned and over 600 joint ventures
were expected to sell Hush Puppies, Marie Claire and Adidas.
- Bata India has proposed a dividend of 85 paise per share to
its shareholders for the year ended December `98.
- The shoe major had concluded long term wage agreements with
the workers of its factories at Faridabad (Haryana) and
Mokamehghat (Bihar) for three years up to 2001.
1999
- Bata needs to launch new products on a regular basis by
expanding its women's range, and moving into the premium
segments it had vacated.
- The company will launch the `Sundrops' line at New Delhi on August 16.
- The company signed seven long-term agreements and the last in
Batanagar is in an advanced stage of negotiations which will be
settled soon.
- Bata's Faridabad factory workers' union finally reached an
agreement with the company management, ending the nearly
eight-month-old lock-out at the unit.
- Bata India is aiming to achieve a 15 per cent growth in
turnover and profits in 1999, to reach the target set out in the
Vision 2001 plan drawn up by Compass, the international board of
the Bata Shoe Organisation (BSO).
- Shoe major Bata India, which is set to unleash a new
advertisement campaign for its new ladies range `Sundrops', has
signed up film actress Rani Mukherjee to endorse the line.
2000
- Bata India (Bata) is the largest footwear manufacturer and
produces a wide range of footwear such as canvas, rubber,
leather, plastic and so on.
- The Company has lifted the lock-out at its Peenya factory in
Karnataka. The lockout was declared on March 8th following a
strike by the employees' union.
2002
-Withdraws lockout at Bata India's Peenya Factory on the direction
of Government of Karnataka.
-Creates its own insider Trading rules in an attempt to protect the
rights of shareholders and prevent unscrupulous trading in the
company's share by insiders.
-Shareholders approve for the transfer of Tannery and Footwear
division to separate companies.
-Appoints MrJaswant Singh as the wholetime Director, Marketing and
Commercial.
2003
-Shareholders pass all the major nine requisite resolutions.
-Appoints GautamThapar, Vice-chairman and MD of Ballarpur Industries
Ltd on the Board of the company.
-Forges into a retailing alliance with Lee Cooper Shoes , to retail
their shoes.
-Engages Ogilvy and Mather to devise its Festive season Advertising,
side stepping , JWT, its incumbent agency.
-Repositions itself as the marketing firm.
2004
-Bata unveils new flagship store in Mumbai
-de-lists equity shares from the Calcutta Stock Exchange Association
Ltd.
-Appoints MrConstantinSalameh, Senior VP and CFO of Bata Shoe
Organization as acting Chairman
-Bata India has inducted P M Sinha, former CEO of Pepsi Cola
International South Asia as Chairman of the company
2006
- Bata India Ltd has informed that Mr. J Carbajal has been appointed
as an Additional Director on the Board of Bata India Limited
2007
- Bata India Ltd has set up a new flagship store in
Thiruvananthapuram.
2010
- Bata India Ltd has informed that Mr. Fadzilah Bin Mohd Hussein has
been appointed as an Additional Director on the Board of the Company
with effect from July 29, 2010.
Products
Bata Shoes
We are the dealers for all types of bata shoes. We are one of the trusted names,
when it comes to Bata Shoes. The Bata Shoes offered by us are made from premium quality
material that offers strong and durable structure to them.High ankle shoes with full leather upper
and excellent soft padding inside. Four eyelets with closed / open Tongue. Perfect grip and most
comfortable to wears
Foot Wears
We are dealers of all types of foot wear. We offer tastefully designed variety of
mens and ladies leather footwear in diverse designs and styles. Available in various colours and
sizes ranging from 5 to 11 (uk standards) and featured with slight toe spring, tone on tone
stitching and rubber outsole.
Products Manufacturer and Marketer of Footwear
products.
Specialization
The Company manufactures quality leather, rubber, canvas and PVC shoes in wide-
ranging designs and styles at affordable prices.
Quality
Batanagar factory is the first Indian shoe manufacturing unit to receive the ISO 9001
certification in 1993
Facilities
Operates 4,600 retail stores,Manages a retail presence in over 50 countries,Runs 40 production
facilities across 26 countries
BRANDS OF BATA
BABY BUBBLES----Shoes (as well as clothing and accessories in Latam) for infants from birth to
1-year Bata--Shoes for all occasions in one’s life
BATA INDUSTRIALS--Protective footwear for various industries
BOBBLEGUMMERS--Stylish and colorful shoes for active kids
COMFIT---Ergonomic design, soft uppers and cushioned insole support are combined to bring
you a collection of shoes for your ultimate comfort. The Comfit range provides support and
comfort in a quality you can count on
ECO FIT--Eco-friendly shoes, made from ecological organic and biodegradable materials
MARIE CLAIRE--Stylish and chic shoes for confident women
NIORTH STAR--The vision of youth – daring, exploratory causal shoes.
PATAPATA--Our thong brand, ideal for sunny outdoor life
POWER--Power, our sports brand that brings out the spirit of the game
SANDAK--Practical plastic injected sandal for the mass market.
SUNDROP--A women’s comfort shoe designed for office wear and casual evenings.
WEINBRENNER--Our shoe offering for outdoors and adventure.
New special technology
Bata introduces the new special technology footwear for the growing feet. Launched under the
School Shoes umbrella, Bata brings you selections like Champ, Tennis, Scout, Naughty Boy, and
Ballerina.
The shoes are designed to fight odour round the clock. Besides the in-built Microban
antibacterial protection in the insole material of the shoe; this is designed to reduce unpleasant
odours caused by bacteria and helps keep the feet cleaner & fresher. Cushioned insole would
ensure total comfort for the little ones.
Thus these scientifically designed shoes are a complete solution to all the worries of the mothers
about their little ones playing for long hours in the sun.
Toxicity and dermal studies have shown products with Microban to be completely safe, non-
toxic and non-irritating to skin. The Microban protected liners keep shoes completely bacterial
free, which result in odor reduction, keeping feet clean, fresh and hygienic.
What more, School is more fun this year for the kids as well; they can walk out with a cool
sipper adorning their favorite toon Ben10. This cool Ben 10 sipper is available at a special price
with any school product. And this is not all; there are special Ben10 goody bags to be won. So,
hurry log on to www.batabacktoschool.com and win exciting Ben 10 goodies.
Microban is an anti-microbial agent which, when introduced into the actual molecular structure
of fibers, fabrics and polymers, provides inherent control over the growth of certain odor and
stain causing bacteria, yeasts and fungi.
Bata is committed to customer satisfaction and to giving the best services at competitive rates as
well as offer shoeline as per the specific need of customer.
Research Development
Bata operates 6 Shoe Innovation Centre’s (S.I.C). Research is conducted into the application
of new technologies, materials and designs for shoe comfort features.
Each S.I.C has a product focus to supply complete packages of services for the manufacturing
and marketing of innovative shoes.
Shoe Making Expertise
Not only is Bata one of the world's leading footwear retailers but they are also experts in making
shoes, with over 110 years of experience in manufacturing. Currently they operate 27 production
facilities across 20 countries.
While most modern day manufacturers outsource in Asia, Bata manufactures predominantly in
OUR OWN manufacturing facilities, guaranteeing quality and expertise.
Approximately half of our factories’ output is destined for sale through Bata-owned retail stores,
and the balance is manufactured to the specifications of wholesale customers or under contract to
other footwear brands.
Bata personnel made key advances in several footwear production techniques in use today,
including the Direct Vulcanization Process (DVP) and slush-moulding. Bata inventors also
patented the original process that adheres PVC outsoles to textile uppers.
During the 1990’s additional patents were awarded, including one for the first removable heel
cartridge system for athletic performance footwear.
Most of Bata manufacturing facilities have passed stringent ISO 9000 certification, with others
presently in the certification process.
Italy------
Bata Premium Collection
The Shoe Innovation Centre Europe (SICE) creates new collections for our house brands such as
Weinbrenner, North Star, Power, Bubblegummers and uses innovative technologies for the
Premium collection. By investing in multi-talented human resources and the latest technology
design equipment, (Cad cam), SICE is in a position to realize shoe prototypes, from the early
stages of design thanks to a functional product development centre.
SICE works with all Bata SICs worldwide to obtain the best quality/price ratio for productive
sourcing. SICE offers a wide and qualified range of fashion shoes thanks to market trend
research, new ideas and strict attention to production standards. They are the ideal reference
point for style and design in the fashion industry and also provide better value–added services.
Finally, the SICE will be a strategic focal point for European and worldwide BSO Companies for
industry experience and skills and for improvements in the manufacturing process from
production planning, control, material consumption, cutting, stitching, assembly and finishing.
Canada
Power Footwear
Power Athletics Limited (PAL) operations are based in North America, where the majority of
reputable athletic shoe companies are located, and where most athletic footwear specialization,
as well as technical features and technologies, originates.
The first-class designers on our team are fully dedicated to Power, concentrating all of their
expertise on creating the best, most up-to-date product and designs. Most of them are graduates
of the highly respected Industrial Design Program at Carleton University. Their training has been
focused on process, from concept and design through to manufacturing and, ultimately, the
everyday use of the product.
Prior to conceptualizing and building a new collection, our designers painstakingly analyze past
sales and study the latest trend reports. In addition to investigating other major brand activities,
they also consult and collaborate extensively with colleagues in Europe, America, and Asia. This
detailed analysis enables them to assess and determine the new styles, new materials and colours
most suitable to our markets.
PAL's operations are not just about product design, however. We offer a complete service
package that includes design as well as sales, marketing, and finance support. Our designers
work in tandem with our sales, marketing, and finance teams. We also work closely with our
customers, ensuring that the final product is designed, developed, and priced to meet specific
market requirements. Detailed attention is also given to making sure that the product and
communications are aligned with our target consumer and are consistent with our brand message.
