The footwear or shoe market in India stands as a significant sector with major implications for retailers. This industry is marked by diverse trends and consumer demands. However, being an essential contributor to the retail landscape, understanding its dynamics has become crucial for merchants looking to align their services with market preferences and profit from the various opportunities given by this evolving industry.
Moreover, before delving into this industry expect insightful analyses of market trends, consumer preferences, and emerging opportunities, which can potentially offer a strategic vision for retailers to navigate the competitive region. Overall, the blog aims to equip retailers with valuable insights, promoting making informed decisions in an industry where adaptability and foresight are primary to acquire success.
A] The Size Of Footwear Market In India
India has one of the largest footwear industries in the world. The current status or market size of this industry has reached US$24.86 billion lately. In addition to this massive market cap, the industry is known for its employment contribution in India, especially for the rural section of society. According to industry data, it has employed nearly 1.5 million people in India, and the numbers are predicted to grow larger in the upcoming years.
Thriving as a promising market, the footwear industry also comprises key players who help to boost this market size substantially. Major players contribute to the industry’s exponential growth, which automatically reflects a dynamic landscape. However, challenges emerge, notably increasing competition and the rapidly changing preferences of consumers.
Ultimately, these obstacles need strategic adaptability for long-term success. Understanding the interplay of data, significant actors, and new trends becomes critical for stakeholders operating in this landscape and wanting to benefit from the immense potential it offers as the industry grapples with these dynamics.
B] Factors Driving The Footwear Industry In India
The shoes industry in India is experiencing groundbreaking development, determined by several factors. One of the most essential factors is the growing middle-class sector which acquires more disposable income and encourages higher consumer expenditure on footwear. This demographic transition not only increases market size, but it also fuels demand for various high-end shoe choices.
Moreover, the industry’s growth is typically linked to the impact of globalization and the prevalence of e-commerce. Global influences have brought in a variety of styles and designs, enriching the market and providing consumers with a wider range of options. On the contrary, the introduction of e-commerce has transformed the retail sector, providing a transparent platform for consumers to access a broader range of shoes.
However, this digital evolution has further extended the market reach, promoting competition and innovation. Alongside, these characteristics define a dynamic picture for India’s footwear sector, determined by changing consumer trends and a diverse market.
C] Government Initiatives To Push The Footwear Market
The Indian Footwear and Leather Development Programme (IFLDP) has been approved for a financial outlay of Rs. 1700 crore, aiming at the development of infrastructure for the leather sector while also keeping in mind the environmental concerns that specifically affect the leather sector. They have also facilitated additional investments to help retailers operate in the sophisticated sector by employing 300,000 individuals who can deal better with pricing pressure.
Additionally, over 60,000 people, including women and youth, have been trained for various other footwear industry jobs under the Standard Training Assessment and Reward (STAR) scheme since 2015. The skills in the scheme include technological innovation, machinery advances, workforce availability, and e-commerce growth, which ultimately points to a positive outlook for the footwear industry
Furthermore, the trade policies and import/export regulations promoted by the government have helped to further shape the dynamics of the industry. According to an analysis, along with the approval and training of the local people, government policies have a direct impact on the competitiveness of domestic manufacturers, import costs, and the availability of raw materials. Changes in these regulations can either open new avenues for global collaborations or pose challenges, affecting the industry’s overall health.
As a result, a nuanced understanding of the interplay between government policies, recent initiatives, and trade regulations is crucial for stakeholders to determine the complexity of the Indian footwear industry.
D] Challenges Faced By The Footwear Industry
Despite the rapid growth, the shoe industry in India faces various notable complexities and challenges. One significant issue includes low quality and swindling of the products, which can undermine the value and reputation of well-known and remarkable footwear brands and influence their consumers’ convictions.
Moreover, approximately 85% of the footwear industry in India embraces unorganized players. These players sell their products at hogwash and unimaginably low prices, to acquire benefits such as lower sales tax, overlay cost, labour cost and absence of R&D expenses. The unorganized players employ these techniques to intensify competition as organized players will pass the price benefits to the consumers, while they try to enter the organized space.
Furthermore, one of the biggest challenges is the potential for size-fitting problems for men and women. Due to this issue, there are high chance that return rates will surge drastically. India’s lack of conventional sizing poses difficulties for both producers and consumers.
E] What Does The Future Hold For The Indian Footwear Industry?
The future prospects of the Indian footwear industry, particularly for a shoe exporter in Mumbai, appear promising based on current trends and forecasts. The footwear industry in India has grown significantly due to various factors, which include lifestyle changes, growing economics, and increasing focus on health worldwide, especially during the pandemic period, which have certainly boosted the demand for footwear around the world.
In 2023, the revenue generated in the shoe market in India amounts to US$24.86bn. It is expected that the market will grow annually by 4.84% (CAGR 2023–2028). The leather footwear segment is the largest segment in the market, with a market volume of US$17.28 billion in 2023. Additionally, It is also expected to generate revenue of USD 24.86 billion by 2023, estimating to a 4.84% annual growth rate (CAGR 2023-2028).
Ultimately, the ‘Make in India’ goal for the government is to prioritize the footwear industry, by digitally transforming to further elevate the e-commerce footwear market to become a lucrative industry earning substantial profit over time.
F] How Retailers Can Ensure Their Success In This Market
Retailers can ensure their success in the footwear market by affiliating with reliable shoe suppliers who are capable of adopting integrated strategies and prioritizing customer experiences and satisfaction. Associating with a reputable shoe supplier in India like ShopTribe India ensures access to quality footwear, competitive pricing, and timely delivery.
Integrated strategies, including a user-friendly e-commerce platform and physical manufacturing stores, provide customers with a seamless shopping experience. Prioritizing customer satisfaction through responsive customer service, personalized recommendations, and loyalty programs helps to build brand loyalty and encourage client retention.
Conclusion
For individuals who are aware of the industry’s changing tendencies, the dynamic landscape offers enormous possibilities. highlighted how easy purchases can be, especially when done through a user-friendly platform. The future prosperity of the footwear market depends on its ability to adapt to new trends and styles.
It is essential to look out for unique footwear styles that can suit your personality. Therefore, now is the perfect time to participate in the industry’s growth. Whether you’re looking to explore new markets or stay ahead of the curve, choose ShopTribe India to make your next purchase sublime.