OVERVIEW OF THE

INDIAN FOOTWEAR INDUSTRY

� The Footwear Industry is a significant segment of the
Leather Industry in India.
� India ranks second among the footwear producing
countries next to China.
� India produces more of gents’ footwear while the
world’s major production is in ladies footwear.
� .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.
� In the case of chappals and sandals, use of non-leather
material is prevalent in the domestic market.
� The major production centers India are Chennai,
Ranipet, Ambur in Tamil Nadu, , Mumbai in Maharastra,
Kanpur in U.P. , Jalandhar in Punjab, Agra and Delhi. The
following table indicates concentration of units in various
parts of the country:

Region Large & Medium Scale SSI Household

Tamil Nadu 64 31 7

Delhi & up North 4 8 25

Agra, Kanpur 9 34 14

Calcutta 1 3 19

Bangalore 6 3 4

Mumbai 3 11

Others 13 10 32

� The estimated annual footwear production capacity in

1999 is nearly 1736 million pairs (776 million pairs of
leather footwear and 960 million pairs of non-leather
footwear). Region-wise share of total estimated capacities
is as follows:

Region Leather Non-leather Leather Shoe Leather Non

shoes Shoes Uppers Sandals Leather
Sandals

Percentage

Tamil Nadu 26 5 54 1 0

Delhi & up 10 77 4 1 60
North

Agra, Kanpur 45 0 32 62 0

Calcutta 12 0 2 3 0

Bangalore 3 3 4 0 0

Mumbai 4 2 1 32 0

Others 0 13 3 1 40

Total 100 100 100 100 100

� Shoes manufactured in India wear brand names like

Florsheim, Gabor, Clarks, Salamander and St. Micheal’s.
As part of its effort to play a lead role in the global trade,
the Indian leather industry is focusing on key deliverables
of innovative design, consistently superior quality and
unfailing delivery schedules.
� India in itself has a huge domestic market, which is
largely untapped.
� The Indian footwear industry is provided with
institutional infrastructure support through premier
institutions like Central Leather Research Institute,
Chennai, Footwear Design & Development Institute,
Noida, National Institute of Fashion Technology, New
Delhi, etc in the areas of technological development,
design and product development and human resource
development.
� The availability of abundant raw material base, large
domestic market and the opportunity to cater to world
markets makes India an attractive destination for
technology and investments.

IMPORT
� In 1999, the global import of footwear (leather and
non-leather) in terms of value was around US$ 43278
million, accounting a share of 63.42% in the total global
import of leather and leather products. Out of this, import
of leather footwear alone accounted for US$ 26379 million
and non-leather footwear US$ 16899 million.
EXPORT
� India’s export of Leather Footwear touched US$ 331
million in 1999-2000, recording an increase of 3.29% over
the preceding year. India thus holds a share of 1.25% in
the global import of leather footwear. The major markets
for Indian Leather Footwear are the U.K., the U.S.A.,
Germany, Italy, France and Russia. Nearly 71% of India ‘s
export of Leather Footwear is to Germany, the U.S.A., the
U.K and Italy.
� In 1999-2000, export of leather footwear from India
constituted 21% share of its total export of leather and
leather products. Nearly 33 million pairs of various types
of leather footwear were exported during the year, out of
which shoes / boots constituted 90%.
� The different types of leather footwear exported from
India are dress shoes, casuals, moccasins, sport shoes,
horrachies, sandals, beallerinas, booties.
Export of leather footwear during the last three years :

(Value in million US$)

April-Feb
Product 1998-99 1999-2000 2000-2001

Leather Footwear 320.25 330.80 348.96

Source : DGCI & S, Calcutta
Export projections for the next two years:
(Value in million US$)

PRODUCT 2001-02 2002-03

Leather Footwear 453 506

Source :
Indicative Medium Term Plan
� Following leading institutes in India are engaged in
imparting training to personnel in the footwear
manufacturing as per the requirement of the trade and
industry.

Name of Institute Address and E-mail

Council for Leather Exports Leather Centre, 53 Raja Muthiah Road

(CLE) Periamet, Chennai – 600 003
Fax: 044-538 8713/538 7083
Email: cle@giasmd01.vsnl.net.in

Footwear Design & Development A-10/A,

Institute Sector-24, NOIDA-201301
(FDDI) Email: fddi@del2.vsnl.net.in

Central Footwear Training 41-42 Industrial Area, Site C, Sikandra

Institute (CFTI) Agra – 282002 (U.P)
Agra E-Mail cftiagra@usa.net
Chennai 65/1 GST Road, Guindy, Chennai-600032
Tele: 044-2341529/236876
Email: cfti@md5.vsnl.net.in
The CLRI and the FDDI are also equipped to carry out most
of the tests for footwear manufacturing and issue
certificates.

INDIAN FOOTWEAR COMPONENTS INDUSTRY

� The Footwear Component Industry is a segment of the Leather

Industry in India. The Footwear components, which are mainly
exported from India are Leather Shoe Uppers and Leather Unit
Soles. The estimated annual production capacity of Leather Shoe
Uppers is 112 million pairs
� The major production centers are Chennai, Ranipet, Ambur in
Tamil Nadu, Agra and Delhi.
� The components industry has enormous opportunity for
growth to cater to increasing production of footwear of various
types, both for export and domestic market.
� India’s export of Footwear Components touched US$ 229.49
million in 1999-2000, holding a share of 15% in India’s total
export of leather and leather products. Nearly 75% of the total
export of footwear components is from the Southern Region,
followed by the Northern Region, with a share of 13%.
� The major markets for Indian footwear components are the
U.K., Germany, Italy, the USA, France, and Portugal. Nearly 83%
of India ‘s export of footwear components is to the above
countries.
� In the year 1999-2000, India exported footwear components
to the tune of 38 million pairs mainly consisting of leather shoe
uppers, leather unit soles and other components, out of which
Leather shoe uppers (gents and ladies) alone constituted a share
of 84%.
Export of footwear components during the last three years

(Value in million US$)

April-Feb
1999-
Product 1998-99 2000 2000-2001

Footwear
Components 237.72 229.49 219.81
 Source : DGCI & S, Calcutta
Export projections for the next two years:
(Value in million US$)

PRODUCT 2001-02 2002-03

Footwear 314 350

Components

Source :
Indicative Medium Term Plan
The apex body working for the footwear components :
Indian Footwear Components Manufacturers Association (IFCOMA)
FDDI Complex, A-10/A Sector 24
Noida – 201301
Tele: 914-444961
Email: ifcoma@vsnl.com
info@ifcomaonline.com
Website: www.ifcomaonline.com

INDIAN FOOTWEAR INDUSTRY

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.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks,
Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and
Colehaan are manufactured under license in India. Besides, many global retail
chains seeking quality products at competitive prices are actively sourcing
footwear from India.
While leather shoes and uppers are produced in medium to large-scale units, the
sandals and chappals are produced in the household and cottage sector. The
industry is poised for adopting the modern and state-of-the-art technology to
suit the exacting international requirements and standards. India produces more
of gent’s footwear while the world’s major production is in ladies footwear. In
the case of chapels and sandals, use of non-leather material is prevalent in the
domestic market.
Leather footwear exported from India are dress shoes, casuals, moccasins, sport
shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported
from India are Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and
other materials.
With changing lifestyles and increasing affluence, domestic demand for footwear
is projected to grow at a faster rate than has been seen. There are already many
new domestic brands of footwear and many foreign brands such as Nike, Adidas,
Puma, Reebok, Florsheim, Rockport, etc. have also been able to enter the
market.
The footwear sector has matured from the level of manual footwear
manufacturing methods to automated footwear manufacturing systems. Many
units are equipped with In-house Design Studios incorporating state-of-the-art
CAD systems having 3D Shoe Design packages that are intuitive and easy to
use. Many Indian footwear factories have also acquired the ISO 9000, ISO
14000 as well as the SA 8000 certifications. Excellent facilities for Physical and
Chemical testing exist with the laboratories having tie-ups with leading
international agencies like SATRA, UK and PFI, Germany.
One of the major factors for success in niche international fashion markets is the
ability to cater them with the latest designs, and in accordance with the latest
trends. India, has gained international prominence in the area of Colours &
Leather Texture forecasting through its outstanding success in MODEUROP.
Design and Retail information is regularly made available to footwear
manufacturers to help them suitably address the season's requirement.
The Indian Footwear Industry is gearing up to leverage its strengths towards
maximizing benefits.
Strength of India in the footwear 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 & footwear, large
human capital with expertise and technology base, skilled manpower and
relatively low cost labor, proven strength to produce footwear for global brand
leaders and acquired technology competence, particularly for mid and high
priced footwear segments. Resource strength of India in the form of materials
and skilled manpower is a comparative advantage for the country.
The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact
that footwear sector is the most significant segment of the Leather Industry in
India.
The export targets from 2007-08 to 2010-11
(In Million US$)

Product 2006-07 2007-08 2008- 2009-10 2010-11

09

Actual
Export

Leather 688.05 726.85 785.00 847.80 915.63

Footwear 1212.25 1967.88 2597.6 3428.83 4526.05

0

Garments 308.98 358.53 372.87 387.78 403.30

Leather Goods 690.66 733.34 798.69 870.06 948.04

Saddlery & 81.85 105.66 127.85 154.70 187.19
Harness

Total 2981.79 3892.26 4682.0 5689.17 6980.21

1

India has emerged in recent years as a relatively sophisticated low to medium

cost supplier to world markets –The leather industry in India has been targeted
by the Central Government as an engine for economic growth. Progressively, the
Government has prodded and legislated a reluctant industry to modernise. India
was noted as a supplier of rawhides and skins semi processed leather and some
shoes.