All of our products follow a strict and rigorous technical development process, from mould-
making and perfecting patterns to prototyping. PAL's proficient technical and sourcing manager
in China ensures that our products are technically sound and manufactured by dependable and
trustworthy factories. Our sourcing manager has extensive knowledge of the manufacturing
process and has been able to develop strong long-term cooperative relationships with reliable
third-party factories.
The development process includes the careful selection and approval of materials and material
suppliers, many of whom have been working with us for long periods of time. Prior to launching
a new style, we subject it to a comprehensive testing process that includes fit- and wear-testing,
as well as material and technical tests conducted by a reputable North American laboratory.
We are a comprehensive service provider and our dedicated team members are inspired by a
strong passion for product and are committed to excellence in all of our activities.
Netherlands
Industrial Footwear
Bata Industrials is more than just a manufacturer. It is a knowledge enterprise with a progressive
Research & Development department and extremely advanced test facilities.
Research forms the basis of the powerful Bata Industrials brand. Bata knows what people need in
their work environment. Nobody understands human anatomy in quite the way we do.
By continuously investing in new materials and technologies, Bata can keep reacting to market
developments and to changing working conditions in an appropriate and innovative manner.
Our knowledgeable and experienced R&D team is complemented by a group of outside
knowledge centres, such as internationally renowned universities. This co-operation results in a
unique combination of shoes and socks for every professional in every situation.
Indonesia
Affordable high-value footwear for mainly tropical climates
The Shoe Innovation Center in Indonesia works with a variety of frameworks including
technologies, methods, production processes, designs, materials, trend lifestyle research,
economic oriented product development and it all helps Bata to be a leader in footwear for both
domestic and international markets.
By investing in multi-talented human resources and the latest technology design equipment, the
SIC in Indonesia supplies creative services for the manufacturing and marketing of footwear.
Our team is a unique composition of experienced footwear designers and passionate creative
designers with multiple backgrounds who are able to capture our consumers’ lifestyle needs.
China
Sourcing from the “Factory of the World”
The Shoe Innovation Centre China’s (SICC) manufacturing sources come from the wide and
varied groups of factories available in China, for different product categories of the different
Bata Brands developed for the BSO group of companies worldwide. With a team of multi-
talented personnel and investments in new technology and techniques in the related fields, the
centre constantly develops and creates new products with the best price/quality ratio for footwear
sourced from the “Factory of the World” – China. All without sacrificing product quality by
having strict BSO based quality control and quality assurance standards and procedures. The
centre also provides excellent services in all ways and areas to the BSO companies buying or
sourcing from China.
In each SIC, international designers and technicians conduct advanced product research and
establish strict quality control procedures. The focus is on introducing new and exciting products
that are competitively priced and give the best value to customers. Always ahead in new designs,
features and products, each SIC will continue their relentless search for better quality in pursuit
of excellence.
Each Bata SIC supplies model making, components and accessories for the production of
exclusive footwear to factories throughout the world. Exclusive designs and technologically
advanced shoe lines are developed by a team of designers supported by a pool of internationally
renowned freelancers. Quality is ensured by best-in-class processes of:...
Raw materials selection
Sophisticated and strict control of all production process steps
Respect of Bata quality specifications
Retail
City Store
Bata operates stores in many of the world’s fashion capitals. Bata City Stores offer urban
customers the best in today’s fashion footwear and accessories. These stores are in city centres’
prime locations, and provide a high level of customer service, exclusive fashion shoelines with
complementary accessories, and contemporary shopping environments to discerning shoppers
Large Format Store
Bata Superstores offer a wide assortment of fashion, casual and athletic footwear for the entire
family. Located primarily in urban and suburban shopping centres, these spacious stores offer the
best value by providing good quality shoes at great prices. Service is fast thanks to a self
selection shopping environment with qualified staff to serve and assist.
One of the cornerstones of the Bata Superstore is the sports area: a real store within a store. All
the key international sports brands are featured, carefully selected for the most discerning
customers
Family Store
Bata is the world’s leading family footwear chain thanks to the wide assortment of everyday
fashion footwear available in our stores from Milano to Delhi. The products are primarily the
Bata brand, with a carefully selected assortment of articles from both local and international
brands.
Factory StoreFactory stores first opened in 2003 and are the largest and the most value-oriented stores of our retail chain.
They are ideally located in power centres, commercial parks and outlet centres with easy parking facilities.
The product selection offers more than 10,000 styles of ladies, mens, childrens and sport shoes with related accessories and apparel sold at attractive price points.
It is based on a self service concept with helpful staff available for service at anytime.
Achievements Bata initiated and propelled thedevelopment of a modernfootwear industry in
India.According to the Brand EquityMost Trusted Brands 2009Survey, Bata is India's
mosttrusted name in brandedfootwear, today.The recognition has followed
sustainedeffort.The companyhas beenundertakingaggressivemeasuressince 2004, tore-
structureand reengineeritsoperations.Theupshot: growing popularity amongst
consumers,augmentation in net profit, acomplete turnaround with anupmarket product
range, new designs and high visibility in chic locations .Indeed, such has been the
turnaround for Bata that it was recently chosen by Business Week, as one of The World's 25
Unsung MostInnovative Companies.
PromotionBata has optimised its product range to includeexciting and innovative designs at knock-
outprices. It is the company's belief that value,comfort and quality are the three imperatives
that sell footwear. To bring this message home to consumers, Bata has recently launched
the'Be Surprised – New Range, GreatPrices'advertising and promotions campaign.This
effort has already coursed across thecountry riding on bus and metro stations,billboards,TV,
print and point of purchase (POP)materials.In a first-of-a-kind initiativeinthe footwear retail
industry, India's leading retailer has alsointroduced Bata Gift Vouchers. Ideal forcorporate
gifting, employee incentives andconsumer promotions, these vouchers can beused in place
of cash and are available in various denomination
Market Share
The company enjoys the highest market share in India and this is evident from the fact that the
total retail presence of the company currently is more than thrice that of its closest competitor
(Liberty: 381 stores). Bata has over 15% market share in Organized Retail market and around
6.5% share in Unorganized retail.
Bata: Indian market offers a big opportunity to grow
HDFC Sec | 04 Jan, 2011
A higher consumer spend is a positive development for the FMCG industry as it translates into
higher pricing power and revenues for the players in the industry. BIL with a market share of
35% in the organised shoe market could be a major beneficiary of the rising consumer spends as
it could drive the revenues of the company and also a better pricing power could boost the
operating margins of the company
Bata India: Best foot forward
PunamChoudhary | 19 Apr, 2010
The consolidated revenue and EBITDA of the company has grown at a CAGR of 11% & 41.6%
respectively over the last 4 years. This growth was driven by strict cost control, improved
product lines, modernization, consolidation of manufacturing operations, and transformation of
the wholesale business. At a current market price of Rs.252.6, the company is trading at 20.8
times its estimated FY10 earnings and 16.5 times its estimated FY11 earnings
Bata Q2CY09: Revenue up 8%
Hem Securities | 03 Aug, 2009
In Q2CY09, revenues surged 7.72% at Rs3089.96 mn from Rs2868.50 mn in Q2CY08
ExportBIL (Bata India Limited) exports around 3 million pairs of shoes and other footwear
annually, primarily to Western Europe, Middle-East and Far-East markets. Majority of
the export is Canvas shoes under leading private labels to customers in the
Kingdom and France. Men's leather shoes are sold to established retailers in
Middle-East and Far-East.
BIL's most modern leather shoe Factory is located in Hosur (Tamilnadu) and is geared
to make international quality footwear for export
best anywhere in the world with high degree of flexibility and is fully equipped to
manufacture Men's, Ladies' and Children's cemented and Moccasin shoes and other
footwear
Ownership: Company
Company Type: Manufacturer
Specialisation: Footwear
Address: Liberty House, Liberty Road, P.O. Box No. 103
City: Karnal,Haryana [India]
Liberty Shoes Ltd. is the only Indian company that is among the top 5 manufacturers of leather
footwear in the world with a turnover exceeding U.S. $100 million.
We produce more than 50,000 pairs of footwear a day covering virtually every age group and
income category. Products are marketed across the globe through 150 distributors, 350
exclusive showrooms and over 6000 multi-brand outlets, and sold in thousands every day in
more than 25 countries including fashion-driven, quality-obsessed nations like France, Italy, and
Germany.
With 50 years of excellence, today Liberty produces footwear for the entire family and is a
trusted name across the world. In the domestic market it is one of the most admired footwear
brands and holds the largest market share for leather footwear.
History of Liberty
It was the 25th December of 1954 when India was nurturing its growth as a free country, three
dreamers in a small town in erstwhile Punjab thought of producing an Indian brand of footwear
to make a basic necessity available to their countrymen.
Mr. D P Gupta, Mr. P D Gupta and Mr. R K Bansal allowed their vision to cross every barrier
and brought cutting-edge technologies to their own country. Within a short span of time, the
name, Liberty became a synonym to quality footwear in the domestic market and this
encouraged the company to invest further for enhancing production capacities and to cater to the
demands of international markets. With 50 years of excellence, today Liberty produces footwear
for the entire family and is a trusted name across the world. In the domestic market it is one of
the most admired footwear brands and holds the largest market share for leather footwear.
Corporate Philosophy
Steeped in a philosophy that has at its core innovation, technology and advancement, we at
Liberty, pride ourselves over and above everything else on our healthy and heart-felt respect for
the human ethos, which projects itself in the expectancy and excitement with which one greets
the arrival of the new combined with a sincere and deep regard for the old, which is appreciative
of and adopts at every stage the unique balance between modernization and tradition.
Liberty as a brand is constantly evolving to keep pace with the changing trends, styles, beliefs,
and aspirations of people while maintaining the sanctity of certain traditions like workmanship
and good value.
Our Credo
To ensure that the method we use is the latest technology the world over. To follow the highest
standards of honest workmanship in whatever we make. To walk the extra mile to ensure
customer satisfaction worldwide. To remain a true cosmopolitan to the spirit. To remain a great
corporation to associate with, to work for.
