The Indian footwear industry is booming, with new investments, innovative products, and a growing middle class driving demand. At the forefront of this boom is Hong Fu Industrial Group, the world’s second-biggest maker of trainers, which is investing heavily in the Indian market.
Hong Fu, which supplies shoes to major brands like Nike, Converse, Adidas, and Puma, is building a giant plant in Panapakkum, Tamil Nadu, with the aim of producing 25 million pairs of shoes a year when fully operational. The project is expected to create 25,000 jobs and will be a major boost to the Indian footwear industry.
Government Support for the Industry
The Indian government is keen to support the footwear industry, with a range of initiatives aimed at improving quality and increasing exports. Last August, the Bureau of Indian Standards introduced new quality rules for all shoes sold in India, which will ensure that materials pass tests of strength and flexibility.
- The new standards are designed to clean up the market and provide better quality products for consumers.
- The Bureau of Indian Standards is working to promote the Indian footwear industry and increase exports.
- The government is also providing support to small manufacturers to upgrade their processes and meet the new standards.
The Unorganised Sector
The unorganised sector, which accounts for two-thirds of the total footwear market, is a complex and diverse network of small shoe makers. Many of these manufacturers produce low-quality shoes at affordable prices, which are popular among consumers who cannot afford branded options.
- The unorganised sector is estimated to produce 200,000 pairs of shoes every day.
- Many consumers in rural and lower-income urban areas prefer to buy local footwear instead of branded options.
- The unorganised sector has also been accused of producing counterfeit shoes of major brands.
New Players in the Market
Several new players are emerging in the Indian footwear market, including Zen Barefoot, which is producing barefoot shoes that are designed to be healthy for the foot. Another company, Comet, claims to be the first homegrown trainer brand to own the whole production process, from design to manufacturing.
- Zen Barefoot is a new player in the market that is producing barefoot shoes.
- Comet is a homegrown trainer brand that owns the whole production process.
- Comet is producing shoes that are adapted to India’s climate and roads.
The Future of the Industry
The Indian footwear industry is expected to undergo significant changes in the coming years. With new investments and innovative products, the industry is likely to become more competitive and attractive to major brands. In 3-5 years, India is expected to have a robust ecosystem to compete in the international sneaker market.
Many high-value brands are already looking to move their manufacturing to India, and the country is likely to become a major player in the global footwear industry.
“I think the government is trying to walk a tightrope here. They can’t just shut down thousands of small businesses that employ millions of people – that would be economic suicide. What I’m seeing is more of a carrot-and-stick approach. They’re pushing for standards, but also rolling out programs to help small manufacturers upgrade their processes. It’s not about wiping out the unorganised sector but gradually bringing them into the fold.”
The Indian footwear industry is at a crossroads, with new investments, innovative products, and a growing middle class driving demand. As the industry continues to evolve, it is likely to become more competitive and attractive to major brands.