In the 1970’s, the Government initially banned the export of raw hides and
skins,
followed this by limiting, then stopping the export of semi processed leather and
encouraging local tanneries to manufacture finished leather themselves. Despite
protestations from the industrialists, this has resulted in a marked improvement
in
the shoe manufacturing industry. India is now a major supplier of leather
footwear
to world markets and has the potential to rival China in the future (60% of
Chinese
exports are synthetic shoes).
India is often referred to as the sleeping giant in footwear terms. It has an
installed
capacity of 1,800 million pairs, second only to China. The bulk of production is
in men’s leather shoes and leather uppers for both men and ladies. It has over
100 fully mechanised, modern shoe making plants, as good as anywhere in the
world (including Europe). It makes for some upmarket brands including
Florsheim (US), Lloyd (Germany), Clarks (UK), Marks and Spencer (UK).
India has had mixed fortunes in its recent export performance. In 2000, exports
of
shoes were US$ 651 million, in 2001 these increased to 663 million but declined
in 2002 to 623 million dollars (See Statistics).
The main markets for Indian leather shoes are UK and USA, which between
them
take about 55% of total exports.
India has not yet reached its full potential in terms of a world supplier. This is
due
mainly to local cow leather that although plentiful, has a maximum thickness of
1.4
– 1.6mm, and the socio / political / infrastructure of the country. However, India
is an excellent supplier of leather uppers. Importation of uppers from India does
not infringe FTA with Europe or the USA.
The potential is set to change albeit slowly, but with a population rivalling China
for
size, there is no doubt the tussle for world domination in footwear supply is
between these two countries.
Few Interesting Facts:
- The Indian footwear retail market is expected to grow at a CAGR of over 20%
for the period spanning from 2008 to 2011.

- Footwear is expected to comprise about 60% of the total leather exports by

2011 from over 38% in 2006-07.

- Presently, the Indian footwear market is dominated by Men's footwear market

that accounts for nearly 58% of the total Indian footwear retail market.

- By products, the Indian footwear market is dominated by casual footwear

market that makes up for nearly two-third of the total footwear retail market.
- As footwear retailing in India remain focused on men's shoes, there exists a
plethora of opportunities in the exclusive ladies' and kids' footwear segment with
no organized retailing chain having a national presence in either of these
categories.
- The Indian footwear market scores over other footwear markets as it gives
benefits like low cost of production, abundant raw material, and has huge
consumption market.
- The footwear component industry also has enormous opportunity for growth to
cater to increasing production of footwear of various types, both for export and
domestic market.
In a Nutshell:

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.
India's share in global leather footwear imports is around 1.4% Major
Competitors in the export market for leather footwear are China (14%), Spain
(6%) and Italy (21%).

The footwear industry exist both in the traditional and modern sector. While the
traditional sector is spread throughout the country with pockets of concentration
catering largely to the domestic market, the modern sector is largely confined to
select centres like Chennai, Ambur, Ranipet, Agra, Kanpur and Delhi with most
of their production for export.
Assembly line production is organized, and about 90% of the workforces in the
mechanized sector in South India consist of women. In fact, this sector has
opened up plenty of employment opportunities for women who have no previous
experience. They are trained to perform a particular function in the factory itself.
http://footwearsinfoline.tripod.com/swotanalysis.htm
SWOT Analysis of Indian Footwear Industry
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STRENGTHS: -
• Existence of more than sufficient productive capacity in tanning.
• Easy availability of low cost of labour.
• Exposure to export markets.
• Managements with business background become quality and environment
conscious.
• 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.
• Tax incentives on machinery by Government.
• Well-established linkages with buyers in EU and USA.
WEAKNESSES: -
• Low level of modernisation and upgradation of technology, and the
integration of developed technology is very slow.
• Low level of labour productivity due to inadequate formal training /
unskilled labour.
• Horizontal growth of tanneries.
• Less number of organised product manufacturers.
• Lack of modern finishing facilities for leather.
• Highly unhygienic environment.
• Unawareness of international standards by many players as maximum
number of leather industries are SMEs.
• Difficulties in accessing to testing, designing and technical services.
• Environmental problems.
• Non availability of quality footwear components
• Lack of fresh investment in the sector.
• Uneconomical size of manufacturing units.
• Competition among units vying for export orders leading to undercutting.
• Little brand image.
• Poor labour productivity. Lack of awareness about consistent in
plant training and retraining- Inconsistent quality high rejection rate
 • Low machine and material productivity.
Lack of quality job work units
• Delayed deliveries
• Weak support infra- structure for exports
OPPORTUNITIES: -
• 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
• Product diversification - There is lot of scope for diversification into other
products, namely, leather garments, goods etc.
• Growing international and domestic markets.
• Exposure to newer markets through Fairs/ BSMs
• Retain customers through quality supplies and timely deliveries
• Aim to present the customer with new designs, infrastructure, country &
company profiles.
• Use of modern technology
• Exhibit strengths in manufacturing, for example, strengths in classic shoe
manufacturing, hand crafting etc.
• De-reservation of the footwear sector.
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.)
• Non- tariff barriers - Developing countries are resorting to more and more
non – tariff barriers indirectly.
• 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.
• STATISTICAL INFORMATION
•

•
•

•
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• Positive Outlook for footwear and leather industry:

Highlights CII Study
• The National Manufacturing Competitiveness Council (NMCC) has
identified the sector as one of the twelve focus manufacturing sectors in
terms of competitiveness and untapped potential in the country.
• The sector is one of the top eight foreign exchange earners of the country
worth Rs. 10,000 crores per annum and accounting for 2.5 percent of the
global leather-related trade of Rs. 387,200 crores. An estimated 15
percent of total purchase of leading global brands in footwear, garments,
leather goods & accessories, in Europe, and 10 percent of global supply is
outsourced from India.
• Deliberating upon the current scenario, the Report states that the leather
industry employs about 2.5 million people and has annual turn over of Rs.
25,000 crores. Nearly 60-65 percent of the production is done by small /
cottage sector.
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• In tune with the whole sector, the Indian footwear industry too obtains 90
percent production in SMEs, having about 42,000 units registered under
SSI, concentrated largely in Agra, Kanpur and Tamil Nadu. Most of the
SSI units are also into the production of non-leather footwear.
• The footwear segment is the pride of India's leather industry, and ranks
second in the world, next to China. The global trade in leather footwear is
US$ 30 billion and in non-leather footwear is US$ 18 billion; however
India's share in both segments is only marginal -1.4 percent and 0.15
percent respectively.
• In the last five years, the leather footwear and footwear component
production increased by 60 percent, the consumption of footwear in rural
India is 75 percent of the total. An interesting aspect of India's footwear
industry is that India produces more of gents' footwear while the world's
major production is in ladies footwear.
• Analyzing the export - import potential of the sector, the Report informs
that imports mostly comprise of hides and skins, semi finished and
finished leather. Product imports are low.
• On the other hand, almost 50 percent of the total domestic production is
exported. Nearly 75 percent of the total export of footwear components is
from the Southern Region, the Northern Region, being a poor second with
13 percent. Increased value of export of footwear from Rs 2957.5 crores
in 2005 to Rs. 11,000 crores by 2012 is envisaged. Annual export
earnings from the Footwear and Leather sector were US$ 2.1 billion in
2003-04 and the sector ranks 8th among the top 10 sectors in India's
export list at 2.74 percent.
• In addition to the global market, Indian Leather Industry is yet to capture
the existing untapped potential in the domestic market. India has a large
and growing consumer class (annual income > US$ 449), estimated to
constitute nearly 90 million households by 2006 - 07, having with a CAGR
around 12 percent. This is a large and growing market for Footwear and
Leather goods, the Report further stressed.
• The distinct advantages of the Footwear & Leather industry in India,
highlighted in the Report are low costs; variety & abundance of raw
material; quality consciousness and back up; R & D facilities with
extension support enables India as a significant participant in the world
Footwear & Leather market. As per the current scenario; the Footwear &
Leather Industry in India is spread largely over unorganized sector,
comprising tanning & finishing, footwear & footwear components, leather
garments, leather goods including saddlery & harness, etc.
• Stressing on the improvement areas in infrastructure and investment in
the Sector, the Report states that an estimated investment in the entire
footwear and leather sector in India is approximately Rs. 4,500 crores and
annual production is at Rs. 22,000 crores.
• However, India seems to have missed out the investments in the footwear
industry with China getting most of the benefit by attracting 10 times
more investments than India in the last 20 years.
• It can be said that India has not been alive to its potential in this matter.
India's loss has been China's gain. India's lack of awareness of its
potential and its belated recognition of this sector have been to be made
good speedily.
• Though the Leather Industry, especially the Footwear industry has made a
strong contribution to the Indian economy, India's share in global trade
remains low, however being a labour intensive industry, its contribution to
employment is significant.
• In a recent study carried out by NMCC, it was highlighted that total
employment in this sector would amount to 2.5 million (30 percent of
which are women).
• Footwear industry provides employment to the uneducated population -
40 percent of employment is represented by unskilled workers doing table
work operation in the assembly line.
• Large employment opportunities on the input side - minority community
and low caste people have their sole source of livelihood from collecting
carcasses, skinning dead animals and tanning leather.
• The Footwear industry has potential to provide employment across all
sections of the economy Industry estimates of employment potential 3
lakh jobs in next 3 years.
 • The potential for employment is across all skills to the tune of semi-skilled
and unskilled labourers - 92 percent; technical supervisory, shop floor - 7
percent; entrepreneurs, senior managers and technologists - 1 percent.
• Indian Footwear and Leather industry is clearly optimistic about the
future. To protract this optimism, State Governments must ensure that
they are able to create an attractive and enabling environment. CII
believes this can be achieved through openness to investments, good
governance and robust infrastructure.
• Courtesy: Confederation of Indian Industry
• http://www.fibre2fashion.com/news/daily-textile-industries-
news/newsdetails.aspx?news_id=28290
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Import Export of Footwear & Leather Products

Indian Footwear Industry in a Nutshell: -
- Second largest footwear producer after China
- 2.06 billion pairs produced in an year
- 16 % of the global production is produced in India
- Contract manufacturers supply to leading global brands
- 644 Member produces situated as clusters at Chennai, Ambur, Ranipet,
Kanpur, Agra, Mumbai, Delhi and Karnal.
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The export of Leather and Leather Products for the period April-March 2007-08
touched US$3477.52 million against the performance of US$3059.43 million in
the corresponding period of last year, registering a positive growth of 13.67% in
Dollar Terms. In rupee terms the export touched Rs.140007.33 million against
the previous years performance of Rs.138437.84 million showing a positive
growth of 1.13%.
The export value during 2006-07 was revised upwards by DGCI&S, from
US$2981,79 million (Rs.134924.39 million) to US$3059.43 million
{Rs.138437.84 million).
A Statement showing the Product-wise Export performance during April-March
2007-08 vis-a-vis April-March 2006-07 is given below:
(In Million Rs.)

