Retail Footwear

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OVERVIEW OF THE INDIAN FOOTWEAR INDUSTRY The Footwear Industry is a significant segment of the Leather Industry in India. India ranks second among the footwear producing countries next to China. India produces more of gents’ footwear while the world’s major production is in ladies footwear. .The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and chappals are produced in the household and cottage sector. In the case of chappals and sandals, use of non- leather material is prevalent in the domestic market. The major production centers India are Chennai, Ranipet, Ambur in Tamil Nadu, , Mumbai in Maharastra, Kanpur in U.P. , Jalandhar in Punjab, Agra and Delhi. The following table indicates concentration of units in various parts of the country: Region Large & Medium Scale SSI Household Tamil Nadu 64 31 7 Delhi & up North 4 8 25 Agra, Kanpur 9 34 14 Calcutta 1 3 19 Bangalore 6 3 4

Transcript of Retail Footwear

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OVERVIEW OF THE INDIAN FOOTWEAR INDUSTRY

�The Footwear Industry is a significant segment of the Leather Industry in India.

�India ranks second among the footwear producing countries next to China.

�India produces more of gents’ footwear while the world’s major production is in ladies footwear.

�.The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and chappals are produced in the household and cottage sector.

�In the case of chappals and sandals, use of non-leather material is prevalent in the domestic market.

�The major production centers India are Chennai, Ranipet, Ambur in Tamil Nadu, , Mumbai in Maharastra, Kanpur in U.P. , Jalandhar in Punjab, Agra and Delhi. The following table indicates concentration of units in various parts of the country:

Region Large & Medium Scale SSI Household

Tamil Nadu 64 31 7

Delhi & up North 4 8 25

Agra, Kanpur 9 34 14

Calcutta 1 3 19

Bangalore 6 3 4

Mumbai 3 11  

Others 13 10 32

 

�The estimated annual footwear production capacity in 1999 is nearly 1736 million pairs (776 million pairs of

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leather footwear and 960 million pairs of non-leather footwear). Region-wise share of total estimated capacities is as follows:

Region Leather shoes

Non-leather Shoes

Leather Shoe Uppers

Leather Sandals

Non Leather Sandals

Percentage

Tamil Nadu 26 5 54 1 0

Delhi & up North

10 77 4 1 60

Agra, Kanpur 45 0 32 62 0

Calcutta 12 0 2 3 0

Bangalore 3 3 4 0 0

Mumbai 4 2 1 32 0

Others 0 13 3 1 40

Total 100 100 100 100 100

 

 

�Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks, Salamander and St. Micheal’s. As part of its effort to play a lead role in the global trade, the Indian leather industry is focusing on key deliverables of innovative design, consistently superior quality and unfailing delivery schedules.

�India in itself has a huge domestic market, which is largely untapped.

�The Indian footwear industry is provided with institutional infrastructure support through premier institutions like Central Leather Research Institute, Chennai, Footwear Design & Development Institute, Noida, National Institute of Fashion Technology, New Delhi, etc in the areas of technological development,

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design and product development and human resource development.

�The availability of abundant raw material base, large domestic market and the opportunity to cater to world markets makes India an attractive destination for technology and investments.

 

IMPORT

�In 1999, the global import of footwear (leather and non-leather) in terms of value was around US$ 43278 million, accounting a share of 63.42% in the total global import of leather and leather products. Out of this, import of leather footwear alone accounted for US$ 26379 million and non-leather footwear US$ 16899 million.

        EXPORT

�India’s export of Leather Footwear touched US$ 331 million in 1999-2000, recording an increase of 3.29% over the preceding year. India thus holds a share of 1.25% in the global import of leather footwear. The major markets for Indian Leather Footwear are the U.K., the U.S.A., Germany, Italy, France and Russia. Nearly 71% of India ‘s export of Leather Footwear is to Germany, the U.S.A., the U.K and Italy.

�In 1999-2000, export of leather footwear from India constituted 21% share of its total export of leather and leather products. Nearly 33 million pairs of various types of leather footwear were exported during the year, out of which shoes / boots constituted 90%.

�The different types of leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, horrachies, sandals, beallerinas, booties.

Export of leather footwear during the last three years :

                                                                                                        (Value in million US$)

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April-Feb

Product 1998-99 1999-2000 2000-2001

Leather Footwear 320.25 330.80 348.96

 

                                                                                                Source : DGCI & S, Calcutta

Export projections for the next two years:

                                                    (Value in million US$)

PRODUCT 2001-02 2002-03

Leather Footwear 453 506

 

                                                                                Source : Indicative Medium Term Plan

�Following leading institutes in India are engaged in imparting training to personnel in the footwear manufacturing as per the requirement of the trade and industry.

Name of Institute Address and E-mail

Council for Leather Exports

(CLE)

Leather Centre, 53 Raja Muthiah Road

Periamet, Chennai – 600 003

Fax: 044-538 8713/538 7083

Email:   [email protected]

Footwear Design & Development Institute

(FDDI)

A-10/A,

Sector-24, NOIDA-201301

Email: [email protected]

Central Footwear Training 41-42 Industrial Area, Site C, Sikandra

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Institute (CFTI)

Agra

Chennai

Agra – 282002 (U.P)

E-Mail [email protected]

65/1 GST Road, Guindy, Chennai-600032

Tele: 044-2341529/236876

Email: [email protected]

 

 

The CLRI and the FDDI are also equipped to carry out most of the tests for footwear manufacturing and issue certificates.

 

 

INDIAN FOOTWEAR COMPONENTS INDUSTRY

 

�The Footwear Component Industry is a segment of the Leather Industry in India. The Footwear components, which are mainly exported from India are Leather Shoe Uppers and Leather Unit Soles. The estimated annual production capacity of Leather Shoe Uppers is 112 million pairs

�The major production centers are Chennai, Ranipet, Ambur in Tamil Nadu, Agra and Delhi.

�The components industry has enormous opportunity for growth to cater to increasing production of footwear of various types, both for export and domestic market.

�India’s export of Footwear Components touched US$ 229.49 million in 1999-2000, holding a share of 15% in India’s total export of leather and leather products. Nearly 75% of the total export of footwear components is from the Southern Region, followed by the Northern Region, with a share of 13%.

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�The major markets for Indian footwear components are the U.K., Germany, Italy, the USA, France, and Portugal. Nearly 83% of India ‘s export of footwear components is to the above countries.

�In the year 1999-2000, India exported footwear components to the tune of 38 million pairs mainly consisting of leather shoe uppers, leather unit soles and other components, out of which Leather shoe uppers (gents and ladies) alone constituted a share of 84%.

Export of footwear components during the last three years

                                                                                                               (Value in million US$)

April-Feb

Product 1998-991999-2000 2000-2001

Footwear Components 237.72 229.49 219.81

Source : DGCI & S, Calcutta

Export projections for the next two years:

        (Value in million US$)

PRODUCT 2001-02 2002-03

Footwear Components

314 350

                                                                                Source : Indicative Medium Term Plan

The apex body working for the footwear components :

Indian Footwear Components Manufacturers Association (IFCOMA)

FDDI Complex, A-10/A Sector 24

Noida – 201301

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Tele: 914-444961

Email: [email protected]

[email protected]

Website: www.ifcomaonline.com

 

 INDIAN FOOTWEAR INDUSTRY

 

Indian leather industry is the core strength of the Indian footwear industry. It is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China.

Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured under license in India. Besides, many global retail chains seeking quality products at competitive prices are actively sourcing footwear from India.

While leather shoes and uppers are produced in medium to large-scale units, the sandals and chappals are produced in the household and cottage sector. The industry is poised for adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. India produces more of gent’s footwear while the world’s major production is in ladies footwear. In the case of chapels and sandals, use of non-leather material is prevalent in the domestic market.

Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India are Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.

With changing lifestyles and increasing affluence, domestic demand for footwear is projected to grow at a faster rate than has been seen. There are already many new domestic brands of footwear and many foreign brands such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have also been able to enter the market.

The footwear sector has matured from the level of manual footwear manufacturing methods to automated footwear manufacturing systems. Many units are equipped with In-house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe Design packages that are intuitive and easy to use. Many Indian footwear factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent facilities for Physical and Chemical testing exist with the laboratories having tie-ups with leading international agencies like SATRA, UK and PFI, Germany.

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One of the major factors for success in niche international fashion markets is the ability to cater them with the latest designs, and in accordance with the latest trends. India, has gained international prominence in the area of Colours & Leather Texture forecasting through its outstanding success in MODEUROP. Design and Retail information is regularly made available to footwear manufacturers to help them suitably address the season's requirement.

The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing benefits.

Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capital with expertise and technology base, skilled manpower and relatively low cost labor, proven strength to produce footwear for global brand leaders and acquired technology competence, particularly for mid and high priced footwear segments. Resource strength of India in the form of materials and skilled manpower is a comparative advantage for the country.

