UNIVERSITY OF MUMBAI

A PROJECT REPORT ON COMPARATIVE STUDY BETWEEN FILA AND REEBOK

BY ANIKET VIJAY MORE T.Y.B.M.S SEMESTER V

ACADEMIC YEAR: 2013-14

UNDER THE GUIDANCE OF PROF. TAQDEES

CHETANAS HAZARIMAL SOMANI COLLEGE OF COMMERCE & ECONOMICS, BANDRA (E), MUMBAI 400051

DECLARATION

I, Aniket Vijay More of the Chetanas H. S. College Of Commerce And Economics, Bandra (E), hereby declare that I have completed the project entitled COMPARATIVE STUDY BETWEEN FILA AND REEBOK in partial fulfilment of the requirement for the third year of the bachelor of management studies course for the academic year 2013-2014.

I further declare that information submitted by me is true and original to the best of my knowledge.

DATE: __________

PLACE: ____________

____________________ SIGNATURE OF STUDENT (ANIKET VIJAY MORE)

CERTIFICATE

This to certify that Mr. Aniket V. More of T.Y.B.M.S (Semester-V), has successfully carried out the project work on the topic of COMPARATIVE STUDY BETWEEN FILA AND REEBOK in partial fulfilment of BACHELOR OF MANAGEMENT STUDIES (BMS) as per the curriculum laid down by the University of Mumbai for the Academic Year 2013-2014.

This is a bonafide project work and to the best of my knowledge, the information presented is true and original.

Internal Examiner

Co-ordinator

External Examiner

Principal

Date: _________ Place: ___________ College Seal

ACKNOWLEDGEMENT

Apart from the efforts of me, the success of my project depends largely on the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I would like to show my greatest appreciation to XXXX XXXX. I cant say thank you enough for this tremendous support and help. Without his encouragement and guidance this project would not have been materialized. I also wish to express my gratitude to Chief coordinator Prof. Shivaprasad for providing me an opportunity to do my project work. The special thanks to all the professors of CHETANAS HAZARIMAL SOMANI COLLEGE OF COM. AND ECO. for their kind co-operation to the completion of my project work. The guidance and support received from all the professors of Chetanas who contributed towards this project is vital for the success of the project, I am grateful for these constant support and help. Last but not least I wish to avail myself of this to thank my parent for their manual support, strength and help for everything.

_______________ (ANIKET VIJAY MORE.)

EXECUTIVE SUMMARY
The Indian branded shoes market has recently seen a demand shift from low-priced branded shoes to medium and high-priced products. But the huge potential that this development creates is as yet largely untapped. The growing aspiration to look trendy but comfortable has increased the demand for branded shoes having international high-fashion brands in India. And for the brands, it is an opportunity to provide the Punjabi consumer with products that have a classic elegance - tasteful luxury, enduring quality and fine imprint of craftsmanship. Jimmy Choo, Pavers England, GUCCI, Moschino - just to name a few, the global luxury brands in branded shoes has already entered the Indian market. Till a few years ago, buying a foreign branded shoes brand would require a trip abroad, a gift from overseas friends/family or at the most an online purchase. But it changed with the permission for 51 per cent Foreign Direct Investment (FDI) in single-brand outlet in early 2006 that allowed foreign branded shoes brands to enter India. It also strengthened the organized retailing in branded shoes. The affluent customers in India today have a wider choice in buying stylish and comfortable shoes. People are willing to shell out money for a good product. They need styling. They need comfort and if that comes for a price. The 500 million dollars Indian branded shoes market is growing at 15-20 per cent annually. People in the Indian middle class today have more money to spend on quality and designer branded shoes, and the working class too wants comfortable, durable and trendy shoes that they can wear at workplace. They are now more brand-conscious then before.

There would be 2-3 main reasons. First would be definitely the comfort level. You can find out shoes for 1000-1500 rupees but they are not much comfortable and I feel that the leather shoes of these big brands have longer life and longer shine. I am looking for some Italian brand shoes and definitely they give good comfort like sport shoes. In leather shoes, you find comfort in these brands only.

