1. FOOTWEAR RETAILING IN
INDIA
Prepared by:-
MMA (Semester – II)
PRASENJIT CHAKRABORTY (Roll No. 40)
RANAJIT PAul (Roll
No.42)
RuCHIKA dEwAN (Roll No.
46)
SHATABdI SARKAR (Roll No. 47)
TITASH RAKSHIT ROY (Roll No. 58)

2. Indian Footwear Retail Industry: AN
OVERVIEW
Footwear is a necessity to every person and at the same time is now a
lifestyle as also a performance enhancement product; and is thus a
segment with vast potential. The Indian footwear market is estimated to be
worth Rs.13,750 Crore and constitutes just about one percent of Indian
retail. About 37.8 percent of Footwear retail is in the organized segment,
which qualifies it as the second most organized retail category in India,
next only to Watches.
Men's footwear comprises the largest share of the organized
market accounting for about 52 percent in value terms. As footwear
retailing in India has remained focused on men’s shoes, there exists a
whale of opportunity in the exclusive ladies and kid’s footwear segment.
This is especially surprising as women globally in line with global trends
are the key decision makers for buying footwear. The ladies footwear
segment still remains the most untapped as nearly 80-90 percent
purchases happen in the unorganized market largely due to the dressing
habits of women for whom consideration of durability or comfort are less
important than colours and designs that go with dress.
With the Indian woman becoming more brand-conscious as opposed to
the past state of being product-conscious, more and more internationally
renowned players are expected to enter the Indian market to fill this need-
gap.

3. History of Footwear Retailing :-
1. Emergence of Bata
(Bata India Ltd. Bata India Ltd. is the largest footwear
retail chain in India. Bata India serves over 1 Lakh
customers per day and has more than 8000 employees on
its rolls. The company operates 950 retail stores and runs
5 production facilities across India)
2. The Leather Industries in India
(Indian leather industry is the core strength of the Indian
footwear industry. It is the engine of growth for the entire
Indian leather industry and India is the second largest
global producer of footwear after China. )

4. 3. Success Story of Khadim’s
(Khadim's is the 2nd largest footwear retailer in India in
term of organized footwear retailing. It has more than 625
exclusive retail outlets across the country. And by far, the
leading shoe retailer in the East. )
4. Emergence of Small Scale Industries
(There are nearly 4000 units engaged in manufacturing
footwear in India. The industry is dominated by small scale
units with the total production of 55%. The total turnover of
the footwear industry including leather and non-leather
footwear is estimated at Rs.8500-9500 crore (Euro 551.3-
1723.1 Million) including Rs.1200-1400 crore (Euro 217.6-
253.9 Million) in the household segment.)

5. Marketing Mix in Footwear Retailing :-
1.Product Focus
(Renowned brands like Nike, Adidas, Reebok
and Puma focus on Sport’s wear, while some
niche brands like Gucci, Lee Cooper and
Woodlands are renowned for luxury
footwear's)
2. Pricing Model
(Pricing is designed to be competitive to the
other fashion Shoe retailer. The pricing is
based on the basis of premium segment as
target customers. This can control costs and
influence product pricing)

6. Segment wise classification of price ranges in
the men’s
Footwear Segment :-
SEGMENTS PRICE RANGE % OF GROWTH
(in Rs.)
Mass Market 185 – 700 60% (Liberty,
Bata)
Economy Market 700 – 1000 30% (Bata,
Liberty)
Sports Market 1000 – 3000 7% (Nike,
Adidas)
Premium 3000 – 5000 5%
Leathers (Charles,Keith,
Woodlands)
Luxury 10000 - 50000 1% (Gucci,
Louis

7. Segment wise classification of women footwear
segment:
SEGMENTS PRICE RANGE % OF GROWTH
(in Rs.)
Traditional Wear 699 – 999 5%
Designer Wear 599 – 799 10 %
Formal Wear 299 – 699 40 %
Casual Wear 499 – 799 25 %
Sports Wear 599 – 799 20 %

8. 3. Place / Location
(Successful brands are realizing that while malls offer
higher footfalls, the advantages of high street are many.
Average Cost/sq ft would be almost 40% less than the
Malls, and considering the overhead costs of parking,
energy, etc high street is more suited for “youth” targeted
products. It is also more suitable for players with wide
product assortment.)
4. Promotion
(Promotion is largely dependent on finding
accessible store locations. It also avails of
targeted advertising in the newspaper and
creating strategic alliances. The use of print and
electronic media is essential as it is the best way
you can reach the mass in India. )

9. Organised footwear market vs
Unorganised footwear market
The average growth in the industry has been estimated
at 12% and is estimated to touch Rs 47000 crore by
2025. Presently the Indian organised foot wear market is
dominated by men’s footwear segment that contributes
for nearly 60% of the market where the casual footwear
has been better off with two thirds of the share in the
men’s segment. The unorganised players have the lions
share in the ladies and kids segment with 80 percent
share. The organised footwear brands have less
penetration in the ladies footwear segment mainly due
to the complex buying behaviour of Indian women. The
ladies and kids segment is one of the fastest growing
segments in the branded footwear market and many
foreign brands like Catwalk have ceased the opportunity
and have set their footprints in this segment which has
been untapped by major traditional Indian footwear
brands.

