Local Vs Global
Local Vs Global
A Secondary Research and Analysis on Local and Global Brands in the Indian Footwear Industry
Submitted to: Prepared By:
Chirag Bansal Deepti Tripathi(IMT-G)
Saurav Mishra (IIM-L)
1. Industry Highlights………………………………………………………………………………………………………3
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8 bn pairs. The domestic market is highly competitive with few national players and multinational players present in the organized segment and a large unorganized segment characterized by chappals / sandals served by small scale players.
* The growth rate of the Indian domestic footwear industry is around 8 % and is predicted to grow at around 7.5-8% in the near future. The Per capita consumption is estimated to be 1.6 pairs / yr, and the Average value of a footwear is about $ 2.84 per pair of footwear.
2.Timeline of the Global Footwear Industry:
1648- First U.S. labor organization formed by Boston shoemakers, barrel makers, and tub makers.
1808 - Samuel Parker, of Billerica, MA, receives a patent for "Tanning", a leather splitting machine.
1830 – Cyrus and James Clark introduced sheepskin slippers (reputation for making 'foot friendly' shoes)
1858 - Lyman Blake receives a patent for "Improvement in Sewing-Machines”; first shoe-sole machine (mechanized shoemaking); revolutionized the shoe industry
1895- Reebok company founded in 1895 as J.W. Foster and Sons in England.
1906- New Balance established as the New Balance Arch Support Company.
1908- Marquis Mills Converse creates Converse
1911- Fila Ltd. established in Italy.
1924- Gebruder Dassler Schuhfabrik founded by Adolf Dassler and his brother, Rudolf.
1936- Brothers hit gold by convincing Jesse Owens to wear their shoes in the 1936 Olympics in Berlin
1948- Adolf Dassler establishes Adidas in Germany
1949- Adolf and Rudolf Dassler separate, Rudolf establishing Puma.
1949- Asics established in Japan as Panmure Co. Ltd.
2005- Reebok becomes a subsidiary of Adidas
2003- Fila collapsed in 2003, however, forcing it to sell to a hedge fund company
2007- Fila Korea, a distinct company buys all the rights to Fila
3.Categories in Footwear Industry
The footwear market can be segmented into a number of categories:
* Medium priced
* Low priced
Organized footwear retail has a number of categories like:
* Sports footwear,
* Semi-formal/casual footwear,
* Formalwear ,
* Utility footwear,
* Premium Leather & Non-Premium Leather
Casual footwear comprises more than 50 percent of the organized branded footwear market in India, followed by mass/economy range and then equally by Sports/active wear and Premium leather footwear.
The semi-formal/casual formal and formalwear segment has a number of players and retailers with a number of both homegrown as well as international brands. The utility footwear segment is the most price sensitive and is dominated mostly by domestic players and retailers both organized and unorganized.
Men’s footwear comprises the largest share of the organized market in value terms. The ladies footwear segment 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...