Indian Footware Industry

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INTRODUCTION Indian Shoe Market: The Indian footwear market is estimated to be worth USD 3.94 billion and is growing at a compounded annual rate of 15% to be worth USD 6.89 billion by 2015. The global footwear market size is estimated to be USD 181.9 billion growing at a CAGR of nearly 5%.India is the world’s second largest footwear producing country, second to China and the third largest market. Even though the per capita shoe consumption in India has gone up from 1.4 shoes a year in 2004 to 2.5shoes per year in 2012, it is still much below the average per capita income shoe consumption of five, in developed countries India is a major supplier of medium- and low priced footwear. Several footwear majors source parts of their production and purchase from India. Further, reputed global brands such as Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Reebok, Ecco, Deichmann, Elefanten, StMichaels, Hasley, Salamander and Colehaan are manufactured under licensed in India. India has a booming garment and shoe market. In various cities there, new shopping malls have sprung up one after another and sellers compete to exhibit latest products while consumers exhibit eager demand for brand products. Many brands expand their businesses through franchised operation, particularly garment and shoe brands. By 2012, franchised operation is expected to hit 6% in growth rate, amounting to USD 17 billion in total value. This means that this market will create substantial opportunities related to franchised operation. India is witnessing a rapid growth in its retail, attracting many international brands, most of which come from Europe and USA. After Tommy Hilfiger opened up store in India recently, it is reported that Esprit is to enter this market in summer 2005. According to CY Pal, president of India Franchise Association, half of the retail activities in USA are conducted

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