10. Business model
One learning from Carona’s fall has been the need to minimise
risk and spread the risk with partners. Successful brands like
M&B, S&M are pursuing a good mix strategy of few owned and
franchise models to expand and serve markets. Own showrooms
are used to identify the changing trends (M&B consistently
targets the high end students in Delhi) and create successful
product lines. Franchise option is vigorously pursued to expand
the footprints and reduce the cost of Operations. S&M, has
adopted a unique “Store-in-store” model using IT as a backbone
to significantly reduce the cost of operations, almost 35%.
Enterprise-wide IT
Successful entrants S&M while pursuing innovative store-in-
store policies have relied on IT investments such as POS and
ERP. Companies such as Khadims, M&B are heavily relying on IT
to understand the models of the seasons, price ranges, store
performance, etc.

11. India’s footwear retail Entry:
Opportunities, Issues and
Challenges.

12. SWOT Analysis
Indian Footwear Industry
STRENGTHS: -
• Existence of more than sufficient productive capacity in tanning.
• Easy availability of low cost of labour.
• Exposure to export markets.
• Presence of qualified leather technologists in the field.
• Comfortable availability of raw materials and other inputs.
• Massive institutional support for technical services, designing,
manpower development and marketing.
• Exporter-friendly government policies.
• Well-established linkages with buyers in EU and USA.

13. WEAKNESSES :-
1. Low level of modernisation and upgradation of technology, and
the integration of developed technology is very slow.
2. Low level of labour productivity due to inadequate formal training
unskilled labour.
3. Horizontal growth of tanneries. Less number of organised product
manufacturers.
4. Lack of modern finishing facilities for leather.
5. Highly unhygienic environment.
6. Unawareness of international standards by many players as
maximum number of leather industries are SMEs.
7. Delayed deliveries
8. Weak support infra- structure for exports

14. OPPURTUNITIES : -
• Abundant scope to supply finished leather to
multinationals setting up shop in India.
• Growing fashion consciousness globally.
• Use of information technology and decision support
software to help eliminate the length of the production
cycle for different products
• Growing international and domestic markets.
• Aim to present the customer with new designs,
infrastructure, country & company profiles.
• Use of modern technology

15. THREATS : -
• Entry of multinationals in domestic market.
• Stiff competition from other countries.(The performance
of global competitors in leather and leather products
indicates that there are at least 5 countries viz, China,
Indonesia, Thailand, Vietnam and Brazil, which are more
competitive than India.)
• Improving quality to adapt the stricter international
standards.
• Fast changing fashion trends are difficult to adapt for
the Indian leather industries.
• Limited scope for mobilising funds through private
placements and public issues, as many businesses are
family-owned.

16. CASE STUDIES
• Bata India Ltd. & its HR
issues
• Khadim’s and its Customer
Base
• RED TAPE: A ‘Necleus’ Boon

17. Bata India Ltd. & its HR
issues

18. Khadim’s and its customer ba
“Well provide prices of your choice”

19. The human resource cycle :-
A ‘Necleus’ Boon
Rewards
Performance
Selection Performance
Management
Development
1. Selection: Matching available Human resources to
job
2. Appraisal: Performance Management
3. Rewards: Reward short as well as long term
achievements
4. Development: Developing high quality employees

20. The Conclusion
With organised retail on the rise and increase in the
disposable income retailing certainly looks a
promising option. Potential opportunity for value
added products in the domestic leather market is
high; opportunity to cater to the domestic market
with a blend of traditional, western fashion can bring
in huge market in the footwear segment in India.
Increasing forex impact and global competition
implies that leather companies cannot sustain their
growth from only exports front. The experience of
companies like S&M, M&B underscores the fact that
entering domestic market can de-risk the business
and increase revenue growth. Success depends upon
consistent strategy linking location, product range
and execution. Success in domestic market requires
listening to the customer, adapting the product and
price, and managing the cost of operations. Scale is
important to survive and grow, and low risk models
such as franchise or store-in-store may prove be
effective. In the final analysis success depends on
each company’s willingness to take risks and
implement required changes.

21. BiBliography
Wikipedia
– http://investing.businessweek.com/research/stocks/private/
– http://www.icmrindia.org/free%20resources/casestudies/ba
– http://www.browneandmohan.com/file3.pdf
– http://footwearsinfoline.tripod.com/ind_footwr_industry
_overview.htm
– http://smehorizon.sulekha.com/men-s-wear-dominate-
indian-footwear-retail-market_leather-viewsitem_5546
– http://www.thecolorsofindia.com/interesting-
facts/business/largest-footwear-retail-chain-in-
india.html
– http://www.business-standard.com/india/news/tatas-
step-into-shoe-retail-plan-6-stores-by-next-
month/412975/
– http://en.wikipedia.org/wiki/Red_tape
– http://www.researchandmarkets.com/reports/594216/ind
ian_footwear_industry_analysis.pdf

22. WITH SINCERE
THANKS &
REGARDS
TO
DEEPA MITRA
MAM
(COORDINATOR)

23. The