PRESENTATION ON INDIAN FOOTWEAR INDUSTRY

Presented By :-

Jyoti Bhardwaj

OVERVIEW
The footwear industry in India has also witnessed a significant growth over the last few years. Due to the increasing levels of consciousness about Indians regarding the way they look due to this the clothes and footwear market in India has been on a roll since the last ten years. India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. Nearly 58 percent of the industry, which is by and large labour intensive and concentrated in the small and cottage industry sectors, remains unbranded. India produces 2065 million pairs of different categories of footwear leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs 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.

OVERVIEW
About 37.8 percent of Footwear retail is the organized segment, which qualifies it as the second most organized retail category in India, next only to Watches. The annual domestic consumption of footwear is approximately 1.1 billion pairs per annum, and top 20 cities contribute about 450 Million pairs/annum. Reputed global brands are manufactured under license in India. MNC Brands Sold in India Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee- cooper, Lloyd, Marks & Spencer, Nike, Nine West, New Balance, Reebok, Rockport, Stacy Adams Indian Brands sold in India Bata, Liberty, Khadims, Lakhani, Metro, Action

COMPANIES TARGETING THE CONSUMERS BASED ON INCOME PER ANNUM

GLOBAL SCENARIO AND INDIAS SHARE

The global import of Footwear (both made of leather as well as nonleather) increased from US$ 67.15 billion in 2005 to US$ 77.36 billion in 2009, growing at a CAGR of 3.60%. During 2009, the Indias share in the global import is 1.95%.
2005 2006 2007 2008 2009

Global import of Footwear 67151.86 73086.43 80943.61 87839.68 77360.60

India's export of Footwear 1045.24 & Footwear Components % Share of India 1.56% 1236.91 1.70% 1489.35 1.84% 1534.32 1.75% 1507.51 1.95%

Indias Footwear export (leather, uppers & non-leather) is growing at a CAGR of 8.78% in the last five years ending 2010-11

INDIAS FOOTWEAR EXPORT GROWTH OVER THE LAST FOUR DECADES

Export of footwear from India increased manifold over the last four decades. Today, Indias footwear export is valued at US$ 1732.04 million, constituting 45.05% share in total export of leather & leather products.

Country Germany UK Italy

2005-06 170.97 195.78 134.35

2006-07 217.23 208.2 186.11

2007-08 246.84 241.37 229.81

2008-09 229.65 247.06 221.09

2009-10 224.27 296.45 209.95

2010-11 279.80 331.92 215.81

% Share 16.15% 19.16% 12.46%

USA
France

131.07
74.48

127.15
99.81

136.92
116.03

163.03
119.2

123.6
144.45

139.21
154.72

8.04%
8.93%

SCOPE FOR INDIA

Recent economic crisis prepared ground for India to convert itself into worlds number one footwear exporter by replacing China. Chinese products, which used to be cheaper by around 10 per cent compared to Indian products, are no cheaper due to the increase in labour costs in China. The costs of labour have risen by around 40 per cent since January 2008 in China.

Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capital with expertise and technology base, skilled manpower and relatively low cost labor, proven strength to produce footwear for global brand leaders and acquired technology competence, particularly for mid and high priced footwear segments. Resource strength of India in the form of materials and skilled manpower is a comparative advantage for the country.

Thank you