Footwear industry in India, over the last few years, has seen a change in perception from a basic need based consumption to a fashion and style consumption driven largely by rise in income levels, higher disposable income, growing fashion consciousness, and increasing discretionary spending.
According to a 2015 report by ICRA research services, India is the second largest global producer of footwear after China, accounting for 9 per cent of the global annual production of 22 billion pair as compared to China’s share of more than 60 per cent.
The country annually produces 2.1 billion pairs of which 90 per cent are consumed internally while remaining are exported primarily to European nations which include United Kingdom, Germany, USA, Italy and France, as per market analysts.
This annual footwear consumption of 2.1 billion pair is the third largest globally after China and USA and has recorded a healthy growth over the past decade.
However, even after this clear spike in numbers, the average per capita footwear consumption in India continues to be low at ~1.66 pair per annum in comparison to the global average consumption of ~3 pair per annum and developed countries average of 6-7 pair per annum.
The majority of it is also contributed to a fact that, the footwear industry is highly fragmented in India with almost 15000 small and medium enterprises operating largely in the unorganized segment; and limited presence of organized segment.The competitive intensity is high between the two segments and currently, both are estimated to have an equal share of the overall domestic market in value terms.
Nevertheless, with increasing brand consciousness amongst Indian consumers, influx of large number of global brands and increasing penetration in Tier – II and III cities by the organized footwear companies, organised players’ market share has made significant gains in the recent past and it continues to be on an uptrend.
In the following slides, Images Business of Fashion profiles a few of the most promising footwear brands of the country that are in process of organizing this unorganized market by their offerings and expansion plans…
11 Alberto Torresi
Company: Virola Shoes Pvt. Ltd.
Headquarters: Agra (Uttar Pradesh)
About the brand
Alberto Torresi is India’s leading iconic footwear brand. Synonymous to style and comfort, the brand renders a uniquely crafted shoe range in fi nest leather with shock cushioning and sturdy gripping soles. The designs are conceptualized by master designers and made by enthused craftsmen who ensure customer delight through product durability and reliability. With oomph, panache and unparalleled style, their products are an epitome of bespoke craftsmanship.
Number of employees: 82
Total number of doors present in: 700 point-of-sale (MBOs)
Number of states: 22
Number of cities: 104
Annual turnover: `30 crores (approx.)
Average bill/ ticket size:`2,129
Same store sales growth percent: 22 per cent
Company: Duke Fashions (India) Ltd.
Headquarters: Ludhiana (Punjab)
About the brand
Duke Fashions (India) Ltd. is a renowned name in knitwear and fashion, is acknowledged today as the undisputed leader in the industry. The company’s values are based on its authentic fashion understanding heritage, dating back to its launch in 1966. The brand entered the footwear market this year with the launch of a premium and extensive collection of loafers and moccasins. The collection is inspired by the defi ning trends of International fashion and brings back the classic charm of men’s shoes.
Director, Duke Fashions (India) Ltd, Kuntal Raj Jain said: “With the needs of
the fashion industry changing constantly, we are always looking towards the product that can deliver a high degree of style and quality. We work to develop quality that challenge industry standards in sustainability, performance and feel. The way we do business is a way of redefining what business can mean and the effect it can have.”
Number of EBOs: 360
Number of MBOs: 4,000
Number of states: Pan India
Number of cities: Pan India
Annual turnover: `260 crores (FY 2015-16)