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Inspection of the Gurgaon Footwear Industry

Inspection of the Gurgaon Footwear Industry

Description

Inspection of the Gurgaon Footwear Industry

Plots for Reliance Industries in Delhi NCR welcomes all significant parts in the footwear business to build up an assembling office at Reliance MET. The Haryana government has endorsed the Model Economic Township (MET) project in Jhajjar, which is situated along the western line of Delhi in Haryana. We imagine a completely incorporated modern municipality on an 8250-section land site with advantages, for example, tax zones, monetary zones, improvement in groups, strategic centers, private, business, and sporting turn of events.

In the structure of the mega MET Project, the Footwear Park on 400 sections of land is one of the groups devoted to the Footwear and Leather ventures.

This industry is the driving force of development for the whole Indian calfskin industry. Footwear is an exceptionally huge section of the calfskin business in India.

India addresses 13% of overall footwear creation, which totals 16 billion sets, making it the second greatest overall footwear creator after China. The country produces 2065 million arrangements of different sorts of footwear (cowhide footwear - 909 million sets, calfskin shoe uppers - 100 million sets, and non-cowhide footwear - 1056 million sets). Around 115 million arrangements of shoes are exchanged by India. Practically 95% of the country's creation is used to meet its own local necessities. Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharashtra, Kanpur in Uttar Pradesh, Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut, and Ernakulam are the significant creation places in India. The footwear producing industry utilizes around 1.10 million individuals.

Dress Shoes, Casuals, Moccasins, Sports Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals, and Chappals made of elastic, plastic, P.V.C., and different materials are among the footwear sent out from India.

The footwear area has now been de-authorized and de-saved, taking into account limit extension on current lines with state-of-the-art apparatus. To support this cycle, the public authority has allowed authorization.

To help this cycle, the public authority has approved 100% Foreign Direct Investment through the programmed course in the footwear area.

An ideal speculation environment for drawing in unfamiliar ventures and expanding cost seriousness. The Government of India is building a committed Footwear Complex and Footwear Components Part, which will house footwear groups.

Footwear – Global Scenario and India's Contribution

Footwear imports (both leather and non-leather) increased from US$ 124.43 billion in 2013 to US$ 134.943 billion in 2017, growing at a CAGR of 2.1 percent. During 2017, India accounted for 2% of global imports.

ITC, Geneva, and DGCI &S, Kolkata are the sources.

India's Footwear Exports in Various Categories

Footwear is the driving force behind India's leather industry's expansion. In 2016-17, India's footwear exports totaled US$ 1933.13 million, accounting for 45 percent of India's total leather sector exports of US$ 5739.93 million.

  • The value of India's leather footwear exports increased from US$2018.18 million in 2012-13 to US$ 1933.13 million in 2016-17.
  • The value of India's footwear component exports increased from US$ 320 million in 2012-13 to US$ 335.24 million in 2016-17.
  • Non-leather footwear exports from India increased from US$ 202.06 million in 2012-13 to US$ 296.68 million in 2016-17.

Significant Markets: In 2016-17, the primary business sectors for Indian footwear were the United States (14.6 percent), the United Kingdom (14.4 percent), Germany (12.2%), France (6.4 percent), Italy (4.8 percent), Poland (4%), the United Arab Emirates (3.7 percent), Spain (3.3 percent), Belgium (3.2 percent), and the Netherlands (2.5 percent). These ten nations represent 80.53 percent of India's complete footwear sends out.

Almost 90% of India's footwear sends out are to European nations and the United States. The future development of Indian footwear in India will be market-driven. The European Union and the United States are significant purchasers of Indian footwear.

Future Trends: Considering its previous presentation, current worldwide exchange drifts, the business' innate qualities, and development prospects, the footwear business expects to build creation, in this manner expanding trades from The current worth is $1.73 billion USD.

India's Domestic Footwear Industry

The domestic footwear industry in India is valued at approximately US$ 3200 million, with annual growth projected to be 11 – 12 percent.

Organized retail accounts for 25% of total sales and is growing at a rate of 35-40% per year.

Footwear retailing accounts for approximately 9% of the total consumer market.

Men's footwear accounts for roughly half of the market.

  • Branded footwear (including store labels) accounts for roughly half of the market, with the men's footwear market driving the growth.
  • Ladies' and children's footwear, as well as sports footwear, have a lot of potential in the domestic market.

The footwear industry in India is poised for rapid growth: 

India has state-of-the-art producing offices. The footwear business has advanced from manual footwear producing techniques to mechanized footwear fabricating frameworks. Elite machines are introduced in footwear creation units. These machines, which are worked by talented specialists, help in the acknowledgment of any new inventive thought. The footwear business has profited incredibly from the area's emotionally supportive networks. The footwear segment producing industry in India is very much evolved. The future development of the Indian footwear industry will be market-driven, with an attention on the EU and US markets. The Indian footwear industry exhibits its skill and class in worldwide footwear exchange by working on its innovation and quality quite a long time after year.

Indigenous footwear's competitiveness vis-à-vis imported footwear:

The normal benefit of the Indian footwear industry as far as factor enrichments like the accessibility of calfskin and modest work doesn't seem to have been changed over into a relative benefit underway. Lately, import development has would in general outperform development in footwear trades, which might be expected, basically to some extent, to a deficiency of fare seriousness. Utilizing the unit worth of fares and imports of certain things as intermediaries at costs, it is found that the unit worth of imports in most footwear things, regardless of whether cowhide or non-calfskin, is lower than the unit worth of fares of these things.

Consumer preference: 

  • A little more than 53% of consumers preferred branded footwear, while 27% preferred non-branded footwear, and 10% were found to be brand neutral. Surprisingly, the preference for branded footwear was higher in non-metropolitan areas, with as many as 62 percent of consumers polled indicating a preference for branded footwear.
  • Contrary to popular belief, the cost of footwear did not appear to be a major factor in influencing consumer preference. The majority of consumers (60 percent) would rather have high-quality footwear.
  • Although a significant 42 percent of consumers valued fashion and design of footwear, the majority of consumers (58 percent) showed a distinct preference for comfortable and durable footwear.

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

  • Consumers buy footwear all year, and there is no set period of time of year when they do so. However, the start of the school year appears to be the busiest time for purchasing footwear.
  • The majority of consumers (more than 75% in metro and non-metro urban areas) preferred indigenous footwear, while approximately 17% preferred neither indigenous nor imported footwear. Surprisingly, more than 10% of consumers in non-metro towns preferred imported footwear, compared to only 6% in metro cities.
  • Leather footwear was preferred by approximately 55% of those polled, while non-leather footwear was preferred by 45%. In non-metros town, however, more than 70% of consumers preferred leather footwear and less than 30% preferred non-leather footwear.