The Indian Footwear Industry is one of the fastest expanding industries worldwide. The growing demand for new and innovative footwear and the emergence of several global and regional brands in all segments of the category are driving the market mainly. Innovative and modern footwear is constantly being manufactured by the main players in the market due to the progress in the shoe manufacturing process, technological innovations and the development of new materials.
In 2017, the overall size of the footwear market was approximately USD 246.07 billion.
After China India is the world’s second-largest footwear producer in the world. Indian footwear production accounts for approximately 9% of the world’s annual production of 22 billion pairs compared to China, which produces more than 60%. The sector is fragmented and about 75% of the production comes from the unorganized sector, including very small, small and medium-sized companies.
With the market expanding, consumer needs are also changing rapidly. Rapid urbanization, greater disposable income, and greater media penetration have led to changing consumer fashion needs. The footwear industry in India requires a lot of labor and currently employs about three million people. Out of this, almost 30% are women. According to a report published by the Department of Industrial Policy and Promotion, the sector has the capacity to generate 250 jobs for each investment of INR 1 crore. People demand more and more designs and variations in footwear. Custom footwear is an emerging category and the number of shoe designers is increasing in the country. While online shoe sales have increased over the past five years, players are convinced that physical stores in the category play an important role.
Indian domestic marketed consumed more than 90% of the footwear manufactured in India. Indian’s men’s footwear market is dominated in the organized footwear market, which is around 58% of the total retail footwear market and is expected to grow at a CAGR of around 10% by 2020.
The women’s footwear segment is growing much faster and the growth projected around 20%. Casual footwear contributes to approximately 67% of the total retail footwear market and this is the largest product segment in the Indian footwear market. Indian kids’ footwear is expected to grow by 18.1% during 2017-2022 to reach sales of USD 2.5 billion by 2022.
India is among the world’s top 10 footwear exporters. India is also the second-largest exporter of leather garments and the third-largest exporter of saddler & harness in the world.
The footwear sector is a very important segment of the leather industry in India; rather it is the growth engine for the entire Indian leather industry.
India is the world’s second-largest footwear producer after China, representing 13% of World footwear production of 16 billion pairs.
Future trends: –
In view of the development so far, the current trends in world trade, the strength, and growth prospects of the industry make the shoe industry grow production, increasing exports from the current $ 1.73 billion.
The domestic Indian Footwear Industry
The domestic footwear industry in India is valued at approximately $ 3,200 Million; forecast growth of 11 – 12% p.a. organized retail is 25% and is growing rapidly at 35-40% pa
The entire consumer market accounts for around 9% of the retail trade in shoes.
Men’s shoes make up about 50% of the market Brand shoes (including private labels) make up about 50% of the market Men’s shoes largely Women’s and children’s shoes, sports shoes also have enormous potential domestically market
India exports around 115 million pairs. India produces 2065 million pairs of different ones under these shoe categories (leather shoes – 909 million pairs, and non-leather shoes (1056 million pairs). Almost 95% of the production is therefore intended for personal use.
The main production hub in India is Agra and Kanpur in U.P., Chennai, Panipat, and Ambur in Tamil Nadu, Mumbai in Maharashtra, Jalandhar in Punjab, Delhi, Karnal, Ludhiana, Sonipat, Faridabad, Pune, Kolkata, Calicut, and Ernakulam. Around 1.10 million are for the Footwear industry.
Mainly dress shoes, casual shoes, moccasins, sports shoes, sandals, ballerinas, boots, sandals are the footwear exported from India. The footwear sector is now without a license and without a reservation, paving the way for the expansion of capacities in modern lines with last generation machinery. To further help this process, the government has allowed 100% foreign direct investment through the automatic route for the footwear sector.
Investment climate conducive to attract investments abroad and increase costs competitiveness The Government of India is creating a complex dedicated to footwear and Footwear components Part where the footwear groups are located.
Reached milestones/height of footwear:
- Indian Footwear Industry is the second-largest world footwear manufacturer after China and represents 13% of the world’s footwear production of 16 billion pairs.
- Indian Footwear Industry is the third-largest shoe consumer country after China and America. With a consumption of about 1.66 pairs, while the average global consumption is 3.0 pairs.
- There are 2 billion pairs of footwear in different categories in the Indian Footwear Industry which make up almost equal percentage of leather footwear and not leather.
- Approximately 15,000 units are devoted to the manufacture of footwear in India, with a total turnover of Rs. 50,000 crore, including Rs 32,000 crore for the domestic market and Rs 18,000 crore for exports.