The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that footwear sector is the most significant segment of the Leather Industry in India.

The export targets from 2007-08 to 2010-11

(In Million US$)

Product 2006-07 2007-08 2008-09

2009-10 2010-11

Actual Export

Leather 688.05 726.85 785.00 847.80 915.63Footwear 1212.25 1967.88 2597.6

03428.83 4526.05

Garments 308.98 358.53 372.87 387.78 403.30Leather Goods 690.66 733.34 798.69 870.06 948.04Saddlery & Harness

81.85 105.66 127.85 154.70 187.19

Total 2981.79 3892.26 4682.01

5689.17 6980.21

 

India has emerged in recent years as a relatively sophisticated low to mediumcost supplier to world markets –The leather industry in India has been targetedby the Central Government as an engine for economic growth. Progressively, theGovernment has prodded and legislated a reluctant industry to modernise. India was noted as a supplier of rawhides and skins semi processed leather and some shoes.

In the 1970’s, the Government initially banned the export of raw hides and skins,

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followed this by limiting, then stopping the export of semi processed leather andencouraging local tanneries to manufacture finished leather themselves. Despiteprotestations from the industrialists, this has resulted in a marked improvement inthe shoe manufacturing industry. India is now a major supplier of leather footwearto world markets and has the potential to rival China in the future (60% of Chineseexports are synthetic shoes).

India is often referred to as the sleeping giant in footwear terms. It has an installedcapacity of 1,800 million pairs, second only to China. The bulk of production isin men’s leather shoes and leather uppers for both men and ladies. It has over 100 fully mechanised, modern shoe making plants, as good as anywhere in the world (including Europe). It makes for some upmarket brands including Florsheim (US), Lloyd (Germany), Clarks (UK), Marks and Spencer (UK).

India has had mixed fortunes in its recent export performance. In 2000, exports ofshoes were US$ 651 million, in 2001 these increased to 663 million but declinedin 2002 to 623 million dollars (See Statistics).

The main markets for Indian leather shoes are UK and USA, which between themtake about 55% of total exports.

India has not yet reached its full potential in terms of a world supplier. This is duemainly to local cow leather that although plentiful, has a maximum thickness of 1.4– 1.6mm, and the socio / political / infrastructure of the country. However, Indiais an excellent supplier of leather uppers. Importation of uppers from India does not infringe FTA with Europe or the USA.

The potential is set to change albeit slowly, but with a population rivalling China forsize, there is no doubt the tussle for world domination in footwear supply is between these two countries.

Few Interesting Facts:

- The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011.

- Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07.

- Presently, the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market.

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- By products, the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of the total footwear retail market.

- As footwear retailing in India remain focused on men's shoes, there exists a plethora of opportunities in the exclusive ladies' and kids' footwear segment with no organized retailing chain having a national presence in either of these categories.

- The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production, abundant raw material, and has huge consumption market.

- The footwear component industry also has enormous opportunity for growth to cater to increasing production of footwear of various types, both for export and domestic market.

In a Nutshell:

There are nearly 4000 units engaged in manufacturing footwear in India. The industry is dominated by small scale units with the total production of 55%. The total turnover of the footwear industry including leather and non-leather footwear is estimated at Rs.8500-9500 crore (Euro 551.3-1723.1 Million) including Rs.1200-1400 crore (Euro 217.6-253.9 Million) in the household segment.

India's share in global leather footwear imports is around 1.4% Major Competitors in the export market for leather footwear are China (14%), Spain (6%) and Italy (21%).

The footwear industry exist both in the traditional and modern sector. While the traditional sector is spread throughout the country with pockets of concentration catering largely to the domestic market, the modern sector is largely confined to select centres like Chennai, Ambur, Ranipet, Agra, Kanpur and Delhi with most of their production for export.

Assembly line production is organized, and about 90% of the workforces in the mechanized sector in South India consist of women. In fact, this sector has opened up plenty of employment opportunities for women who have no previous experience. They are trained to perform a particular function in the factory itself.

http://footwearsinfoline.tripod.com/swotanalysis.htm

SWOT Analysis of Indian Footwear Industry

STRENGTHS: -

Existence of more than sufficient productive capacity in tanning. Easy availability of low cost of labour.

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Exposure to export markets. Managements with business background become quality and environment

conscious. Presence of qualified leather technologists in the field. Comfortable availability of raw materials and other inputs. Massive institutional support for technical services, designing, manpower

development and marketing. Exporter-friendly government policies. Tax incentives on machinery by Government. Well-established linkages with buyers in EU and USA.

WEAKNESSES: -

Low level of modernisation and upgradation of technology, and the integration of developed technology is very slow.

Low level of labour productivity due to inadequate formal training / unskilled labour.

Horizontal growth of tanneries. Less number of organised product manufacturers. Lack of modern finishing facilities for leather. Highly unhygienic environment. Unawareness of international standards by many players as maximum

number of leather industries are SMEs. Difficulties in accessing to testing, designing and technical services. Environmental problems. Non availability of quality footwear components Lack of fresh investment in the sector. Uneconomical size of manufacturing units. Competition among units vying for export orders leading to undercutting. Little brand image. Poor labour productivity. Lack of awareness about consistent in

plant training and retraining- Inconsistent quality high rejection rate Low machine and material productivity.

Lack of quality job work units Delayed deliveries Weak support infra- structure for exports

OPPORTUNITIES: -

Abundant scope to supply finished leather to multinationals setting up shop in India.

Growing fashion consciousness globally. Use of information technology and decision support software to help

eliminate the length of the production cycle for different products

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Product diversification - There is lot of scope for diversification into other products, namely, leather garments, goods etc.

Growing international and domestic markets. Exposure to newer markets through Fairs/ BSMs Retain customers through quality supplies and timely deliveries Aim to present the customer with new designs, infrastructure, country &

company profiles. Use of modern technology Exhibit strengths in manufacturing, for example, strengths in classic shoe

manufacturing, hand crafting etc. De-reservation of the footwear sector.

THREATS: -

Entry of multinationals in domestic market. Stiff competition from other countries.(The performance of global

competitors in leather and leather products indicates that there are at least 5 countries viz, China, Indonesia, Thailand, Vietnam and Brazil, which are more competitive than India.)

Non- tariff barriers - Developing countries are resorting to more and more non – tariff barriers indirectly.

Improving quality to adapt the stricter international standards. Fast changing fashion trends are difficult to adapt for the Indian leather

industries. Limited scope for mobilising funds through private placements and public

issues, as many businesses are family-owned.

STATISTICAL INFORMATION

 

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Positive Outlook for footwear and leather industry: Highlights CII Study

The National Manufacturing Competitiveness Council (NMCC) has identified the sector as one of the twelve focus manufacturing sectors in terms of competitiveness and untapped potential in the country.

The sector is one of the top eight foreign exchange earners of the country worth Rs. 10,000 crores per annum and accounting for 2.5 percent of the global leather-related trade of Rs. 387,200 crores. An estimated 15 percent of total purchase of leading global brands in footwear, garments, leather goods & accessories, in Europe, and 10 percent of global supply is outsourced from India.

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Deliberating upon the current scenario, the Report states that the leather industry employs about 2.5 million people and has annual turn over of Rs. 25,000 crores. Nearly 60-65 percent of the production is done by small / cottage sector.

In tune with the whole sector, the Indian footwear industry too obtains 90 percent production in SMEs, having about 42,000 units registered under

SSI, concentrated largely in Agra, Kanpur and Tamil Nadu. Most of the SSI units are also into the production of non-leather footwear.

The footwear segment is the pride of India's leather industry, and ranks second in the world, next to China. The global trade in leather footwear is US$ 30 billion and in non-leather footwear is US$ 18 billion; however India's share in both segments is only marginal -1.4 percent and 0.15 percent respectively.

In the last five years, the leather footwear and footwear component production increased by 60 percent, the consumption of footwear in rural India is 75 percent of the total. An interesting aspect of India's footwear industry is that India produces more of gents' footwear while the world's major production is in ladies footwear.

Analyzing the export - import potential of the sector, the Report informs that imports mostly comprise of hides and skins, semi finished and finished leather. Product imports are low.

On the other hand, almost 50 percent of the total domestic production is exported. Nearly 75 percent of the total export of footwear components is from the Southern Region, the Northern Region, being a poor second with 13 percent. Increased value of export of footwear from Rs 2957.5 crores in 2005 to Rs. 11,000 crores by 2012 is envisaged. Annual export earnings from the Footwear and Leather sector were US$ 2.1 billion in 2003-04 and the sector ranks 8th among the top 10 sectors in India's export list at 2.74 percent.

In addition to the global market, Indian Leather Industry is yet to capture the existing untapped potential in the domestic market. India has a large and growing consumer class (annual income > US$ 449), estimated to constitute nearly 90 million households by 2006 - 07, having with a CAGR around 12 percent. This is a large and growing market for Footwear and Leather goods, the Report further stressed.

