FOOTWEAR MARKET

RESEARCH

PRESENTED BY:
NELSON
NITESH
MONIKA
MILANJIT
MOHAN

INDIAN FOOTWEAR
Liberalization
of Indian economy led to increase in
MARKET

buying capacity of countrys middle class.

Market value
The Indian market grew up by 8.2% in 2004 to reach a
value of $2.4 billion.
Market value forecast
In 2009 the market value forecast to have a value of
$3.2 billion, an increase of 31.5% since 2004.
Market volume
The market grew by 8% in 2004 to reach a volume of
1.8 billion pairs.
Market volume forecast
In 2009, the market is forecast to have a volume of
2.3 billion pairs, an increase of 29% since 2004.

MARKET
CHARACTERISTICS

Over INR 10,000 crore in value term.

Brand driven market.
Organized retail dominates sales.
Market size approximately 10 crore

pairs p.a.
India is the second largest footwear
manufacturer in the world.
Nearly 58% of the industry
concentrated in cottage industry
sectors.

SEGMENTATION & CONSUMER

BEHAVIOUR
CONSUMER INSIGHTS- (Factors which

can help in enhancing the sales)

Price
Durability
Variety
Looks
Multiple
Brand name
Buying behavior

SEGMENTATION
According to price
Super premium
Premium segment
Middle segment
Lower segment
According to usage
Sports shoes
Party wear
Professional
Casual

CONSUMER BEHAVIOUR
If we segment the market according to the price
Super premium segment
Brand conscious
Money is secondary
Demands more variety
Ex: Gucci, Red tape, etc.
Premium segment
Quality conscious
Have an upper limit to the money
Try to get lowest price possible for high qulaity
brand
Ex. Bata, Reebok, Nike, etc.

Contd
Middle segment
Do not care much about brands
More concerned about looks & comforts
Price one of the main factors
Ex: Bata, Liberty, etc.
Lower segment
Do not care about brands at all.
Size of this particular segment very high in

India
Much more concerned about durability.
Try to get lowest price pissible
Ex: Khadim, Shree leathers, etc.

Contd
Sports wear
Brand conscious
Money is secondary
More choosy
Loyal customers
Ex: Addidas, Reebok, Nike, etc.
Party wear
Main concentration on the looks
Comforts is considered but is a

secondary thing
Demand of high variety
Ex: Gucci, etc.

Contd
Professional wear
Brand conscious
Lesser variety
Importance to durability and comfort
Ex: Bata, liberty, etc.
Casual wear
Comfort is of utmost importance
Longevity is one of the important

factor
Value for money
Ex: Bata, Liberty, etc.

MAJOR BRANDS
Bata India ltd.
Liberty shoes ltd.
Woodland
Reebok (India)

MARKET TRENDS
UNBRANDED vs. BRANDED
India still a huge market for

unbranded footwear.
Difficult for brands to enter entry
level segment.
Difficult to raise prices.
Branded still an urban phenomena.
High quality shoes- big market for
export.

VALUE RETAILING
Factory discount stores- huge in

number
Category killers arriving on the
scenes
Shopping malls will drive growth in
this segment.

Competition from NonSpecialist Retailers

Face challenge from apparel retailers

diversifying into footwear

Hyper marts and retailers another
challenger
Will have to focus on constant
improvement, need to differentiate

Innovative Location and

Distribution
Future possibilities could be health

spas, health club, airports

Exclusive and multi-brand stores
both present
Multi-brand possible entry point for
foreign players
Cross-promotions benefits all

Market Value Forecast

In 2010, the global footwear market

is forecast to have a value of $194.3

billion, an increase of 21.8% since
2005
The compound annual growth rate of
the market in the period 2005-2010
is predicted to be 4 %

Market Volume Forecast

In 2010, the global footwear market

is forecast to have a volume of 13.2

% billion pairs, an increase of 31.5 %
since 2005
The compound annual growth rate of
the market volume in the period
2005-2010 is predicted to be 5.6 %