Indian footwear industry - Innovation is the key


Briefly about the Indian footwear industry

The footwear industry in India, which is dominated by the unorganized sector, directly employs over 1.1 million people. Over 22 billion pairs are being produced annually in India, which is approximately 9.6% of the total global annual footware output. India is the second largest producer of footwear after China and it is the third largest consumer after China and the United States. More than 90% footwear production is consumed domistically. India is among the top 10 exporters of footwear in the world and the share is continually growing. Men's footwear market contributes about 58% of the sales in the organized footwear market and it is expected to grow at 10% CAGR by 2020. Women's footwear market is projected to grow at 20% CAGR by the year 2020.1

Indian Shoe Industry - Footwear industry in India

Image: Thanks to Pixabay

About 67% of the sales in the organized footware industry is contributed by casual footwear. As the consumer behaviour is changing, the organized players are expected to gain greater share of the market. The organized players are concentrating more on Tier II and Tier III cities as the companies are expecting better growth opportunities.

Government support for the success of the nndustry

A special package of Rs. 2,600 crore was announced by the government (see notification). This amount is to be spent over the three financial years of 2017-2018 to 2019-2020. The package is expected to help the industry by

  • improving infrastructure
  • addressing environmental concerns
  • facilitatating investemnts in the sector
  • creating greater employment opportunities

Goods and Services Tax (GST) is also expected to make the industry more organized. Initially,the GST rate for footwear that costs up to Rs. 500 was 5% and for the rest it was 18%. GST rates on footwear were later revised to bring footwear that costs up to Rs. 1000 under 5% slab and for the rest it is still 18%. Industry was relieved by this decision as the bulk of the footwear products are priced under Rs. 1000.

Listed companies in the footwear sector


Comparirion of companies in the footwear sector

Comparison of Footwear Sector

Challenges and change in strategy

As the consumer shopping behaviour is changing, the footwear makers are also trying to adjust their marketing and sales model to align with it. It is expected that 11% of the sales will be generated through online medeum by 2021. The listed players are not just competing against each other, but they are also competing against large multinational companies and many upcoming trendy startups. The traditional players have to keep pace with the latest design, fashion and technology which may affect their margins. It is expected that in a few years time the footwear industry may become almost majorly organized. Onile retailing will contribute more than bricks and mortar stores. But the Indian market is such that the companies cannot do away with the bricks and mortar stores completely as customers may still want to physically check the product before ordering it online.

Major competitors 2
Sports shoes and clothing

  • Puma
  • Nike
  • Adidas
  • Reebok
Women's footwear brands
  • Haute Curry
  • Catwalk
  • Clarks
  • Elliza Donatein
  • Femina Flaunt
  • Crocs
  • Steve Madden
  • Estatos
  • Mochi
Men's footwear brands
  • Woodland
  • Blackberrys
  • Allen Solly
  • Clarks
  • Franco Leone
  • Lee Cooper/li>
  • Skechers
  • US Polo Association
There are many other brands (including Indisn) that have caught the imagination of the yound and trendy consumers.

Future is bright for the Industry

It is estimated that the footwear consumption in India is 1.7 per person per year where as this number is 3 in China and 5 in the advanced economies. As the household income increases and the sstandard of living improves, the Indian consumption story will unravel. Another area where the Industry can grow significantly improve is on the export front. With support from the government the industry can grow manifold in the next few years.


  1. Bata India annual report, FY2017-18
  2. Brand list on online shopping websites: Shoppers Stop, Amazon, Flipkart, Jabong and Myntra



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