The distinct advantages of the Footwear & Leather industry in India, highlighted in the Report are low costs; variety & abundance of raw material; quality consciousness and back up; R & D facilities with extension support enables India as a significant participant in the world Footwear & Leather market. As per the current scenario; the Footwear & Leather Industry in India is spread largely over unorganized sector, comprising tanning & finishing, footwear & footwear components, leather garments, leather goods including saddlery & harness, etc.

Stressing on the improvement areas in infrastructure and investment in the Sector, the Report states that an estimated investment in the entire footwear and leather sector in India is approximately Rs. 4,500 crores and annual production is at Rs. 22,000 crores.

However, India seems to have missed out the investments in the footwear industry with China getting most of the benefit by attracting 10 times more investments than India in the last 20 years.

It can be said that India has not been alive to its potential in this matter. India's loss has been China's gain. India's lack of awareness of its potential and its belated recognition of this sector have been to be made good speedily.

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Though the Leather Industry, especially the Footwear industry has made a strong contribution to the Indian economy, India's share in global trade remains low, however being a labour intensive industry, its contribution to employment is significant.

In a recent study carried out by NMCC, it was highlighted that total employment in this sector would amount to 2.5 million (30 percent of which are women).

Footwear industry provides employment to the uneducated population - 40 percent of employment is represented by unskilled workers doing table work operation in the assembly line.

Large employment opportunities on the input side - minority community and low caste people have their sole source of livelihood from collecting carcasses, skinning dead animals and tanning leather.

The Footwear industry has potential to provide employment across all sections of the economy Industry estimates of employment potential 3 lakh jobs in next 3 years.

The potential for employment is across all skills to the tune of semi-skilled and unskilled labourers - 92 percent; technical supervisory, shop floor - 7 percent; entrepreneurs, senior managers and technologists - 1 percent.

Indian Footwear and Leather industry is clearly optimistic about the future. To protract this optimism, State Governments must ensure that they are able to create an attractive and enabling environment. CII believes this can be achieved through openness to investments, good governance and robust infrastructure.

Courtesy: Confederation of Indian Industry http://www.fibre2fashion.com/news/daily-textile-industries-news/

newsdetails.aspx?news_id=28290 

Import Export of Footwear & Leather Products

Indian Footwear Industry in a Nutshell: -

- Second largest footwear producer after China- 2.06 billion pairs produced in an year- 16 % of the global production is produced in India- Contract manufacturers supply to leading global brands- 644 Member produces situated as clusters at Chennai, Ambur, Ranipet, Kanpur, Agra, Mumbai, Delhi and Karnal.

The export of Leather and Leather Products for the period April-March 2007-08 touched US$3477.52 million against the performance of US$3059.43 million in

the corresponding period of last year, registering a positive growth of 13.67% in Dollar Terms. In rupee terms the export touched Rs.140007.33 million against

the previous years performance of Rs.138437.84 million showing a positive growth of 1.13%.

The export value during 2006-07 was revised upwards by DGCI&S, from US$2981,79 million (Rs.134924.39 million) to US$3059.43 million {Rs.138437.84 million).

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A Statement showing the Product-wise Export performance during April-March 2007-08 vis-a-vis April-March 2006-07 is given below:

(In Million Rs.)

Category Apr-Mar Apr-Mar % Variation2006-07 2007-08

Finished Leather 32760.69 30877.20 -5.75%Leather Footwear 44087.76 46856.08 6.28%Footwear Components 9947.84 10713.89 7.70%Leather Garments 14023.29 13849.39 -1.24%Leather Goods 31958.86 31602.54 -1.11%Saddlery & Harness 3725.32 4260.16 14.36%Non-Leather Footwear 1934.08 1848.07 -4.45%TOTAL 138437.8

4140007.33 1.13%

Source : DGCI &S (In Million US$

Category Apr-Mar Apr-Mar % Variation2006-07 2007-08

Finished Leather 724.00 766.93 5.93%Leather Footwear 974.33 1163.82 19.45%Footwear Components 219.84 266.11 21.05%Leather Garments 309.91 343.99 11.00%Leather Goods 706.28 784.95 11.14%Saddlery & Harness 82.33 105.81 28.53%Non-Leather Footwear 42.74 45.90 7.39%TOTAL 3059.43 3477.52 13.67%

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Major Highlights

Export of Footwear (leather, footwear components & non-Leather footwear) has increased from US$1236.91 million in April-March 2006-07 to US$1475.83 million in April-March 2007-08, registering a growth of 19.32%

In Dollar terms, Leather footwear has alone grown by 19.45%, footwear components by 21.05% and Non-Leather footwear by 7.39%

Export of Leather Garments has increased by 11.00%, Saddlery & Harness by 28.53%, and Leather Goods by 11.14%

Export of Finished Leather has increased by 5.93%.

 

India's Leather & Leather Products Export Basket

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Export Target Vs Achievement

As against the approved export target of US$ 3042 million for the year 2007-08, the actual export performance was US$3478 million, recording an achievement of 114.32% over the targeted export. The product specific export target vis-a-vis achievement is given below:

(In Million U5$)

Product Category Export Target

2007-08

Actual Export Apr-Mar 2007-08

% Achievement

Finished Leather Footwear Leather Garments Leather Goods Saddlery & Harness

675 1347280 650 90

767 1476 344785 106

113.62% 109.56% 122.85% 120.76%

117.57%Total 3042 3478 114.32%

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Country-wise analysis

The major markets for Indian Leather products are Germany with a share of 14.05%, Italy 13.78%, UK 11.91%, USA 8.82%, Hong Kong 7.70%, Spain 6.10%, France 5.64%, Netherlands 3.84%, UAE 2.14% and Australia 1.43%. These 10 countries together accounts for nearly 75.41% of India's total Leather products export

Overall positive growth is seen in markets like Germany 19.18%, UK 15.14%, Italy 15.89%, France 12.72%, Spain 14.15%, Netherlands 32.29%, Australia 26.33% and Denmark 16.04%.

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Overall decline is seen in markets like USA 3.43%, Hong Kong 4.21%, Greece 3.46% and South Africa 21.97%.

(In Million US$)

Trend in Major Importing Countries of Leather ProductsCountry Apr-Mar Apr-Mar % Variation

2006-07 2007-08Germany 410.08 488.72 19.18%Italy 413.35 479.04 15.89%UK 359.84 414.32 15.14%Spain 185.78 212.07 14.15%France 174.04 196.17 12.72%Netherlands 100.82 133.37 32.29%Australia 39.38 49.74 26.33%Denmark 42.30 49.08 16.04%U.A.E. 62.55 74.53 19.14%Portugal 49.92 56.06 12.31%China 42.52 51.90 22.05%Sweden 29.01 38.81 33.79%Canada 32.17 35.90 11.58%Hong Kong 279.72 267.93 -4.21%USA 317.59 306.69 -3.43%Saudi Arabia 15.77 15.53 -1.56%

Port-wise Export Performance

As per the Port-wise compilation for the period April-March 2007-08, export of Leather and Leather Products from South, West, East and Central Regions are showing positive growth. However, there is a decline of 0.16% from Northern Region.

(In Million US$)

Region APR-MAR

2006-07

Share in Total Export

APR-MAR

2007-08

Share in Total Export

% Variation

Southern Western Eastern Northern Central

Others

1250,12 569.58 437.97 377.80

78.86

345.10

40.86% 18.62% 14.32% 12.35%

2.58%

11.28%

1398.49 695.63 517.85 377.21 99.69 388.65

40.22% 20.00% 14.89% 10.85% 2.87%11.18%

11.87%

22.13%

18.24%

-0.16%

26.41%

12.62%

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Total 3059.43 100.00% 3477.52 100.00% 13.67%

Note: This is purely based on port-wise compilation and does not reflect the accurate regional performance: Source: DGCI& S

The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that footwear sector is the most significant segment of the Leather Industry in India.