Category Apr-Mar Apr-Mar % Variation

2006-07 2007-08

Finished Leather 32760.69 30877.20 -5.75%

Leather Footwear 44087.76 46856.08 6.28%

Footwear Components 9947.84 10713.89 7.70%

Leather Garments 14023.29 13849.39 -1.24%

Leather Goods 31958.86 31602.54 -1.11%

Saddlery & Harness 3725.32 4260.16 14.36%

Non-Leather Footwear 1934.08 1848.07 -4.45%

TOTAL 138437.8 140007.33 1.13%

4

Source : DGCI &S (In Million

US$

Category Apr-Mar Apr-Mar % Variation

2006-07 2007-08

Finished Leather 724.00 766.93 5.93%

Leather Footwear 974.33 1163.82 19.45%

Footwear Components 219.84 266.11 21.05%

Leather Garments 309.91 343.99 11.00%

Leather Goods 706.28 784.95 11.14%

Saddlery & Harness 82.33 105.81 28.53%

Non-Leather Footwear 42.74 45.90 7.39%

TOTAL 3059.43 3477.52 13.67%

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Major Highlights
• Export of Footwear (leather, footwear components & non-Leather
footwear) has increased from US$1236.91 million in April-March 2006-07
to US$1475.83 million in April-March 2007-08, registering a growth of
19.32%
• In Dollar terms, Leather footwear has alone grown by 19.45%, footwear
components by 21.05% and Non-Leather footwear by 7.39%
• Export of Leather Garments has increased by 11.00%, Saddlery &
Harness by 28.53%, and Leather Goods by 11.14%
• Export of Finished Leather has increased by 5.93%.

India's Leather & Leather Products Export Basket

Export Target Vs Achievement
As against the approved export target of US$ 3042 million for the year 2007-08,
the actual export performance was US$3478 million, recording an achievement
of 114.32% over the targeted export. The product specific export target vis-a-
vis achievement is given below:
(In Million U5$)

Product Category Export Actual Export %

Target Apr-Mar Achievement
2007-08 2007-08

Finished Leather 675 767 113.62%

Footwear Leather 1347280 1476 344785 109.56%
Garments Leather 650 90 106 122.85%
Goods Saddlery & 120.76%
Harness 117.57%

Total 3042 3478 114.32%

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Country-wise analysis
• The major markets for Indian Leather products are Germany with a share
of 14.05%, Italy 13.78%, UK 11.91%, USA 8.82%, Hong Kong 7.70%,
Spain 6.10%, France 5.64%, Netherlands 3.84%, UAE 2.14% and
Australia 1.43%. These 10 countries together accounts for nearly 75.41%
of India's total Leather products export
• Overall positive growth is seen in markets like Germany 19.18%, UK
15.14%, Italy 15.89%, France 12.72%, Spain 14.15%, Netherlands
32.29%, Australia 26.33% and Denmark 16.04%.
• Overall decline is seen in markets like USA 3.43%, Hong Kong 4.21%,
Greece 3.46% and South Africa 21.97%.
 (In Million US$)

Trend in Major Importing Countries of Leather Products

Country Apr-Mar Apr-Mar % Variation

2006-07 2007-08

Germany 410.08 488.72 19.18%

Italy 413.35 479.04 15.89%

UK 359.84 414.32 15.14%

Spain 185.78 212.07 14.15%

France 174.04 196.17 12.72%

Netherlands 100.82 133.37 32.29%

Australia 39.38 49.74 26.33%

Denmark 42.30 49.08 16.04%

U.A.E. 62.55 74.53 19.14%

Portugal 49.92 56.06 12.31%

China 42.52 51.90 22.05%

Sweden 29.01 38.81 33.79%

Canada 32.17 35.90 11.58%

Hong Kong 279.72 267.93 -4.21%

USA 317.59 306.69 -3.43%

Saudi Arabia 15.77 15.53 -1.56%

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Port-wise Export Performance

As per the Port-wise compilation for the period April-March 2007-08, export of
Leather and Leather Products from South, West, East and Central Regions are
showing positive growth. However, there is a decline of 0.16% from Northern
Region.
(In Million US$)

Region APR-MAR Share in APR-MAR Share in %

2006-07 Total 2007-08 Total Variation
 Export Export

Southern 1250,12 40.86% 1398.49 40.22% 11.87%

Western 569.58 18.62% 695.63 20.00% 22.13%
Eastern 437.97 14.32% 517.85 14.89%
Northern 377.80 12.35% 377.21 10.85% 18.24%
Central 78.86 2.58% 99.69 2.87%11.1 -0.16%
Others 388.65 8%
345.10 11.28% 26.41%
12.62%

Total 3059.43 100.00% 3477.52 100.00% 13.67%

Note: This is purely based on port-wise compilation and does not reflect the
accurate regional performance: Source: DGCI& S
The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact
that footwear sector is the most significant segment of the Leather Industry in
India.
Click here to know more....
The Export Targets from 2007-08 to 2010-11
(In Million US$)

Product 2006-07 2007-08 2008- 2009-10 2010-11

09

Actual
Export

Leather 688.05 726.85 785.00 847.80 915.63

Footwear 1212.25 1967.88 2597.6 3428.83 4526.05

0

Garments 308.98 358.53 372.87 387.78 403.30

Leather Goods 690.66 733.34 798.69 870.06 948.04

Saddlery & 81.85 105.66 127.85 154.70 187.19

Harness

Total 2981.79 3892.26 4682.0 5689.17 6980.21

1

WORLD IMPORT OF LEATHER AND LEATHER PRODUCTS AND INDIA'S SHARE 2001-05

(Value in million US$)

DETAILS 2001 2002 2003 2004 2005

Leather

WORLD IMPORT 16213.28 16144.06 17575.61 19156.18 18268.48

INDIA'S EXPORT 459.25 508.83 555.71 607.73 636.27
% SHARE OF INDIA 2.83% 3.15% 3.16% 3.17% 3.48%

Leather Footwear

WORLD IMPORT 28875.03 30583.67 33657.91 36832.74 39816.00

INDIA'S EXPORT 395.39 423.30 553.04 657.78 807.81
% SHARE OF INDIA 1.37% 1.38% 1.64% 1.79% 2.03%

Footwear Components

WORLD IMPORT 4605.90 4403.25 4803.49 4929.82 4568.10

INDIA'S EXPORT 233.94 175.07 161.27 179.21 182.58
% SHARE OF INDIA 5.08% 3.98% 3.36% 3.64% 4.00%

Leather Garments

WORLD IMPORT 4762.04 4207.59 4190.32 4004.70 3738.59

INDIA'S EXPORT 378.75 272.08 301.08 329.44 333.30
% SHARE OF INDIA 7.95% 6.47% 7.19% 8.23% 8.92%

Leather Goods

WORLD IMPORT 6168.79 6620.96 7521.72 9127.02 10072.32

INDIA'S EXPORT 321.46 335.36 403.20 466.95 521.79
% SHARE OF INDIA 5.21% 5.07% 5.36% 5.12% 5.18%

Leather Gloves

WORLD IMPORT 1353.34 1361.91 1481.35 1648.28 1786.74

INDIA'S EXPORT 85.69 90.04 136.01 118.77 138.38
% SHARE OF INDIA 6.33% 6.61% 9.18% 7.21% 7.74%

Leather Goods (Including

Gloves)
WORLD IMPORT 7522.13 7982.87 9003.07 10775.30 11859.06
INDIA'S EXPORT 407.15 425.40 539.21 585.72 660.17
% SHARE OF INDIA 5.41% 5.33% 5.99% 5.44% 5.57%

Saddlery & Harness

WORLD IMPORT 463.46 498.97 599.98 708.40 809.45

INDIA'S EXPORT 35.64 43.66 52.71 61.71 77.52
% SHARE OF INDIA 7.69% 8.75% 8.79% 8.71% 9.58%

TOTAL - Excluding
Non-leather footwear
WORLD IMPORT 62441.87 63820.42 69830.41 76407.16 79059.7
INDIA'S EXPORT 1910.12 1848.33 2163.03 2421.59 2697.65
% SHARE OF INDIA 3.06% 2.90% 3.10% 3.17% 3.41%