Liberty Retail Revolutions Limited
In the elite shopping avenues of fashion capitals "Revolutions" has begun its walk. The fashion
accessory and footwear stores have begun operations in Chennai, Bangalore , Mumbai,
Kolkatta, Hyderabad, Indore, Lucknow, Delhi & NCR and Pune with upcoming Revolutions
Stores in Noida, Chandigarh and Ahmedabad.These are company managed and owned outlets
where the emphasis is to deliver high fashion to the customers backed by quality service making
it a delightful shopping experience.
Management - Liberty Shoes
Name Designation
Adesh Kumar Gupta Executive Director & CEO
ShammiBansal Executive Director
Satish Kumar Goel Director
RaghubarDayal Independent Director
Prem Chand Garg Independent Director
SiddharthSanghi Independent Director
Name Designation
Adarsh Gupta Executive Director
Sunil Bansal Executive Director
Surendra Kumar Arya Independent Director
Amitabh Taneja Independent Director
VivekBansal Independent Director
About Liberty
Established in the year 1954, Liberty Shoes Ltd. is a leading leather
shoes brand and is engaged in the manufacturing, supplying and
exporting of the same. With an annual turnover of U.S. $100 million,
it is the only Indian leather shoe brand that occupies fifth ranking
among the top shoes manufacturing companies in the world. With 50
years of brilliance, today we are a preferred brand in more than 25
countries including style and quality addicted countries such as
France, Italy, and Germany. Our far reaching capabilities are due to
our extensive marketing network of 150 distributors, 350 exclusive
showrooms and over 6000 multi-brand outlets We have a wonderful
combination of the most talented minds with the most latest in
technology. Enjoying the credit of introducing PU technology in
India, we are working constantly to introduce newer and better
concepts that can help in the efficient manufacturing of various types
of shoes like leather shoes, black leather shoes, brown leather shoes,
ladies shoes etc.
Product ProfileWe offer a flawless collection of footwear for men, women and kids, manufactured using
advanced technology. High quality leather is procured from well known vendors to bring out
exclusive footwear that can be worn in all the seasons. Our collection is available under brand
names Coolers, Freedom, Footfun, Force 10, Fortune, Gliders, Senorita, Tiptopp, Warrior and
Windsor. Freedom is our popular collection which includes industrial safety shoes such as gum
boots, fire protection boots etc that are ideal to be worn during hazardous industrial works. We
manufacture gliders that include leather shoes, non leather, gliders Eva and many more. These
include are formal shoes as well as casual footwear. These are also available with built-in
acupuncture facility for proper blood circulation. All our products share following features:
Durable
Water resistant Excellent finish Perfect fit Comfortable
Quality
We have always led maximum emphasis on quality. Our products are quality tested under the
able guidance of quality analysts who know the quality control process. Furthermore we also
have management systems and tools in place such as :
In the year 2000, KAIZEN was implemented and is practiced throughout the organization.
The concept of 5S was introduced in the company in the year 2001 and presently it is in
matured stage and is followed religiously.
We have received ISO 9001:2000 certification and are in the process of acquiring the same
for the entire group.
We have established waste management system and we are proud of its being our pilot
project.
We follow the ISES-200 norms to ensure social, health & environmental safety. This standard
is closely monitored by Indo German Export Promotion Council of India.
Also we have ENGERGY MANAGEMENT SYSTEM in place which is one of the unique of its own
kind.
Cemented Construction
Direct PVC Injection
Direct PU Injection
Direct EVA Injection
Direct TPU Injection
SYMPATEX water proofing technology
Eva Compounding technology
Thermo Plastic Elastomer technology
We have a patented technology "HUMANTECH" which states our philosophy of the optimum
utilization of human craftsmanship and technological excellence. Our production unit is
equipped with a unique ERP Solution called SAP. This software interlinks the modules related
to finance logistics & supply chain. SAP was used first time in Indian footwear Industry by
“Liberty”.
Distribution Network
Our extensive distribution channel has enabled us to develop a firm grip over the market. Our
presence in the global front led us to penetrate deep into the various markets of world and
offer our qualitative range of products. Our presence across the world is in the form of
02 Overseas Offices 14 Branch Offices 20 Overseas Showrooms 300 Liberty Exclusive Distributors 375 Retail Stores (10 outside India).
Social Responsibility
We being one of the most admired brands across the globe understand our responsibility
towards the society and therefore ensure the practice of the following:
• We perform all our business activities with utmost sincerity, and reliability.
• We deliver not just quality products and technological innovations but also ensure that all
our business dealings with customers, suppliers, government officials and all those who are
outside the Liberty Group are equally qualitative.
• We also give paramount importance to a safe, healthy and non-discriminatory working
atmosphere for our entire workforce. Also, we make sure that our staff is free from
harassment of any form by senior officials, supervisors, co-workers, clients and other agents.
• Our principled standards and practices are meticulously adhered because of which our
products have found place in the most admired list of reputable brands such as Wal-Mart,
Reebok, Nike and many more.
Contribution to Industry
We have always indulged in pioneering many technologies in India and this has provided us
the status of being the second largest manufacturer of India. We understand that we hold
equal responsibility towards the entire industry, keeping this in mind our contribution
towards the industry has been in terms of:
• We have initiated in bringing the PU technology to India
• We have also given a presentation related to footwear foot prints for the future in Asia
Pacific Customer Conference 200 organized by Humtsman Polyurethane at Singapore
• We are the only company in India that has the approval of using SYMPATEX technology. This
technology is a patented technology on water proofing
• We have launched an industrial segment shoes which is recognized by the brand name
WARRIOR & FREEMDOM. These safety shoes are introduced to Indian market for the first
time by us. Also, our entire range of safety shoes meets all the standards laid by DIN/EN
• Our manufacturing facility is the first in India that has received the prestigious ISO 9001:2000
accreditation
• Our production unit is the only unit in India that is equipped with a unique ERP Solution
called SAP. This software interlinks the modules related to finance, Materials, Costing, logistics
& supply chain
Social Contribution
Our contribution towards the society has been in the form of:
• Our directors have initiated the Liberty Footwear Training Institute for imparting training to
future footwear technicians
• Our higher management sponsors the children of our employees for higher studies and also
provides them with training and employment after graduation in FDDI
• We also follow ISES-2000 (social and environmental standard). This standard is being
monitored by Indo German Export Promotion Project in India
• The product supplied by us is manufactured using eco-friendly and latest techniques
Corporate Saga
With our excellent performance of more than fifty years, we have been successful in fulfilling
the expectations of the successive generations by manufacturing products that have the
ability to cater to their requirements. Our range has always been designed and developed
carefully, keeping in view the preferences and expenditure ability of every income bracket
and age segment.
Our patented technology ‘Humantech’ is a unique combination of talented brains and
innovative technology. This has always enabled us to supply shoes that have created a
benchmark in the industry and has depicted a new style statement.
We have received the greatest opportunity to make a change in the lives of millions of people
across India by providing them with some form of the employment. Our vision and the
biggest motive to expand have always been to create wealth, share prosperity and generate
progress.
• Health and Safety - All the employees of the organization, should be provided with safe,
healthy and encouraging working atmosphere.
• Customer Relations – Customers should be the priority and they should be served with
products that are as per the National and International standards. Innovation and creativity
should also be maintained in the products.
• Shareholders – All the shareholders should receive the correct and timely information that
is in agreement with the applicable provisions and shall work for the value addition to the
stakeholders of the company.
Advertising Campaign
Advertising campaigns are the interface between an organization and its target audience. Our
campaigns always evolve around human emotions and this has been the reason that our
buyers have always been able to identify with them. We have invested a considerable portion
of money in these campaigns and have taken help of print media, electronic media, radio and
televisions. They have always been creative and share our idea which has helped us to hold
an effective communication between our company and our buyers.
• Statutory Compliance – They should always follow all the obligatory and legal provisions,
rules, regulations / guidelines as pertinent on the organization under various statutes
• Insider Trading – They should abide by the guidelines for prevention of insider trading.
• Protecting Company's Assets – There should be not be any misusage of tangible as well as
intangible assets of the organization. Also all the assets should be protected and safeguarded
against any loss, damage, theft etc.
• Concurrent Employment – They are not liable to accept any service or any job with any
other enterprise except with the prior approval of the Executive Director.
• Integrity Of Data – They should always make certain that they should keep full integrity
towards the company’s sensitive data and information.
Events Participation
Liberty will put a new spring in your step this summer. The recently held Channel Meet on
January 16 at LibertyPuram was used by Liberty as a platform to unveil the new Spring-Summer
Foot Fashion Collection for 2010.
Meeting of the Board of Directors of the company shall be held on Monday,25th January, 2010.
Notice is hereby given pursuant to Clause 41 of the Listing Agreement that a Meeting of the
Board of Directors of the company shall be held on Monday,25th January, 2010 at Corporate
Office.
The Board of Directors meeting shall be held on Saturday, 24th October, 2009 at Corporate
Office. Notice is hereby given pursuant to Clause 41 of the Listing Agreement that a meeting of
the board of directors shall be held on Saturday, 24th October, 2009 at corporate Office of the
Company.
Liberty launches Autumn-Winter 2009 Collection. What’s underfoot in the coming season? A
man is known by his shoes. And a girl’s footwear can make a man swoon. Wisecracks or pearls
of wisdom, there can be no gainsaying the fact that the well-hee.....
The Annual General Meeting will be held on Wednesday, 30th September, 2009 at 3.00 P.M.
Notice is hereby given that the 23rd (Twenty Third) Annual General Meeting of the Company
will be held on Wednesday, 30th September, 2009 at 3.00 P.M. at the Registered Office of the
Company to transa.....
Buyers of Liberty Shoes Scratch & Win Nano car and a host of other prizes!