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The Export Targets from 2007-08 to 2010-11

(In Million US$)

Product 2006-07 2007-08 2008-09

2009-10 2010-11

Actual Export

Leather 688.05 726.85 785.00 847.80 915.63Footwear 1212.25 1967.88 2597.6

03428.83 4526.05

Garments 308.98 358.53 372.87 387.78 403.30Leather Goods 690.66 733.34 798.69 870.06 948.04Saddlery & Harness

81.85 105.66 127.85 154.70 187.19

Total 2981.79 3892.26 4682.01

5689.17 6980.21

 

WORLD IMPORT OF LEATHER AND LEATHER PRODUCTS AND INDIA'S SHARE 2001-05

       (Value in million US$)

DETAILS 2001 2002 2003 2004 2005

           

Leather          

           

WORLD IMPORT 16213.28 16144.06 17575.61 19156.18 18268.48

INDIA'S EXPORT 459.25 508.83 555.71 607.73 636.27

% SHARE OF INDIA 2.83% 3.15% 3.16% 3.17% 3.48%

           

Leather Footwear          

           

WORLD IMPORT 28875.03 30583.67 33657.91 36832.74 39816.00

INDIA'S EXPORT 395.39 423.30 553.04 657.78 807.81

% SHARE OF INDIA 1.37% 1.38% 1.64% 1.79% 2.03%

           

Footwear Components          

           

WORLD IMPORT 4605.90 4403.25 4803.49 4929.82 4568.10

INDIA'S EXPORT 233.94 175.07 161.27 179.21 182.58

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% SHARE OF INDIA 5.08% 3.98% 3.36% 3.64% 4.00%

           

Leather Garments          

           

WORLD IMPORT 4762.04 4207.59 4190.32 4004.70 3738.59

INDIA'S EXPORT 378.75 272.08 301.08 329.44 333.30

% SHARE OF INDIA 7.95% 6.47% 7.19% 8.23% 8.92%

           

Leather Goods          

           

WORLD IMPORT 6168.79 6620.96 7521.72 9127.02 10072.32

INDIA'S EXPORT 321.46 335.36 403.20 466.95 521.79

% SHARE OF INDIA 5.21% 5.07% 5.36% 5.12% 5.18%

           

Leather Gloves          

           

WORLD IMPORT 1353.34 1361.91 1481.35 1648.28 1786.74

INDIA'S EXPORT 85.69 90.04 136.01 118.77 138.38

% SHARE OF INDIA 6.33% 6.61% 9.18% 7.21% 7.74%

           

Leather Goods (Including          

Gloves)          

WORLD IMPORT 7522.13 7982.87 9003.07 10775.30 11859.06

INDIA'S EXPORT 407.15 425.40 539.21 585.72 660.17

% SHARE OF INDIA 5.41% 5.33% 5.99% 5.44% 5.57%

           

Saddlery & Harness          

           

WORLD IMPORT 463.46 498.97 599.98 708.40 809.45

INDIA'S EXPORT 35.64 43.66 52.71 61.71 77.52

% SHARE OF INDIA 7.69% 8.75% 8.79% 8.71% 9.58%

           

TOTAL - Excluding          

Non-leather footwear          

WORLD IMPORT 62441.87 63820.42 69830.41 76407.16 79059.7

INDIA'S EXPORT 1910.12 1848.33 2163.03 2421.59 2697.65

% SHARE OF INDIA 3.06% 2.90% 3.10% 3.17% 3.41%

           

Non-leather footwear          

           

WORLD IMPORT 18185.63 18378.35 20139.75 22736.49 24994.44

INDIA'S EXPORT 26.02 26.88 53.42 73.78 54.85

% SHARE OF INDIA 0.14% 0.15% 0.27% 0.32% 0.22%

           

GRAND TOTAL -including          

non-leather ftwr          

WORLD IMPORT 80627.50 82198.77 89970.16 99143.65 104054.1

INDIA'S EXPORT 1936.14 1875.21 2216.45 2495.37 2752.50

% SHARE OF INDIA 2.40% 2.28% 2.46% 2.52% 2.65%

           

Source : ITC, Geneva,CLE (www.leatherindia.org)           

 

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In a Nutshell: -

India's export of Leather & Leather Products has reached US $ 3.47 billion in dollar terms and Rs.14,000 crore in rupee terms. In dollar terms, there has been an export growth of 13.67% and in rupee termsl.13%

Footwear alone holds a major share of 42.44% in India's total leather products export trade

As against the export target of US $ 3042 million for the financial year 2007-08, the achievement was 114.32%

Major Production Centers

The major production centers for footwear and leather products are located in:

Tamil Nadu - Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dtndtgul West Bengal - Kolkata Uttar Pradesh - Kanpur, Agra & Noida Punjab - Jallandhar Karnataka - Bangalore Andhra Pradesh - Hyderabad Haryana - Ambala, Gurgaon, Panchkula and Karnal Delhi

 

Employment Scenario

Though the Leather Industry, especially the Footwear industry has made a strong contribution to the Indian economy, India's share in global trade remains low, however being a labour intensive industry, its contribution to employment is

significant.

In a recent study carried out by NMCC, it was highlighted that total employment in this sector would amount to 2.5 million (30 percent of which are women).

Footwear industry provides employment to the uneducated population - 40 percent of employment is represented by unskilled workers doing table work operation in the assembly line.

Large employment opportunities on the input side - minority community and low caste people have their sole source of livelihood from collecting carcasses, skinning dead animals and tanning leather.

The Footwear industry has potential to provide employment across all sections of the economy Industry estimates of employment potential 3 lakh jobs in next 3 years.

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The potential for employment is across all skills to the tune of semi-skilled and unskilled labourers - 92 percent; technical supervisory, shop floor - 7 percent; entrepreneurs, senior managers and technologists - 1 percent.

Indian Footwear and Leather industry is clearly optimistic about the future. To protract this optimism, State Governments must ensure that they are able to create an attractive and enabling environment. (Confederation of Indian IndustryCII believes this can be achieved through openness to investments, good governance and robust infrastructure.

 

Employment & Child Labour Issues

 

India’s leather industry employs 1.7 million people and helps the socially-disadvantaged, known as Scheduled Castes in officials, earn a livelihood. And even though India has a cattle population of 195 million – the world’s largest – cows provide only 10.8 percent of hides. The rest are derived from goat and sheep. The fear is that the campaign against Indian leather will embrace these animals too.

The exclusion of disadvantaged social groups from full participation in the opportunities of society lies central to the existence of child labour in slaughter House and allied activities, as there is a substantial concentration of certain religious and caste groups.

The Leather Industry is Labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and chappals are produced in the household and cottage sector. The processes in the footwear making include last making, pattern cutting, clicking, sewing Assembling and finishing. There is no gender selectivity in child labour. Adults earn wages that are only marginally higher than what the children earn. Irrespective of the experience, skill and family size and

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requirements the wage payment system remains insensitive and relatively inelastic. Children contribute 20 to 40 per cent of the family income. The labour in the leather industry is defined by the caste location. While market forces predominantly govern all other aspects of the industry, the labour is drawn exclusively from the most downtrodden section. As heads of 60 per cent of the households are engaged in leather work, the leather sector study establishes the incidence of child labour in leather flaying as an intergenerational phenomenon.

Children between 10 & 15 yrs. old are mainly employed in assembling shoes. Some 80% of the children work for contractors at home. Children work on soling (fixing upper portions of shoes to leather or rubber soles) with glue. Children in cramped poorly lit rooms suffer from continuous skin contact with industrial adhesives & breathing vapors from glues. The children working in the footwear industry are exposed to physical factors like poor illumination, noise & poor ventilation and chemicals like leather dust, benzene that is used as a solvent in glues and p-tert. Butyl phenols, which is used in neoprene adhesives. Thus most children suffer from respiratory problems, lung diseases and skin infections through constant exposure to glue and fumes. They are also exposed to risk of nasal cancer, neurotoxicity and adverse physical factors. In addition to the general hazards of child employment in leather industry, the specific hazards for single migrant child labour of slaughterhouses consist in their being exposed to all kinds of weather conditions, occupational Injuries and diseases, the detrimental impact of watching the slaughtering of cattle continuously and the lack of sanitary facilities which makes the children to suffer from psychological problems.

 

Women Employees

Women are employed in large numbers in Indian leather industry and are making important contribution to the national economy as well as to exports. Women are involved in footwear production in Athani (Karnataka), Rajasthan, Agra (UP) and Chennai, Ambur, Ranipet and Vaniambadi (Tamil Nadu). Their entry into productive work has helped considerably in improving their household situation. With the `take off' of the footwear industry, especially in the last 20 years and the rapid rise of exports, women's employment has increased. The leather industry has been designated as a hazardous industry under the Factory Act 1948, and has a mandatory requirement of formal approvals for expansion. It has been observed that formal units expand and set up illegal units, where the bulk of women workers, especially dalit women are found. Women are not documented as 'workers' on any official records. Therefore, they are not legally entitled to any compensations or benefits. These women are recruited through contractors and are engaged in all stages of the tanning process. Their tasks are time consuming, backbreaking and the most hazardous.

The present study and other studies -indicate that, prolonged contact with chemicals used in the leather industry leads to problems such as dermatitis, loss of hair on the head, conjunctivitis, nervous disorder, itching of skin and throat mucous membrane, chest pain, ulcer, breathing problems, asthma, bronchitis, fissure in fingers, toes, mouth and nose, frequent fever, headache and stomach

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upsets. Specific gynecological problems faced by women workers are: menstrual disorders; premature death, still births and prolapsed of the uterus.

Footwear Industry to Generate Jobs for Women

Source: http://www.hindu.com/2008/04/18/stories/2008041853980500.htm

KOZHIKODE: With the Feroke-Cheruvannur-Ramanatukara industrial belt in Kozhikode set to emerge as a hub of footwear manufacture, a spin-off would be the creation of sizeable job opportunities, especially for women.