Non-leather footwear

WORLD IMPORT 18185.63 18378.35 20139.75 22736.49 24994.44

INDIA'S EXPORT 26.02 26.88 53.42 73.78 54.85
% SHARE OF INDIA 0.14% 0.15% 0.27% 0.32% 0.22%

GRAND TOTAL -including

non-leather ftwr
WORLD IMPORT 80627.50 82198.77 89970.16 99143.65 104054.1
INDIA'S EXPORT 1936.14 1875.21 2216.45 2495.37 2752.50
% SHARE OF INDIA 2.40% 2.28% 2.46% 2.52% 2.65%

Source : ITC, Geneva,

CLE (www.leatherindia.org)

In a Nutshell: -
• India's export of Leather & Leather Products has reached US $ 3.47 billion
in dollar terms and Rs.14,000 crore in rupee terms. In dollar terms, there
has been an export growth of 13.67% and in rupee termsl.13%
• Footwear alone holds a major share of 42.44% in India's total leather
products export trade
• As against the export target of US $ 3042 million for the financial year
2007-08, the achievement was 114.32%
Major Production Centers
The major production centers for footwear and leather products are located in:
• Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dtndtgul
• West Bengal - Kolkata
• Uttar Pradesh - Kanpur, Agra & Noida
• Punjab - Jallandhar
• Karnataka - Bangalore
• Andhra Pradesh - Hyderabad
• Haryana - Ambala, Gurgaon, Panchkula and Karnal
• Delhi

Employment Scenario
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Though the Leather Industry, especially the Footwear industry has made a
strong contribution to the Indian economy, India's share in global trade remains
low, however being a labour intensive industry, its contribution to employment is
significant.
In a recent study carried out by NMCC, it was highlighted that total employment
in this sector would amount to 2.5 million (30 percent of which are women).
Footwear industry provides employment to the uneducated population - 40
percent of employment is represented by unskilled workers doing table work
operation in the assembly line.
Large employment opportunities on the input side - minority community and low
caste people have their sole source of livelihood from collecting carcasses,
skinning dead animals and tanning leather.
The Footwear industry has potential to provide employment across all sections of
the economy Industry estimates of employment potential 3 lakh jobs in next 3
years.
The potential for employment is across all skills to the tune of semi-skilled and
unskilled labourers - 92 percent; technical supervisory, shop floor - 7 percent;
entrepreneurs, senior managers and technologists - 1 percent.
Indian Footwear and Leather industry is clearly optimistic about the future. To
protract this optimism, State Governments must ensure that they are able to
create an attractive and enabling environment. (Confederation of Indian
IndustryCII believes this can be achieved through openness to investments,
good governance and robust infrastructure.
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Employment & Child Labour Issues

India’s leather industry employs 1.7 million people and helps the socially-
disadvantaged, known as Scheduled Castes in officials, earn a livelihood. And
even though India has a cattle population of 195 million – the world’s largest –
cows provide only 10.8 percent of hides. The rest are derived from goat and
sheep. The fear is that the campaign against Indian leather will embrace these
animals too.

The exclusion of disadvantaged social groups from full participation in the

opportunities of society lies central to the existence of child labour in slaughter
House and allied activities, as there is a substantial concentration of certain
religious and caste groups.
The Leather 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. The processes in the footwear making include last making,
pattern cutting, clicking, sewing Assembling and finishing. There is no gender
selectivity in child labour. Adults earn wages that are only marginally higher than
what the children earn. Irrespective of the experience, skill and family size and
requirements the wage payment system remains insensitive and relatively
inelastic. Children contribute 20 to 40 per cent of the family income. The labour
in the leather industry is defined by the caste location. While market forces
predominantly govern all other aspects of the industry, the labour is drawn
exclusively from the most downtrodden section. As heads of 60 per cent of the
households are engaged in leather work, the leather sector study establishes the
incidence of child labour in leather flaying as an intergenerational phenomenon.

Children between 10 & 15 yrs. old are mainly employed in assembling shoes.
Some 80% of the children work for contractors at home. Children work on soling
(fixing upper portions of shoes to leather or rubber soles) with glue. Children in
cramped poorly lit rooms suffer from continuous skin contact with industrial
adhesives & breathing vapors from glues. The children working in the footwear
industry are exposed to physical factors like poor illumination, noise & poor
ventilation and chemicals like leather dust, benzene that is used as a solvent in
glues and p-tert. Butyl phenols, which is used in neoprene adhesives. Thus most
children suffer from respiratory problems, lung diseases and skin infections
through constant exposure to glue and fumes. They are also exposed to risk of
nasal cancer, neurotoxicity and adverse physical factors. In addition to the
general hazards of child employment in leather industry, the specific hazards for
single migrant child labour of slaughterhouses consist in their being exposed to
all kinds of weather conditions, occupational Injuries and diseases, the
detrimental impact of watching the slaughtering of cattle continuously and the
lack of sanitary facilities which makes the children to suffer from psychological
problems.

Women Employees
Women are employed in large numbers in Indian leather industry and are
making important contribution to the national economy as well as to exports.
Women are involved in footwear production in Athani (Karnataka), Rajasthan,
Agra (UP) and Chennai, Ambur, Ranipet and Vaniambadi (Tamil Nadu). Their
entry into productive work has helped considerably in improving their household
situation. With the `take off' of the footwear industry, especially in the last 20
years and the rapid rise of exports, women's employment has increased. The
leather industry has been designated as a hazardous industry under the Factory
Act 1948, and has a mandatory requirement of formal approvals for expansion.
It has been observed that formal units expand and set up illegal units, where the
bulk of women workers, especially dalit women are found. Women are not
documented as 'workers' on any official records. Therefore, they are not legally
entitled to any compensations or benefits. These women are recruited through
contractors and are engaged in all stages of the tanning process. Their tasks are
time consuming, backbreaking and the most hazardous.

The present study and other studies -indicate that, prolonged contact with
chemicals used in the leather industry leads to problems such as dermatitis, loss
of hair on the head, conjunctivitis, nervous disorder, itching of skin and throat
mucous membrane, chest pain, ulcer, breathing problems, asthma, bronchitis,
fissure in fingers, toes, mouth and nose, frequent fever, headache and stomach
upsets. Specific gynecological problems faced by women workers are: menstrual
disorders; premature death, still births and prolapsed of the uterus.
Footwear Industry to Generate Jobs for Women
Source: http://www.hindu.com/2008/04/18/stories/2008041853980500.htm
KOZHIKODE: With the Feroke-Cheruvannur-Ramanatukara industrial belt in
Kozhikode set to emerge as a hub of footwear manufacture, a spin-off would be
the creation of sizeable job opportunities, especially for women.
The Footwear Design and Development Institute in Cheruvannur set up with the
objective of quality control and design improvement, with the assistance of
footwear manufacturing units in the area and the proactive involvement of the
Kudumbasree Mission and the Cheruvannur-Nallalam grama panchayat, is
expected to create job opportunities for scores of women.
“The two-and-a-half month training in footwear stitching has been completed for
the first batch. Basic qualification for the trainees is orientation towards
tailoring,” V. Naushad of the VKC Group and the main force behind the venture
told The Hindu here on Sunday.
The support of the Government of India came by way of 30 per cent subsidy for
setting up the training centre by including footwear manufacture in the ‘thrust’
sector list. The Central Leather Research Institute, Chennai, conducted the tests
for trainees. It also provided assistance of Rs.56 lakh.
Mr. Naushad said the State Kudumbasree Mission was providing assistance for
conducting the training. The grama panchayat was involved in organising the
training programme. As of now, seven machines were provided for a group of 10
members each.
Contract job work
After the training, the women would be in a position to take up contract stitching
job works for the footwear manufacturers.
The entire operation has been planned on a large scale, Mr. Naushad said. As
many as 1,000 women would be trained in the skill over a period of three years.
The skilled stitching is now done by migrant labourers from West Bengal.
There are as many as 100-odd small and big footwear units in the Cheruvannur-
Feroke-Ramanatukara belt, said Mr. Rasheed, District Industries Centre.
K.P.A. Hashim, Standing Committee chairman of Cheruvannur-Nallalam grama
panchayat said women were being trained in `upper stitching’ of footwear.
Workers from Bengal
Now more than 1,500 skilled workers from West Bengal are engaged in the job.
The effort is to train local women in the skill and thereby generate economic
activity on a large scale.
A 12-member women group has undergone training and practical experience at
the manufacturing units. The second batch of 40 women is in the process of
completing training, Mr. Hashim said.
P. Damodaran of Odisia welcomed the setting up of the Design Centre.
He said it would help improve quality.
The training will ensure the availability of organised skilled labour, said Paul
Varghese of Hawalker. The Design Centre must have its own premises, he adds.
Mr. Naushad stressed the importance of technology upgrading. Only less than 50
per cent of the footwear required was produced here.
The trend can be reversed by manufacture of footwear of quality and consumer–
friendly designs and the Design Centre was an initiative in this direction.

Human Resource in Indian Footwear Industry

The Indian leather industry has come a long way. In the process, it has come to
occupy a place of prominence in view of its massive potential for growth &
exports while providing opportunities for employment over 2.5 million people in
the industry, of whom 30 % are women.
There are 2.5 million persons engaged in leather and allied activities and large
pool of trained man power is engaged in tanning and product sectors. Indian
technologist are employed in most of the Asian and African nations.A fairly good
institutional base has now been established in India, which is fulfilling the
training and Human Resource development requirements of the organized
industry. Yet, the numbers of people they are able to provide are much below
the requirement and are globally less accepted.The footwear industry has the
unique status of linking the most developed and rich people of the world as
consumers with the developing and underdeveloped producers of leather
products. But still, Indian leather & footwear industry has a quite less share in
global market.
Catering to the rising demands in this sector, many students pursue these
footwear design & technology courses today as the retail sector holds a
promising future for the professionals trained in this field. In order to fulfill the
rapidly growing demand for qualified professionals in this industry, various
institutes offer footwear design & technology courses in India.
Types of Footwear Design & Technology Courses in India:

Several kinds of Footwear Design & Technology courses are available in India.
You can choose from these courses according to your needs and qualifications.
Some of these courses are Management program in Footwear Technology,
Masters Program in Footwear Design, Higher Diploma course in Footwear
Technology, Diploma course in Footwear Designing as well as short term courses
in Footwear, leather garments or Leather Goods.

