Stepping into a bigger, better future: A

report on India’s footwear market

India is the second largest footwear producer in the world, with footwear
production accounting for approximately 9 per cent of the global annual
production – 22 billion pairs as compared to China, which produces over
60 per cent of the global production.

India annually produces 2.1 billion pairs of which 90 pc are consumed internally
while the rest are exported primarily to UK, Germany, USA, Italy and France

India annually produces 2.1 billion pairs of which 90 per cent are
consumed internally while remaining are exported primarily to European
nations which include United Kingdom, Germany, USA, Italy and France,
as per market analysts.
Footwear exports from India have grown at a CAGR of 20 per cent in
Indian Rupee terms during the last five year backed by growing demand
from European nations and increasing focus of main importing countries
to shift sourcing from China to other low cost producing countries.
India is the third largest footwear consuming country in the world after
China and USA, but with very little separating the three, India is very
soon expected to be the second largest consumer as well.

In absolute terms, footwear exports from India have risen from Rs. 71.5
billion in FY10 to Rs. 180.0 billion in FY15.
The growth in Indian fashion and lifestyle market has given an impetus
to the footwear industry as well. From a basic need-based industry,
it has become an evolving fashion and style category.
Market Size, Growth & Segmentation

As per the India Retail Report, India’s total retail market is worth Rs 3,893,425 crore, growing at 18 per
cent and is expected to cross Rs 6,156,333 crore by 2017. Modern retail is estimated at 42 per cent of this
total market and is expected to grow by 21-23 per cent Y-o-Y. Retail expansion grew at an average of 16-
18 per cent in terms of number of outlets and retail space with same outlet growth being around 25 per
cent.

The footwear market in India, like its international counterpart, has always been broadly classified into
three segments, Men’s, Women’s and Kids. Men’s market is growing at a CAGR of 10 per cent. At
present, men’s market contributes around 60 per cent of sales in the footwear segment as against women’s
share of 30 per cent. The women’s segment, however, is growing at a much faster CAGR of 20 per cent.

Based on the usage, the market can be divided into two sub categories:

 Regular (consisting of daily and sports footwear, material can be leather/non-leather)

 Occasional (consisting of premium and luxury, material can be leather/non-leather)
From price point, the footwear industry in India can be divided into five parts:

 Mass (Rs 150-700)

 Mid/Economy (Rs 700-1000)
 Active Sports (Rs 1000-3000)
 Premium (Rs 3000-5000)
 Luxury (Above Rs 10,000) segment
The footwear market of the country is shared between organised and unorganised segment. The organised
segment caters to about 1/3rd of the market while the remaining market is fetched by unorganised players.
The unorganised segment gains prominence in the Indian context due to its price-competitive products,
which are more suitable and attractive to the price conscious Indian consumer. But with increased
household income, shifting consumer behaviour from saving to spending, increasing brand consciousness
amongst Indian consumers, influx of large number of global brands and penetration in tier – II and III
cities by footwear companies, the organised retail in footwear market is rapidly evolving and expected to
grow at a higher rate in the future.

The rural market of India is still largely untapped for footwear manufacturers. Companies are re-
positioning themselves and launching specific products and price ranges to expand their presence and
increase their consumer base in rural areas.

