Footwear industry to touch Rs 387bn by 2015

The global footwear market which is growing at a CAGR of

about five per cent is currently estimated at about Rs 10.15 lakh crores and is likely to reach Rs 12.34 lakh crores by 2015, said ASSOCHAM study. Growing at a compounded annual growth rate of about 15 per cent the Indian footwear industry is likely to reach about Rs 387 billion by 2015 from the current level of about Rs. 22,000 crore, the study added.

India produces nearly 300 crores 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 crores. These are the finding of a study ‘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 D S Rawat, Secretary General, ASSOCHAM.

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.

Indian footwear market is dominated by men’s segment which accounts for 55 per cent followed by ladies’ and kids’ segement which account for about 30 per cent and 15 per cent respectively. 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 well known brands. Most of them have exclusive outlets and account for 55 per cent of the footwear market while multi-brand retail outlets account for about 30 per cent.

Online shoe shopping is a significant segemnt that is fast emerging in terms of footwear sale and currently accounts for about eight per cent of the overall industry and is expected to reach about 20 per cent by 2015.