Footwear retail in India

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Footwear retail in India Presented By: Raghvendra kumar (131206)

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Footwear Industry overview India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand. Even though the per capita shoe consumption in the country has crawled upwards from 1.4 pairs a year in 2004 to 2.5 pairs in 2012, it is still much below the average of 5.5 pairs in developed markets. But this shows that there is an immense appetite for growth in the country.

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Footwear retail stores in India

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Red Tape: Red Tape is a manufacturer and an exporter under the flagship brand of Mirza International Initially the business model is more inclined towards exports were out of 250 crore 200 crore business was done through export closures. Mirza International had very less or no presence in the domestic market until 2006. So to set its footprints in the domestic footwear market Mirza International forayed into women’s footwear, men’s footwear and accessories market in 2006. It also launched a low price footwear brand called Necleus and is positioned to cater to lower end customers for high volume sales. The company has a national presence through exclusive stores and shop in shop stores.

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Reliance Footprint Reliance Footprint, a unit of Reliance Retail Ltd owned by Mukesh Ambani’s Reliance Industries Ltd, is targeting a 15 percent share of India’s footwear market by 2017. The company launched its first store in 2007 in Bangalore. Currently the chain operates through 170 exclusive stores in 96 plus cities in 21 states. Reebok Reebok was the first global sports shoe brand to enter India in 1995 through an 80:20 joint venture partnership with an Indian company named Phoenix. Reebok pioneered distribution in the industry with a large retail network of 900 stores present in more than 325 cities. Reebok’s business grew 10 times in 8 years maintaining market leadership in a competitive market space.

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Sreeleathers Sreeleathers is a Kolkata-based footwear brand that was launched way back in 1952. The retailer currently has 35 stores across the country. Company owns the country's largest shoe store in Kolkata. Khadim’s With its foray in footwear retailing in 1993, Khadim’s has scripted an impressive success story in the Indian footwear industry. Khadim’s is the second largest footwear retailer in India in term of organized footwear retailing. It is the leading regional shoe retailer in North East India.

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Bata It's not an Indian brand but it has been here for close to a century now — 83 years to be precise. It sells over 45 million pairs of footwear annually, serving over 120,000 customers almost every day through more than 1200 stores across 500 cities. Extending working hours and keeping stores open on Sundays led to a spike in sales. A drastic cut in employee headcount and outsourcing labour-intensive operations helped in pruning costs. The target market for Bata is all the class of the society i.e. lowers, middle and the upper. SKU of Bata retail stores are very high compare to its competitors. And the efforts appear to be paying off as Bata is the market leader with over 15% share in the organised footwear segment.

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Sales promotion by Bata Price promotion a)Discount b)stock clearance sale 2. Gift with purchase 3. ‘99’ magic formula 4. Exchange policy

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Thank you