PURPOSE OF THE STUDY

Branded shoes are the brand registered in the minds of all young people. Its the brands which speak about trust for the products it provides. The brands are so much registered in the mind of people that when shown; are easily recognized. But, what made brand so closer to it target group. The project identifies those strategies and plans played by FILA as well as REEBOK.

OBJECTIVES OF THE STUDY

The objectives of the study are as follows: Study Indian branded shoes industry and various brands Understand and analyze strategies adopted by FILA AND REEBOK and make comparative analysis Analysis of consumer preference towards FILA AND REEBOK

LIMITATION OF THE STUDY

Being an academic study; it restricts itself to the study of comparative analysis between FILA AND REEBOK.

TABLE OF CONTENTS
SR.NO TOPIC NAME PAGE NO

CHAPTER 1 1

1.1 BRANDED SHOE INDUSTRY

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CHAPTER 1

1.1 BRANDED SHOE INDUSTRY

The branded shoes market consists of the total revenues generated through the sale of all type of mens, womens and childrens shoes. The global figure includes the Americas, Asia Pacific and Europe. Americas consist of Brazil, Canada, Mexico and US, while Asia pacific consist of Australia, China, India and Japan. Europe comprises of Czech Republic, France, Denmark, and Germany etc.

1.1.1 GLOBAL SCENARIO

Branded shoes is huge and increasingly diversified business driven by a host of demographic lifestyle, and fashion trends. It would not be exaggerating to say that globally the branded shoes industry is having expanding market rather it is axiomatic. As the world population increases so the living standards of people rise thus increasing the demand of branded shoes. According to SATRA (Shoe and allied trade research association, UK) the global trend of branded shoes industry are as follows.

According to the report published by SATRA, Asia including India Subcontinent is the largest market for BRANDED SHOES in terms of consumption. Next to Asia is Americas and then followed by Europe and rest of the world. In monetary terms the market shows a different picture as Asia lies 333333behind Europe and North America but irony to the situation is that Asia is the leader in terms of branded shoes consumption and market. It is merely because of the population density in the Asia. China is the largest producer and exporter of shoes and it is also the bi33333ggest consumer of branded shoes by virtue of the size of its population. Overall the branded shoes production is highly concentrated in Asian market and the consumption in the US and European market.

1.2 INDIAN SCENARIO

The Branded shoes Industry is a significant chunk of the Leather industry in India. India ranks second among the branded shoes producing countries next to China. The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large-scale units, the sandals and chappals are produced in the household and cottage sector. India produces more of gents branded shoes while the worlds major production is in ladies branded shoes. In the case of chappals and sandals, use of non-leather material is used to manufacture these in the domestic market.

Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, fila, Hasley, Salamander and Colehaan are manufactured under license in India. Besides, many global retail chains seeking quality products at competitive prices are actively sourcing branded shoes from India.

The industry is on the edge of adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. The Indian Branded shoes Industry is all set for leveraging its strengths towards maximizing benefits. Strength of India in the branded shoes sector originates from its command on reliable supply of resources in the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & branded shoes, large human capital with expertise and technology base, skilled manpower and relatively low cost labour, proven strength to produce branded shoes for global brand leaders and acquired technology competence, particularly for mid and high priced branded shoes segments. India has the competitive advantage over other countries in the form of materials and skilled manpower.

The Indian branded shoes retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to2011. Branded shoes is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07. Presently, the Indian branded shoes market is dominated by Men's branded shoes market that accounts for nearly 58% of the total Indian branded shoes retail market.

By products, the Indian branded shoes market is dominated by casual branded shoes market. As branded shoes retailing in India remains focused on men's shoes, there exists a plethora of opportunities in the exclusive ladies' and kids' branded shoes segment. The Indian branded shoes market scores over other branded shoes markets as it gives benefits like low cost of production, abundant raw material, and has huge consumption market.