presentationsportsfootwearindustryindia-131017054514-phpapp01

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TABLE OF CONTINENTS

INDIAN FOOTWEAR INDUSTRY OVERVIEW ………………............... 3

MARKET SIZE…………………………….

4

FACTORS DRIVING GROWTH ……………………………. 5

KEY CHALLENGES ……………………………. 6

KEY PLAYERS ……………………………. 7

MARKET SEGMENTATION…………………………….

8

DEMAND FORECAST ………………............... 9



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INDIAN FOOTWEAR INDUSTRY OVERVIEW

● Indian footwear industry is second largest after China and is growing at a rapid pace onaccount of strong economy and demographic factors

● Market is highly price sensitive with unbranded footwear constituting less than 40% of themarket

● On an overall basis, average spend on the footwear in India is low as compared toother developing countries

● Consumers in urban areas spend around 300 per annum while as in rural areas, annualspend is mere around 150/annum

● Industry is highly fragmented, dominated by unorganized players whose share is around80%

● Organized segment is mostly dominated by major international brands including Adidas, PUMA, Nike, Reebok, etc

● Key domestic players include Barta India Ltd., Liberty Shoe Ltd., Khadim India Ltd., etc.

● Industry is mostly centered in Tamil Nadu, Delhi, Maharashtra, Kanpur, etc● The industry is poised for adopting the modern and state-of-the-art technology to suit the

international requirements and standards to meet the ever increasing demands fromconsumers

● Industry as a whole offers enormous opportunity for growth both in domestic market as wellas for export market.



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MARKET SIZE, 2012

● The Indian footwear market is estimated to be worth US$ 35 billion and is growing at acompounded annual rate of 14% to be worth around US$ 45 billion by 2015

● Men’s segment comprises 60% of the total market ● 40% share comprises of ladies and kids segments

● Within this segment, kids segment alone accounts for more than 50%

● Sports shoe market in India is estimated to be worth US$ 5 billion and is expected toreach US$13 billion by 2018, growing at ~18% CAGR from 2012 through 2016

● Adidas, Nike and PUMA being the key players operating in this segment

● Per capita shoe consumption in India was is 2.5 in 2012, up from 1.4 in 2004,registering a growth rate of around 8%

60%

40%

Market size 2011: 35 billion

Men's segment

Kids and women segment



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FACTORS DRIVING GROWTH

● Strong economic growth

● Rising income levels

● Urbanization● Entry of foreign players

● Availability of different types of shoes

● Change in lifestyles among consumers

● Increased retail activity

● Secure online purchase system

● Replication of western styles and trends in India



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KEY CHALLENGES

● Competition among players

● Changing fashion trends

● Price● Difficult for brands to offer products at entry level segments

● Apparel retailers diversifying into footwear

● Threat of substitute products

● Product innovation

● Cheap imports from China



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KEY PLAYERS

● International players like Nike, Adidas, Puma, etc dominate the Indian sports footwearindustry

● Nike being world leader In athletic and non athletic footwear segment dominates the Indianmarket too with their variety of shoes targeted at the age group of 18 and 35

Company success factor being constant innovation and collaboration within sports andfitness industry

● Puma also enjoys good major chunk of the market in India by offering wide range offootwear, sportswear, sports goods, fashion accessories, etc

Puma as a brand commands high premium● Pricing is believed to play a very nominal role in the sports footwear market which currently

is believed to be driven by the willingness of people to pay a premium

Consumers trend to prefer sports shoes which offer value and are least concernedabout the price points

Segmentation and product positioning plays a key role in success of the company

Attitudes and perception are the key factors which lead to creation of a good brandimage of a company

Attitudes and perceptions are mostly driven by innovative marketing campaignsand day to day promotional activities



Segment Customer characteristics Buying criteria

Super premium ●High attitude towards brand ●Brand

Premium ●Brand and quality conscious

●High income

●Quality

Economy ●Less brand conscious

●Good product

● Average comfort

●Feel of product

Unorganized: lowprice segment

●Low price ●Lowest price

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● Overall footwear market in India is brand driven and can be segment as

MARKET SEGMENTATION

● Alternatively, in terms of usage, footwear market in India is segmented as

Segment Major Players

Sports ● Nike, Adidas, Reebok, etc

Casual ● Woodland, Bata, Liberty, etc



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DEMAND FORECAST, 2018

● Market for sports footwear segment is expected to reach US$13 billion by 2018, growing at~18% CAGR from 2012 through 2016

● Due to increase in disposable income and strong preference for branded shoes

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14 Sports footwear forecast market to 2018

2012 2018



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