Indian Retail Industry

…..a retail perspective

Group members are

Deepika Iyyappan 08

Nutan Sawant 15

Graham Parmar 11

Shalmali Dhurandhar 23

Overview of Indian footwear industry Footwear is necessity of every person . At present, Indian footwear industry rank second-

largest footwear producer after China. footwear market is set to experience phenomenal

growth in coming years. The Indian footwear market as the demand for

Indian footwear will continue to grow. India is the only major source for supplying medium

and low-priced footwear.

Cont….

Indian footwear industry has been booming with the rise in the purchasing power and the growth of image consciousness among the youngsters.

The Indian footwear retail market is expected to grow at a CAGR of around 14% for the period spanning from 2012-14.

There is a immense opportunities for increasing trend of online footwear retail market.

Organized Sector vs. Unorganized Sector

The Indian footwear industry is expected to touch a size of Rs.38,500 cr by 2015

About 70 per cent of the labour-intensive footwear industry in India is in the unorganized sector employing about 15 lakhs people majority

The organized sector accounts for remaining 30 per cent and employs over five lakhs people

Organised Market

Unorganised Market

37.80%62.20%

Indian Footwear Market

Leading Players

Leading players No. of stores

Bata 1200+

Khadim’s 625

Liberty 375

Metro 72

Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small operation in Konnagar (near Calcutta) in 1932.

Bata India is the largest company for the Bata Shoe Organization in terms of sales pairs and the second largest in terms of revenues.

Bata India has more than 1200 stores across the Country.

Corporate office: Gurgaon

CEO: Mr. Thomas G Bata

- Financial position

- Marketing Strategy

Bata is reinventing itself and has introduced the concept of flagship stores to provide complete and unique shopping experience at par with their stores abroad.

International trends, relaxed ambience, great products, and courteous staff at the new-look Flagship store are all a part of Bata’s marketing strategy.

Target new market (ladies and kids) - Filling the missing 45% pie of footwear market

comparison with other brands

Major Retail Outlets

Bata plans to open 100 Footin stores by 2015 at an investment of about 45 cr.

Bata’s first 10,000 sq ft Mega Store at Vadodara. Bata India limited Berhampur

- Product offering Bubblegummers is the leading children's footwear brand for the 0 to 9 olds that assure the healthy growth of a child's foot.

Power embodies diversity with ranges in running, basketball, football and Outdoor that combines function with creativity.

Marie Claire shoes are for women with an active lifestyle who seek contemporary modern styles.

The Weinbrenner line is made up of leather shoes and boots, low, mid and high cut

Its characteristics such as double stitching, massage insole, latex foam insole, soft textile are used to emphasizethe brand image both for comfort and style.

Cont…

DR.SCHOLL: The ribbed surface of the insole gently massages your feet while walking. This boosts the circulation and keeps you active all the day. The soft sole absorbs all the shocks while walking.

NORTH STAR: It's a casual yet fashionable street-style shoes that caters to the young at heart.

Hush Puppies: emerged world's first casual shoe It is soft, breathable and very comfortable shoe.Known for technology.

Layout of Bata shoes India pvt ltd

New store layout

Old store layout

Companies targeting the consumer based on income per annum

PUMA, NIKEADIDAS

PUMA, NIKEADIDAS

ACTION, LIBERTY,NIKE, ADIDAS

ACTION, LIBERTY,NIKE, ADIDAS

BATA, ACTION, LIBERTY,NIKE, ADIDAS, RELAXO

BATA, ACTION, LIBERTY,NIKE, ADIDAS, RELAXO

BATA, ACTION, RELAXOBATA, ACTION, RELAXO

RICH CLASSRICH CLASS

UPPER MIDDLE CLASS

UPPER MIDDLE CLASS

LOWER MIDDLE CLASS

LOWER MIDDLE CLASS

LOWER INCOME GROUP

LOWER INCOME GROUP

Challenges in Indian footwear sector

Most companies work on subcontract basis – design, component selection and methods of production are given by the buyers and do not provide their own fashion collections, however companies are able to make prototypes based on ideas provided by the buyer.

Strong requirement to increase quality as well as quantity

Availability of right raw material (finished leather) at right time

Meeting manpower requirement under the state of affairs of rapid industrialization