Eligibility for admission to Footwear Design & Technology Courses in

India

While the certificate courses in Footwear design & technology can be generally
pursued right after the completion of the 12th standard, the higher diploma
course in footwear technology require the candidate to be a graduate in any
stream or diploma holder in leather, engineering or Footwear technology. In
order to apply for basic courses in footwear manufacturing technology, shoe
making or design, you need to pass 10+2 level. Candidates are considered
eligible for admission to diploma courses in footwear design if they are
graduates.
Below mentioned is the list of India's best institutes that offer Footwear Design &
Technology Courses in India-

Footwear Design & Technology Courses in India

Name & Address Phone/Email/Website

Footwear Design & Development Tel: +91-120-2412456, 2412534,

Institute 2412557
A - 10 / A, Sector - 24 Email:fddi@vsnl.com
Noida- 201 301 Website: www.fddiindia.com
Gautam Budh Nagar,
Uttar Pradesh

Central Footwear Training Institute

Phone: 91-562-2642005
C-41-42, Site-'C',
e-mail: info@cftiagra.org.in
Industrial Area, Sikandra Agra-282007
AVI School of Fashion and Shoe
Technology
S.C.O 493-94, Phone No: 602997, 601651
Iind Floor, Sector 35-C,
Chandigarh
MSME Technology Development Centre Phone: 044-22501529,
(Central Footwear Training Institute), Email: cfti@vsnl.net
65/1, GST Road, Website: www.cftichennai.in
Guindy, Chennai 600032
Central Leather Research Institute Tel No: 91-44-24910897
(Council of Scientific & Industrial 91-44-24910846
Research) E-mail : clrim@vsnl.com
Adyar, Chennai 600 020 Website: http://www.clri.org/
College of Leather Technology
E.M. Byepass,
Salt Lake, Sec-II
Kolkata- 700091
Government Tanning Institute,
Opposite Ambedkar Bhawan, Phone No: 0181-2253389, 0181-
Near Guru Ravidass Chowk, 2472242
Nakodar Road, Jalandhar Email: info@gtijal.org
Punjab

Indian Footwear Retail Industry

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Source: IMAGES F&R Research, INDIA RETAIL REPORT 2007

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.
 Volume Share of Products Segments in Footwear

The children's and kids' segment also accounts for a significant share due to the
increased emphasis on sporty looks. Given India’s very young population, the
market for children’s footwear is also attractive for new organized players to
enter and earn supernormal profits.
Volume Share in Footwear

The footwear market today is showing a trend where more and more
competitors within the segment are coming together and forming alliances
through cross-promotions and tie-ups benefits for enhanced reach and offering
the consumer access to a wider range of products and brands.
The London-based Carlton group became the first overseas player to enter the
Indian women’s footwear market when it set up its first store at the MGF
Metropolitan Mall in Gurgaon recently.
Growth of Indian Footwear Retail
( Value Rs. Crore at 2003-04 Prices )
The entry of specialty sportswear retailers such as Royal Sporting House, Sports
Station and Planet Sports providing the best shopping experience for customers
and a platform to showcase the world’s top sports and active lifestyle brands has
transformed the organized retailing scenario in the country. Royal Sporting
House has over 40 stores in India, many of which are placed in prime locations
within shopping malls. It is the exclusive distributor of brands such as Mizuno,
Caterpillar, TYR, Dunlop Sports and non-exclusive ones such as Reebok, Adidas,
Nike and Skechers. Planet Sports, with 20 outlets in the country, is the licensee
in India for leading sports brands such as Puma, Speedo, Converse and Wilson,
among others.
The sportswear market is the only sector in India that has the presence of all
three top international brands. The year 1996 witnessed the entry of Nike,
Reebok and Adidas that gave a new dimension to footwear and fashion retailing
in the country. Playful promotion campaigns, world class merchandising and the
internationally styled stores enthused consumers to go for an extra pair of shoes
and a couple of extra Tee Shirts and add a little bit of sporty images to their
lifestyle.
In the face of increasing competition from leading multinational players,
domestic footwear retailers have also woken up to the opportunity that the
segment beckons and are realizing that exposure to shopping standards abroad
have made Indian consumers demand the same formats and experience here.
Responding to this challenge, major domestic players like Bata and Liberty have
significantly transformed their retail formats to become more lifestyle- oriented
and are positioning themselves as vibrant and contemporary Indian brands.
In recent years the market has seen entry of a host of new domestic and foreign
brands like Drish, Lotto, Lotus Bawa, Now, Oakridge, Royal Elastic, Sketchers,
Teenage, Teva, Timberland and Vans. Fashionable brands like Stryde and Red
Tape and MNC brands like Allen Cooper, Franco Leone, Gaitonde, Gucci, Guess,
Lee Cooper, are further developing the market by creating new segments.
Source: IMAGES F&R Research, INDIA RETAIL REPORT 2007
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In a Makeshift and Make-Believe World

Source: http://indiaretailing.com/news.asp?id=1611&topic=3
9 Feb, 2008
It is almost a year now that Indiaretailing has been echoing the fact that
whatever is being said, heard, or seen about organised retail in India, the
‘opposite’ of that is equally true.

Organised and unorganised, steel carts in stores and push carts on roads, POS-
generated bills and handwritten parchis, high-quality branded goods and fakes
sold by nobodies… every business activity has a parallel identity in India.

In their effort to put the best foot forward while balancing their steps on these
seemingly endless dichotomies, Team Indiaretailing’s vigilant eye came upon
some of the leading footwear brands that are being sold at throwaway prices in
Sarita Vihar area in the NCR. Temporary kiosks and ragged racks have been set
up in front of what used to be branded outlets, which were sealed by the
Municipal Corporation of Delhi (MCD) a few months ago, tagged as ‘unauthorised
construction’. The surprising makeshift arrangement in front of these closed
shops primarily sells footwear, and on offer are almost all the known brands in
India.

Are they originals, counterfeits, or smuggled worthies? If they are counterfeits,

who’s making them, and how dare anybody spoil the brand’s credibility? Do the
brands know about this? Is it that brands are dumping their overproduced or
defective products here? TI ventured into the hazy areas engulfing the issue.

According to Images F&R Research, the Indian footwear market in 2006 was
estimated to be worth Rs 13,750 crore. About 37.8 per cent of footwear retail is
in the organised segment (Rs 5,200 crore at 2006 prices), and this qualifies it as
the second-most organised retail category in India. The segment has seen over
100 per cent growth in the two years from 2004 to 2006.

The statistics obviously did not have anything to reveal on the parallel markets.

The more one tried understanding this parallel business, the more complicated it
seemed to become. Hence, in the wisdom of the moment, TI here presents the
picture as it emerges, and the sequence of activities and varied opinions that it
came across, leaving the balancing and the understanding part to whosoever can
understand better.

TI Action

♣ January 30 to February 5, TI has been observing, talking to, recording and

photographing the operations of ‘brand breakers’ in the NCR region.

♣ February 5, Indiaretailing shoots mails (scene pictures attached) to leading

footwear brands intimating them about their continuous branding efforts being
compromised by a few transgressors, who are selling what are probably
counterfeits or smuggled products under an array of brand names right in front
of their closed shops, which, however, still have their forefront boards on.
Brands were also informed that these are selling at less than half the actual
price, and, moreover, bills are being provided to authenticate the sale.

The mail also quizzed brands about their stand on the unlawful practice, and also
the measures they would take at their end to counter the problem.

The idea behind intimating brands before putting up the issue in public domain
was not just to pass on the information, but also to understand the extent a
brand can go to protect its image and loyalty of the customers built over the
years. Also, it was an effort to express TI’s concern for counterfeit retailing.

Action vs reaction

Newton was right. The TI action received an equal and an ‘opposite’ reaction.
Brands reacted, objected, justified…

February 6, Andreas Gellner, managing director, Adidas India Trading Pvt. Ltd,
called up TI and appreciated its efforts. Sharing his concern on the issue, he
said, “We’ve been in the market for almost a decade and been hearing news
about counterfeits of brands being sold in different areas of the NCR. In this
case, sometimes the brands are helpless, as they can’t keep vigil all over. It is
the duty of the law-enforcement agencies to keep a track and take stringent
action.”

Commenting upon the particular case that is this feature’s focus, Gellner said,
“Firstly it is obvious that they are selling fakes as our brand cannot land in such
hands; secondly, they are cashing in on the brand’s credibility by selling in front
of the closed shops.”

Bata, one of the largest footwear retailers in the country, not only expressed
surprise, but also went into action mode. The company took the initiative of
investigating the matter itself, and is planning to take legal action against the
ones involved in hampering the brand’s image.
In an emailed reply to TI, Bata maintained that the store, in front of which the
footwear in question is being sold, is not the company’s outlet, but of a footwear
dealer who is using the Bata board without any authority. Roadside sellers are
befooling the customers under the brand’s banner to sell their wares.

Manoj Chandra, vice president of marketing and customer service at Bata,

stated, “We stand by the goodwill and reputation of our brand and retail stores.
Such activities by unidentified men are irresponsible and can very well harm our
brand. We appreciate the TI research and will take appropriate measures to
control this undesired practice.”