The Evolution of the Indian Footwear Market

President-South Asia, Bata, Rajeev Gopalakrishnan, analyses the evolution of
footwear industry in his own way. He says, “As consumers’ exposure to multi-
channels on TV, movies, content increased over years, their expectation from
footwear have evolved. Buying shoes for special occasions started becoming a
norm. Advent of digital technologies and penetration of smartphones brings instant
awareness for Indian consumers about the latest global trends and makes them
aspire for the latest. Footwear is not just for utility anymore; they are more of a
fashion statement. This has increased the per capita consumption from 1.6 to 2.4 in
last 5 years. The market is also likely to gain from the proliferation of the retail
culture, which is expected to boost it at a CAGR of 11 per cent between 2015 and
2023. Since the global footwear market is highly fragmented, the focus now lies in
diversifying the product portfolio through research and development to meet the
changing customer needs.”
“The industry is at a very interesting crossroad. The demography and changing
buying behaviour are triggering enhanced demand from the existing pie. Rising
disposable incomes and new entrants into workforce, especially women are pushing
the domestic demand on the upside. On the other hand, the pain points of the
industry – tax component and incentives on investor allowance are being worked
upon. The organised sector will tend to be big beneficiary of these trends,”
says COO, INC. 5 Shoes Pvt. Ltd., Rajesh Kadam.
He further says, “India is witnessing a change in terms of its basic aspiration that has
seen the buyer’s preference move to more of branded stuff. More international
players will enter the market and they will offer a wide variety to the consumer. All
these are way different when we started out when it was a basic need that this
industry fulfilled.”
90 per cent of the footwear produce of India is still consumed by the domestic market
and the rest is exported.
“Indian footwear industry is exploring ways to increase exports and the growth in
export of footwear will depend on quality and cost competitiveness,” says MD
Sreeleathers, Satyabrata Dey.
According to him, India is attracting various established fashion brands of the world
as well as retailers who are re-orienting their focus on the domestic footwear market.
This has led to a significant increase in the number of retail outlets nationwide.
Key Trends Shaping the Indian Footwear Market
• Casualization and the Growth of Sports Shoes: According to Rajeev
Gopalakrishnan, “The surging demand for designer yet comfortable shoes
among women and sportswear or athletic shoes among men, have been
bolstering opportunities for footwear sales.”
It is true that, the choice of footwear, both for men and women in India is always
dominated by the fashion of the season. However recently, comfort has been the
determining factor for the consumers in buying footwear. Casualization has kicked in
as a big trend and with that sales of sneakers, converse also have picked up, as
these are preferred for everyday wear. In fact, heels over three inches, most
favourite in women’s segment, have recorded a decline of 17 per cent since last
September.
MD & CEO Metro Shoes, Farah Malik, says, “The last year saw an upsurge in the
casual category for men and in men’s wear saw an increased acceptance of brighter
colours and quirkier patterns. We have also seen a spurt in kids wear.”
• Increased Trust in Branded Footwear: Though the market share of branded and
non-branded footwear in the country is almost the same till date, but brand
consciousness of the Indians is increasing substantially.
As Rajesh Kadam of INC. 5 says: “A certain segment of Indian consumers is
definitely become brand conscious, and the rest of the market does have an
aspiration to get there.”
Farah Malik adds, “A fast growing economy and a rising number of affluent
consumers have pushed India into the league of most brand conscious countries
globally. However most consumers prefer a price point ranging between Rs 999 –
4999 with regard to both national and international brands.”
• Growing Opportunities in the Women’s Segment: Women’s footwear
constitutes only 30 per cent market share currently. But the growth rate of this
segment is double than the men’s segment. Where the men’s footwear
market has registered 10 per cent CAGR growth rate in the last fiscal, it is
20 per cent for women’s segment.
• Omni-channel Retailing: Retailers have started venturing into Omni-channel
retailing and trying in-store marketing solutions such as beacons to enrich the
shopping experience and trying to find out ways to bridge the gap between
offline and digital channels. In addition to engage users on digital platform,
and even influence their merchandising decisions, many retailers are using
 the platform not just to showcase products, but to actually sell them. The
same goes for mobile. Companies won’t just use the small screen to ‘get in
front’ of customers (i.e. through geo-fencing and mobile-enabled sites). In
2016, retailers have incorporated mobile into other parts of the customer
journey, including order fulfilment, payments, and loyalty.

LEADING FOOTWEAR BRANDS IN INDIA

The First Wave: Indian Powerhouses
The great Indian footwear brands predate their glamorised apparel cousins by a
substantial time margin. Indian powerhouses in general started operating in the
country majorly since independence itself and the past decades have seen more and
more brands being launched into the industry. A case in point is our most loved Bata
that most Indians will disbelieve its Italian origins. It was one of the earliest entrants
and remains the market leader of Indian footwear.

Year of
Brand Segment Presence Product Portfolio Retailing Format
Establishment
Men’s, Women’s, 1,250 stores across
Kid’s footwear 500 cities,
Bata
with international wholesale division,
Mass/Economy/Active
  1931 brands such as dealer-distribution
sports/Premium
Hush Puppies, network, own
Marie Claire, website and other e-
Scholls etc. commerce portals
Men’s, Women’s, 310+ EBOs in 90
Kid’s footwear cities and online
Mass/Economy/Active with international retailing through
Metro 1947
sports/Premium brands like Clarks, brand website and
Steve other e-commerce
Madden, Crocsetc. portals
Mass/Economy/Active Men’s, Women’s, 400 EBOs & 6000
Liberty 1954
sports/Premium Kid’s footwear multi-brand outlets
225 shop in shops
and 32 stand-alone
INC. 5 1954 Economy/Premium Women’s footwear
stores across the
country
Rubber, PU, PVC,
Ajanta 20 showrooms in
EVA, canvas and
Eastern part of the
  1956 Mass/Economy leather footwear
country, MBOs and
for men, women
distributors
and kids
1965 (wholesale
& distribution)
1993 (Retail Mass/Economy/Active/ Men’s, Women’s 600 retail outlets in
Khadims
sports & Kid’s footwear 21 states
journey)

Action 1975 Mass/Economy/Active/ Men’s, Women’s, Franchised EBOs,

sports Kid’s footwear brand website,
leading e-commerce
 portals
Rubber, PU, PVC, Distributed through
EVA and TPR 80 depots and 450+
Paragon 1975 Mass/Economy
footwear for men, distributers  across
women and kids India
Mass/Economy/ EBOs, franchised
Men’s, Women’s, outlets, own website
Relaxo 1976 Active/Sports
Kid’s footwear and e-commerce
portals
1987 (in Men’s, Women’s, 6 EBO’s and dealer
Sreeleathers Mass/Economy/Active
Kolkata) Kid’s footwear network
150 stores in 31
cities, partnered
with retail chains
like Pantaloons,
Men’s & Women’s Globus, Central,
Catwalk 1990 Economy/Premium
footwear Hypercity, Mega
Mart,
Lifestyle, Reliance
Footprint, Shoppers
Stop etc.
Footprints in more
Men’s, Women’s, than 35 cities
Mochi 2000 Economy/Premium
Kid’s footwear through 70 retail
outlets
Source: official website of the brands

The Second Wave: International Sportswear Giants

A significant shift post liberalisation was that lifestyles expanded to foster great value for the sports/active
segment and for casualization as a whole. The technological prowess of global sportswear giants enabled
them to functionally and fashionably appeal to a young India.

