Taking The Right Step

Not sur­prisingly, apparel has always domi­nated the world of fashion, but the look is incomplete without footwear. Footwear con­tinued to perform well in 2016 and touched sales of Rs 553 billion in 2016 and poised to grow at Rs 778 billion in 2021, says a Euromonitor report. The category offers ample opportunities, which make this an attractive industry to step into despite the growth barriers and the steady trend towards foot­wear retail getting more organized.

1) Youth-oriented spaces

Recognizing that more than half of India’s popu­lation is below 25, Bata India has outlined major launches in youth-oriented spaces. “To engage our younger customers, it’s imperative to use social media interestingly and hence content like ward­robe curation posts, DIY videos on colouring and maintaining shoes, fun contests et al are being done,” says Rajeev Go­palakrishnan, president, South Asia, Bata Emerg­ing Markets.

2) Online push

The industry is witnessing an emergence of new re­tail formats, including on­line channels, which has increased to 10 per cent of total footwear sales in the country from around 6.5 per cent in 2014.

Harkirat Singh, MD, Woodland, highlights, “We see a high growth in the online sector and the percentage of our business is growing from e-commerce every year. Currently, we stand at 15 per cent and we expect it to grow by 40 per cent in three to four years.”

3) Casualization

Casualization has kicked off as a key trend in footwear space and it has helped in picking up the sales of sneakers, converse, etc. Farah Malik, MD & CEO, Metro Shoes, says, “Last year, we saw an up­surge in the casual category for men, and an increased acceptance of brighter co­lours and quirkier patterns in men’s wear.”

Meanwhile, Crocs is eyeing the casual segment for the next phase of growth. “Our strategy is more towards casual now. While our core product offering remains intact, we are offering boots, wedges, loafers and casual shoes also,” mentions Deepak Chhabra, managing director, Crocs India.

4) Women Dominance

India continues to be one of the exceptional countries where men’s category still dominates the footwear market, but the growth rate of women segment is exactly double than the men’s segment. The men’s footwear market has witnessed 10 per cent CAGR growth rate in the last fiscal as against 20 per cent for women’s category.

5) Rural Run

The untapped potential in ru­ral India has pushed leading retailers to shift gears to tap this market. Bata India has planned to roll out a fran­chisee model for expanding footprints in tier III and tier IV cities. Also, it will launch new product labels aimed at rural markets, priced below Rs 1,000, shares Gopal­akrishnan. 

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