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Growing at a compound annual growth rate (CAGR) of about 15 percent, the
Indian footwear industry is likely to reach approximately Rs 38,700
crore by 2015 from the current level of around Rs 22,000 crore,
according to a study titled ‘Indian Footwear Industry: An Analysis’
released by The Associated Chambers of Commerce and Industry of India
(ASSOCHAM), an industry body. On the contrary, the global footwear
market which is growing at a CAGR of about 5 percent is currently
estimated at approximately Rs 10.15 lakh crore and is likely to reach Rs
12.34 lakh crore by 2015. Commenting on the findings of the study, DS Rawat, Secretary General, ASSOCHAM, said: "The domestic footwear market is driven by growing fashion consciousness together with increased disposable income among India’s urban middle class which contributes about 45 percent of overall footwear market making India the second largest global producer of footwear across varied segments after China. Low production cost, abundant availability of raw material, ever-evolving retail ecosystem, buying patterns and a huge consumption market are certain basic features that set apart the Indian footwear market."
The survey also revealed that Indian consumers have become more fashion and brand conscious and due to fast changing fashion trends young professionals tend to update their footwear collection every two to three months and maintain a separate budget of their salary only for shoe shopping. The per capita consumption of shoes in India (number of footwear worn by an individual) is currently about 2.5 shoes per year.
ASSOCHAM interacted with around 1,000 young professionals in the age group of 21 to 30 years to evaluate their footwear purchasing tendencies in 10 cities (100 respondents in each city) namely Ahmedabad, Bangalore, Chandigarh, Chennai, Delhi-NCR, Hyderabad, Kolkata, Lucknow, Mumbai and Pune.
The sample included equal number of male and female respondents with a monthly salary between Rs 15,000 and 50,000. Nearly 40 percent of respondents said they upgrade their shoe collection every 2 months and usually spend about Rs 6,000 to 8,000 every 4 months on branded footwear. Most of the respondents said they manage a separate budget of 10 percent of their monthly salary for shoe shopping. Around 25 respondents said they spend about Rs 3,000 to Rs 5,000 every quarter on shoes while remaining said they spend over Rs 1,500 every 2-3 months to buy new shoes.
Source: http://www.indiaretailing.com/news.aspx?topic=1&Id=6390