Today, these international giants dominate the sports footwear category. The market is held
by Adidas, Nike, Puma, Lotto, Reebok, and we expect the newer entrants ASICS, Sketchers, Crocs,
Salomon etc to begin posing challenges to the Big 5 soon. A highly notable home grown success story
however is Woodland that is a top of mind name in the adventure and outdoor segment in India.

Time of
Brand Retailing Format In India Key Indian Partners
Launch
Basic Clothing, CS Retail, Comfy
Reebok 1995 Franchise outlets, MBOs Shoemakers, Emdee,  Mayur Associates
Retail (Sri Devi), Uttam Trading
Mystore, RJ, SSIPL Group, Saffron
Nike 1995 Franchise outlets, MBOs
Group etc
Adi Sports, Comfy Shoemakers,
Adidas 1996 Franchise outlets, MBOs Goodwill Enterprises, Mayank, 
Swaranbhadra etc
 A&S Creations, Hindustan Army Store,
Salomon 2002 MBO
Planet Sports and Central Stores
Bhawar, Ethix, Kapsons,
Puma 2006 Franchise outlets, MBOs
Samarth, Shreyas
Stand alone stores and 200+
Lotto 2007 Sports Lifestyle Pvt. Ltd.
MBOs
Through Metro Shoesand
Crocs 2007 Metro Shoes
EBOs
EBO, Palladium, Emporio,
Paul &
2009 Mumbai Airport, Hyderabad 50:50 JV with Reliance Retail
Shark
Taj Krishna Hotel
Through MBO only till
beginning of 2015, started
ASICS 2010 Reliance Retail/Footprint
opening franchised stores
since then
Mono Brand Retail through
Sketchers 2012 Future Retail
JV
Airwalk 2012 Through MBOs only Reliance Footprint
Source: IMAGES F&R Research, indiaretailin.com, official website of the brands

Emergence of an Infant High End & Luxury Footwear Market

Though compared to the other footwear segments in India, the premium and luxury segment is very small
and in terms of sales it amounts only approx Rs 450 crore as per ASSOCHAM data, but this has not
prevented many international players from making an India entry. In fact their entry has hugely helped in
raising the aspiration level of the consumers really high.

Many major international brands in premium and luxury segments like Aldo, Charles & Keith, Pavers
England, Hush Puppies, Clarks, Steve Madden, Tod, Bally, Ralph Lauren, Ermenegildo Zegna, Burberry,
Chanel, Gucci, Salvatore Ferragamo, Bottega Veneta, Armani, Versace, Hugo Boss, Dolce and Gabbana,
McQueen and YSL (available through TSG’s Kitsch), Kenneth Cole all are available in India either
through exclusive stores or through MBOs.

Top luxury footwear brands in the world, Louis Vuitton and Jimmy Choo have opened their exclusive
stores in India. Very recently French luxury brand Longchamp has also forayed in India and opened its
first store at DLF Emporio. The brand even has a plan to open 3-4 more stores in the country in coming
few years.

Major MBOs in Footwear Industry

Curation of footwear for consumers is still greatly valued in India. Multi brand retail in footwear not just
remains popular but is growing in strength day by day. Apart from own in-house brands, almost all the
popular brands are visible at leading MBOs as well as in the major departmental stores today.

Reliance Footprint is perhaps the biggest player in this category. It has 225 stores across 24 states and has
brands like Buckaroo, Franco Leone, Ganuchi, Hush Puppies, ID, Lee Cooper, Mancini, Pavers England,
Moss Dunes, Provogue, Red Tape, Samsonite, Woodland, Catwalk, Custini, Hi Attitude, Inc 5, Luciano,
Jove, Orange, Bonjour, Enroute, Piccadilly, Rocia, Tosca, towlips, Viviana, Hi Attitude, Levis, Lilliput,
Mardi Gras, Spiderman, Adidas, Admiral, Fila, Lotto, Monza, Nike, Puma, Reebok, Scholl, Catwalk,
Tresmode, Cocoon, Franco Leone, Gas, Louis Philippe, Roush, Alberto Torresi, Valentino, Sketchers,
Airwalk, Barbie etc in its kitty. Pantaloons, Shoppers Stop and Lifestyle are some other important MBOs
dealing with footwear.

Conclusion

India is often referred to as the sleeping giant in footwear terms. With changing lifestyles and increasing
affluence, domestic demand for footwear is projected to grow at a faster rate than has been seen. India is
witnessing buyer’s preference towards branded stuff. More international players will also enter the market
and they will offer a wide variety to the consumer. All these are indications that Indian footwear industry
might exhaust its full potential and grow exponentially.