The Footwear Design and Development Institute in Cheruvannur set up with the objective of quality control and design improvement, with the assistance of footwear manufacturing units in the area and the proactive involvement of the Kudumbasree Mission and the Cheruvannur-Nallalam grama panchayat, is expected to create job opportunities for scores of women.

“The two-and-a-half month training in footwear stitching has been completed for the first batch. Basic qualification for the trainees is orientation towards tailoring,” V. Naushad of the VKC Group and the main force behind the venture told The Hindu here on Sunday.

The support of the Government of India came by way of 30 per cent subsidy for setting up the training centre by including footwear manufacture in the ‘thrust’ sector list. The Central Leather Research Institute, Chennai, conducted the tests for trainees. It also provided assistance of Rs.56 lakh.

Mr. Naushad said the State Kudumbasree Mission was providing assistance for conducting the training. The grama panchayat was involved in organising the training programme. As of now, seven machines were provided for a group of 10 members each.

Contract job work

After the training, the women would be in a position to take up contract stitching job works for the footwear manufacturers.

The entire operation has been planned on a large scale, Mr. Naushad said. As many as 1,000 women would be trained in the skill over a period of three years. The skilled stitching is now done by migrant labourers from West Bengal.

There are as many as 100-odd small and big footwear units in the Cheruvannur-Feroke-Ramanatukara belt, said Mr. Rasheed, District Industries Centre.

K.P.A. Hashim, Standing Committee chairman of Cheruvannur-Nallalam grama panchayat said women were being trained in `upper stitching’ of footwear.

Workers from Bengal

Now more than 1,500 skilled workers from West Bengal are engaged in the job. The effort is to train local women in the skill and thereby generate economic activity on a large scale.

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A 12-member women group has undergone training and practical experience at the manufacturing units. The second batch of 40 women is in the process of completing training, Mr. Hashim said.

P. Damodaran of Odisia welcomed the setting up of the Design Centre.

He said it would help improve quality.

The training will ensure the availability of organised skilled labour, said Paul Varghese of Hawalker. The Design Centre must have its own premises, he adds.

Mr. Naushad stressed the importance of technology upgrading. Only less than 50 per cent of the footwear required was produced here.

The trend can be reversed by manufacture of footwear of quality and consumer–friendly designs and the Design Centre was an initiative in this direction.

 

Human Resource in Indian Footwear Industry

The Indian leather industry has come a long way. In the process, it has come to occupy a place of prominence in view of its massive potential for growth & exports while providing opportunities for employment over 2.5 million people in the industry, of whom 30 % are women.

There are 2.5 million persons engaged in leather and allied activities and large pool of trained man power is engaged in tanning and product sectors. Indian technologist are employed in most of the Asian and African nations.A fairly good institutional base has now been established in India, which is fulfilling the training and Human Resource development requirements of the organized industry. Yet, the numbers of people they are able to provide are much below the requirement and are globally less accepted.The footwear industry has the unique status of linking the most developed and rich people of the world as consumers with the developing  and underdeveloped producers of leather products. But still, Indian leather & footwear industry has a quite less share in global market.

Catering to the rising demands in this sector, many students pursue these footwear design & technology courses today as the retail sector holds a promising future for the professionals trained in this field. In order to fulfill the rapidly growing demand for qualified professionals in this industry, various institutes offer footwear design & technology courses in India. 

Types of Footwear Design & Technology Courses in India:

Several kinds of Footwear Design & Technology courses are available in India. You can choose from these courses according to your needs and qualifications. Some of these courses are Management program in Footwear Technology, Masters Program in Footwear Design, Higher Diploma course in Footwear Technology, Diploma course in Footwear Designing as well as short term courses

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in Footwear, leather garments or Leather Goods. 

Eligibility for admission to Footwear Design & Technology Courses in India

While the certificate courses in Footwear design & technology can be generally pursued right after the completion of the 12th standard, the higher diploma course in footwear technology require the candidate to be a graduate in any stream or diploma holder in leather, engineering or Footwear technology. In order to apply for basic courses in footwear manufacturing technology, shoe making or design, you need to pass 10+2 level. Candidates are considered eligible for admission to diploma courses in footwear design if they are graduates.

Below mentioned is the list of India's best institutes that offer Footwear Design & Technology Courses in India- 

Footwear Design & Technology Courses in India

Name & Address Phone/Email/Website

Footwear Design & Development InstituteA - 10 / A, Sector - 24 Noida- 201 301 Gautam Budh Nagar,Uttar Pradesh

Tel: +91-120-2412456, 2412534, 2412557Email:[email protected] Website: www.fddiindia.com

 

Central Footwear Training InstituteC-41-42, Site-'C',Industrial Area, Sikandra Agra-282007

Phone: 91-562-2642005e-mail: [email protected]

AVI School of Fashion and Shoe TechnologyS.C.O 493-94, Iind Floor, Sector 35-C,Chandigarh

Phone No: 602997, 601651

MSME Technology Development Centre (Central Footwear Training Institute), 65/1, GST Road,Guindy, Chennai 600032

Phone: 044-22501529, Email: [email protected]   Website: www.cftichennai.in

Central Leather Research Institute (Council of Scientific & Industrial Research)Adyar, Chennai 600 020

Tel No: 91-44-2491089791-44-24910846 E-mail : [email protected]: http://www.clri.org/

College of Leather TechnologyE.M. Byepass, Salt Lake, Sec-II 

 

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Kolkata- 700091

Government Tanning Institute,Opposite Ambedkar Bhawan,Near Guru Ravidass Chowk,Nakodar Road, JalandharPunjab

Phone No: 0181-2253389, 0181-2472242Email: [email protected]

Indian Footwear Retail Industry

 

Source: IMAGES F&R Research, INDIA RETAIL REPORT 2007

Footwear is a necessity to every person and at the same time is now a lifestyle as also a performance enhancement product; and is thus a segment with vast potential.

The Indian footwear market is estimated to be worth Rs.13,750 Crore and constitutes just about one percent of Indian retail. About 37.8 percent of Footwear retail is in the organized segment, which qualifies it as the second most organized retail category in India, next only to Watches.

Men's footwear comprises the largest share of the organized market accounting for about 52 percent in value terms.

As footwear retailing in India has remained focused on men’s shoes, there exists a whale of opportunity in the exclusive ladies and kid’s footwear segment. This is especially surprising as women globally in line with global trends are the key decision makers for buying footwear. The ladies footwear segment still remains the most untapped as nearly 80-90 percent purchases happen in the unorganized market largely due to the dressing habits of women for whom consideration of durability or comfort are less important than colours and designs that go with dress.

With the Indian woman becoming more brand-conscious as opposed to the past state of being product-conscious, more and more internationally renowned players are expected to enter the Indian market to fill this need-gap.

Volume Share of Products Segments in Footwear

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The children's and kids' segment also accounts for a significant share due to the increased emphasis on sporty looks. Given India’s very young population, the market for children’s footwear is also attractive for new organized players to enter and earn supernormal profits.

Volume Share in Footwear

The footwear market today is showing a trend where more and more competitors within the segment are coming together and forming alliances through cross-promotions and tie-ups benefits for enhanced reach and offering the consumer access to a wider range of products and brands.

The London-based Carlton group became the first overseas player to enter the Indian women’s footwear market when it set up its first store at the MGF Metropolitan Mall in Gurgaon recently.

Growth of Indian Footwear Retail

( Value Rs. Crore at 2003-04 Prices )

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The entry of specialty sportswear retailers such as Royal Sporting House, Sports Station and Planet Sports providing the best shopping experience for customers and a platform to showcase the world’s top sports and active lifestyle brands has transformed the organized retailing scenario in the country. Royal Sporting House has over 40 stores in India, many of which are placed in prime locations within shopping malls. It is the exclusive distributor of brands such as Mizuno, Caterpillar, TYR, Dunlop Sports and non-exclusive ones such as Reebok, Adidas, Nike and Skechers. Planet Sports, with 20 outlets in the country, is the licensee in India for leading sports brands such as Puma, Speedo, Converse and Wilson, among others.

The sportswear market is the only sector in India that has the presence of all three top international brands. The year 1996 witnessed the entry of Nike, Reebok and Adidas that gave a new dimension to footwear and fashion retailing in the country. Playful promotion campaigns, world class merchandising and the internationally styled stores enthused consumers to go for an extra pair of shoes and a couple of extra Tee Shirts and add a little bit of sporty images to their lifestyle.

In the face of increasing competition from leading multinational players, domestic footwear retailers have also woken up to the opportunity that the segment beckons and are realizing that exposure to shopping standards abroad have made Indian consumers demand the same formats and experience here. Responding to this challenge, major domestic players like Bata and Liberty have significantly transformed their retail formats to become more lifestyle- oriented and are positioning themselves as vibrant and contemporary Indian brands.

