Home / Knowledge / News / Rising demand from Tier II, III spurs footwear retailing
Rising demand from Tier II, III spurs footwear retailing
17
Feb '12
Growing at a compound annual growth rate (CAGR) of about 15 per cent the Indian footwear industry is likely to reach about Rs 38,700 crore by 2015 from the current level of about Rs 22,000 crore, apex industry body ASSOCHAM said.

India produces nearly 300 crore pairs of footwear annually, exports over 10 per cent and accounts for about 15 per cent of annual global footwear production which is over 2,000 crore, according to a study titled 'Indian Footwear Industry: An Analysis' released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“The domestic footwear market is driven by growing fashion consciousness together with increased disposable income among India's urban middle class which contributes about 45 per cent of overall footwear market making India the second largest global producer of footwear across varied segments after China,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the findings.

“Low cost of production, abundant availability of raw material, ever-evolving retail ecosystem, buying patterns and a huge consumption market are certain basic features that sets apart the Indian footwear market,” said Mr Rawat.

Driven by larger penetration into tier II, III cities and growing rural market various premium footwear brands are foraying into India's non-metro market which holds enormous growth potential and account for about 55 per cent of the overall footwear industry.

Per capita consumption of shoes in India (number of footwear worn by an individual) is currently about 2.5 shoes per year, said the study.

The global footwear market which is growing at a CAGR of about five per cent is currently estimated at about Rs 10.15 lakh crore is likely to reach Rs 12.34 lakh crore by 2015, said ASSOCHAM study.

Indian footwear market is dominated by men's segment which accounts for about 55 per cent followed by ladies' and kids' segement which account for about 30 per cent and 15 per cent respectively.

Nearly 70 per cent of the labour-intensive footwear industry in India is in the unorganised sector and employs about 15 lakh people majority of whom are rural artisans, cottage and household units, while the organised sector accounts for remaining 30 per cent and employs over five lakh people.

The footwear industry is divided into various segements – formal, semi-formal, casual and sports. Adidas, Bata, Balujas, Converse, Da Milano, Lee Cooper, M&B, Metro, Nike, Provouge, Puma, Reebok, Red Tape and Relaxo are certain well known footwear brands in India.

Most of these brands have their exclusive outlets and account for about 55 per cent of the footwear market while multi-brand retail outlets account for about 30 per cent.

In the non-leather footwear segment there is huge demand for slippers as it is cheap, convenient and suits the needs of the rural consumer as it can be used as multi-purpose footwear. Rural India accounts for about 60 per cent of slippers manufactured in Indian footwear market.


Must ReadView All

India mulls new schemes for jobs, textile clusters

Apparel/Garments | On 25th Apr 2018

India mulls new schemes for jobs, textile clusters

India is mulling over alternative schemes for jobs and manufacturing...

Kraig gets approval for Vietnamese subsidiary firm

Textiles | On 25th Apr 2018

Kraig gets approval for Vietnamese subsidiary firm

Kraig Biocraft Laboratories, Inc., the leading developer of spider...

Courtesy: ITMA Asia

Textiles | On 25th Apr 2018

ITMA Asia + CITME 2018 attract global textile companies

The sixth edition of ITMA ASIA + CITME 2018 has received strong...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search