Footwear Industry in India (3)

8/8/2019 Footwear Industry in India (3)

http://slidepdf.com/reader/full/footwear-industry-in-india-3 1/21

Indian Footwear Industry---A Retail Perspective



G roup Members

Name Roll No.

Pranali Chandarana 118

Pooja Khandelwal 111

Mandeep Mago 83

Prasad Shetty 120

Ashutosh Khanna

Ishan Gupta

Manish Thakur





Industry Overview The estimated annual production capacity of Leather Shoe Uppers is 112million pairs

India s export of Footwear Components touched US$ 229.49 million in

1999-2000, holding a share of 15% in India s total export of leather andleather products. Nearly 75% of the total export of footwear componentsis from the Southern Region, followed by the Northern Region, with ashare of 13%.

The major markets for Indian footwear components are the U.K.,

Germany, Italy, the USA, France, and Portugal. Nearly 83% of India sexport of footwear components is to the above countries.

India is often referred to as the sleeping giant in footwear terms. It has aninstalled capacity of 1,800 million pairs, second only to China.



Organized Sector vs. Unorganized Sector

The Indian footwear market is estimated to be worth Rs.13,750 Crore andconstitutes just about one percent of Indian retail.The ladies footwear segment still remains the most untapped as nearly80-90 percent purchases happen in the unorganized market

Organised Market

Unorganised Market

37.80% 62.20%

Indi a n Footwear Market

Source: Indi a n Reta il Report 2008-2009



A ctual Exports & Target of the

Leather Industry In IndiaP ro duc t 2006-07 2007-08 2008-09 2009-10 2010-11

(In Million US$) Actual Export Actual Export Actual Export

Leather 688.05 726.85 785.00 847.80 915.63

Footwear 1212.25 1967.88 2597.60 3428.83 4526.05

Garments 308.98 358.53 372.87 387.78 403.30

Leather Goods 690.66 733.34 798.69 870.06 948.04

Saddlery &Harness

81.85 105.66 127.85 154.70 187.19

Total 2981.79 3892.26 4682.01 5689.17 6980.21



Market Share in the Footwear Industry

Volu me Share of P ro duc tsSegme n ts in Footwear Volu me Share in Footwear

Source : http://indiaretailing.com/news.asp?id=1611&topic=3



Major Players in Shoe Market



A didas v/s NikeP arameters

Bra nd founder Adolf "Adi" Dassler Goddess of Victory

Ow

ners Reebok, Taylor Made golf company and Rockport Umbro, Hurley, Converseand Cole Haan

Tec h n olog ies Adiprene, Torsion, GroundControl System (GCS),Climacool

Zoom Air, NIKEiD, WaffleSole, Max Air, IndependentPodular Suspension (IPS)

Motto "Impossible is nothing "Just do it.

P r icin g Adidas products aregenerally cheaper thanNike products

Nike seems to have theupper hand in



Incorporated as Bata Shoe Company Private Limited in 1931, the companywas set up initially as a small operation in Konnagar (near Calcutta) in 1932

Bata India is the largest company for the Bata Shoe Organization in termsof sales pairs and the second largest in terms of revenues

Bata India Limited is the largest footwear retailer in India.

Bata India has more than 1250 stores across the Country

Corporate office: G u rgao n

CEO:Mr. Thomas G Bata



:Improving Market Share

Bata to d ayServes 1 m illion cu stomers per d ayEmploys more than 40,000 peopleOperates 5000 reta il storesManages a reta il prese nc e in over 50 c o un tr iesRuns 40 pro duc t ion fa ci lit ies a c ross 26 c oun tr ies

0

5

10

15

20

25

2006 2007 2008 2009E 2010E0

6.7 6.5 6.8 7.2 7.6

0

17.615.4 15.2 15 15

In Organised Retail

Overall Market Share



Marketing Strategy ofBata is reinventing itself and has introduced the concept of flagsh ip storesto provide complete and unique shopping experience at par with theirstores abroad.International trends, relaxed ambience, great products, and courteous

staff at the new-look Flagship store are all a part of Bata s new marketingstrategy.Reposition brand ' Bata ' - High brand recall for consumer lead to higherfootfalls and better conversionsTarget new market (ladies and kids) - Filling the missing 45% pie of

footwear marketImproving shoe line - Launching international brands, focus on style willattract new young customer class



Major retail outlet of

India's first exclusive Hush Puppies outlet atHyderabad

10,000 sq ft Mega Store at Vadodara

Bata India limited Behrampur



Overview Market segme n t low to me diu m pr ic e d footwear for the

c ommo n perso n a c ross the globe

Loc al Strategy Bata r un s sem i-a u to n omo u s c ompa ni estargete d at the low to me diu m e nd of thesc ale.

Market in g Approa c h Bata c lu sters c o un tr ies geograph ic allyin to gro u ps; the expatr iate wo u ld bui ld reg io n al spe ci al iz at ion & tra inin ga c t ivit ies wo u ld be more releva n t o n a

reg io n al bas is for s im ilar c oun t ies

In ter n at ion al strategy Bata follows a m u lt i d omest ic strategy. Itsta nd s for low in tegrat ion a c ross c o un tryuni ts & h igh lo c al respo n s ive n ess



Product Offerings Bubblegummers is the leading children's footwear brand for

the 0 to 9 olds that assure the healthy growth of a child's foot.

Power embodies diversity with ranges in running, training,court,basketball, football and Outdoor that combines functionwith creativity

Marie Claire shoes are for women with an active lifestylewho seek contemporary modern styles.

The Weinbrenner line is made up of leather shoes and boots,low, mid and high cut

Its characteristics such as double stitching, massage insole, latexfoam insole, soft textile are used to emphasizethe brand image both for comfort and style.



Product Offerings

DR.SCHOLLThe ribbed surface of the insole gently massagesyour feet while walking. This boosts the circulationAnd keeps you active all the day. The soft sole absorbs

all the shocks while walking.N ORTH STARIt's a casual yet fashionable street-style shoes thatcaters to the young at heart.

Hush Puppies emerged world's first casual shoeIt is soft, breathable and very comfortable shoe.Known for technology.



C OMP AN IES T ARG ETI NG THE C ON SUME R S BA SEDON INC OME PE R ANN UM

BATA, ACTIO N, LIBERTY,NIKE, ADIDAS, RELAXO

LOW ER MIDDLECLASS

UPP ER MIDDLECLASS

RICH CLASS

BATA, ACTIO N, RELAXO LOW ER INCO ME

G RO UP

ACTIO N, LIBERTY,NIKE, ADIDAS

P UMA, N IKE

ADIDAS



C hallenges in the Indian Footwearsector

Low quality of shoes threat of shift in production to other areas orcountries where wages levels are low if the quality is maintained at samelevelMost companies work on subcontract basis design, component selectionand methods of production are given by the buyers and do not provide their

own fashion collections, however companies are able to make prototypesbased on ideas provided by the buyer

Strong requirement to increase quality as well as quantity

Availability of right raw material (finished leather) at right time

Under developed designs for footwear components sector

Meeting manpower requirement under the state of affairs of rapidindustrialization



Opportunities in the Indian FootwearIndustry

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 theproduction cycle for different products

Product diversification - There is lot of scope for diversification into other products, namely, leathergarments, goods etc

Growing international and domestic markets

Aim to present the customer with new designs, infrastructure, country & company profiles

Exhibit strengths in manufacturing, for example, strengths in classic shoe manufacturing, handcrafting etc





W ebliography

http://www.ifcoma.org/

Documents

Footwear Industry in India (3)