Footwear Industry in India

Footwear Industry in India


India is considered as the second largest footwear manufacturer in the world with an annual production of approximately 22 billion pairs. Over the years, the footwear industry in India has undergone various industrial revolutions to provide customers with maximum comfort, better quality and styles. Due to the innovation in quality and premiumization, footwears are seen as an indicator of one’s economic and social status.

The Footwear Industry in India is primarily segmented as;

  • Men's Footwear
  • Women's Footwear
  • Kids Footwear

Footwear Market Size in India

Of the total footwear produced, approximately 90% are consumed domestically and in 2020 the footwear market in India was valued at INR 730 billion. The footwear demand is projected to exhibit strong growth with a CAGR of 8% reaching INR 1,072.6 billion by 2025.

Footwear Industry Market Size

Based on the different types of products, the footwear industry in India can be classified as;

  • Casuals
  • Mass
  • Sports/Active
  • Leather
  • Non-leather
Footwear Product Segments Share

Casual footwears make up a major portion of the market with 61% followed by mass products with 22%.

Competitive Landscape

The footwear industry in India is majorly dominated by unorganized players holding a market share of upto 91.18%. Whereas, under the organised market, Relaxo Footwear holds a major portion of 3.23% followed by Bata India with 2.34%. Mirza Ltd and Khadim’s constitute a market share of around 1.73% and 0.86% respectively. While Amin Tannery holds a minor portion of 0.04% of the total market.

Footwear Industry Players Share

Growth Drivers for Indian Footwear Industry

Favourable Government Initiatives & Policy

  • Government of India de-licensed the industry to facilitate on modern-lines with cutting edge technology equipments and machinery.
  • Permitted 100% FDI under automatic route to ease the process.
  • Machineries can be imported with import duty under Export Promotion Capital Goods Scheme.
  • Indian Leather Development Program was introduced to modernise the leather industry in the country.
  • National Manufacturing Policy recognize leather sectors as a main driver for growth and employment generation.

Organised Retail Sector

Entrance of foreign brands in the Indian footwear market through exclusive outlets or multi-brand retail channels are fueling the domestic demand for footwear as customers are more aware of the brand and consider footwears as a status symbol. Also, in order to attract tech-savvy consumers these retailers are expanding their presence online.

Urban Population

Spending power of the urban population has seen a significant increase in recent years. The increase in disposable income will naturally boost the demand for footwear in the country.

Atleisure Segment

Changing lifestyle conditions and growing consciousness towards health & fitness among consumers is fueling the demand for the athleisure footwear segment in the country. According to estimates, the athleisure footwear's sales in India will reach INR 11,690 Crore by 2024.

Challenges for Indian Footwear Industry

Lack of Skilled Labour

The manufacturing process of footwear, especially leather products require considerable skill and experience given the number of components required in the production process. Shortage of skilled workforce is felt across all the levels of the manufacturing process.

Unorganised Players

India’s footwear industry is primarily dominated by unorganised players who sell footwear at the cheapest price in the market and thus the retailers of branded footwear products need to update their products very often to remain competitive in the market.

Dumping of Chinese Products

China’s dumping of footwears in the Indian market poses a major challenge for the domestic market. People are more attracted to Chinese footwear as they are cheaper and offer a wide range of products. Since most of these products are sold in the unorganized market, this may cause a loss to the industry’s revenue in the country.

Impact of Covid-19 on Indian Footwear Industry

The Coronavirus caused a heavy toll on the country’s economy by shutting down the businesses, curbing international trade and halting the manufacturing industry. Looking at the footwear industry in India, almost all the retailers have shut down their stores across the country and some deferred the launch of new footwear collections due to the country wide lockdown implemented to curb the virus spread. Also, manufacturers were not able to fulfil the winter orders as the raw materials price has increased by 35%. According to the World Footwear’s panel of experts, the global consumption for footwear was expected to fall by 22.2% in 2020. India being one of the major exporters of footwear lost orders of worth INR 7,600 Crore in 2020.

Future Outlook

The pandemic has caused heavy losses to all the industries across the country. The footwear industry was anticipating to recover in 2021 from the losses incurred during the previous year. However, the second wave of the coronavirus has created uncertainty over the recovery period. Women’s footwear are expected to create a potential demand in the near future due to the growth of various online sales channels. By taking into the consideration of the current covid 19 situation, we estimate that the footwear industry in India will recover by the second half of 2021-22.

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