India has become a focal point for the fashion and lifestyle business throughout the years, owing to a strong manufacturing sector and a rapidly increasing middle class. When combined with solid economic fundamentals rapid digital changes and automation processes, these drivers make India a far too important international fashion brand to overlook.
India’s rise is undoubtedly one of the ten trends the fashion industry should keep an eye on, according to McKinsey’s analysis. According to another recent research by McKinsey, the country’s apparel market would be worth $59.3 billion by 2022, making it the sixth-largest in the world, equivalent to the United Kingdom’s ($65 billion) and Germany’s ($63.1 billion). As a result, India’s footwear sector is gaining traction. Let’s investigate further:
The footwear industry’s entire market landscape
Whether it’s for men or women, footwear has always been a significant fashion statement for each of us. The Indian footwear industry’s market landscape is continually getting attention. According to a report by Invest India, India is the world’s second-largest customer and producer of footwear, with an estimated 8-fold increase by 2030.
End-user purchase behaviour has been significantly affected and revolutionised as their disposable and per capita incomes have increased. It’s interesting to note how much Western influence has influenced people’s preferences for full-grain Argentinian leather Derbys, sturdy Oxfords, and other types.
There are two types of footwear in the market: organized footwear and unorganized footwear. While the former serves almost 33% of the market, the latter is provided by the remaining industry participants, which are classified as SMEs and MSMEs. According to another Statista analysis, the footwear industry is expected to rise by 24.73 percent a year (CAGR 2021-2025).
Such studies are a solid indication that the country’s need for footwear is increasing over time. Furthermore, with the pandemic’s onset and our government’s ‘Make in India’ drive, many industry professionals believe there is a better potential to make a more solid case for Indian-made footwear on an international level.
The situation of the industry amid the pandemic
Indeed, the year in which the global health crises began will go down in history as the most difficult for practically every other industry. And it appears that the footwear industry is no exception. It is facing unprecedented hardship, with revenue and profit margins under threat.
This is due to decreased sales, changing client behavior, interrupted supply chains, and a variety of other pandemic-related constraints. It would be more accurate to say that the virus is the catalyst for a deepening economic crisis on top of a humanitarian disaster affecting millions and billions of people.
The altering terrain, on the other hand, is creating pockets of momentum. Despite the pandemic’s never-ending, limitless impact, some footwear companies are developing new methods to compete. Covid-19 has increased the desire for all things digital, enabling advancement, productivity, and new paths for businesses to take on the road to success.
From being limited to only a few types to a frenzy of possessing different pairs for every occasion, there has been a huge transformation. A fitness enthusiast, for example, might need sports shoes, Oxfords or Derbys for going to work or work-related events, voguish for get-togethers, and casual for a relaxed trip, among other things.
In addition, because patterns and trends change so quickly, manufacturers provide a variety of collections for each season. As a result, when people go to shopping malls or shopping plazas, they see a large variety of footwear from well-known brands, which encourages them to buy more.
A few exclusive deals, discounts, and vouchers help to make their purchasing even more appealing. Despite the reality that India is a price-sensitive market, people nowadays are willing to pay a premium for higher quality, sustainability, and innovation. The transition is long-term, and chances to build slicker, more intelligent working models and discrete client suggestions that are more personalized to each end-user will continue to emerge.
The Indian footwear business has gone a long way over the years. The products currently available in the market are fairly innovative, and they are created to fulfil the needs and preferences of consumers. There has also been a significant improvement in terms of colours and patterns. Growing internet penetration, a shift in customer preference from brands to quality, economies of scale, the rise of the fashion and lifestyle business, and the rising relevance of cost as a factor determining consumer demand are all contributing to this expansion.
(By Ambud Sharma, Founder, Escaro Royale)