Indians are becoming health conscious, and this is evident in the number of gymnasiums and sports centres that have mushroomed in the last one decade. The media is partly responsible for spreading the fever of health consciousness, and it has benefitted the Indian society. One sector that has benefitted the most from the growing health consciousness of Indians is the sports shoe industry. One cannot take part in sports related activities without proper footwear and this has pulled up the revenue of sports shoe companies greatly.
The sportswear industry in India is valued at between Rs 3,500 crores and Rs 5,000 crores. And the unchallenged market leader in sports shoes is Reebok. In fact, Reebok holds a 46% market share in India and India is the only country in which Reebok’s brand value has surpassed that of both Nike and Adidas. In fact, Nike has a mere 11% market share. The top four sporting brands in India are Reebok, Adidas, Nike, and Puma. There are other brands that manufacture sports shoes such as Bata, Liberty, Woodland, Fila, and Lotto, but their brand value is not as strong as the four leading brands mentioned earlier. India’s footwear segment in general caters to men, women and kids, and men’s footwear comprises 55% of the entire industry, followed by women’s footwear at 30% and kids’ footwear at 15%.
Studies have shown that there is not much brand dilution in the sports shoe industry but there is brand confusion among consumers. The average consumer, who is not extremely knowledgeable about shoe technology, finds it difficult to distinguish between shoes produced by Nike, Adidas and Reebok. In fact, Puma is the only brand that has managed to carve out a space for itself as a fashion brand too. In fact, the design of Puma shoes is slightly different from the rest – Puma shoes are sleek. In India, people do not just wear sports shoes while taking part in sporting activities; they wear them with casual attire too, which is why Reebok has managed to garner a huge market share. Reebok shoes are designed in such a way that they can be worn with casual attire too – the designs and colors are not as flashy as other brands.
Another reason why Reebok has made its way into so many Indian households is because Reebok shoes are relatively more affordable than the other reputed brands. Indians, especially those in the middle class, are conscious about the price. Given such market conditions, Reebok has an advantage over other brands because it has a wide price range for shoes, from Rs 1,200 to Rs 7,000. This way, consumers have more options while choosing Reebok shoes as opposed to Nike, Puma or Adidas shoes, whose prices start at a much higher level.
The sports shoe industry in India is definitely going to grow, given people’s awareness and how conscious they are about their health. One of the selling propositions of sports shoe brands in most parts of the world is the technology behind the shoe. At present, the average Indian consumer is not as aware of these technologies as he should be, which is why brands such as Nike, which develops shoes with unique technologies, are not very popular in India. However, this will soon change with greater publicity and awareness.
The footwear industry is one of the most rapidly expanding industries globally. Increasing demand for new and innovative footwear and the emergence of various global as well as regional brands across segments in the category is primarily driving the market. Innovative and trendy footwear is being consistently manufactured by leading market players due to advancement in the footwear manufacturing process, technological innovations, and development of new material.
India is globally the second largest footwear producer after China. India’s footwear production accounts for approximately 9% of the global annual production of 22 billion pair as compared to China which produces over 60%. Key production centres in the country include Kanpur and Agra in Uttar Pradesh, Ranipet, Vaniyambadi and Ambur in Tamil Nadu. The sector is fragmented and close to 75% production comes from the unorganised sector including very small, small and medium enterprises
With the expanding market, the needs of the consumers are also fast changing. Rapid urbanization, higher disposable incomes and greater penetration of media have led to changing fashion needs of the consumers. The footwear industry in India is highly labour intensive and currently employs close to three million people. Out of this, almost 30% are women. Kanpur, Agra, Ranipet, Vaniyambadi, and Ambur are the top footwear production hubs in the country. Today, urbanisation, higher disposable incomes and media influence are changing the needs of consumers and dictating the types of footwear these hubs produce for brands.
Dominant players in the organised market include international brands Bata, Nike, Adidas, Nike, Puma, etc. But customers’ tastes are changing so rapidly that scores of Indian footwear brands, both old and new, are innovating their products and trying to capture the unorganised market.
Woodland, a highly sought-after brand for a lot of millennials, has Indian roots. Aero Group, the parent company of Woodland, was founded by Avatar Singh in Quebec, Canada, in the 1980s. At the time, the company manufactured winter boots for Canada and Russia. Aero Group’s business was at its peak until the 1990s when the Russian market went down with the disintegration of the Soviet Union. In 1992, Aero Group decided to enter India after seeing the developing market conditions and the opening up of exclusive retail outlets and mall culture. Woodland was thus launched under Aero Group.
The raw materials used for shoes, including soles, are manufactured in-house. Italian machinery is used for tanning and finishing the hand-picked Italian hides. German technology is used to manufacture tough rubber soles. Woodland has over 600 EBOs across the country along with shelf space in 5,500 multi-brand outlets (MBOs). The company now clocks a turnover of Rs 1,250 crore.
Eduindex News 