Presentation on sports footwear industry in India

1. ASSESSMENT OF SPORTS FOOTWEAR MARKET IN INDIA
By
Rayees
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2. TABLE OF CONTINENTS
INDIAN FOOTWEAR INDUSTRY OVERVIEW
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3
MARKET SIZE
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4
FACTORS DRIVING GROWTH
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5
KEY CHALLENGES
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6
KEY PLAYERS
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7
MARKET SEGMENTATION
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8
DEMAND FORECAST
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3. INDIAN FOOTWEAR INDUSTRY OVERVIEW
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Indian footwear industry is second largest after China and is growing at a rapid pace on
account of strong economy and demographic factors
Market is highly price sensitive with unbranded footwear constituting less than 40% of the
market
● On an overall basis, average spend on the footwear in India is low as compared to
other developing countries
● Consumers in urban areas spend around 300 per annum while as in rural areas, annual
spend is mere around 150/annum
Industry is highly fragmented, dominated by unorganized players whose share is around
80%
● Organized segment is mostly dominated by major international brands including
Adidas, PUMA, Nike, Reebok, etc
● Key domestic players include Barta India Ltd., Liberty Shoe Ltd., Khadim India Ltd., etc.
Industry is mostly centered in Tamil Nadu, Delhi, Maharashtra, Kanpur, etc
The industry is poised for adopting the modern and state-of-the-art technology to suit the
international requirements and standards to meet the ever increasing demands from
consumers
Industry as a whole offers enormous opportunity for growth both in domestic market as well
as for export market.
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4. MARKET SIZE, 2012
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The Indian footwear market is estimated to be worth US$ 35 billion and is growing at a
compounded annual rate of 14% to be worth around US$ 45 billion by 2015
● Men’s segment comprises 60% of the total market
● 40% share comprises of ladies and kids segments
● Within this segment, kids segment alone accounts for more than 50%
● Sports shoe market in India is estimated to be worth US$ 5 billion and is expected to
reach US$13 billion by 2018, growing at ~18% CAGR from 2012 through 2016
● Adidas, Nike and PUMA being the key players operating in this segment
● Per capita shoe consumption in India was is 2.5 in 2012, up from 1.4 in 2004,
registering a growth rate of around 8%
Market size 2011: 35 billion
40%
60%
Men's segment
Kids and women segment
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5. FACTORS DRIVING GROWTH
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Strong economic growth
Rising income levels
Urbanization
Entry of foreign players
Availability of different types of shoes
Change in lifestyles among consumers
Increased retail activity
Secure online purchase system
Replication of western styles and trends in India
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6. KEY CHALLENGES
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Competition among players
Changing fashion trends
Price
Difficult for brands to offer products at entry level segments
Apparel retailers diversifying into footwear
Threat of substitute products
Product innovation
Cheap imports from China
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7. KEY PLAYERS
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International players like Nike, Adidas, Puma, etc dominate the Indian sports footwear
industry
Nike being world leader In athletic and non athletic footwear segment dominates the Indian
market too with their variety of shoes targeted at the age group of 18 and 35
 Company success factor being constant innovation and collaboration within sports and
fitness industry
Puma also enjoys good major chunk of the market in India by offering wide range of
footwear, sportswear, sports goods, fashion accessories, etc
 Puma as a brand commands high premium
Pricing is believed to play a very nominal role in the sports footwear market which currently
is believed to be driven by the willingness of people to pay a premium
 Consumers trend to prefer sports shoes which offer value and are least concerned
about the price points
 Segmentation and product positioning plays a key role in success of the company
 Attitudes and perception are the key factors which lead to creation of a good brand
image of a company
 Attitudes and perceptions are mostly driven by innovative marketing campaigns
and day to day promotional activities
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8. MARKET SEGMENTATION
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Overall footwear market in India is brand driven and can be segment as
Segment
Super premium
Premium
Economy
Unorganized: low
price segment
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Customer characteristics
●High
attitude towards brand
●Brand and quality conscious
●High income
●Less brand conscious
●Good product
●Average comfort
●Low price
Buying criteria
●Brand
●Quality
●Feel
of product
●Lowest
price
Alternatively, in terms of usage, footwear market in India is segmented as
Segment
Major Players
Sports
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Nike, Adidas, Reebok, etc
Casual
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Woodland, Bata, Liberty, etc
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9. DEMAND FORECAST, 2018
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Market for sports footwear segment is expected to reach US$13 billion by 2018, growing at
~18% CAGR from 2012 through 2016
● Due to increase in disposable income and strong preference for branded shoes
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Sports footwear forecast market to 2018
12
10
8
6
5
13
4
2
0
2012
2018
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10. THANKYOU
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