India is the second largest footwear producer in the world. The country’s footwear production accounts for nine per cent of the global annual production. China has a 60 per cent share in global production.
Footwear exports from India grew at a CAGR of 20 per cent in rupee terms during the last five years. Of the annual production of shoes, 90 per cent is consumed domestically while the remaining is exported to Europe, primarily United Kingdom, Germany, US, Italy and France.
Growth of Indian fashion and lifestyle sector has given an impetus to the footwear industry. From a basic need-based industry, it has now evolved to fashion and style category. The footwear market equally divided between the organised and unorganised players. Organised players cater to about a third of the market. The unorganised segment gained prominence in the Indian context due to its price-competitive products, which are more suitable and attractive to the price-conscious Indian consumer.
With increased household income, shifting consumer behavior from saving to spending, growing brand consciousness, influx of a large number of global brands and penetration into Tier II and III cities by footwear companies, the organised retail footwear market is rapidly evolving and is expected to grow at a higher rate in future.