Footwear Retail 2020: Trends and Challenges for India

Footwear is no longer just a protective gear for our feet. Today, footwear defines fashion. Women and Girls in particular wear footwear that match perfectly with their dress. Also, the Indian footwear industry has evolved from just selling the cheapest sandals to selling branded shoes that depict your personality. In 2020 Footwear Retailers have numerous challenges to handle. The majority of brands like Bata, Puma, and Adidas are choosing to sell their products directly to customers. They are not relying on third-party retailers. This post is an attempt to provide a comprehensive picture of the Footwear Retail 2020 Market in India. Also, the trends and challenges for retailers operating from India are discussed.

What is footwear in retail?

Footwear retail is selling them through either in-stores or online stores to the customers. According to FDRA- Footwear Distributors and Retailers of America every year Americans spend 6253.8 billion INR on Shoes. Over the years Footwear market has changed dramatically and has grown by utilizing technology innovations and robust strategies. The footwear supply-chain is one of the robust ones across the globe.

Footwear Trends and Types

Here we have listed trends seen in Men Footwear and Women Footwear categories this year. In general Sneakers, Athletics Wear, Leather, and Textile wear are common ones. In the Men category following shoes are trending:

• The Oxford
• The Running Sneakers
• The Loafer
• The White Low Top Trainer
• The Leather Boot
• The Suede Chukka
• The Brogue are trending

In women category following are trending:

• Exotic kitten heels
• Stay on-the-go sneakers
• Black statement boots
• Strappy Mules
• The Loafer trend
• Strap on, tie around
• Pump it up

Technology Backbone for Footwear

Today Footwear Industry is getting a facelift with the advent of new technology. Two trends making buzz in footwear industry are Smart Shoes and Boost Technology Shoes.

Smart Shoes: This technology can make your shoes to behave like a smartphone. One of the possibilities we can think is say you are walking from your home to a nearby supermarket the shoes can use Maps to guide you to your destination.

Boost Technology Shoes: This Technology is used for providing cushioning effect to wearers. For example, Nike Air Shoes is a kind of Smart Shoes that contains Nitrogen Air in the soles to provide a Cushioning effect to runners. Similarly, Adidas Shoes implements Boost Technology cushioning through a thermoplastic that provides better shock absorption to wearers.

Footwear Market Growth Drivers in India

The Indian Footwear Market is witnessing a tremendous change in recent years. According to netscribes by 2023 the Indian footwear market is going to grow up to 796 billion INR. Three important growth drivers have been identified by experts.

1. Growth in Modern Retailing and E-tailing: High-end foreign brands like Aldo, Charles & Keith, Pavers England, Hush Puppies, Clarks, Gucci, McQueen, and Yves Saint Laurent are available in India through exclusive outlets or multi-brand retailers. Also, Retailers are offering different kinds of discounts and offer to attract tech-savvy Millenials. All major brands offer their products through both online and in-stores.
2. Increased Disposal Income and Economic Growth: The spending power of the urban population in tier-1 and tier-2 cities have seen significant growth in all sections of society growing economically. So, Naturally, this has fueled the growth of the Footwear retail market in India.
3. Encouraging Government Initiatives: The Indian Government is encouraging exports of Leather and Footwear products. The Govt. has taken measures to increase enhance Leather & Footwear Exports to 900 Billion INR by the end of 2020. The Govt has also announced 26,000 million INR incentives for Leather Industry. In spite of the slowdown and sluggish market due to Covid-19, the footwear industry is expected to bounce back. So Footwear Retail 2020 looks promising.

Footwear Market Challenges for Retailers

1. Competition from Chinese Products: 63% of Leather imports come from neighboring China. So, this factor poses the biggest challenge to the Indian players. Thus, Competing with Chinese products is the biggest hurdle for local players.
2. Sluggish Market and BREXIT policy: Biggest Market for Indian Footwear exports is the United Kingdom. But the recent slowdown in the U.K and the depreciation of the British Pound has affected Indian Leather Exports. In addition, the Govt. policy of banning slaughterhouses has also led to a deficiency of raw material for footwear.
3. Competition from the Unorganized Footwear Sector: A huge chunk of unorganized players offering goods at very cheap rates has affected brands and retailers to sell their products in the Indian Market. Approximately 85% of the Indian Footwear Market is occupied by unorganized players. So, Retailers selling branded goods have to rely on innovative and technology-enabled methods to woo customers.

Technology Driven Trends in Footwear Retail Market

International brands like Puma, Nike, and Adidas have started huge investments on technology-enabled channels to tap the customers directly. So, it is high time Retailers in India also tap the potential of technology and attract a new generation of customers. Few trends identified are:

1. Automation in the footwear market: Automation of manufacturing activities has led to reduced time to bring the product to market. Experts say it takes only 10 to 60 days to bring the product to the market with automation. Earlier it used to take more than 18 months to finish a product. Also, From the Footwear Retail point of view uplifting ‘In-Stores’ by embracing technology like Artificial Intelligence (AI) and Data Analytics can boost Customer Experience.
   • For instance, AI-based Predictive analysis tools have a huge demand. Brands like Nike, Puma have started employing such tools to sell products directly to the customers.
   • In this perspective Aidio, Bangalore based startup has come with an AI-enabled smart-mat that helps customers to choose footwear of their choice and size without the need to rely on sales-executive at In-shoes stores. As the majority of Brands are choosing Direct to Customers (D2C) channels. AI-enabled smart-mat can be installed at apartment complexes and different residential localities to provide easy and direct access to their products.
2. Endless-Aisles and Omni-Channel Strategy: Footwear is no longer a basic requirement moreover it is a fashionable product. Retailers have to use Endless-Aisles technology and tap all channels of sales to help customers reach out to their products effortlessly. For example, the Adidas brand has integrated its stores through Endless Aisle to reach out to customers.

Footwear Retail: Statistics Speaks

According to statista the Footwear Retail market in India looks promising. Here are important statistical pointers on this:

1. Revenue in the Footwear Retail market amounts to 581billion INR in 2020, A promising figure for all footwear retailers.
2. 13% of the total revenue will be generated through online sales by 2020. So, In-Store Retailing still has a major share in the market, by adopting technology they can transform as a hybrid-model of Web-Stores and In-Stores.
3. By 2025, the Volume of Pairs of Footwear to be sold is estimated at 360 million pairs. Also, this is a promising figure for retailers.

Summary

Today Footwear is a Fashion good. In India, Footwear retail has grown up to US$ 923 million in markets. Also, with the millennial population growth in the country Retailers have the challenge of directly selling their products to the customers using Technology aids like Artificial Intelligence-based Predictive Analytical tools help them to analyze customer needs and demands. As big brands are coming up with Smart Shoes and Boost Technology Indian Retailers also have to project such novel goods in their online and in-store inventories. Hope this post on Footwear Retail 2020: Trends, Challenges, and Opportunities in India provide a comprehensive guide for Retailers.