According to a recent report by ASSOCHAM, the Indian footwear industry is growing at a compound annual
growth rate (CAGR) of about 15 per cent and will reach about Rs 64000 crore by 2018.India produces over 300 crore pairs of shoes in a year, 10 per cent is exported and this makes
up for 15 per cent of the annual global footwear production, this is about 2,000 crore.
With the increased fashion consciousness along with the increase in disposable income particularly amongst the
youth of the urban upper middle class, there has been an increase in the size of the domestic footwear market which
contributes for about 45 per cent of the overall footwear market which makes India the second biggest producer of
shoes in the world across all shoe categories, after China. China has reported whooping growth in online apparel and
footwear sales amongst e commerce markets.
What sets the Indian footwear market apart is the low cost of production, abundance in the availability of raw
material, ever-changing retail ecosystem , patterns of buying as well as a huge consumption market that is open to
trying different trends.
2.5 per cent of shoes is the figure for per capita consumption of shoes by an individual in the Indian market. Men’s
shoes dominate the Indian footwear market , this makes up 55 per cent of the market which is followed by women
and kids category for shoes which accounts for 30 per cent and 15 per cent of the shoes.
There is rising penchant for branded shoes among millenials. Other trends include customization and
personalization. With such an enormous consumption and demand, the footwear market is being touted to grow
significantly in the years to come. Driven by the great penetration in tier II and tier III cities, several premium
footwear brands are aiming to capture the untapped potential using E-commerce as an effective medium. Online
retailers have captured the footwear market across the entire nation. They have done this while making enormous
profits. This is an industry that is highly influenced by consumer trends and the current fashions. The demand for
trendy, funky, new styles in the footwear market is an insatiable one. Athleisure is another trend that is
strengthening causing the rising demand for footwear.
In the e-commerce market, athletic footwear is a major category that is catching on. In 2015 sales of footwear
increased by 14 per cent. Sale of athletic footwear has increased worldwide. This trend is on the rise as global
lifestyle is shifting towards health and fitness which has resulted in powering up of the sales of shoes fitting into this
lifestyle, like sneakers and sports shoes among others.
Millennials of today are very aware of the trends in the world around them and want the global trends to be available
at the press of a button. The trend of customization online is a growing trend largely because of the millennials. This
provides consumers with a large amount of products to choose from and more differentiation options that are
usually available in stores. Customization of products is usually for aesthetic purposes but this also plays a role in
helping consumers find the perfect fit for their foot size as well as the perfect design of their liking. The ascent of 3D
as of now utilizing 3D printing to empower customers to alter the way their shoes fit, printing soles that are superbly
formed to a person’s foot. As the innovation advances and the cost of 3D printers and materials keeps on falling, it is
conceivable that customers will in the end utilize the innovation to outline and print their own particular shoes at
home. Shoes are the best thing.
This Video illustrates the Adidas 3D printing
Video credit: Adidas
Adidas 3D shoes
photo credit: Adidas
Nike Vapor Hyper Agility cleat built using 3D-printing technology
Photo Credit: Nike
Fitting issues are an obstruction for customers and result in expensive returns for retailers. As per the author of
Fitcode, a fitting innovation benefit for retailers, organizations lose US$260 billion every year in web based business
returns, with fit issues being the main purpose behind returns.
New innovations are helping customers locate their ideal fit on the web and, in this way, helping retailer’s spare cash.
A few fitting and estimating innovation administrations, for example, True Fit and Fit code, have been introduced to
help retailers enhance clients’ fit certainty and reduce return rates.
The online channel makes it simple for shoppers to research several changing footwear plans, without expecting to
visit a perpetual round of stores. Numerous customization choices that are accessible online take into consideration
a level of separation that stores can’t give. Web assets, for example, Pinterest and mold online journals give
motivation and curation, and a few new resale destinations have picked up dependable balance, giving customers
new outline and item thoughts. Numerous organizations have even propelled measure fitting advances that help
online customers locate the correct fit, and client audits on a few locales enable purchasers to discover additional
data with respect to footwear fit and solace.
Online business, with the greater part of its stages and mixes, is touted to convey something not generally accessible
through the physical retail. Footwear is one such class where this is especially the case. Not at all like other retail
verticals, has footwear industry had a great deal of variables conflicting with it in the physical retail situation. A
footwear store requires a bigger stock space as shoes ordinarily come in more sizes and shapes contrasted with an
attire item. Second, because of its firm structure and bundling, the coordination’s of delivery and stocking shoes take
after those of shopper gadgets more than design.
In a market which is to a great extent overwhelmed by premium quick form retailers, footwear industry has revived
taking the e-commerce course. Begun in late 2013, the implantation of e-commerce in footwear fragment has today
turned into a standard for a ton of retailers in this space. Indeed, even conventional biggies including Reliance
Footprints and Bata are currently peering toward at growing and altering their brands utilizing the e-commerce
agenda. Bata holds a legacy in footwear retailing, is currently a great deal something other than shoes. The
organization has developed its item portfolio with expansion of extras like packs, shades, belts and so on. The
organization is additionally peering toward a forceful approach towards web based retailing and has snared with commercial centers like Amazon, Snapdeal and others.
Sports Station, a chain of multi-brand sports store with real global brands including Nike, Puma, Skechers,
Converse, Lotto trusts that in this advanced period any footwear retailer who is out of the computerized zone won’t
be regarded as being with times. “Since the period of data innovation assumed control catching clients’ enthusiasm
for any conceivable way has turned out to be very essential. Any retail association which forgets even a solitary
channel of client cooperation to offer its item is losing potential clients.
Luxury brands have been a portion of the first to respond to the move in customer spending markets. For instance,
the review inspected Ferragamo and Prada, two extravagance footwear marks that are seeing critical development in
Asia. As of June 30, 2015, the Asia Pacific market spoke to 37.8% of Ferragamo’s aggregate income for the year. In
the meantime, in 2013 Prada opened 27 new stores in the district, or around 35 percent of the brand’s aggregate new
stores worldwide that year.
Footwear brands will likewise need to take into account a more grounded white collar class. By 2030, most of the
total populace will be a piece of the working class, essentially because of a drop in the measure of individuals living in
outrageous destitution. The review referenced a report from Ernst and Young, which evaluates the aggregate number
of individuals thought to be white collar class to achieve 4.8 million by 2030, a 3 billion increment from 2009 when
the working class was 1.8 billion in number.
This flood of new buyers will put weight on item designers to meet their new inclinations and requirements, the
report noted. Created economies setting their items in developing markets will likewise need to change their
evaluating techniques to contend with neighborhood low-value producers.
According to a current review, footwear market is relied upon to cross $15.7 billion stamp by the year 2017. Interest
for footwear is on the ascent worldwide and e-commerce is without a doubt powering the fire. Cost of generation and
land cost is something that should be checked with a specific end goal to move the development. In any case, edge in
the footwear segment is dropping down which can be ensured by utilizing store network and in addition e-commerce
as both cost sparing and income creating component.
The worldwide footwear web based business market will probably expand as well informed millennials age and begin
families. As the online channel has developed, clients of any age have turned out to be happier with making more,
and more differed, buys on the web.