It has been a season of Mega Prizes and Happy Winners at Liberty Foot Fashion. And
considering the overwhelming response to the Scratch & Win offer for all those who made a
purchase of Rs.500 or more .....
Meeting of the Board of Directors shall be held on Saturday, 25th July, 2009.
Notice is hereby given pursuant to Clause 41 of the Listing Agreement that a meeting of the
Board of Directors shall be held on Saturday, 25th July, 2009 at Corporate Office of the
Company, inter alia.....
Liberty Shoes’ Scratch & Win offer for Nano car
The monsoons have arrived and in keeping with the happy mood it is raining prizes at Liberty
Foot Fashion. For the style-driven, always on the lookout for something cool & something new,
this is an op.....
Biggest Liberty showroom in Gurgaon for the latest in foot fashion. Liberty’s gigantic Exclusive
Showroom in Kannu Arcade, near Kalyani Hospital on MG Road, Gurgaon has been conceived
on a truly grand scale and lavished with all the luxurious touches
PRODUCT RANGEThe new range from Liberty is all about style, design, and comfort. The range imbibes the spirit
of fun and is trendy to the core. There is a product for every season and occasion.
Coolers
Coolers are a brand of unisex sandals and slip-ons. Catering to a wide segment across the
country Coolers are much sought after not just in the summer season but also during the
monsoons and in the coastal regions for their water-resistant property.
Footfun
The brand exhibits the vivacity of children in every way. Colorful and comfortable, the range
has smart sandals, elegant sports shoes and bright colored lace up to ensure a formal look for
the children.
Force 10
Sporty and vibrant the Force 10 range has been rewriting the industry norms. Constant
technology upgradations have made it one of the more desired brands in the category.
Fortune
A pure male fashion brand, Fortune has the latest styles in formal footwear for men.
Freedom
Professionals, undertaking high impact, electrical, thermal, chemical or even slippage risks,
walking over surfaces or operating in environments that expose them to dangers related to these,
use a pair of Boots that they completely rely on.
Whether you are a power plant technician, alkali unit worker, or even an X-treme sports
practitioner, you will appreciate the safety of FREEDOM Protective Professional Boots.
Made from super-resilient rubber, blended with PVC, these boots afford the protection that no
ordinary footwear can provide, no matter how well they are constructed. They are resistant to,
electrical shock, mechanical crush, chemical corrosion and extreme heat and cold. These boots
are also anti-static, anti-slippage, non-tearable.
Gliders
Gliders is a complete range of footwear in itself. Using the trendy EVA technology it comprises
of beachwear to casual as well as formal footwear both in leather and other innovative
material meant. And is perfect for not just grown up boys and girls but young kids too.
Prefect
One, two buckle my shoe
A choicest range of school shoes for both boys and gals in buckled and lace type that makes
school going an interesting affair. Available in shining black and pure white, its wide variety
makes way for the wonder years of school life.
Senorita
Senorita is a brand for the fashion and style conscious young woman. She's comfortable
expressing herself and makes life beautiful and invigorating whether at work or home.
Tiptopp
The brand offers women comfortable and fashionable slip-ons, sandals and bellies with neat
styling thrown in, not bordering on the bizarre but acceptable across a wide spectrum.
Warrior
Liberty 's Warrior range has over a short period of time developed a reputation that's an envy
of many a competition. The product quality and the range that we produce have gained
acceptability across a varied segment of industrial users. Some of the biggest corporate houses
of the country are sourcing the footwear for their workforce from us. The product range caters
to the building and construction industry, the Oil industry the healthcare segment. The range
has not just safety shoes but footwear for the executives in the company and special footwear
for the nurses and the healthcare segment.
Windsor
A Windsor shoe embodies comfort and style. With its classic looks that's popular amongst the
young executives the Windsor brand of shoes are one of the largest set of Men's shoes sold by
Liberty.
Workman
Presenting low budget Safety Shoes from the house of Liberty.Workman Safety Shoe
isspecially designed & developed for Industries like Construction,Engineering, Service sector
where contractual workers with limited budget are employed.
Design and R&D
Our footwear is a fashion statement and needs constant updating in terms of technology and
worldwide trends. Our R & D team is always ready and open to experimentation and trying out
stuff that help improve the products
A group of 50 young designers are working round-the-clock at the factory looking at products
and ideas for the next seasons' footwear. Each of these designers is a trained professional
from a leading fashion institute.
Technology
Better methods. Better tools. Better technology. Enhanced productivity. Finest quality. Greater
customer satisfaction. Liberty has a lot of firsts to its credit.
It has introduced a new material called TPU (Thermo Plastic Urethane), for high quality
footwear, into the country. This material has better properties than PVC or TPR (conventional
materials used for footwear).
Liberty has also been instrumental in introducing EVA (Ethyl Vinyl Acetate), which is a direct
injection molding used for making sole for the first time in Asia. This technology uses very light
material & the footwear is made with the direct injection system.
Liberty also pioneered the PU (Poly Urethane) Technology in India for the footwear industry.
Besides these Thermo Plastic Elastomer has been developed for the first time in India at
Liberty. A CAD/CAM design center is in place at Liberty . The Sympatex waterproof technology
in footwear was pioneered by also Liberty . Liberty is also the first company to market PPE
products for safety purpose.
Design and R&D
Our footwear is a fashion statement and needs constant updating in terms of technology and
worldwide trends. Our R & D team is always ready and open to experimentation and trying out
stuff that help improve the products
A group of 50 young designers are working round-the-clock at the factory looking at products
and ideas for the next seasons' footwear. Each of these designers is a trained professional from
a leading fashion institute.
Technology
Better methods. Better tools. Better technology. Enhanced productivity.Finest quality.Greater
customer satisfaction. Liberty has a lot of firsts to its credit.
It has introduced a new material called TPU (Thermo Plastic Urethane), for high quality
footwear, into the country. This material has better properties than PVC or TPR (conventional
materials used for footwear).
Liberty has also been instrumental in introducing EVA (Ethyl Vinyl Acetate), which is a direct
injection molding used for making sole for the first time in Asia. This technology uses very light
material & the footwear is made with the direct injection system.
Liberty also pioneered the PU (Poly Urethane) Technology in India for the footwear industry.
Besides these Thermo Plastic Elastomer has been developed for the first time in India at Liberty.
A CAD/CAM design center is in place at Liberty . The Sympatex waterproof technology in
footwear was pioneered by also Liberty . Liberty is also the first company to market PPE
products for safety purpose.
Manufacturing Excellence
We call them Humantech Centers. When people visit us they see them as centers of Excellence
for manufacturing shoes where technology works in perfect tandem with human creativity.
Liberty has Humantech centers at four locations in India , the latest being the Uttaranchal
project which was launched recently to boost the production of world-class footwear. This
Greenfield plant near Dehradun will increase the company's existing production capacity of 18
million units pa by 200,000 units.
BRANDS
Business Description
Liberty Shoes Ltd. is the only leather footwear manufacturer in India who is among the top 5
manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million.
We produce more than 50,000 pairs a day and our range in fashion footwear covers virtually
every segment.
LATEST PERFORMANCE
Performance update as at 6th Jul'11 (Since May'10
Adidas
Company History:
In 1925, in a small German village, the world got it's first taste of adidas. It was there, in a
village by the name of Herzogenaurach, located 12 miles to the north and the west of
Nuremberg, that those simple three stripes were brought to life by adidas' founder, Adolf "Adi"
Dassler. Adi created adidas after realizing the need for performance athletic shoes. Adidas
began small, producing soccer and running shoes, which ironically enough are still the main
products that adidas is known for.
As Dassler’s experience grew, so did his reputation. Dassler became widely known as the
"equipment manager of the world." His shoes were first worn in Olympic competition in 1928,
and from then on he worked with everyone from Olympic athletes to national soccer teams.
Some of history's greatest athletic performances are in debt to Dassler and his work. Jesse
Owens wore adidas track shoes, during his spectacular Olympic performance in 1936, where he
earned four gold medals. And Armin Hary was the first athlete to run the 100-m sprint in 10
seconds, also wearing adidas shoes. In 1949, Dassler created the first soccer shoe with molded
rubber studs, adopting the trademark three stripes. The German National team truimphed in
the 1954 World Cup wearing Adi's soccer boots with screw-in studs, which enabled the game to
be played under vastly different conditions without slipping. Hundreds of world records,
Olympic medals and World Cup victories stand as a testament to AdiDassler's life work.
One of Dassler's goals in producing athletic shoes was to design them according to each sport's
specific demands. Dassler's drive to fulfill this goal resulted in more than 700 patents. His long
list of sport shoe innovations includes nylon soles and running spikes. He considered any
material that might enhance the performance of his shoes. Dassler experimented with
sharkskin as a sole material and kangaroo skin for the sides of his shoes.
Whatever the athlete's needs, Dassler took them into consideration when designing a shoe.
Gold medals, world records and personal athletic accomplishments are the true testaments to
Dassler's shoes and the effectiveness of Adi's innovations. Recognizing the genius of Dassler's
work, the American Sporting Goods Industry Hall of Fame inducted Dassler in 1978 as its first
non-American member. Today the world refers to Dassler as the founder of the modern
sporting goods industry.
Yet it was not Adi's creativity and mastery of shoe technology alone that catapulted adidas to
the top of the athletic shoe industry. Dassler's wife, Kathe, and their five children all had a hand
in the business. Horst, the Dasslers' first-born, perhaps made the most signigicant contribution
to his father's company. While Adi's were creative talents, Horst had a head for marketing. With
the combination of Dassler shoe quality and Horst's ability to market that quality, adidas was
bound for success in the athletic shoe market.
Adidas Logo History
For years the only symbol associated with adidas was the trefoil (flower) logo. This is the logo
on top of the three you see on the right. In 1991 a new adidas logo was introduced. This logo
evolved to become the performance logo (on the bottom) featured on most adidas products
today. The performance logo was actually a part of the logo used for adidas' higher line of
product's called adidas equipment. The equipment line began in 1991 with a trio of soccer
shoes. The trio consisted of the following.