In recent years the market has seen entry of a host of new domestic and foreign brands like Drish, Lotto, Lotus Bawa, Now, Oakridge, Royal Elastic, Sketchers, Teenage, Teva, Timberland and Vans. Fashionable brands like Stryde and Red Tape and MNC brands like Allen Cooper, Franco Leone, Gaitonde, Gucci, Guess, Lee Cooper, are further developing the market by creating new segments.

Source: IMAGES F&R Research, INDIA RETAIL REPORT 2007

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In a Makeshift and Make-Believe World

Source: http://indiaretailing.com/news.asp?id=1611&topic=3

9 Feb, 2008It is almost a year now that Indiaretailing has been echoing the fact that whatever is being said, heard, or seen about organised retail in India, the ‘opposite’ of that is equally true.

Organised and unorganised, steel carts in stores and push carts on roads, POS-generated bills and handwritten parchis, high-quality branded goods and fakes sold by nobodies… every business activity has a parallel identity in India.

In their effort to put the best foot forward while balancing their steps on these seemingly endless dichotomies, Team Indiaretailing’s vigilant eye came upon some of the leading footwear brands that are being sold at throwaway prices in Sarita Vihar area in the NCR. Temporary kiosks and ragged racks have been set up in front of what used to be branded outlets, which were sealed by the Municipal Corporation of Delhi (MCD) a few months ago, tagged as ‘unauthorised construction’. The surprising makeshift arrangement in front of these closed shops primarily sells footwear, and on offer are almost all the known brands in India. 

Are they originals, counterfeits, or smuggled worthies? If they are counterfeits, who’s making them, and how dare anybody spoil the brand’s credibility? Do the brands know about this? Is it that brands are dumping their overproduced or defective products here? TI ventured into the hazy areas engulfing the issue.

According to Images F&R Research, the Indian footwear market in 2006 was estimated to be worth Rs 13,750 crore. About 37.8 per cent of footwear retail is in the organised segment (Rs 5,200 crore at 2006 prices), and this qualifies it as the second-most organised retail category in India. The segment has seen over 100 per cent growth in the two years from 2004 to 2006. 

The statistics obviously did not have anything to reveal on the parallel markets.

The more one tried understanding this parallel business, the more complicated it seemed to become. Hence, in the wisdom of the moment, TI here presents the picture as it emerges, and the sequence of activities and varied opinions that it came across, leaving the balancing and the understanding part to whosoever can understand better.

TI Action

January 30 to February 5, TI has been observing, talking to, recording and

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photographing the operations of ‘brand breakers’ in the NCR region. 

February 5, Indiaretailing shoots mails (scene pictures attached) to leading

footwear brands intimating them about their continuous branding efforts being

compromised by a few transgressors, who are selling what are probably

counterfeits or smuggled products under an array of brand names right in front

of their closed shops, which, however, still have their forefront boards on. Brands

were also informed that these are selling at less than half the actual price, and,

moreover, bills are being provided to authenticate the sale. 

The mail also quizzed brands about their stand on the unlawful practice, and also

the measures they would take at their end to counter the problem.

The idea behind intimating brands before putting up the issue in public domain

was not just to pass on the information, but also to understand the extent a

brand can go to protect its image and loyalty of the customers built over the

years. Also, it was an effort to express TI’s concern for counterfeit retailing.

Action vs reaction

Newton was right. The TI action received an equal and an ‘opposite’ reaction.

Brands reacted, objected, justified…

February 6, Andreas Gellner, managing director, Adidas India Trading Pvt. Ltd,

called up TI and appreciated its efforts. Sharing his concern on the issue, he said,

“We’ve been in the market for almost a decade and been hearing news about

counterfeits of brands being sold in different areas of the NCR. In this case,

sometimes the brands are helpless, as they can’t keep vigil all over. It is the duty

of the law-enforcement agencies to keep a track and take stringent action.”

Commenting upon the particular case that is this feature’s focus, Gellner said,

“Firstly it is obvious that they are selling fakes as our brand cannot land in such

hands; secondly, they are cashing in on the brand’s credibility by selling in front

of the closed shops.” 

Bata, one of the largest footwear retailers in the country, not only expressed

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surprise, but also went into action mode. The company took the initiative of

investigating the matter itself, and is planning to take legal action against the

ones involved in hampering the brand’s image. 

In an emailed reply to TI, Bata maintained that the store, in front of which the

footwear in question is being sold, is not the company’s outlet, but of a footwear

dealer who is using the Bata board without any authority. Roadside sellers are

befooling the customers under the brand’s banner to sell their wares.

Manoj Chandra, vice president of marketing and customer service at Bata,

stated, “We stand by the goodwill and reputation of our brand and retail stores.

Such activities by unidentified men are irresponsible and can very well harm our

brand. We appreciate the TI research and will take appropriate measures to

control this undesired practice.”

Subhinder Singh Prem, managing director, Reebok India, said: “There have been

such incidents in the past when we found counterfeits being sold in various

areas. There’s a particular process involved in tackling such situations. Our legal

departments take stringent action if such a case is brought to our notice. We

have conducted raids at sellers and also manufacturers in the past. But this

seems to be a never-ending situation as these people start functioning for some

time and keep shifting bases.” 

However, Prem was not aware about the Sarita Vihar scene. When informed, he

said that the company will take all preventive measures to protect the brand’s

image.

Other leading footwear brands also voiced similar opinions, though they wished

to remain off-the-record. They agreed that such activity is not only an

obstruction to their brand-building process, but is also a criminal act. 

Another interesting detail was revealed by some of the brand representatives.

They admitted to being actually concerned about the fate of those who once

operated those closed shops, and providing them with cheaper, discardable

products to sell cheap. However, they maintained that they take off the brand’s

tags and do not authorise anybody to use their brand name.

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Yessir, they have their story, too

The depth in the truth, they say, is subjective; however, nothing can be an

absolute lie either. 

Here are some abstracts of TI’s conversation with some of the sellers who claim

to be the owners or the employees of the sealed shops.

“The shops that were here were our only source of income. Now that they are

sealed, where are we supposed to sell such branded products? Who is going to

feed our families?” 

“The government had turned a blind eye when those shops were being built.

They did not open their eyes all the while this market was on full swing. What

happened all of a sudden?”

“People will say whatever they have to, but these are all original brands. We

used to sell the same products through properly organised shops before they

were sealed. And yes, we do provide the bill for whatever we sell.”

“We have stocks of branded products, but no place to sell. So, to do away with

the extra stock, we sell them at lower prices.”

No conclusion

Neither party is shying away from taking a stand. Even as the perimeters of ‘organised’ and ‘unorganised’ remain fused in the context of Indian retail, it is quite inevitable that in the meantime, the gaps will be exploited. While legislation and copyright issues await clarity, brands themselves must abide by the code of brand identity – in the heart of which lies an irrevocable promise of goodness, quality and faith.

Indian Retail Industry

Retail and real estate are the two booming sectors of India in the present times. And if industry experts are to be believed, the prospects of both the sectors are mutually dependent on each other. Retail, one of India’s largest industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. Accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry.

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As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are

Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items

Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay-packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. With this the retail sector in India is witnessing a rejuvenation as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores.

The retailing configuration in India is fast developing as shopping malls are increasingly becoming familiar in large cities. When it comes to development of retail space specially the malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is studied it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in the Tier II cities.  The government of states like Delhi and National Capital Region (NCR) are very upbeat about permitting the use of land for commercial development thus increasing the availability of land for retail space; thus making NCR render to 50% of the malls in India.

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India is being seen as a potential goldmine for retail investors from over the world and latest research has rated India as the top destination for retailers for an attractive emerging retail market. India’s vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Even though India has well over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing industry in the modern sense of the term. This presents international retailing specialists with a great opportunity. The organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, burgeoning income and favorable demographic outline.

Another cap to the retailing industry in India is allowing 51% FDI in single brand outlet. The government is now set to initiate a second wave of reforms in the segment by liberalizing investment norms further. This will not only favor the retail sector develop in terms of design concept, construction quality and providing modern amenities but will also help in creating a consumer-friendly environment. Retail industry in India is at the crossroads but the future of the consumer markets is promising as the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations in India. And this upsurge in the retail industry has made India a promising destination for retail investors and at the same time has impelled investments in the real estate sector. As foreign investors cautiously test the Indian Markets for investments in the retail sector, local companies and joint ventures are expected to be more advantageously positioned than the purely foreign ones in the evolving India's organized retailing industry.

Current Scenario of Indian Retail Industry

Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoing an exponential growth, the road ahead is full of challenges.

What is retailing?

The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.

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SCENARIO OF RETAILING IN INDIA

Retailing is the most active and attractive sector of last decade. While the retailing industry itself has been present since ages in our country, it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased purchasing power of buyers, especially post-liberalization, increase in product variety, and increase in economies of scale, with the aid of modern supply and distributions solution.

Indian retailing today is at an interesting crossroads. The retail sales are at the highest point in history and new technologies are improving retail productivity. though there are many opportunities to start a new retail business, retailers are facing numerous challenges.