Subhinder Singh Prem, managing director, Reebok India, said: “There have been
such incidents in the past when we found counterfeits being sold in various
areas. There’s a particular process involved in tackling such situations. Our legal
departments take stringent action if such a case is brought to our notice. We
have conducted raids at sellers and also manufacturers in the past. But this
seems to be a never-ending situation as these people start functioning for some
time and keep shifting bases.”

However, Prem was not aware about the Sarita Vihar scene. When informed, he
said that the company will take all preventive measures to protect the brand’s
image.

Other leading footwear brands also voiced similar opinions, though they wished
to remain off-the-record. They agreed that such activity is not only an
obstruction to their brand-building process, but is also a criminal act.

Another interesting detail was revealed by some of the brand representatives.

They admitted to being actually concerned about the fate of those who once
operated those closed shops, and providing them with cheaper, discardable
products to sell cheap. However, they maintained that they take off the brand’s
tags and do not authorise anybody to use their brand name.

Yessir, they have their story, too

The depth in the truth, they say, is subjective; however, nothing can be an
absolute lie either.
Here are some abstracts of TI’s conversation with some of the sellers who claim
to be the owners or the employees of the sealed shops.

“The shops that were here were our only source of income. Now that they are
sealed, where are we supposed to sell such branded products? Who is going to
feed our families?”

“The government had turned a blind eye when those shops were being built.
They did not open their eyes all the while this market was on full swing. What
happened all of a sudden?”

“People will say whatever they have to, but these are all original brands. We
used to sell the same products through properly organised shops before they
were sealed. And yes, we do provide the bill for whatever we sell.”

“We have stocks of branded products, but no place to sell. So, to do away with
the extra stock, we sell them at lower prices.”

No conclusion

Neither party is shying away from taking a stand. Even as the perimeters
of ‘organised’ and ‘unorganised’ remain fused in the context of Indian
retail, it is quite inevitable that in the meantime, the gaps will be
exploited. While legislation and copyright issues await clarity, brands
themselves must abide by the code of brand identity – in the heart of
which lies an irrevocable promise of goodness, quality and faith.

Indian Retail Industry

Retail and real estate are the two booming sectors of India in the present times.
And if industry experts are to be believed, the prospects of both the sectors are
mutually dependent on each other. Retail, one of India’s largest industries, has
presently emerged as one of the most dynamic and fast paced industries of our
times with several players entering the market. Accounting for over 10 per cent
of the country’s GDP and around eight per cent of the employment retailing in
India is gradually inching its way toward becoming the next boom industry.
As the contemporary retail sector in India is reflected in sprawling shopping
centers, multiplex- malls and huge complexes offer shopping, entertainment and
food all under one roof, the concept of shopping has altered in terms of format
and consumer buying behavior, ushering in a revolution in shopping in India.
This has also contributed to large scale investments in the real estate sector with
major national and global players investing in developing the infrastructure and
construction of the retailing business. The trends that are driving the growth of
the retail sector in India are
• Low share of organized retailing
• Falling real estate prices
• Increase in disposable income and customer aspiration
• Increase in expenditure for luxury items

Another credible factor in the prospects of the retail sector in India is the
increase in the young working population. In India, hefty pay-packets, nuclear
families in urban areas, along with increasing working-women population and
emerging opportunities in the services sector. These key factors have been the
growth drivers of the organized retail sector in India which now boast of retailing
almost all the preferences of life - Apparel & Accessories, Appliances, Electronics,
Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many
more. With this the retail sector in India is witnessing a rejuvenation as
traditional markets make way for new formats such as departmental stores,
hypermarkets, supermarkets and specialty stores.
The retailing configuration in India is fast developing as shopping malls are
increasingly becoming familiar in large cities. When it comes to development of
retail space specially the malls, the Tier II cities are no longer behind in the race.
If development plans till 2007 is studied it shows the projection of 220 shopping
malls, with 139 malls in metros and the remaining 81 in the Tier II cities. The
government of states like Delhi and National Capital Region (NCR) are very
upbeat about permitting the use of land for commercial development thus
increasing the availability of land for retail space; thus making NCR render to
50% of the malls in India.

India is being seen as a potential goldmine for retail investors from over the
world and latest research has rated India as the top destination for retailers for
an attractive emerging retail market. India’s vast middle class and its almost
untapped retail industry are key attractions for global retail giants wanting to
enter newer markets. Even though India has well over 5 million retail outlets,
the country sorely lacks anything that can resemble a retailing industry in the
modern sense of the term. This presents international retailing specialists with a
great opportunity. The organized retail sector is expected to grow stronger than
GDP growth in the next five years driven by changing lifestyles, burgeoning
income and favorable demographic outline.
Another cap to the retailing industry in India is allowing 51% FDI in single brand
outlet. The government is now set to initiate a second wave of reforms in the
segment by liberalizing investment norms further. This will not only favor the
retail sector develop in terms of design concept, construction quality and
providing modern amenities but will also help in creating a consumer-friendly
environment. Retail industry in India is at the crossroads but the future of the
consumer markets is promising as the market is growing, government policies
are becoming more favorable and emerging technologies are facilitating
operations in India. And this upsurge in the retail industry has made India a
promising destination for retail investors and at the same time has impelled
investments in the real estate sector. As foreign investors cautiously test the
Indian Markets for investments in the retail sector, local companies and joint
ventures are expected to be more advantageously positioned than the purely
foreign ones in the evolving India's organized retailing industry.