MISSION OF ADIDAS
Our mission is to be the best sports brand in the world. We will never equate quantity with
quality. Adidas founder, AdiDassler was passionate about sports and committed to meeting the
demands and needs of athletes. He gave them the unexpected, the little differences that made
them more comfortable and improved performance.
This is our legacy.
This is what the brand stands for.
This will never change.
Product Line
Adidas-Salomon produces under the following brand names:
· Adidas: footwear, apparel and hardware
· Erima: Apparel
· Bonfire: Apparel
Newly acquired brands:
· Salomon: skis, snowboards, bindings, ski boots, cross country ski equipment, in-line skates
· Taylor Made, golfclubs and accessories
· Mavic, bike wheels and rims
Adventure Shoes Basketball shoes Cycling shoes
Eye protection
Tennis shoes
Backlash Lo Downtown Campiolo Chili Central
Backlash Mid EQT Elevation Lo DirtSurfer Cookie EQT precision
EQT Arooga Lo EQT Elevation Mid Garda Cop Response FYW
EQT Arooga Mid Squire Ghissalo Lizard Spitfire Lo
EQT Badlander Turnaround Off Ramp Robin The Open
Violation Vuelta Sprocket The Wells
Twini Top rank Mid
Track and Field Shoes Soccer shoes Running Shoes Training shoes
The World Cup Soccer Ball
Adistar Accelarator Copa Mundial Alfrescon Trail 4 by 1 The World Cup Soccer Ball
AdistarHammer/Discuss EQT Real Liga Equipment Salvation
Bradenton Lo
Adistar High jump EQT Velez Liga Equipment Trident
Dorsey
Adistar Javelin Predator Traxion Cup
Lexicon Extra Equipment
Adistar LD Rapier Traxion junior
Ozweego Extreme Fast
Adistar Long jump World cup Response Malice
Adistar MD Response Trail Roll Out
Adistar Race Walk Supernova Speed Trainer
Adistar Shot Put
Adistar Sprint
Adistar Steeple
Adistar Triple jump
Titan LD
Creation Of a product at adidas.
An immense amount of work goes into the creation of an adidas product. First, Marketing
consults with the internal adidas sports and technical divisions and external sources, such as
athletes and coaches, to find out where a product is needed, or where other products are
falling short. After the consumers' needs and opportunities for product improvements are
identified, Marketing presents the concepts to our design department, which creates products
to fill these needs with innovative technologies and functional design. Development makes the
actual prototypes. Marketing presents these prototypes to the retail market.
Clearly, an adidas product is the result of the intense thought and creative energy of many
different people at adidas. Our goal is to crate a product that is honest. In other words, adidas
designs products that are intended to perform. The rule is simple, form follows function. The
following is a gerneral outline of how an adidas product is created:
1. Marketing evaluates athletes' needs, develops a basic concept of how those needs should be
met, and presents the concept to Design.
2. Design sketches possible prototypes to meet the needs expressed by Marketing.
3. Design and Marketing consider the prototype sketches together, narrowing the selection to
those they anticipate will most successfully meet athletes' needs.
4. Design works with Development to create a prototype.
5. Marketing, Design and Development meet to review and improve the prototype.
6. Samples are wear-tested to ensure the product meets adidas standards for performance and
durability and stands up to the demands of the sport for which it was designed.
7. Preview samples are presented to key accounts and consumer focus groups for feedback.
Final changes are made.
8. Salesman samples are distributed to adidas sales representatives for presentation to
retailers.
9. Product is delivered to retailers
Adidas - Crm Technology
Abstract
Purpose - In a seminal article, Webster argued in 1992 (Journal of Marketing, Vol. 56/October,
pp. 1-17) that some changes in concept and practice have fundamentally reshaped the field of
marketing. He claims that ‘customer relationships' are now the key strategic resource of a
business. Strategic partnerships and networks are replacing simple market-based transactions.
The purpose of this paper is to investigate this claim in the context of various relationships
maintained by the adidas® group.
Approach – A detailed analysis was carried out to consider how the organisation has adopted a
customer-oriented approach as their key strategy for improved business. This includes factors
like increased loyalty of the customers, innovation in creation of new products, use of
technology to maintain customer information and the importance of strategic alliances with
other businesses.
Findings – Customer Relationship management is an integral part of the marketing strategy in
every organisation. Every department of the organisation works in a cumulative way to add
value to the customer and thereby increase the efficiency of the organisation in terms of
profits. Adidas® group has employed CRM as it core marketing strategy in both business-to-
business relationships and business-to-consumer relationships using innovative products and
latest technologies like mySAP-CRM.
Keywords - relationship marketing, customer retention, adidas® group
Position and perspectives--Solomon
Founded in 1947 by Georges Salomon, the Salomon Worldwide Group was established as a ski-
edges workshop in the French Alps. Nowadays, the company is among the leaders in sports
equipment with strong brands: Salomon (winter sports, hiking boots and rollerblade), Taylor
Made (golf clubs and accessories), and Mavic (cycle components).
Salomon Worldwide‘s strength and philosophy lies in its reputation of designing true innovative
products, with both technical advantages and esthetics, resulting in a true partnership with
sport-oriented men and women. This strategy is supported by strong investments in R&D and
marketing (respectively 5% and 20% of sales).
The company has proven its ability to quickly attain strong market positions and profitability. Its
strategy is to become a leader in the "freedom actions sports":
Facing the decline of its traditional markets (winter ski and fixations), Salomon — still world
leader in winter sports — has diversified its activities in the fast growing snowboard and in-
line skates markets.
Taylor Made is number two in metalwoods worldwide — driven by the success of Burner
Bubble irons, it is the golf brand with the strongest growth on the American market — and
expects to confirm its position as an innovative brand.
Mavic is the world leader of top-level rims, and new products — such as ultra-aerodynamic
wheels — are currently being studied by the company
Corporate Responsibility
Compared to US companies Nike and Reebok, Adidas has been slow to respond to issues of
corporate responsibility. It was only in June 1998 that Adidas adopted a code of conduct
("Standards of Engagement") and an internal monitoring system. Until then, Adidas had stated
that it did not wish to develop a code of its own but favoured an industry-wide code similar to
that drawn up by the World Federation of Sporting Goods Industry (WFSGI).
To monitor these standards, Adidas has initiated an internal monitoring program, with
subsequent audits of suppliers conducted all over the world by regionally located Adidas-
Salomon personnel. The majority of Adidas suppliers have been evaluated for compliance with
the SOE and other action plans developed with individual suppliers to improve working
conditions. Adidas-Salomon has teamed up with Business for Social Responsibility, a non-profit
organization which promotes corporate citizenship, to train monitors and suppliers'
representatives. With the assistance of experienced environmental consultants, a manual on
health and safety and environmental issues has been developed which will help to make the
SOE effective in practice. Manuals on labour issues are also being developed.
Next to that, Adidas-Salomon supports, through the WFSGI, projects which provide educational
opportunities for working children in Pakistan and thus alternatives to stitching footballs. A
similar project is being developed in India. Both involve local sports goods manufacturers, the
ILO, Save the Children, UNICEF and local NGOs.
In January 1999, Adidas appointed David Husselbee as global director of Social and
Environmental Affairs. Husselbee used to work for Save the Children Fund and worked on
WFSGI child labour projects in Pakistan.
Adidas sources most of its products from suppliers all over the globe. About 95% of its sports
shoes and 60% of its garments are sourced from Southeast Asia. The increase in Adidas sales of
sports shoes and garments is due to a "strict control" of international sourcing costs. The Adidas
Annual Report of 1996 already states that sourcing is at the heart of the business and a crucial
factor in reducing production costs.
The consequences of this policy on working conditions in the supplier factories of Adidas has
been described in detail which are as follow:
1. At the Formosa/Evergreen factory in El Salvador, there are about 1000 women who work
60-70 hours per week for a monthly wage of US$133. Women becoming pregnant are
dismissed. Unions are being suppressed. (German TV broadcast "Monitor" 13 August 1998)
2. The monthly wage in the Chinese shoe factory Han Tin is between US$47 and US$72.
Workers have to work seven days a week with forced overtime of up to seven hours a day -
paid at the normal rate of pay. (Asia Monitor Resource Center and Hong Kong Christian
Industrial Committee, October 1997)
3. The women workers at the Bulgarian knitting supplier Orfei earn 67 US $ per month.
(Documentation of the International Forum on Clean Clothes 30 April - 5 May 1998 Brussels)
4. At the Tainan factory in Indonesia, neither the minimum wage nor the legally prescribed
overtime pay are being paid. Overtime is forced and exceeds the legally prescribed
maximum number of hours. Union activities are being hampered. Sanctions for mistakes are
excessive in proportion to the wages paid. Health and safety are neglected. Female workers
are sexually harassed. ("Cheap production in Indonesia for Germany's fashion TNCs: Steps
towards alternatives", SÜDWIND-Materialien Nr. 7, Siegburg/Germany, November 1999)
International pressure on Adidas has increased over the last couple of years, with the aim to
press the company to go beyond internal monitoring. Subsequently, Adidas has started to
respond to letters from international Clean Clothes Campaigns sympathizers and to talk to the
German Clean Clothes Campaign.
In 1999, Adidas became a member of the Fair Labor Association in the USA and applied for
membership of the Ethical Trading Initiative in Great Britain. Although progress is slow and
confined to selected cases of labour violations such as Formosa/Evergreen, Adidas opted for
corrective measures from the end of 1998. In June 1999 the US audit company "Verité", hired
by Adidas, monitored Formosa/Evergreen and reported continued, gross violations of labour
legislation. This report was communicated to the Clean Clothes Campaign by adidas, as well as a
correctional action plan dated October 1999. Over a year after publication of the
Formosa/Evergreen report, there is little progress, but at least first improvements are beginning
to be felt by the workers: workers applying for a job are no longer asked if they are members of
a union.
