The Composition of the Sector:
The footwear market would primarily comprise of footwear for men, women and children. Footwear is classified according to four basic types: shoes, boots, slippers and rubbers and overshoes. It is further classified into active sports, spectator sports and dress wear. Within each type there would be further variety, shapes, styles and ornamentation.
The Size of the Sector:
India is the second largest footwear manufacturer in the world, next only to China. The Indian footwear market is estimated at Rs 13,750 crore of which the organized retail market is estimated at about Rs 5,200 crores, which is roughly 37%.
Men’s footwear continues to have the lion’s share of the organized market, accounting for about 52% in value terms, and there is also a significantly higher share going to the children’s segment. The children’s segment holds almost 29% of the market and the balance 13% is accounted for by the women’s segment. For the country as a whole, the annual domestic consumption of footwear is in excess of 1.1 billion pairs per annum, as per government statistics.
The key players in the Segment:
Bata India is largest company for the Bata Shoe Organization in terms of sales and the second largest in terms of revenues. With 1250 stores across the country, it also has the widest retail network within the BSO. Other key players include Metro Shoes Ltd which opened its first store in 1947 in Colaba. Metro Shoes has a countrywide network of exclusive Metro showrooms at 45 prime locations across 13 cities in India. It is a Rs 40 crore company renowned for unparalleled quality excellent workmanship, superb fit and world class comfort – the Metro Collection reflects the tastes of the trendy Indians.
Other key Indian players include Lakhani India Limited (LIL) which manufacturers and sells leather, canvas footwear and sport shoes and Liberty Footwear, which is the only Indian company that is among the top 5 manufacturers of leather footwear of the world, with a turnover in excess of US$ 100 million, producing more than 50,000 pairs of footwear a day. Liberty shoes cover all age groups and income groups. Marketed across the globe through 150 distributors, 350 exclusive showrooms and over 6000 multi brand outlets, it is sold in thousands every day in more than 25 countries, including fashion driven, quality obsessed nations like France, Italy and Germany.
International players like Adidas and Reebok also have a presence in the Indian market. Adidas India Marketing Private Limited ranks second after Reebok in the Indian sports goods segment. The brand is now available at a close to 2000 retail points including multi brand outlets. Though the company has 30 per cent market share in India, it contributes less than 1 per cent of Adidas’s global revenue at € 6.6 billion. Adidas has 110 stores, some mono-branded and others multi branded and the former contributes 60 per cent of total sales in India.
Reebok International Limited is an English producer of athletic footwear apparel and accessories and is currently a subsidiary of Adidas AG. Despite its takeover by Adidas in 2005, Reebok has decided to challenge its competitors in India. President and CEO Paul Harrington informed that Reebok was expanding its current 350 stores to 1,100 by 2010. After the takeover, it was uncertain which brand name Adidas would keep. Reebok has a bigger share than Adidas of Nike in the Indian market.
Reebok increased its market share in India from 40 per cent to over 50 per cent last year and aims to expand from its current 350 stores to 1,00 stores by 2010.
The classification of the footwear sector:
Footwear>>> Shoes >>> Boots >>> Slippers & Rubbers >> Overshoes
Sandal>> Pump>> Step-in>> Oxford >> High Top
High or low >> Soft or stiff >> Ornamented or plain >> Cuffed or straight edged>> Crushed or smooth
Slippers & Rubbers >>
Lined >> Unlined.