 

KEY CHALLENGES:

1) LOCATION:

"Right Place, Right choice"Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan:

* Investigate alternative trading areas.* Determine the type of desirable store location* Evaluate alternative specific store sites

2) MERCHANDISE:

The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store.

3) PRICING:

Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today's customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change.

4) TARGET AUDIENCE:

"Consumer the prime mover""Consumer Pull", however, seems to be the most important driving factor behind

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the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom.

5) SCALE OF OPERATIONS:

Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India.

PRESENT INDIAN SCENARIO

* Unorganized market: Rs. 583,000 crores* Organized market: Rs.5, 000 crores* 5X growth in organized retailing between 2000-2005 * Over 4,000 new modern Outlets in the last 3 years* Over 5,000,000 sq. ft. of mall space under development* The top 3 modern retailers control over 750,000 sq. ft. of retail space * Over 400,000 shoppers walk through their doors every week * Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06

* Major players

- Food and grocery- Fashion - Others- Food world- Shoppers' Stop- Vivek's- Subhiksha- Westside - Planet M- Nilgris - Lifestyle- Music World- Adani- Rajiv's- Pyramid - Crossword - Nirma-Radhey- Globus- Life spring

TRADITIONAL RETAIL SCENE IN INDIA

India is the country having the most unorganized retail market. Traditionally the retail business is run by Mom & Pop having Shop in the front & house at the back. More than 99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test & vim and fancies of the proprietor

Search

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also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading & home are not maintained separately. Profits were accumulated in slow moving & non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. The Manufactures were to distribute goods through C & F agents to Distributors & Wholesalers. Retailers happen to source the merchandise from Wholesalers & reach to end-users. The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive & not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors &/or Wholesalers. Virtually there was only one format of retailing & that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based & truly very low range was available at any given single place. Almost all the purchases / (buying) by mass population was need oriented & next turn may be on festivals, Marriages, Birthdays & some specific occasions.

Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of Indian urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks. However electronic & electrical home appliances do hold appropriate image into the minds of consumers. Brand name does matter in these white goods categories. In the coming times also majority of organized retailers will find it difficult to keep balance with rest of the unbranded retail market which is very huge.

INDIAN RETAIL IS MOVING INTO SECOND GEAR

1) FIRST GEAR:(Create awareness)* New retailers driving awareness* High degree of fragmentation* Real estate groups starting retail chains* Consumer expecting 'value for money' as core value

2) SECOND GEAR:(Meet customer expectations)* Consumer-driven* Emergence of pure retailers* Retailers getting multi-locational and multi-format* Global retailers evincing interest in India

3) THIRD GEAR:(Back end management)* Category management* Vendor partnership

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* Stock turns* Channel synchronization* Consumer acquisition* Customer relation's management

4) FOURTH GEAR:(Consolidation)* Aggressive rollout* Organized retail acquitting significant share* Beginning of cross-border movement* Mergers and acquisitions

CONCLUSION

For a start, these retailers need to invest much more in capturing more specific market. Intelligence as well as almost real-time customer purchase behavior information. The retailers also need to make substantial investment in understanding/acquiring some advanced expertise in developing more accurate and scientific demand forecasting models. Re-engineering of product sourcing philosophies-aligned more towards collaborative planning and replenishment should then be next on their agenda. The message, therefore for the existing small and medium independent retailers is to closely examine what changes are taking place in their immediate vicinity, and analyze Whether their current market offers a potential redevelopment of the area into a more modern multi-option destination. If it does, and most commercial areas in India do have this potential, it would be very useful to form a consortium of other such small retailers in that vicinity and take a pro-active approach to pool in resources and improve the overall infrastructure. The next effort should be to encourage retailers to make some investments in improving the interiors of their respective establishments to make shopping an enjoyable experience for the customer.

As the retail marketplace changes shape and competition increases, the potential for improving retail productivity and cutting costs is likely to decrease. Therefore, it will become important for retailers to secure a distinctive position in the marketplace based on value, relationships or experience.

Finally, it is important to note that these strategies are not strictly independent of each other; value is function of not just price, quality and service but can also be enhanced by Personalization and offering a memorable experience. In fact, building relationships with customers can by itself increase the quality of overall customer experience and thus the perceived value. But most importantly for winning in this intensely competitive marketplace, it is critical to understand the target customer's definition of value and make an offer, which not only delights the customers but also is also difficult for competitors to replicate.

Indian Retail Industry: Opperunities, Challenges, & Strategies

Source:

http://www.123eng.com/forum/viewtopic.php?p=62976

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ABSTRACT 

The revolution in retailing industry has brought many changes and also opened door for many Indian as well as foreign players. In a market like India there is a constant clash between challenges and opportunities but chances favour those companies that are trying to establish themselves. So to sustain in a market like India companies have to bring innovative solutions. Indian market has potential to accommodate many retail players, because still a small proportion of the pie is organized. 

This paper discusses the challenges like merchandising mix, retail differentiation, supply chain management and also competition from supplier's brand in the Indian perspective. 

Key words- Retail differentiation, Supply chain, Merchandising Mix, Private level brand. 

1.0 Introduction 

Retailing is still in its infancy in India. In the name of retailing, the unorganised retailing has dominated the Indian landscape so far. According to an estimate the unorganized retail sector has 97% presence whereas the organized accounts for merely 3% . Industry has already predicted a trillion dollar market in retail sector in India by 2010. However, the retail industry in India is undergoing a major shake-up as the country is witnessing a retail revolution. The old traditional formats are slowly changing into more complex and bigger formats. Malls and mega malls are coming up in almost all the places be it – metros or the smaller cities, across the length and breadth of the country. 

A McKinsey report on India (2004) says organized retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. At 6%, the share of employment of retail in India is low, even when compared to Brazil (14%), and Poland (12%).Govt of India's plan of changing the FDI guidelines in this sector speaks of the importance attached to retailing. Recently moves by big corporate houses like Reliance Industries has further fuelled the major investments in retail sector. A strategic alliance, land acquisitions in prime areas give the essence of the mood in this sector. 

Both MNCs and Indian firms want to get their share of this burgeoning pie. Notable in Indian firms are Pantaloons Retail & Big Bazaar, Trent's Westside, Shopper's stop, Reliance and Subhiskha, Wills Lifestyle stores, Café Coffee Day, which are present in India in different retail formats. Wal-Mart stores have just started operations in India. Some leading retail coffee chains of the world like Starbucks, Barnies are planning to expand in a major way in India. 

2.0 THE INDIAN RETAIL SECTOR 

India is the country having the most unorganized retail market. Traditionally it was a family's livelihood, with their shop in the front and house at the back, while they run the retail business.More than 99% retailer's function in less than 500 square feet of shopping space. Global retail consultants KSA Technopak have estimated that organized retailing in India is expected to touch Rs 35,000 crore in the year 2005-06. The Indian retail sector is estimated at around Rs 900,000

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crore, of which the organized sector accounts for a mere 2 per cent indicating a huge potential market opportunity that is lying in the waiting for the consumer-savvy organized retailer. Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewellery, are slowly becoming lifestyle products that are widely accepted by the urban Indian consumer. Indian retailers need to advantage of this growth and aiming to grow, diversify and introduce new formats have to pay more attention to the brand building process. The emphasis here is on retail as a brand rather than retailers selling brands. The focus should be on branding the retail business itself.There is no doubt that the Indian retail scene is booming. A number of large corporate houses —Tata's, Raheja's, Piramals's, Goenka's — have already made their foray into this arena, with beauty and health stores, supermarkets, self-service music stores, new age book stores, every-day-low-price stores, computers and peripherals stores, office equipment stores and home/building construction stores. Today the organized players have attacked every retail category. 

The Indian retail scene has witnessed too many players in too short a time, crowding several categories without looking at their core competencies or having a well thought out branding strategy. The growth rate of super market sales has been significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. With growth in income levels, Indians have started spending more on health and beauty products. Here also small, single-outlet retailers dominate the market. In recent years, a few retail chains specialised products have come into the market. Although these retail chains account for only a small share of the total market, their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products .Numerous clothing and footwear shops in shopping centres and markets operate all over India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. With rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time. Despite the large size of this market, very few large and modern retailers have established specialized stores for products. 

There seems to be a considerable potential for the entry or expansion of specialized retail chains in the country. The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc.) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. A strong impetus to the growth of retail industry is witnessed by economic boom and driver of key trends in urban as well as rural India. 

2.1 Key Trends in Urban India: 

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* Retailing in India is witnessing a huge revamping exercise. 

* Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion. 

* India is rated the fifth most attractive emerging retail market: a potential goldmine 

* Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney. 

* India is rated the fifth most attractive emerging retail market: a potential goldmine 

* Food and apparel retailing key drivers of growth. 

* Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households. 