Industry Profitability
The athletic footwear industry is a challenging and saturated market. Intense competition,
fashion trends, and price conscious consumers have slowed growth in this industry.
Manufacturers are combating sluggish sales with radical new styles, along with offering more
styles at lower price points. Companies are looking for new ways to boost sales by capitalizing
on direct Internet sales to consumers. Many companies are also increasing profitability by
transferring production to cheaper offshore facilities.
This segment has reached a point of maturity in the domestic market and can look forward to
only modest sales growth for the long term. However, sales are improving slightly, especially in
the areas of running shoes, cross-trainers and basketball shoes. Therefore, companies with
strong brands will increasingly turn to international markets for growth.
INDUSTRY ANALYSIS:
Opportunities
The athletic footwear and apparel industries will benefit from the currently strong
economic backdrop in the United States. Spending is high and is expected to result in sales
growth industry-wide.
Athletic shoes and apparel have become a staple in wardrobes worldwide. This is due to
both the increasing numbers of people exercising and the trend towards casual apparel.
Competition is fierce at all levels in within the industry, especially among the leaders. This
creates a sense of security for the companies that have been able to create a niche.
Cost cutting due to restructuring of operations will give many companies the chance to
price products more competitively.
One area in the industry that is ever changing is research and development. The strong
departments will surely capitalize on the trends of tomorrow if their efforts are successful.
Increasing financial recovery in overseas markets proves to be an area of expansion for the
athletic footwear and apparel industry.
E-tailing, or customer-designed internet merchandise, is threatening the traditional
distribution channels, thus eliminating the "middle-man" distributors and allowing for
increasing profitability.
Threats
The industry has reached a level of maturity. While style and technology in athletic
apparel and footwear has reached a leveling-off point, the important aspect now is for
companies to differentiate their lines.
Inflation is looming over the U.S. economy, which may spark a cutback in consumer
spending.
Consumers are becoming savvier and may lean towards discounted items.
In terms of market saturation, many of the key manufacturers in this industry have been
around for many years. Consumers may be scanning the market for new and different
footwear and apparel products.
KEY OPPORTUNITY
The key opportunity for adidas currently is the booming economy of the United States.
Currently the company has the ability and the resources to exploit this opportunity.
Adidas has capitalized on the recent economic boom with higher sales and income.
However, they are not using their resources to the fullest degree. There are currently
many areas in which adidas is not paying attention. They have not catered to a large
portion of the new generation that demand the latest trends and styles. Also, adidas
must take into account the changing demographics in this country. There is a much
higher proportion of Hispanics, Asians, and African Americans than there was before.
These groups have somewhat different tastes that adidas should be able to satisfy.
To exploit this opportunity, adidas needs to focus on who the next generation of loyal
customers will be and cater to their needs. In addition, the world economy is recovering
currently, which allows adidas to make an impression in foreign markets as well. adidas
is strong in many foreign countries, but we need to focus on the younger market of
consumers. Adidas has been doing a great deal of research and development, but if they
want to increase their market share, they must look at trends while maintaining their
high standards of quality
Business Segments
The Adidas Group organizes its business segments by brand:
adidas (72.4% of 2009 net sales): The adidas brand is the ultimate profit driver for the adidas
Group, accounting for about three quarters of net sales. The brand consists of 2 segments:
Sports Performance and Sports Style. This brand, which employs a premium-price strategy, sells
items in fashion, apparel, and footwear.
Reebok (19.4% of 2009 net sales): Reebok has three different divisions: Reebok (80% of brand
revenue in 2009), Reebok-CCM Hockey (8%), and Rockport(12%).Since beingacquired in 2006,
the group has been trying to reposition the Reebok brand image. Before its acquisition, Reebok
had employed excessive discounting in an effort to drive volume sales, but the adidas Group
has been raising prices. The group is also trying to position the brand as a specialist in the
women's, fitness, and running markets, to limited success. Overall, Reebok's brand image is still
diluted because of its previously low prices. Most analysts believe that a Reebok integration
and shift in brand image are significant opportunities for the adidas Group.
Taylor Made-adidas Golf (8.2% of 2009 net sales): Taylor Made-adidas Golf is comprised of
Taylor Made (clubs and balls) and adidas Golf, (footwear and apparel).
MARCKET SHARE
Adidas is currently enjoying the fastest growth of any brand domestically, with a market share
of 6% and revenues of $500 million. They have been shielded from bad publicity by the two
Goliath’s of the industry, Nike and Reebok, and are reaping the rewards substantially. They
have adjusted their manufacturing strategy, from a vertical operation in Germany in the 60’s
and 70’s, to an outsourcing focus today throughout Asia. Unlike the big two, they do not have a
code of conduct, and their factories are considered to be the worst in the industry. It is just a
matter of time before they are exposed, with an underground swelling of negativity already
occurring today. In order to avoid the negative effects and lost revenues that Nike and Reebok
have received, they need to immediately begin to take a proactive stance in regards to the
working conditions of their factories
BRANDS
Adidas Sport Performance
The guiding principle of the adidas Sport Performance Division is to equip all athletes to achieve
their “impossible”. adidas Sport Performance brings its passion for great products to athletes
in all sports and mainly focuses on four key categories globally:football, running, training and
basketball.
Adidas Original
Personal collections,innovative style,groundbreaking fashion.Orginals by original is the sum of
all three,pure celebration of originality in footwear and apparel.
From born originals like Mark Gonzales and Nike Nastase, to the music and style of Missy Elliot
and Run DMC, to true champions like David Beckham and Stan smith the three stripes has been
there since the very beginning.
Adidas Style
The Sport Style Division is the home of Originals, defined as authentic sportswear, the Fashion
Group, which is the future of sportswear, and Style Essentials, the fresh sport-inspired label
made accessible for style-adopting youth. Together they offer consumers products from street
fashion to high fashion, all uniquely inspired and linked to sport.
NIKE
A brief history of Nike
The Nike athletic machine began as a small distributing outfit located in the trunk of Phil
Knight's car. From these rather inauspicious beginnings, Knight's brainchild grew to become the
shoe and athletic company that would come to define many aspects of popular culture and
myriad varieties of 'cool.'
Nike emanated from two sources: Bill Bowerman's quest for lighter, more durable racing shoes
for his Oregon runners, and Knight's search for a way to make a living without having to give up
his love of athletics. Bowerman coached track at the University of Oregon where Phil Knight ran
in 1959. Bowerman's desire for better quality running shoes clearly influenced Knight in his
search for a marketing strategy. Between them, the seed of the most influential sporting
company grew.
The story goes like this: while getting his MBA at Stanford in the early '60s, Knight took a class
with Frank Shallenberger. The semester-long project was to devise a small business, including a
marketing plan. Synthesizing Bowerman's attention to quality running shoes and the
burgeoning opinion that high-quality/low cost products could be produced in Japan and
shipped to the U.S. for distribution, Knight found his market niche. Shallenberger thought the
idea interesting, but certainly no business jackpot. Nothing more became of Knight's project.
Cut to 1963. Phil Knight traveled to Japan on a world-tour, filled with the wanderlust of young
men seeking a way to delay the inevitable call of professional life. Seemingly on a whim, Knight
scheduled an interview with a Japanese running shoe manufacturer, Tiger--a subsidiary of the
Onitsuka Company. Presenting himself as the representative of an American distributor
interested in selling Tiger shoes to American runners, Knight told the businessmen of his
interest in their product. Blue Ribbon Sports--the name Knight thought of moments after being
askedwho he represented--was born. The Tiger executives liked what they heard and Knight
placed his first order for Tigers soon thereafter.
By 1964, Knight had sold $8,000 worth of Tigers and placed an order for more. Coach
Bowerman and Knight worked together, but ended up hiring a full-time salesman, Jeff Johnson.
After cresting $1 million in sales and riding the wave of the success, Knight et. al. devised the
Nike name and trademark Swoosh in 1971.
By the late '70s, Blue Ribbon Sports officially became Nike and went from $10 million to $270
million in sales. Katz (1994) describes the success via Nike's placement within the matrix of the
fitness revolution: 'the idea of exercise and game-playing ceased to be something the average
American did for fun,' instead Americans turned to working out as a cultural signifier of status.
Clearly, the circumstances surrounding the shift are not this simple; it is one of the aims of this
project to discover other generators of popular attention to health.
If Nike didn't start the fitness revolution, Knight says, "We were at least right there. And we
sure rode it for one hell of a ride" (Katz, 66). The 80s and 90s would yield greater and greater
profits as Nike began to assume the appearance of athletic juggernaut, rather than the
underdog of old. "Advertising Age" named Nike the 1996 Marketer of the Year, citing the
"ubiquitous swoosh...was more recognized and coveted by consumers than any other sports
brand--arguably any brand" (Jensen, 12/96). That same year Nike's revenues were a staggering
$6.74 billion. Expecting $8 billion sales in fiscal 1997, Nike has targeted $12 billion in sales by
the year 2000.
And all from the back of a car.