Current Scenario of Indian Retail Industry

Indian retail industry is going through a transition phase. Most of the retailing in
our country is still in the unorganized sector. The spread out of the retails in US
and India shows a wide gap between the two countries. Though retailing in India
is undergoing an exponential growth, the road ahead is full of challenges.
What is retailing?
The word "Retail" originates from a French-Italian word. Retailer-someone who
cuts off or sheds a small piece from something. Retailing is the set of activities
that markets products or services to final consumers for their own personal or
household use. It does this by organizing their availability on a relatively large
scale and supplying them to customers on a relatively small scale. Retailer is a
Person or Agent or Agency or Company or Organization who is instrumental in
reaching the Goods or Merchandise or Services to the End User or Ultimate
Consumer.
SCENARIO OF RETAILING IN INDIA
Retailing is the most active and attractive sector of last decade. While the
retailing industry itself has been present since ages in our country, it is only the
recent past that it has witnessed so much dynamism. The emergence of retailing
in India has more to do with the increased purchasing power of buyers,
especially post-liberalization, increase in product variety, and increase in
economies of scale, with the aid of modern supply and distributions solution.
Indian retailing today is at an interesting crossroads. The retail sales are at the
highest point in history and new technologies are improving retail productivity.
though there are many opportunities to start a new retail business, retailers are
facing numerous challenges.
KEY CHALLENGES:
1) LOCATION:
"Right Place, Right choice"
Location is the most important ingredient for any business that relies on
customers, and is typically the prime consideration in a customers store choice.
Locations decisions are harder to change because retailers have to either make
sustainable investments to buy and develop real estate or commit to long term
lease with developers. When formulating decision about where to locate, the
retailer must refer to the strategic plan:
* Investigate alternative trading areas.
* Determine the type of desirable store location
* Evaluate alternative specific store sites
2) MERCHANDISE:
The primary goal of the most retailers is to sell the right kind of merchandise
and nothing is more central to the strategic thrust of the retailing firm.
Merchandising consists of activities involved in acquiring particular goods and
services and making them available at a place, time and quantity that enable the
retailer to reach its goals. Merchandising is perhaps, the most important function
for any retail organization, as it decides what finally goes on shelf of the store.
3) PRICING:
Pricing is a crucial strategic variable due to its direct relationship with a firm's
goal and its interaction with other retailing elements. The importance of pricing
decisions is growing because today's customers are looking for good value when
they buy merchandise and services. Price is the easiest and quickest variable to
change.
4) TARGET AUDIENCE:
"Consumer the prime mover"
"Consumer Pull", however, seems to be the most important driving factor behind
the sustenance of the industry. The purchasing power of the customers has
increased to a great extent, with the influencing the retail industry to a great
extent, a variety of other factors also seem to fuel the retailing boom.
5) SCALE OF OPERATIONS:
Scale of operations includes all the supply chain activities, which are carried out
in the business. It is one of the challenges that the Indian retailers are facing.
The cost of business operations is very high in India.
PRESENT INDIAN SCENARIO
* Unorganized market: Rs. 583,000 crores
* Organized market: Rs.5, 000 crores
* 5X growth in organized retailing between 2000-2005
* Over 4,000 new modern Outlets in the last 3 years
* Over 5,000,000 sq. ft. of mall space under development
* The top 3 modern retailers control over 750,000 sq. ft. of retail space
* Over 400,000 shoppers walk through their doors every week
* Growth in organized retailing on par with expectations and projections of the
last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by
2005-06
* Major players
- Food and grocery
- Fashion
- Others
- Food world
- Shoppers' Stop
- Vivek's
- Subhiksha
- Westside
- Planet M
- Nilgris
- Lifestyle
- Music World
- Adani- Rajiv's
- Pyramid
- Crossword
- Nirma-Radhey
- Globus
- Life spring
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TRADITIONAL RETAIL SCENE IN INDIA
India is the country having the most unorganized retail market. Traditionally the
retail business is run by Mom & Pop having Shop in the front & house at the
back. More than 99% retailers function in less than 500Sq.Ft of area. All the
merchandise was purchased as per the test & vim and fancies of the proprietor
also the pricing was done on ad hock basis or by seeing at the face of customer.
Generally the accounts of trading & home are not maintained separately. Profits
were accumulated in slow moving & non-moving stocks which were to become
redundant or consumed in-house. Thus profits were vanished without their
knowledge. The Manufactures were to distribute goods through C & F agents to
Distributors & Wholesalers. Retailers happen to source the merchandise from
Wholesalers & reach to end-users. The merchandise price used to get inflated to
a great extent till it reaches from Manufacturer to End-user. Selling prices were
largely not controlled by Manufacturers. Branding was not an issue for majority
of customers. More than 99% customers are price sensitive & not quality or
Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar
in many small tows was held & almost all the commodities were on the scene
including livestock. Bargaining was the unwritten law of market. Educational
qualification level of these retailers was always low. Hence market was
controlled by handful of distributors &/or Wholesalers. Virtually there was only
one format of retailing & that was mass retail. Retailer to consumer ratio was
very low, for all the categories without exception. Varity in terms of quality,
Styles were on regional basis, community based & truly very low range was
available at any given single place. Almost all the purchases / (buying) by mass
population was need oriented & next turn may be on festivals, Marriages,
Birthdays & some specific occasions.
Impulsive buying or consumption is restricted to food or vegetables etc. Having
extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports
wear & different pair of shoes for occasions is till date is a luxury for majority
population except for those living in Metros. Purchasing power of Indian urban
consumer is very low and that of Branded merchandise in categories like
Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly
seeping into the lifeline of Indian City folks. However electronic & electrical home
appliances do hold appropriate image into the minds of consumers. Brand name
does matter in these white goods categories. In the coming times also majority
of organized retailers will find it difficult to keep balance with rest of the
unbranded retail market which is very huge.
INDIAN RETAIL IS MOVING INTO SECOND GEAR
1) FIRST GEAR:
(Create awareness)
* New retailers driving awareness
* High degree of fragmentation
* Real estate groups starting retail chains
* Consumer expecting 'value for money' as core value
2) SECOND GEAR:
(Meet customer expectations)
* Consumer-driven
* Emergence of pure retailers
* Retailers getting multi-locational and multi-format
* Global retailers evincing interest in India
3) THIRD GEAR:
(Back end management)
* Category management
* Vendor partnership
* Stock turns
* Channel synchronization
* Consumer acquisition
* Customer relation's management
4) FOURTH GEAR:
(Consolidation)
* Aggressive rollout
* Organized retail acquitting significant share
* Beginning of cross-border movement
* Mergers and acquisitions
CONCLUSION
For a start, these retailers need to invest much more in capturing more specific
market. Intelligence as well as almost real-time customer purchase behavior
information. The retailers also need to make substantial investment in
understanding/acquiring some advanced expertise in developing more accurate
and scientific demand forecasting models. Re-engineering of product sourcing
philosophies-aligned more towards collaborative planning and replenishment
should then be next on their agenda. The message, therefore for the existing
small and medium independent retailers is to closely examine what changes are
taking place in their immediate vicinity, and analyze Whether their current
market offers a potential redevelopment of the area into a more modern multi-
option destination. If it does, and most commercial areas in India do have this
potential, it would be very useful to form a consortium of other such small
retailers in that vicinity and take a pro-active approach to pool in resources and
improve the overall infrastructure. The next effort should be to encourage
retailers to make some investments in improving the interiors of their respective
establishments to make shopping an enjoyable experience for the customer.
As the retail marketplace changes shape and competition increases, the potential
for improving retail productivity and cutting costs is likely to decrease.
Therefore, it will become important for retailers to secure a distinctive position in
the marketplace based on value, relationships or experience.
Finally, it is important to note that these strategies are not strictly independent
of each other; value is function of not just price, quality and service but can also
be enhanced by Personalization and offering a memorable experience. In fact,
building relationships with customers can by itself increase the quality of overall
customer experience and thus the perceived value. But most importantly for
winning in this intensely competitive marketplace, it is critical to understand the
target customer's definition of value and make an offer, which not only delights
the customers but also is also difficult for competitors to replicate.
Indian Retail Industry: Opperunities, Challenges, &
Strategies
Source:
http://www.123eng.com/forum/viewtopic.php?p=62976

ABSTRACT

The revolution in retailing industry has brought many changes and also opened
door for many Indian as well as foreign players. In a market like India there is a
constant clash between challenges and opportunities but chances favour those
companies that are trying to establish themselves. So to sustain in a market like
India companies have to bring innovative solutions. Indian market has potential
to accommodate many retail players, because still a small proportion of the pie
is organized.

This paper discusses the challenges like merchandising mix, retail differentiation,
supply chain management and also competition from supplier's brand in the
Indian perspective.

Key words- Retail differentiation, Supply chain, Merchandising Mix, Private level
brand.

1.0 Introduction

Retailing is still in its infancy in India. In the name of retailing, the unorganised
retailing has dominated the Indian landscape so far. According to an estimate
the unorganized retail sector has 97% presence whereas the organized accounts
for merely 3% . Industry has already predicted a trillion dollar market in retail
sector in India by 2010. However, the retail industry in India is undergoing a
major shake-up as the country is witnessing a retail revolution. The old
traditional formats are slowly changing into more complex and bigger formats.
Malls and mega malls are coming up in almost all the places be it – metros or
the smaller cities, across the length and breadth of the country.

A McKinsey report on India (2004) says organized retailing would increase the
efficiency and productivity of entire gamut of economic activities, and would help
in achieving higher GDP growth. At 6%, the share of employment of retail in
India is low, even when compared to Brazil (14%), and Poland (12%).Govt of
India's plan of changing the FDI guidelines in this sector speaks of the
importance attached to retailing. Recently moves by big corporate houses like
Reliance Industries has further fuelled the major investments in retail sector. A
strategic alliance, land acquisitions in prime areas give the essence of the mood
in this sector.

Both MNCs and Indian firms want to get their share of this burgeoning pie.
Notable in Indian firms are Pantaloons Retail & Big Bazaar, Trent's Westside,
Shopper's stop, Reliance and Subhiskha, Wills Lifestyle stores, Café Coffee Day,
which are present in India in different retail formats. Wal-Mart stores have just
started operations in India. Some leading retail coffee chains of the world like
Starbucks, Barnies are planning to expand in a major way in India.

2.0 THE INDIAN RETAIL SECTOR

India is the country having the most unorganized retail market. Traditionally it
was a family's livelihood, with their shop in the front and house at the back,
while they run the retail business.More than 99% retailer's function in less than
500 square feet of shopping space. Global retail consultants KSA Technopak
have estimated that organized retailing in India is expected to touch Rs 35,000
crore in the year 2005-06. The Indian retail sector is estimated at around Rs
900,000 crore, of which the organized sector accounts for a mere 2 per cent
indicating a huge potential market opportunity that is lying in the waiting for the
consumer-savvy organized retailer. Purchasing power of Indian urban consumer
is growing and branded merchandise in categories like Apparels, Cosmetics,
Shoes, Watches, Beverages, Food and even Jewellery, are slowly becoming
lifestyle products that are widely accepted by the urban Indian consumer. Indian
retailers need to advantage of this growth and aiming to grow, diversify and
introduce new formats have to pay more attention to the brand building process.
The emphasis here is on retail as a brand rather than retailers selling brands.
The focus should be on branding the retail business itself.There is no doubt that
the Indian retail scene is booming. A number of large corporate houses —Tata's,
Raheja's, Piramals's, Goenka's — have already made their foray into this arena,
with beauty and health stores, supermarkets, self-service music stores, new age
book stores, every-day-low-price stores, computers and peripherals stores,
office equipment stores and home/building construction stores. Today the
organized players have attacked every retail category.

The Indian retail scene has witnessed too many players in too short a time,
crowding several categories without looking at their core competencies or having
a well thought out branding strategy. The growth rate of super market sales has
been significant in recent years because greater numbers of higher income
Indians prefer to shop at super markets due to higher standards of hygiene and
attractive ambience. With growth in income levels, Indians have started
spending more on health and beauty products. Here also small, single-outlet
retailers dominate the market. In recent years, a few retail chains specialised
products have come into the market. Although these retail chains account for
only a small share of the total market, their business is expected to grow
significantly in the future due to the growing quality consciousness of buyers for
these products .Numerous clothing and footwear shops in shopping centres and
markets operate all over India. Traditional outlets stock a limited range of cheap
and popular items; in contrast, modern clothing and footwear stores have
modern products and attractive displays to lure customers. With rapid
urbanization, and changing patterns of consumer tastes and preferences, it is
unlikely that the traditional outlets will survive the test of time. Despite the large
size of this market, very few large and modern retailers have established
specialized stores for products.

There seems to be a considerable potential for the entry or expansion of

specialized retail chains in the country. The Indian durable goods sector has
seen the entry of a large number of foreign companies during the post
liberalization period. A greater variety of consumer electronic items and
household appliances became available to the Indian customer. Intense
competition among companies to sell their brands provided a strong impetus to
the growth for retailers doing business in this sector. Increasing household
incomes due to better economic opportunities have encouraged consumer
expenditure on leisure and personal goods in the country. There are specialized
retailers for each category of products (books, music products, etc.) in this
sector. Another prominent feature of this sector is popularity of franchising
agreements between established manufacturers and retailers. A strong impetus
to the growth of retail industry is witnessed by economic boom and driver of key
trends in urban as well as rural India.

2.1 Key Trends in Urban India:

* Retailing in India is witnessing a huge revamping exercise.

* Estimated to be US$ 200 billion, of which organized retailing (i.e. modern

trade) makes up 3 percent or US$ 6.4 billion.

