Per capita consumption of shoes in India is 2.5 shoes per year
India is emerging as a superpower in various industrial segments; many resources are vitally important and help this development trend of the economy. The Indian footwear industry is also on the same developing stage; in fact it has come in and grown in a vast manner since independence. The business has several segments such as footwear for men, women and kids. Moreover, these sorts further branch out according to the age groups and the occasions. These infinite segmenting of the industry provides unlimited growth potentials and thus millions are taking interest in the occupation of manufacturing and selling footwear in India.
Education regarding Footwear Industry in India:
Special courses and research studies are enabling youngsters to get essential insights about the industry and this in turn results in pushing in new developments to the sector as innovation and technology comes in making the sector more competitive. There are many institutions running courses dedicated to the niche. FDDI (Footwear Design and Development institute) was first government institution that was set up in the 1986 in Noida, Uttar Pradesh. Later with the popularity and demand growing its additional campuses were organized and set-up at Fursatganj, Chennai, Kolkata, Chhindwara, Rohtak, Guna and Jodhpur. The future for these courses is for sure bright as an increased count of young minds will get interested in footwear fashion and its related business branches.
Growth numbers of Indian Footwear Sector:
By the start of 2012, the Indian footwear industry was valued at a 22, 000 crores INR and was rated of having a CAGR of 15% whereas the global scenario was a bit on the dull end with a CAGR of just 5% and a value 10.15 lakh crores INR. The growth in both the global and Indian footwear business has been notable; the Indian niche especially has surged up to newer heights. The industry in India is expected to continue with same CAGR and reach a value of 38,700 crores INR by the end of 2015. The increased fashion consciousness and increasing levels of disposable income is ticked off as major features for the abnormal increase in the industrial value. The global footwear market is also estimated to experience a rise to a likely figure of 12.34 lakh crores by 2015.
India Vs. Others in the footwear Business:
When competition is considered, Chinese footwear industry is the only one that is proving to be tough for the Indians. For the last 10 years china has an unbelievably well-built growing market for footwear and it scores most for exports to the European region. Breaking all regional barriers China has been the biggest exporter of footwear goods to the EU27- also known as 27 countries of the European Union. On the other end, there is a strong contribution from the Indian middle class especially from the urban regions of the country which conquers 45% of the global markets. This makes India the second largest footwear producer and exporter in the world. However, India has to work harder to challenge the numbers of her preceding competitor.
There are fresh findings about Indian customer’s growing interest on fast changing innovations in the field of footwear. The never-ending collections of trendy models which keep entering the market help in keeping attentions of the shoppers. The market is filled with buyers as there is heavy penetration into the II and III tier cities where the demand for variety is in plenty.
Industry Composition: Organized and Non-organized
Around 70% of the footwear industry in India is unorganized and involves high skilled labor. The non-branded niche of the sector includes more than 15 lakh labors majority of who have skilled urbanized background. The remaining 30% is occupied by the organized factories which have around 5 lakhs as employees. Same is the story for brands and non-branded manufacturers as the Indian luxury goods have accounts and dedicated outlets and they cover 55% of the entire market. On the other hand, 30% market is run by multi-branded outlets.
Technology powered Indian Footwear Industry:
Online shopping for footwear alike other products is fast catching up. The present reach of online shopping portals is calculated to be 10% and is estimated to double up until the end of 2015.