Few can question Nike's financial hegemony. But nearly $7 billion in revenues clearly begs the
question, What sells these shoes? It is my assertion that Nike's power to sell comes from deep-
rooted yearnings for cultural inclusiveness and individual athletic accomplishment. These
seemingly paradoxical desires collide in consumers hearts and minds and produce the
unyielding zeal for Nike shoes and apparel. Unfortunate effectsof this zeal can be found in the
rash of Nike apparel killings in 1991 and the profusion of Nike collectors and webpages
designed around the company's products. (See listing of homepages on Works Cited Page) Nike
appeals to these disparate elements of Americans' personalities through an advertising
philosophy that is, at once, simple and sublime. In addition, Nike's practice of top-level athletes
promoting their products appeal to countless ages and creeds as a way to identify with and
emulate their athletic heroes. These forces work powerfully upon the individual consumer, but
one should not lose sight of the cultural context in which the individual moves.
end of fiscal 2011, NIKE, Inc.’s affiliate businesses contributed approximately $2.7
billion of the company’s $20.9 billion in reveAcquisitions
As of November 2008, Nike, Inc. owns four key subsidiaries: Cole Haan, Hurley International,
Converse Inc. and Umbro. Nike's first acquisition was the upscale footwear company Cole Haan
in 1988. In February 2002, Nike bought surf apparelcompany Hurley International from founder
Bob Hurley.[12] In July 2003, Nike paid US$309 million to acquire Converse Inc., makers of
theiconic Chuck Taylor All Stars sneakers.[13] On March 3, 2008, Nike acquired sports apparel
supplier Umbro, known as the manufacturers of the England national football team's kit, in a
deal said to be worth £285 million (about US$600 million).Other subsidiaries previously owned
and subsequently sold by Nike include Bauer Hockey and Starter.
Products
A Nike brand athletic shoe
A pair of Nike Air Jordan I basketball shoes
Nike produces a wide range of sports equipment. Their first products were track running shoes.
They currently also make shoes, jerseys, shorts, baselayers, etc. for a wide range of sports,
including track and field, baseball, ice hockey, tennis, association football (soccer), lacrosse,
basketball, and cricket. Nike Air Max is a line of shoes first released by Nike, Inc. in 1987. The
most recent additions to their line are the Nike 6.0, Nike NYX, and Nike SB shoes, designed for
skateboarding. Nike has recently introduced cricket shoes called Air Zoom Yorker, designed to
be 30% lighter than their competitors'.[16] In 2008, Nike introduced the Air Jordan XX3, a high-
performance basketball shoe designed with the environment in mind.
Nike sells an assortment of products, including shoes and apparel for sports activities like
association football,[17] basketball, running, combat sports, tennis, American football, athletics,
golf, and cross training for men, women, and children. Nike also sells shoes for outdoor
activities such as tennis, golf, skateboarding, association football, baseball, American football,
cycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing, and other athletic and
recreational uses. Nike is well known and popular in youth culture, chav culture and hip hop
culture for their supplying of urban fashion clothing.Nike recently teamed up with Apple Inc. to
produce the Nike+ product that monitors a runner's performance via a radio device in the shoe
that links to the iPod nano. While the product generates useful statistics, it has been criticized
by researchers who were able to identify users' RFID devices from 60 feet (18 m) away using
small, concealable intelligence motes in a wireless sensor network.
In 2004, they launched the SPARQ Training Program/Division.
Some of Nike's newest shoes contain Flywire and Lunarlite Foam to reduce weight.
On July 15, 2009, the Nike+ Sports Band was released in stores. The product records distance
run and calories expended, keeps time, and also gives runners new programs online they could
try running.[clarification needed]
The 2010 Nike Pro Combat jersey collection will be worn by teams from the following
universities: Miami, Alabama, Boise State, Florida, Ohio State, Oregon State, Texas Christian
University, Virginia Tech, West Virginia, and Pittsburgh. Teams will wear these jerseys in key
matchups as well as any time the athletic department deems it necessary.
Headquarters
Nike's world headquarters are surrounded by the city of Beaverton, but are within
unincorporatedWashington County. The city attempted to forcibly annex Nike's headquarters,
which led to a lawsuit by Nike, and lobbying by the company that ultimately ended in Oregon
Senate Bill 887 of 2005. Under that bill's terms, Beaverton is specifically barred from forcibly
annexing the land that Nike and Columbia Sportswear occupy in Washington County for 35
years, while Electro Scientific Industries and Tektronix receive the same protection for 30 years.
Manufacturing
Nike has contracted with more than 700 shops around the world and has offices located in 45
countries outside the United States.[23] Most of the factories are located in Asia, including
Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.[24] Nike
is hesitant to disclose information about the contract companies it works with. However, due to
harsh criticism from some organizations like CorpWatch, Nike has disclosed information about
its contract factories in its Corporate Governance Report.
Human rights concerns
Sweatshops
Nike has been criticized for contracting with factories (known as Nike sweatshops) in countries
such as China, Vietnam, Indonesia and Mexico. Vietnam Labor Watch, an activist group, has
documented that factories contracted by Nike have violated minimum wage and overtime laws
in Vietnam as late as 1996, although Nike claims that this practice has been stopped.[25] The
company has been subject to much critical coverage of the often poor working conditions and
exploitation of cheap overseas labor employed in the free trade zones where their goods are
typically manufactured. Sources for this criticism include Naomi Klein's book No Logo and
Michael Moore documentaries.
During the 1990s, Nike faced criticism for the use of child labor in Cambodia and Pakistan in
factories it contracted to manufacture soccer balls. Although Nike took action to curb or at
leastreduce the practice, they continue to contract their production to companies that
operatein areaswhere inadequate regulation and monitoring make it hard to ensure that child
labor is not being used.[26]
In 2001, a BBC documentary uncovered occurrences of child labor and poor working conditions
in a Cambodian factory used by Nike.[27] The documentary focused on six girls, who all worked
seven days a week, often 16 hours a day.
Campaigns have been taken up by many colleges and universities, especially anti-globalisation
groups, as well as several anti-sweatshop groups such as the United Students Against
Sweatshops.[28] Despite these campaigns, however, Nike's annual revenues have increased from
US$6.4 billion in 1996 to nearly US$17 billion in 2007, according to the company's annual
reports.
A July 2008 investigation by Australian Channel 7 News found a large number of cases involving
forced labour in one of the largest Nike apparel factories. The factory located in Malaysia was
filmed by an undercover crew who found instances of squalid living conditions and forced
labour. Nike have since stated that they will take corrective action to ensure the abuse does not
continue.[29]
As of July 2011, Nike stated that two-thirds of its factories producing Converse products still do
not meet the company's standards for worker treatment. A July 2011 Associated Press article
stated that employees at the company's plants in Indonesia reported constant abuse from
supervisors.
China Olympics
Nike also caused controversy during the 2008 Olympics in Beijing, China, when their sponsored
Chinese athlete, Liu Xiang, withdrew from the Olympic 110 metre hurdles, leaving the track
after a false start by another competitor. Liu claimed that he withdrew due an ankle injury.[31]
However, an anonymous message was posted on the internet, purportedly from a source close
to Nike, claiming that the corporation had forced Liu to withdraw as he was unlikely to win,
thereby tarnishing their image. Nike responded by announcing that "we have immediately
asked relevant [Chinese] government departments to investigate those that started the
rumour"
Environmental record
Nike tries to counteract the detrimental effect with different projects. According to the New
England-based environmental organization Clean Air-Cool Planet, Nike ranks among the top
three companies (out of 56) in a survey of climate-friendly companies.[33] Nike has also been
praised for its Nike Grind program (which closes the product lifecycle) by groups like Climate
Counts.[34] One campaign that Nike began for Earth Day 2008 was a commercial that featured
basketball starSteve Nash wearing Nike's Trash Talk Shoe, which had been constructed in
February 2008 from pieces of leather and synthetic leather waste from factory floors. The Trash
Talk Shoe also featured a sole composed of ground-up rubber from a shoe recycling program.
Nike claims this is the first performance basketball shoe that has been created from
manufacturing waste, but it only produced 5,000 pairs for sale.[35]
Another project Nike has begun is called Nike's Reuse-A-Shoe program. This program, started in
1993, is Nike's longest-running program that benefits both the environment and the community
by collecting old athletic shoes of any type in order to process and recycle them. The material
that is produced is then used to help create sports surfaces such as basketball courts, running
tracks, and playgrounds.[36]
A project through the University of North Carolina at Chapel Hill found workers were exposed
to toxic isocyanates and other chemicals in footwear factories in Thailand. In addition to
inhalation, dermal exposure was the biggest problem found. This could result in allergic
reactions including asthmatic reactions.
Marketing strategyThis section needs additional citations for verification. Please help improve this article
by adding citations to reliable sources. Unsourced material may be challenged and
removed. (July 2007)
Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams
and college athletic teams. However, Nike's marketing mix contains many elements besides
promotion. These are summarized below.
Advertising
In 1982, Nike aired its first national television ads, created by newly formed ad agency
Wieden+Kennedy (W+K), during the broadcast of the New York Marathon. This was the
beginning of a successful partnership between Nike and W+K that remains intact today. The
Cannes Advertising Festival has named Nike its Advertiser of the Year in 1994 and 2003, making
it the first and only company to receive that honor twice.
Nike also has earned the Emmy Award for best commercial twice since the award was first
created in the 1990s. The first was for "The Morning After," a satirical look at what a runner
might face on the morning of January 1, 2000 if every dire prediction about the Y2K problem
came to fruition.[40] The second was for a 2002 spot called "Move," which featured a series of
famous and everyday athletes in a variety of athletic pursuits.[41]
In addition to garnering awards, however, Nike advertising has generated its fair share of controversy.-
2011 Investor Update Meeting
On June 28, 2011 NIKE, Inc. hosted an investor update meeting at its world headquarters in
Beaverton, OR. At the event NIKE, Inc. President and Chief Executive Officer, Mark Parker,
and other members of the executive management team provided an overview of fiscal 2011
results and reviewed progress against the company’s long-term strategy to deliver sustainable,
profitable growth
BRANDS
The following 35 pages are in this category, out of 35 total
Air Jordan ·Air Melo Line ·Cole Haan ·Converse · Exeter Brands Group ·Hurley ·Nike Air
Max ·Nike Considered ·Nike Flywire ·Nike Free · Nike Golf ·Nike Mercurial Vapor ·Nike
Shox ·Nike SB ·Swoosh ·Air Force 1 · Team Starter ·Nike Total 90 ·Umbro ·Nike Multi-Turf
Nike's footwear market share 'to grow steadily'16 Mar 11 - 9:58AM
Nike's global footwear market share is set to "grow steadily" over the next few years and is
predicted to reach 20 per cent by 2017.
