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Gurgaon Footwear Industry An Overview

Gurgaon Footwear Industry An Overview

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Gurgaon Footwear Industry An Overview

Welcome to Reliance Industrial Plots.

RelianceIndustrial Plots in Gurgaon welcomes all significant players of the Footwear Industry to set up their Manufacturing Plant at Reliance MET. The Government of Haryana has supported Model Economic Township (MET) project at Jhajjar arranged along the western line of Delhi in Haryana. The venture is visualized as a completely coordinated mechanical municipality more than 8250 sections of land, with every one of the advantages of homegrown levy regions, extraordinary financial zones, modern park groups with help framework of coordinations center point and social foundation including private, business, sporting and institutional turn of events.

Footwear Park at Reliance Industrial Plots conceived more than 400 sections of land is one of the committed bunches in a recognized zone for the Footwear and Leather industry, inside the general structure format of the mega MET Project.

The footwear area is an extremely huge portion of the cowhide business in India; rather it is the driving force of development for the whole Indian calfskin industry.

India is the second biggest worldwide maker of footwear after China, representing 13% of worldwide footwear creation of 16 billion sets. India produces 2065 million sets of various classifications of footwear (calfskin footwear - 909 million sets, cowhide shoe uppers - 100 million sets, and non-calfskin footwear - 1056 million sets). India sends out around 115 million sets. In this way, almost 95% of its creation goes to satisfy its own homegrown need.

The significant creation places in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut, and Ernakulam. About 1.10 million are occupied with the footwear producing industry.

Footwear traded from India is Dress Shoes, Casuals, Moccasins, Sports Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals, and Chappals made of elastic, plastic, P.V.C. furthermore, different materials.

The Footwear area is presently de-authorized and de-saved, making ready for development of limits on current lines with best in class apparatus. To additional help this interaction, the Government has allowed 100% Foreign Direct Investment through the programmed course for the footwear area.

Favorable Investment environment towards drawing in abroad speculations and expanding cost intensity. The Government of India is setting up a committed Footwear Complex and Footwear Components Part where footwear groups are found.

Footwear – Global Scenario and India’s share.

 

The global import of Footwear (both made of leather as well as non-leather) increased from US$ 124.43billion in 2013 to US$ 134.943billion in 2017, growing at a CAGR of 2.1%. During 2017, India’s share in the global import is 2%.

Source: ITC, Geneva & DGCI &S, Kolkata

India’s Export of Different categories of Footwear

 

Footwear is the engine of the growth of the leather industry in India. India’s export of Footwear touched US$ 1933.13 million in 2016-17, accounting for a share of 45 % in India’s total export from the leather sector of US$ 5739.93 million.

  • India’s export of leather footwear had increased from US$ 2018.18 million in 2012-13 to US$ 1933.13 million in 2016-17.
  • India’s export of footwear components had increased from US$ 320 million in 2012- 13 to US$ 335.24 million in 2016-17.
  • India’s export of non-leather footwear has increased from US$ 202.06 million in 2012- 13 to US$ 296.68 million in 2016-17.

Major Markets:

 

During 2016-17, the main markets for Indian Footwear are USA with a share of 14.6%, UK14.4%, Germany12.2%, France6.4%, Italy4.8%, Poland4%, UAE3.7%, Spain 3.3%, Belgium3.2% and Netherlands2.5%. These 10 countries together account for 80.53% share of India’s total footwear export.

Nearly 90% of India’s export of footwear goes to European Countries and the USA. The future growth of Indian footwear in India will continue to be market-driven. The European countries and the US are major consumers of Indian footwear.

Future Trends:

 

Keeping in view its past performance, current trends in global trade, the industry’s inherent strengths and growth prospects, the footwear industry aims to augment production, thereby enhancing its exports from the current level of US$ 1.73 billion.

Domestic Footwear Industry in Gurgaon

  • The Domestic Footwear Industry in India is valued at approximately US$ 3200 million, with projected growth of 11 – 12% p.a.
  • Organized retail is 25% and growing fast at 35-40% p.a.
  • Footwear retailing constitutes about 9% of the total consumer market.
  • Men’s footwear is about 50% of the market.
  • Branded footwear (including store labels) is about 50% of the market, driven by the men’s footwear market.
  • Ladies and kids footwear, Sports Footwear also has vast potential in the domestic market.

Consumer preference for Footwear - Source: DMG Consulting Pvt Ltd, Noida.

  • Consumers purchase footwear throughout the year and there is no fixed period/timing of purchase. However, the beginning of an academic session seems to be a peak time for the purchase of footwear.
  • A majority of consumers (over 75 percent) in metro and non-metro urban areas showed their preference for indigenous footwear and about 17 percent indicated no preference for indigenous or imported footwear. Surprisingly more than 10 percent of consumers in non-metros towns showed their preference for imported footwear as against only 6 percent in metro cities.
  1. About 55 percent of the consumers surveyed indicated a preference for leather footwear while 45 percent preferred non-leather footwear. However, in non-metros towns, more than 70 percent of consumers preferred leather footwear and less than 30 percent preferred non-leather footwear.

Consumer preference:

  • A little over 53 percent of consumers expressed their preference for branded footwear while around 27 percent showed their preference for non-branded footwear and 10 percent were found to be brand neutral. Interestingly the preference for branded footwear was more in non-metro towns in as much as 62 percent of consumers surveyed indicated preference for branded footwear.
  • As against popular perception, the price of footwear apparently was not a major factor in influencing consumer's preferences. A majority (60 percent) of consumers would rather prefer the quality of footwear.
  • Expectedly, the majority of consumers (58 percent) showed a distinct preference for comfortable and durable footwear, although a significant 42 percent of consumers valued fashion and design of footwear.

Competitiveness of Indian footwear vis-à-vis imported footwear:

 

The natural advantage of the Indian footwear industry in terms of factor endowments like availability of leather and cheap labor apparently has not been converted into a comparative advantage in production. Import growth has tended to rise faster than the growth of exports of footwear in recent years and this may at least partly be reflective of the loss of competitiveness of exports. Taking the unit value of exports and imports of some items as proxies of prices, it is observed that the unit value of imports in a majority of footwear items whether leather or non-leather, is comparatively lower than the unit value of exports of these items.

Gurgaon footwear industry poised for growth:

 

India has best-in-class producing plants. The footwear area has developed from the level of the manual footwear producing technique to the computerized footwear fabricating frameworks. Footwear creation units are introduced with a-list machines. Monitored by talented specialists, these machines help to transform any new creative thought into the real world. Emotionally supportive networks made for the area have in reality served the footwear business well. India has a very much evolved footwear segment producing industry. The future development of the footwear business in India will keep on being market-driven, and arranged towards EU and US markets. With the innovation and nature of footwear further developing a seemingly endless amount of many years, the Indian Footwear industry is stepping its class and aptitude in the worldwide footwear exchange.

Source: Indian Trade Fair - Neelkanth Lakeview Thane

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