* India is rated the fifth most attractive emerging retail market: a potential
goldmine

* Ranked second in a Global Retail Development Index of 30 developing

countries drawn up by AT Kearney.

* India is rated the fifth most attractive emerging retail market: a potential
goldmine

* Food and apparel retailing key drivers of growth.

* Organized retailing in India has been largely an urban phenomenon with

affluent classes and growing number of double-income households.

2.2 Key Trends in Rural India:

* Rural markets emerging as a huge opportunity for retailers reflected in the
share of the rural market across most categories of consumption

* ITC is experimenting with retailing through its e-Choupal and Choupal Sagar –
rural hypermarkets.

3.0 The Hidden Challenges

Modern retailing is all about directly having "first hand experience" with
customers, giving them such a satiable experience that they would like to enjoy
again and again. Providing great experience to customers can easily be said than
done. Thus challenges like retail differentiation, merchandising mix, supply chain
management and competition from supplier's brands are the talk of the day. In
India, as we are moving to the next phase of retail development, each endeavor
to offer experiential shopping. One of the key observations by customers is that
it is very difficult to find the uniqueness of retail stores. The problem: retail
differentiation.

The next problem in setting up organized retail operations is that of supply chain
logistics. India lacks a strong supply chain when compared to Europe or the USA.
The existing supply chain has too many intermediaries: Typical supply chain
looks like:- Manufacturer - National distributor - Regional distributor - Local
wholesaler - Retailer - Consumer. This implies that global retail chains will have
to build a supply chain network from scratch. This might run foul with the
existing supply chain operators. In addition to fragmented supply chain, the
trucking and transportation system is antiquated. The concept of container
trucks, automated warehousing is yet to take root in India. The result:
significant losses/damages during shipping.

Merchandising planning is one of the biggest challenges that any multi store
retailer faces. Getting the right mix of product, which is store specific across
organization, is a combination of customer insight, allocation and assortment
techniques.

The private label will continue to compete with brand leaders. So supplier's
brand wiil take their own way because they have a established brand image from
last decades and the reasons can be attributed to better customer experience,
value vs. price, aspiration, innovation, accessibility of supplier's brand.

4.0 STRATEGIES

4.1: Right Positioning

The effectiveness of the mall developer's communication of the offering to the

target customers determines how well the mall gets positioned in their minds. At
this stage, the communication has to be more of relative nature. This implies
that the message conveyed to the target customers must be effective enough in
differentiating the mall's offering from that of its competitors without even
naming them. The message should also clearly convey to the target audience
that the mall offers them exactly what they call the complete shopping-cum-
entertainment point that meets all their expectations. The core purpose is to
inform the target customers about the offering of the mall, persuade them to
visit the mall and remind them about the mall. The mall developer can create
awareness about the offering among the target customers in a number of ways.
Various communication tools available to the mall developer for this purpose
may include advertising, buzz marketing (WoM), celebrity endorsement, use of
print media, press releases and viral marketing .Once the message is being
conveyed through these channels, the mall developer must add a personal touch
to his message by carrying out a door-to-door campaign in order to reinforce the
message.

4.2: Effective Visual Communication

Retailer has to give more emphasis on display visual merchandising, lighting,

signages and specialized props. The visual communication strategy might be
planned and also be brand positioned. Theme or lifestyle displays using stylized
mannequins and props, which are based on a season or an event, are used to
promote collections and have to change to keep touch with the trend. The
merchandise presentation ought to be very creative and displays are often on
non-standard fixtures and forms to generate interest and add on attitude to the
merchandise.

4.3: Strong Supply Chain

Critical components of supply chain planning applications can help

manufacturers meet retailers' service levels and maintain profit margins. Retailer
has to develop innovative solution for managing the supply chain problems.
Innovative solutions like performance management, frequent sales operation
management, demand planning, inventory planning, production planning, lean
systems and staff should help retailers to get advantage over competitors.

4.4: Changing the Perception

Retailers benefit only if consumers perceive their store brands to have consistent
and comparable quality and availability in relation to branded products. Retailer
has to provide more assortments for private level brands to compete with
supplier's brand. New product development, aggressive retail mix as well as
everyday low pricing strategy can be the strategy to get edge over supplier's
brand.

5.0 Conclusion:

In their preparation to face fierce competitive pressure, Indian retailers must

come to recognize the value of building their own stores as brands to reinforce
their marketing Positioning, to communicate quality as well as value for money.
Sustainable competitive advantage will be dependent on translating core values
combining products, image and reputation into a coherent retail brand strategy.

Reference

Books: -

Levy, Michel; and Weitz, Barton A. Retailing Management .New Delhi, Tata
McGraw-Hill Publishing Company Limited, 2002.
Mariton, John. Smart Things to Know about Brands and Branding .Mumbai,
Indian Books Distributors Limited, 2000.
Electronic Resources

The Economic Times Knowledge Series :Retail 2000-2001",New Delhi: Times

Multimedia,2001(CD-ROM)
"Changing Gears :Retailing in India",New Delhi: Times Multimedia,2003(CD-
ROM)
"ET in The Classroom", Times Multimedia ,2003(CD-ROM)
Internet Resources
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Footwear Component Industry

Footwear components are basically those articles that are sandwiched between upper and lining,
hidden deep in a shoe as a rein-enforced insole or simply as a loose foot bed, which gives structure
and strength. They play a very necessary role in the footwear manufacture. Without their use,
footwear would lack form, shape, and comfort and would be unable to provide the performance
expected of it.
The footwear components which are mainly exported from India are leather shoe uppers and leather
unit soles. Major centers for the production of footwear components are: Agra (UP), Ambur (Tamil
Nadu), Chennai, Ranipet, New Delhi.
Footwear components' export has touched US$ 230 million in 1999- 2000, holding a share of 15% in
India's total export of leather and leather products.
Like shoe uppers, there is a great possibility of variations in designs and comfort in the case of
footwear components. Components like rubber and leather soles, PVC, TPR and PU soles are
produced with latest designs meeting global standards and specifications. Furthermore, Insoles, mid-
soles, plastic lasts, toe-puffs, counter stiffeners, laces, leather board materials, shank, fibre boards,
eyelets, fabrics, buckles, trims, etc. are also produced in various parts of the country to meet the
demand of the domestic as well as foreign footwear manufacturers.
Indian footwear components are exported to United Kingdom, Germany, Italy, United States, Portugal,
and France. Around 83 % of India's export of footwear components is to the above countries.
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Adhesives Brushes

Chemicals/ Foam / Fabrics /

Chemicals and Compounds
Adhesives

Clicking Dies and Punches Coated Fabrics

Counters and Toe Puffs - Moulded Counters and Toe Puffs - Sheets

Cow Wet Blue Escolite (Rubber Sheet)

EVA EVA Sheets & Compounds

Eyelets Finishes & Polishes

Flexible PU foam Footwear Magazines

Heel Hook & Loop Tape Fasteners

Injection Moulds Insole

Insole & Heels Insole / Unitsole with Banver

Knives Labels

Laces Lasts

Latex Rubber Foam Leather

Leather Board / Cellulose Board Linings

Linings / Inter Linings Machinery

Metal Tubes Metallic Fittings

Mignons and all Fancy Material Moulded Insoles

Moulds & Dies Needle Loom Felt

Non Woven Fabric Packing Boxes

Pigments / Release - Agents/ Spray

Plastic Heels
Equipments

Plastic Heels & Buckles Polymer Systems

PU Synthetics Bonded Leather Rivets

Rubber Sheet Rubber Sole

Shoe Components & Hot Melt

Shanks
Adhesives

Shoe Elastics & Shoe Hanger Shoe Lasts

Shoe Moulds Shoe Shanks

Shoe Soles Sole, Insole & Heels

Soles Soles - PU

Soles - PVC Soles - Rubber

Soles / Unit soles - leather / resin

Soles - TPR
sheets
 Soling Materials Steel Toe Caps

Straps Straps & Mignons

Synthetic Monofilaments Tacks

Tacks & Nails Tapes

Thermoplastic Rubber
Textile Laminated Fabric
Compound

Threads / Tapes / Elastics Toplift

TPR Sole and Welt Welts

About IFCOMA
Indian Footwear Components Manufacturers Association (IFCOMA) was
established in 1992 to bring the Indian footwear component manufacturers on a
common platform to help them to understand the various opportunities, growth
potential, export initiatives, problems and hurdles to faster growth of this crucial
sector. The association sought to support and encourage the member footwear
component industries in improving their quality, services and marketability in
the domestic and international markets.

IFCOMA is the only association of its kind in India that is duly recognized by the
government and many other trade institutions. We strive for better interaction
amongst our members, government bodies and the shoe manufacturers
worldwide. IFCOMA members have also made a very impressive entry in the
export markets worldwide for their products. Most of the footwear exported from
India are largely produced from Indian components.

Indian Footwear Component Manufacturers Association (IFCOMA), is an

organization managed by a duly elected apex body called the Executive
Committee. Membership is open to all those who are connected with the
footwear component and accessories manufacturing industry. The growth
achieved by IFCOMA in the last five years is a result of the true democratic spirit
of a vast number of dedicated entrepreneurs and professionals who have worked
ceaselessly for the cause of the association.

IFCOMA is the voice of the Rs. 2000 Crore (US $ 500 Million) Indian
footwear components industry on policy, development, research, technology,
regulatory matters and myriad issues involving the industry and its growth
prospects. Our members arecomponents and accessories
manufacturers and are entitled to many benefits.

Some of the benefits are:

• Technical Assistance
 • Trade Assistance
• Manpower Training
• Representation of the Component Industry
• Free Access To Our Online Resources
Source: IFCOMA (http://www.ifcoma.org/)