2.2 Key Trends in Rural India: 

* Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption 

* ITC is experimenting with retailing through its e-Choupal and Choupal Sagar – rural hypermarkets. 

3.0 The Hidden Challenges 

Modern retailing is all about directly having "first hand experience" with customers, giving them such a satiable experience that they would like to enjoy again and again. Providing great experience to customers can easily be said than done. Thus challenges like retail differentiation, merchandising mix, supply chain management and competition from supplier's brands are the talk of the day. In India, as we are moving to the next phase of retail development, each endeavor to offer experiential shopping. One of the key observations by customers is that it is very difficult to find the uniqueness of retail stores. The problem: retail differentiation. 

The next problem in setting up organized retail operations is that of supply chain logistics. India lacks a strong supply chain when compared to Europe or the USA. The existing supply chain has too many intermediaries: Typical supply chain looks like:- Manufacturer - National distributor - Regional distributor - Local wholesaler - Retailer - Consumer. This implies that global retail chains will have to build a supply chain network from scratch. This might run foul with the existing supply chain operators. In addition to fragmented supply chain, the trucking and transportation system is antiquated. The concept of container trucks, automated warehousing is yet to take root in India. The result: significant losses/damages during shipping. 

Merchandising planning is one of the biggest challenges that any multi store retailer faces. Getting the right mix of product, which is store specific across organization, is a combination of customer insight, allocation and assortment techniques. 

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The private label will continue to compete with brand leaders. So supplier's brand wiil take their own way because they have a established brand image from last decades and the reasons can be attributed to better customer experience, value vs. price, aspiration, innovation, accessibility of supplier's brand. 

4.0 STRATEGIES

4.1: Right Positioning 

The effectiveness of the mall developer's communication of the offering to the target customers determines how well the mall gets positioned in their minds. At this stage, the communication has to be more of relative nature. This implies that the message conveyed to the target customers must be effective enough in differentiating the mall's offering from that of its competitors without even naming them. The message should also clearly convey to the target audience that the mall offers them exactly what they call the complete shopping-cum-entertainment point that meets all their expectations. The core purpose is to inform the target customers about the offering of the mall, persuade them to visit the mall and remind them about the mall. The mall developer can create awareness about the offering among the target customers in a number of ways. Various communication tools available to the mall developer for this purpose may include advertising, buzz marketing (WoM), celebrity endorsement, use of print media, press releases and viral marketing .Once the message is being conveyed through these channels, the mall developer must add a personal touch to his message by carrying out a door-to-door campaign in order to reinforce the message. 

4.2: Effective Visual Communication 

Retailer has to give more emphasis on display visual merchandising, lighting, signages and specialized props. The visual communication strategy might be planned and also be brand positioned. Theme or lifestyle displays using stylized mannequins and props, which are based on a season or an event, are used to promote collections and have to change to keep touch with the trend. The merchandise presentation ought to be very creative and displays are often on non-standard fixtures and forms to generate interest and add on attitude to the merchandise. 

4.3: Strong Supply Chain 

Critical components of supply chain planning applications can help manufacturers meet retailers' service levels and maintain profit margins. Retailer has to develop innovative solution for managing the supply chain problems. Innovative solutions like performance management, frequent sales operation management, demand planning, inventory planning, production planning, lean systems and staff should help retailers to get advantage over competitors. 

4.4: Changing the Perception 

Retailers benefit only if consumers perceive their store brands to have consistent and comparable quality and availability in relation to branded products. Retailer has to provide more assortments for private level brands to compete with supplier's brand. New product development, aggressive retail mix as well as

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everyday low pricing strategy can be the strategy to get edge over supplier's brand. 

5.0 Conclusion: 

In their preparation to face fierce competitive pressure, Indian retailers must come to recognize the value of building their own stores as brands to reinforce their marketing Positioning, to communicate quality as well as value for money. Sustainable competitive advantage will be dependent on translating core values combining products, image and reputation into a coherent retail brand strategy. 

Reference 

Books: - 

Levy, Michel; and Weitz, Barton A. Retailing Management .New Delhi, Tata McGraw-Hill Publishing Company Limited, 2002. Mariton, John. Smart Things to Know about Brands and Branding .Mumbai, Indian Books Distributors Limited, 2000. Electronic Resources 

The Economic Times Knowledge Series :Retail 2000-2001",New Delhi: Times Multimedia,2001(CD-ROM) "Changing Gears :Retailing in India",New Delhi: Times Multimedia,2003(CD-ROM) "ET in The Classroom", Times Multimedia ,2003(CD-ROM) Internet Resources

Footwear Component Industry

Footwear components are basically those articles that are sandwiched between upper and lining, hidden deep in a shoe as a rein-enforced insole or simply as a loose foot bed, which gives structure and strength. They play a very necessary role in the footwear manufacture. Without their use, footwear would lack form, shape, and comfort and would be unable to provide the performance expected of it.

The footwear components which are mainly exported from India are leather shoe uppers and leather unit soles. Major centers for the production of footwear components are: Agra (UP), Ambur (Tamil Nadu), Chennai, Ranipet, New Delhi.

Footwear components' export has touched US$ 230 million in 1999- 2000, holding a share of 15% in India's total export of leather and leather products.

Like shoe uppers, there is a great possibility of variations in designs and comfort in the case of footwear components. Components like rubber and leather soles, PVC, TPR and PU soles are produced with latest designs meeting global standards and specifications. Furthermore, Insoles, mid-soles, plastic lasts, toe-puffs, counter stiffeners, laces, leather board materials, shank, fibre boards, eyelets, fabrics, buckles, trims, etc. are also produced in various parts of the country to meet the demand of the domestic as well as foreign footwear manufacturers.

Indian footwear components are exported to United Kingdom, Germany, Italy, United States, Portugal, and France. Around 83 % of India's export of footwear components is to the above countries.          

 

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Adhesives Brushes

Chemicals and CompoundsChemicals/ Foam / Fabrics / Adhesives

Clicking Dies and Punches Coated Fabrics

Counters and Toe Puffs - Moulded Counters and Toe Puffs - Sheets

Cow Wet Blue Escolite (Rubber Sheet)

EVA EVA Sheets & Compounds

Eyelets Finishes & Polishes

Flexible PU foam Footwear Magazines

Heel Hook & Loop Tape Fasteners

Injection Moulds Insole

Insole & Heels Insole / Unitsole with Banver

Knives Labels

Laces Lasts

Latex Rubber Foam Leather

Leather Board / Cellulose Board Linings

Linings / Inter Linings Machinery

Metal Tubes Metallic Fittings

Mignons and all Fancy Material Moulded Insoles

Moulds & Dies Needle Loom Felt

Non Woven Fabric Packing Boxes

Pigments / Release - Agents/ Spray Equipments

Plastic Heels

Plastic Heels & Buckles Polymer Systems

PU Synthetics Bonded Leather Rivets

Rubber Sheet Rubber Sole

ShanksShoe Components & Hot Melt Adhesives

Shoe Elastics & Shoe Hanger Shoe Lasts

Shoe Moulds Shoe Shanks

Shoe Soles Sole, Insole & Heels

Soles Soles - PU

Soles - PVC Soles - Rubber

Soles - TPRSoles / Unit soles - leather / resin sheets

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Soling Materials Steel Toe Caps

Straps Straps & Mignons

Synthetic Monofilaments Tacks

Tacks & Nails Tapes

Textile Laminated FabricThermoplastic Rubber Compound

Threads / Tapes / Elastics Toplift

TPR Sole and Welt Welts

About IFCOMA

Indian Footwear Components Manufacturers Association (IFCOMA) was established in 1992 to bring the Indian footwear component manufacturers on a common platform to help them to understand the various opportunities, growth potential, export initiatives, problems and hurdles to faster growth of this crucial sector. The association sought to support and encourage the member footwear component industries in improving their quality, services and marketability in the domestic and international markets.

IFCOMA is the only association of its kind in India that is duly recognized by the government and many other trade institutions. We strive for better interaction amongst our members, government bodies and the shoe manufacturers worldwide. IFCOMA members have also made a very impressive entry in the export markets worldwide for their products. Most of the footwear exported from India are largely produced from Indian components.

Indian Footwear Component Manufacturers Association (IFCOMA), is an organization managed by a duly elected apex body called the Executive Committee. Membership is open to all those who are connected with the footwear component and accessories manufacturing industry. The growth achieved by IFCOMA in the last five years is a result of the true democratic spirit of a vast number of dedicated entrepreneurs and professionals who have worked ceaselessly for the cause of the association.

IFCOMA is the voice of the Rs. 2000 Crore (US $ 500 Million) Indian footwear components industry on policy, development, research, technology, regulatory matters and myriad issues involving the industry and its growth prospects. Our members arecomponents and accessories manufacturers and are entitled to many benefits.

Some of the benefits are:

Technical Assistance Trade Assistance Manpower Training Representation of the Component Industry

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Free Access To Our Online Resources

Source: IFCOMA (http://www.ifcoma.org/)