India's footwear industry, a vital component of the country's apparel and footwear sector, has been experiencing significant growth and transformation in recent years. As the world's second-largest producer of footwear after China, India's footwear industry plays a crucial role in the global market and contributes substantially to the nation's economy.

The Indian footwear market size was supposed to be $15.5 billion by 2024, growing at a compound annual growth rate (CAGR) of 8% to reach $22 Bn by 2028.

Key Players in Footwear industry in India

1. Bata India Limited:

• Founded in 1931, Bata is the largest footwear retailer in India.
• As of 2021, it operates over 1,500 retail stores across India.
• Revenue for FY 2020-21 was approximately ₹1,708 crore (about $230 million).

2. Relaxo Footwears Ltd:

• Established in 1976, Relaxo is known for its affordable footwear.
• Popular brands include Sparx, Bahamas, and Flite.
• Revenue for FY 2020-21 was about ₹2,359 crore (approximately $320 million).

3. Liberty Shoes:

• Founded in 1954, Liberty is one of the oldest Indian footwear brands.
• It has over 6,000 multi-brand outlets and 500 exclusive showrooms.
• Revenue for FY 2020-21 was around ₹458 crore (about $62 million).

4. Paragon Footwear:

• Established in 1975, Paragon is known for its rubber slippers and sandals.
• It has a strong presence in South India.
• While exact revenues are not publicly available, it's estimated to be one of the top players in the market.

5. Metro Shoes:

• Founded in 1947, Metro operates multiple retail formats including Metro, Mochi, and Walkway.
• As of 2021, it has over 550 stores across India.
• Revenue for FY 2020-21 was approximately ₹800 crore (about $108 million).

Production Capacity and Employment

India's footwear industry is known for its labor-intensive nature, providing employment to over 2 million people directly and indirectly. The sector produces about 2.2 billion pairs of shoes annually, making it a significant contributor to the country's manufacturing output.

The industry structure is diverse, comprising large-scale mechanized units, small and medium enterprises, and artisanal workshops. This variety allows for the production of a wide range of footwear, from mass-market products to high-end, hand-crafted shoes.

Export Performance and Global Market Share

India's footwear exports have shown a positive trend over the years. According to the Council for Leather Exports, footwear exports from India reached $2.15 billion in the fiscal year 2020-21, despite the challenges posed by the COVID-19 pandemic.

The country's share in global footwear exports stands at about 2.5%, indicating significant room for growth. The top export destinations for Indian footwear include the United States, United Kingdom, Germany, France, and Italy.

Key Growth Drivers

Several factors are propelling the growth of India's footwear industry:

1. Rising disposable income: With a growing middle class and increasing urbanization, consumer spending on footwear is on the rise.
2. E-commerce boom: The rapid growth of online retail has expanded the reach of footwear brands to tier-2 and tier-3 cities.
3. Fashion consciousness: Increasing awareness of global fashion trends is driving demand for a variety of footwear styles.
4. Government initiatives: Schemes like "Make in India" and the establishment of dedicated footwear design and development institutes are boosting the sector.
5. Diversification of product range: The industry is expanding beyond leather footwear to include non-leather options, catering to changing consumer preferences.

Challenges and Opportunities

While the industry shows promise, it faces several challenges in Footwear Sector:

1. Competition from low-cost producers: Countries like Vietnam and Bangladesh pose stiff competition in the global market.
2. Technological upgradation: Many small and medium enterprises lack access to modern production technologies.
3. Raw material sourcing: Fluctuations in leather prices and the need for sustainable alternatives present challenges.
4. Skill development: There's a need for continuous skill upgradation to meet evolving design and production requirements.

However, these challenges also present opportunities:

1. Innovation in materials: Development of eco-friendly and sustainable footwear materials.
2. Design capabilities: Investment in design education and R&D to create unique, high-value products.
3. Automation and Industry 4.0: Adoption of smart manufacturing technologies to improve efficiency and quality.
4. Brand building: Creating strong Indian footwear brands that can compete globally.

Future trends in the industry include

1. Customization: Growth in made-to-order and personalized footwear.
2. Smart footwear: Integration of technology for enhanced comfort and functionality.
3. Athleisure: Continued growth in the sports and casual footwear segments.
4. Direct-to-consumer models: More brands focusing on direct sales through e-commerce platforms.

Conclusion

The Indian footwear industry stands at a pivotal juncture, with immense potential for growth both domestically and internationally. As part of the larger apparel and footwear industry, it plays a crucial role in India's manufacturing sector and economic development. With continued focus on innovation, quality, and sustainability, the Indian footwear industry is well-positioned to step up its global presence and become a leader in the world market.