Footwear Industry : Best Foot Forward
The footwear sector is a very significant segment of the leather industry in India; rather it is the engine of growth for the entire Indian leather industry.
India is the second largest global producer of footwear after China, accounting for 11.63% of global footwear production of 17.7 billion pairs.
India produces 2065 million pairs of different categories of footwear
(leather footwear – 909 million pairs
leather shoe uppers – 100 million pairs
non-leather footwear – 1056 million pairs).
India exports about 115 million pairs.
Thus, nearly 95% of its production goes to meet its own domestic demand.
The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the footwear manufacturing industry.
Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.
Brands sourced from India:
|Acme, Ann Taylor, Bally, Charter Club, Clarks, Coach, Colehann, Daniel Hector, Deichmann, DKNY, Double|
|H, Ecco, Elefanten, Etienneaigner, Florsheim, Gabor, Geoffrey Beene, Guess, Harrods, Hasley, Hush Puppies, Kenneth Cole, Liz Claiborne, Marks &|
|Spencer, Nautica, Next, Nike, Cole Haan, Nunn Bush, Pierre Cardin, Reebok, Rockport, Salamander, Stacy|
|Adams, Tommy Hilfiger, Tony Lama, Versace, Yves St. Laurent, Zara, Johnston & Murphy, Docksteps|
|Timberland, Armani, Geox, Diesel, Ted Baker, Lacoste, Kickers, Calvin Klein, Sioux, Brasher, Zegna, Massimu Dutti, Buggatti, Lloyd, Christian Dier, Salamander, Camper, Bata, Espirit, French Connection, Legero, Mercedez, H & M and many more famous brands|
Besides, major brands are sourced from India, MNC brands are sold in India and Indian brands sold in India.
|MNC Brands Sold in India||Indian Brands sold in India|
|Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West,|
New Balance, Reebok, Rockport, Stacy Adams, Tod’s, Geox , Louis Vuitton
|Red Tape, Bata, Liberty, Khadims, Lakhani, Metro, Action|
US Retail giant Wal-Mart has also begun sourcing footwear from India.
The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the footwear sector.
Conducive Investment climate towards attracting overseas investments and increasing cost competitiveness.
The Government of India is setting up dedicated Footwear Complex and Footwear Components Part where footwear clusters are located.
There has been active interest in collaborating with Indian Footwear companies from European countries like Italy, Spain and Portugal.
Footwear Imports Global Trend:
Major Importing Countries of Footwear (Leather and Non-Leather) (Value in Million US$)
Major Exporting Countries of Footwear (Leather and Non-Leather)
(Value in Mn $)
Footwear – Global Scenario and India’s share
The global import of Footwear (both leather footwear as well as non-leather footwear) has increased from US$ 88.75 billion in 2008 to US$ 102.90 billion in 2012, growing at a CAGR of 3.76%. During 2012, the India’s share in the global import is 2.02%.
|(In Million US$)|
|Global import of Footwear||88755.57||78562.98||91990.51||104560.89||102900.66|
|India's export of Footwear|
|% Share of India||1.69%||1.95%||1.64%||1.68%||2.01%|
For comparison purpose, Global Footwear import includes leather & non-leather footwear. India’s Footwear includes – Leather, non-leather and leather uppers
Footwear – Indian Scenario
|(In Million US$)|
|Export of Footwear||1534.32||1507.59||1758.67||2066.91||2531.04|
Footwear is the engine of growth of the leather industry in India.
India’s export of footwear has increased from US$ 1507.59 million in 2009-10 to US$ 2531.04 million in 2013-14, growing at a CAGR of 13.82% in the last five years ending 2013-14.
Export of different categories of Footwear holds a major share of about 43% in India’s total leather & leather Products exports with an export value of US$ 2531.04 mn.
A Statement showing India’s Export of Footwear (leather, non-leather and leather shoe uppers) to different countries and their Share :
|Value in US$||Mn|
Source: DGCI& S
The major markets for Indian Footwear are UK with a share of 16.83%, Germany 13.63%, USA 12.34%, Italy 7.26%, France 7.23%, Spain 4.62%, Netherlands 3.89%, UAE 4.20% and Denmark 0.97%.
Nearly 78% of India’s export of footwear goes to European Countries and the USA with exports touching US$ 1660.41 mn to EU and US$ 312.21 mn to the USA.
Future growth of Indian footwear in India will continue to be market driven. The European countries and the US are major consumers for the Indian footwear.
Future Trends: –
Keeping in view its past performance, current trends in global trade, the industry’s inherent strengths and growth prospects, the footwear industry aims to augment production, thereby enhancing its exports from the current level of US$ 2.5 billion.
Indian footwear industry poised for growth
India has state-of-the-art manufacturing plants. The footwear sector has matured from the level of the manual footwear manufacturing method to the automated footwear manufacturing systems. Footwear production units are installed with world class machines. Manned by skilled technicians, these machines help to turn any new innovative idea into reality. Support systems created for the sector have indeed served the footwear industry well. India has a well developed footwear component manufacturing industry. The future growth of the footwear industry in India will continue to be market-driven, and oriented towards EU and US markets. With technology and quality of the footwear improving year after year, Indian Footwear industry is stamping its class and expertise in the global footwear trade.