That is according to financial news and services website The Street, which claims Nike's market
share in the footwear market will increase for a number of factors.
It states: "The growth is mainly attributable to Nike's continuous evolution of its product line and
marketing initiatives.
"In addition to its strong brand name and large distribution channel, Nike's expansion
opportunities, innovative product development, and marketing strategies should contribute
towards growth in its footwear market share."
The news provider also cites the sports brand's expansion opportunities as a key factor to its
success.
It suggests that Nike's presence in emerging markets, such as India and China, will help to offset
any "recent weakness" in the US.
Nike, Inc was originally founded as Blue Ribbon Sports in 1964 by Philip Knight, a track athlete
from the University of Oregon, and his coach Bill Bowerman.
MARCKET SHARE
Nike currently enjoys a 47% market share of the domestic footwear industry, with sales of $3.77
billion. Nike has been manufacturing throughout the Asian region for over twenty-five years, and
there are over 500,000 people today directly engaged in the production of their products. They
utilize an outsourcing strategy, using only subcontractors throughout the globe. Their majority of
their output today is produced in factories in China, Indonesia, and Vietnam, but they also have
factories in Italy, the Philippines, Taiwan, and South Korea. These factories are 100% owned by
subcontractors, with the majority of their output consisting solely of Nike products. However,
Nike does employ teams of four expatriates per each of the big three countries (China, Indonesia,
Vietnam), that focus on both quality of product and quality of working conditions, visiting the
factories weekly. They also developed their code of conduct in 1992 and have implemented it
across the globe, as its goal is to set the standard for subcontractors to follow if they wish to do
business with Nike. However, due to a manufacturing network of this magnitude, they have
faced numerous violations involving factory conditions and human rights issues, which have
been widely publicized. They have responded to these issues through the Andrew Young report,
the Dartmouth Study, and Ernst & Young’s continual monitoring, but are still approximately two
years away from completely addressing these problems throughout the globe.
Opportunities.
Product development offers Nike many opportunities. The brand is fiercely defended by
its owners whom truly believe that Nike is not a fashion brand. However, like it or not,
consumers that wear Nike product do not always buy it to participate in sport. Some
would argue that in youth culture especially, Nike is a fashion brand. This creates its own
opportunities, since product could become unfashionable before it wears out i.e.
consumers need to replace shoes.
There is also the opportunity to develop products such as sport wear, sunglasses and
jewellery. Such high value items do tend to have associated with them, high profits.
The business could also be developed internationally, building upon its strong global
brand recognition. There are many markets that have the disposable income to spend on
high value sports goods. For example, emerging markets such as China and India have a
new richer generation of consumers. There are also global marketing events that can be
utilised to support the brand such as the Nike World Cup (soccer) and The Olympics.
Threats.
is exposed to the international nature of trade. It buys and sells in different currencies and
so costs and margins are not stable over long periods of time. Such an exposure could
mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces
all global brands.
The market for sports shoes and garments is very competitive. The model developed by
Phil Knight in his Stamford Business School days (high value branded product
manufactured at a low cost) is now commonly used and to an extent is no longer a basis
for sustainable competitive advantage. Competitors are developing alternative brands to
take away Nike's market share.
As discussed above in weaknesses, the retail sector is becoming price competitive. This
ultimately means that consumers are shopping around for a better deal. So if one store
charges a price for a pair of sports shoes, the consumer could go to the store along the
street to compare prices for the exactly the same item, and buy the cheaper of the two.
Such consumer price sensitivity is a potential external threat to Nike.
'If you have a body, you are an athlete' - Bill Bowerman said this a couple of decades ago. The
guy was right. It defines how he viewed the world, and it defines how Nike pursues its destiny.
Ours is a language of sports, a universally understood lexicon of passion and competition. A lot
has happened at Nike in the 30 years
About Puma
PUMA is a German-based shoe company that produces sportswear and specializes in making
athletic shoes. It employs nearly 8,000 people and its products reach as many as 80 countries
around the world. PUMA sponsors many individual athletes, such as Olympic champion Usain
Bolt of Jamaica and also sponsors a large number of national and club teams in sports ranging
from soccer to cricket.
History
A German man named ChristophDassler, who lived in the town of Herzogenaurach in
the Bavarian region of Germany, worked in a shoe factory prior to World War I. His wife
ran a laundry and they had a son named Rudolf, who also worked with his father at the
factory. Rudolf served in the army during the war and when he returned, he worked in
manufacturing venues near the city of Nuremberg. He finally returned to his hometown
in 1924, where he joined his younger brother Adolf who had established a shoe factory
of his own. This was the beginning of what would become PUMA shoes.
Significance
The Dassler Brothers Shoe Factory had humble beginnings as the two siblings used their
mother's laundry to make the shoes. They had to supply their own electrical power at
times by riding a stationary bike hooked up to their equipment. The brothers' big break
came in 1936 when Adolf traveled to the Summer Olympics in Berlin, where he was able
to talk the great American track star Jesse Owens into wearing a pair of their track
spikes. Owens went on to win four gold medals and the brothers' shoes became a hit.
Effects
Cashing in on their fame, the Dassler brothers were able to expand their factory and
sold thousands of shoes. But World War II came along and both brothers joined the Nazi
party. During the course of the war, the brothers had a severe falling out and when the
war ended they broke up their business. In 1948, Adolf founded Adidas shoes while
Rudolf called his new shoe company Ruda.
Identification
Both companies thrived over the years. Rudolf quickly changed the name of his to PUMA
and was able to still sponsor many athletes, including the West German soccer team in
1948. In 1949, Rudolf came up with soccer shoes that had removable spikes and in1952 a
runner wearing a pair of PUMA spikes won a gold medal in the Helsinki Olympics. PUMA
became identified with the most famous athlete in the world when the company signed the
great Pele of soccer to a marketing contract. PUMA also boasted of having basketball star
Walt Frazier and football icon Joe Namath endorse their shoes.
Expert Insight
The two brothers never reconciled. When Rudolf died in 1974, his two sons took over
the company, which became a corporation in 1986. Adolf passed away in 1978. The pair
are buried in the same cemetery but as far
apart as could be. In 1998, the company, named for the Spanish word for a cougar,
diversified, branching out into sportswear as well.
PUMA in Present day
A Puma store in a shopping centre
Puma AG has approximately 9,500 employees and distributes its products in more than 120
countries.[when?] For the fiscal year 2003, the company had a revenue of €1.274 billion. Puma
were the commercial sponsors for the 2002 anime series Hungry Heart: Wild Striker, with the
jerseys and clothing sporting the Puma brand.
The company has been conducted by CEO and Chairman JochenZeitz since 1993. His contract
has been extended ahead of schedule for four more years until 2012 in October 2007.[10]
Japanese fashion guru Mihara Yasuhiro teamed up with Puma to create a high-end and high-
concept line of sneakers.
Puma is the main producer of enthusiast driving shoes and race suits. They are the prime
producer in both Formula One and NASCAR especially. They had also successfully won the
rights to sponsor the 2006 FIFA World Cup champions, the Italian national football team, with
them making and sponsoring the clothing worn by the team. Their partnership with Ferrari and
BMW to make Puma-Ferrari and Puma-BMW shoes has also contributed to this success. On 15
March 2007, Puma launched its first new 2007/2008 line of uniforms for a club, and Brazilian
football club Grêmio will be the first to use the laser sewn technology, similar to the one worn
by Italy at the 2006 World Cup. Grêmio and other Brazilian clubs will be the first to use the
technology because their season starts six months earlier than European clubs. Puma also
makes baseball cleats, and Johnny Damon, the outfielder for the Detroit Tigers, is their
spokesperson. He has his own cleat called the "DFR Metals".
COMPARISON OF COMPANIES
Companies Average Growth Rate(2005-08
nike 10.5%
adidas 26.46%
bata 7.8%
liberty 11.16%
nike adidas bata liberty0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
average growth rate
COMPARISON OF COMPANIES (PORTER’S MODEL):
Basis of comarision
Nike adidas relaxo Action bata liberty
Barriors to absent absent absent absent absent
absent
SUPPLY CHAIN IN FOOTWEAR
In nutshell the supply chain in footwear starts from the farmers end and ends with finished
goods in the customer’s hand. The farmers who tame the animals send the skins to skins
&hides collector in their respective area, then these raw
Materials are sent to the tannery which transforms these skins into raw material for the shoe
manufacturing companies, which in turn convert this into finished goods in the form of
footwear.
Further these footwear are sent to warehouse of the manufacturing companies, after that
these goods are supplies to customers through various channel members like retailers,
wholesalersretail chains, department stores. The diagrammatic illustration is shown below
KEY ISSUES:
Employment of children in the footwear industry: Children are employed in the
manufacturing of shoes, particularly in the Agra area of U.P. where approximately 25000
children are estimated to be involved in the process of shoe making for domestic as well as
international markets. These children are between the age group of 10 – 15 mainly employed
for the assembling shoes process. Furthermore these children are exposed to physical factors
like leather dust, benzene and p-tertbutyl phenol, poor illumination. Thus these children suffer
from problems like respiratory problems, skin infections etc.
MARKET FORECASTS
Market Value Forecast
In 2010, the indian footwear market is expected to have value of $4,380.3 million, an increase of
62.1% since 2005. The compounded annual grouth rate of the market in the period is to be 10.1%
India Footwear Market Value Forecast; $ million, 2005-10
year $ million INR billion growth2005 2701.5 119.2 9.10%2006 2960.4 130.6 9.60%2007 3256 143.6 10%2008 3589.7 158.4 10.2%2009 3963.8 174.9 10.4%2010 4380.3 193.2 10.5%CAGR,2005-10 10.1%
2005 2006 2007 2008 2009 2010CAGR,2005-100
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
$millianINR billiangrowth
TURNOVER
351.2
3.2
turnover
bataliberty
