Footwear Industries

Introduction:• India is the world's second largest producer of footwear.

• India produces 2065 million pairs of different categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and non-leather footwear - 1056 million pairs).

• India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand

Organised Market

Unorganised Market

37.80% 62.20%

Indian Footwear Market

Major Players.

Reebok:

• Reebok International Limited was founded in 1895 in Bolton, Lancashire, England.

• a producer of athletic shoes, clothing, and accessories.

• Turnover for the nine-month period ending September is Rs 406 crore, with a profit after tax of Rs 17 lakh.

• 720 franchise stores, presence in 230 cities.

• 54 per cent market share.

• Indian revenues touched Rs 1,400 crore.

Liberty.• Established in 1954.

• Liberty Shoes Limited (LSL) is an Indian shoe company, based in Karnal, Haryana.

• Produces 50,000 pairs of footwear a day.

• Sold through 6,000 multi-brand outlets.

• 350 exclusive showrooms, and has a presence in 25 countries, with 50 showrooms outside India.

• Achieved gross sales of 35,272.92 Lacs (Previous year 34,622.82 Lacs) and Net Sales of 33,752.28 Lacs (previous Year 33,228.52 Lacs).

32,000.00

32,500.00

33,000.00

33,500.00

34,000.00

34,500.00

35,000.00

35,500.00

current year previous year

Gross sales Net sales

PUMA:

• Founded in Germany, in 1948.

• PUMA is one of the world’s largest providers of Sport lifestyle footwear, apparel and accessories.

• Globally, Puma is the 7th ranked athletic apparel vendor, amounting for 1.8% of the total revenue generated by that industry in 2011.

• In 2012, Puma's brand sales amounted to about 3.45 billion euros worldwide, which is about a 4.5 percent increase from the previous fiscal year.

BATA:• Bata is a footwear manufacturing company incorporated in 1931

• Bata Group has worldwide presence across 5 continents, serving 1 million customers per day and operating 4,600 retail stores globally.

• Five factories located at West Bengal, Bihar, Haryana, Karnataka and Tamil Nadu.

• It commands around 35% of market share. Company’s 98% revenue comes from domestic operation.

• Revenue grew to INR 621.58 Crores representing an increase of 8.6%.

• Profit after Tax of INR 59.38 Crores for the quarter.

• NP: QE (Jun 14) :59.38, QE(Jun 13) :61.94, Increase% :4.1%.

Woodland:

• In 1992, Aero Group launched Woodland and it immediately caught the attention of outdoor enthusiasts.

• It brought with it, an innovative collection designed to provide rock climbers, backpackers, hikers, trail runners, and outdoor lovers with the perfect tools to meet nature’s challenges

• Currently, Woodland commands a network of 350 exclusive stores worldwide.

• The brand also has a presence in more than 3000 multi-brand outlets in a number of countries.

• Its shoes and apparel are also retailed through about 3,000 distributors across the country.

• Woodland is also attracting good business from large-format multi-brand retailers like Shoppers Stop, Lifestyle and Reliance.

Volume Share of Products

Segments in Footwear Volume Share in Footwear

Market Share in the Footwear Industry:

India’s Footwear Export Growth over the last Four Decades

• Export of footwear from India increased manifold over the last four decades. During 2012-13, India’s footwear export is valued at US$ 2055.93, constituting 41.14% share in total export of leather & leather products.

• Footwear exports has increased from US$ 102.37 million in 1982-83 to US$ 2055.93 million in 2012-13.

BUDGET 2014 AND ITS IMPACT ON INDIAN FOOTWEAR SECTOR.UNION FINANCE MINISTER ARUN JAITLEY ANNOUNCED THAT:::

THE FOOTWEAR SECTOR RETAIL SEGMENT WILL BENEFIT IN TERMS OF GROWTH IN MARGINS ON ACCOUNT OF REDUCTION IN EXICE DUTY FROM 12% TO 6% ON THE RETAIL PRICE OF BRANDED FOOTWEAR PRICE- TAGGED IN THE RANGE OF RS. 500-1000.

BENFIT TO MANUFACTURER AND ALSO FOR CONSUMER.

Challenges in the Indian Footwear sector:Low quality of shoes

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 rapid industrialization.

Opportunities in the Indian Footwear Industry:

Abundant scope to supply finished leather to multinationals setting up shop in India

Growing fashion consciousness globally

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

Exhibit strengths in manufacturing, for example, strengths in classic shoe manufacturing, hand crafting

etc.