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INDIAN FOOTWARE
INDUSTRY
The Indian footwear retail As footwear retailing in
market is expected to India remain focused on
grow at a CAGR of over men's shoes, there exists
20% for the period
spanning from 2008 to a plethora of
2011. opportunities in the
Footwear is expected to exclusive ladies' and
comprise about 60% of kids' footwear segment
the total leather exports The Indian footwear
by 2011 from over 38%
in 2006-07. market scores over other
Presently, the Indian footwear markets as it
footwear market is gives benefits like low
dominated by Men's cost of production,
footwear market that
accounts for nearly 58% abundant raw material,
of the total Indian and has huge
footwear retail market. consumption market.
By products, the Indian The footwear component
footwear market is
dominated by casual industry also has
Business environment
Athletic footwear industry
Just do it
The Journey
1960s-Phillip Knight(CEO) & William Bowerman
partnered to
sell running shoes to athletes.
Headquarters- Washington
4. Advertising
6. Beatles song
8. Horror ad
4. Pretty ad
Brand
Ambassadors
STRENGTHS WEAKNESSES
Respo
Producti
nse
on
assura
capacity
nce
Marketing strategy
Economies of scale.
Outsourcing for
many companies.
Hitting customer
base in lower and
middle class.
ADIDAS 22.46 %
BATA 7.8 %
LIBERTY 11.16 %
COMPARISON OF THE COMPANIES
(PORTER’S MODEL)
BASIS OF NIKE ADIDAS RELAXO ACTION BATA LIBERTY
COMPARI
SON
BARRIER ABSENT ABSENT ABSENT ABSENT ABSENT ABSENT
S TO
ENTRY
BARGANI LOW LOW HIGH HIGH HIGH HIGH
NG
POWER
OF
BUYERS
BARGAIN LOW LOW HIGH HIGH HIGH HIGH
POWER
OF
SUPPLIER
THREATS OF HIGH HIGH HIGH HIGH HIGH HIGH
SUBSTITUTE
S
RICH CLASS
PUMA, NIKE
ADIDAS
UPPER MIDDLE
ACTION, LIBERTY,
CLASS
NIKE, ADIDAS
LOWER MIDDLE
BATA, ACTION, LIBERTY,
CLASS
NIKE, ADIDAS, RELAXO
0.25
0.2
REVENUE (BILLION US $)
0.15
BATA
LIBERTY
0.1
0.05
0
2005 2006 2007 2008
YEARS
Got your Choos?
Premium pricing (as in the case of luxury
items) ensures that the item is not
available to a wide market segment.
Jimmy Choo shoes are a fine example of a
successful premium priced item
Premium pricing not only implies good
quality but also ‘exclusivity’
Choos are also known for their uniqueness
Jimmy Choos are priced so that not many
people can afford them – only a certain
‘segment’ of the market wears them
This patented pair costs £44