What is the potential of Kids’ Footwear Market in India?
Posted on 16 May 2017 by KenResearch Consumer Products and Retail,
Footwear production in India has been majorly propagated through manual and semi-mechanized processes. India domestically produces leather and other raw materials at abundance. The footwear industry in India is comprised of numerous small and medium scale enterprises which have utilized leather as the prime raw material for footwear in over ~ leather based manufacturing units spread across the country. The kids’ footwear industry has been considered as one of the most steadily growing segments in the country. The industry has expanded at a CAGR of ~% during FY’2012-FY’2017 and registered revenues of INR ~ billion in FY’2017.
India kids’ footwear market comprises of footwear products made up of leather, rubber, fabric, canvas, EVA, synthetic and other materials. Leather products were the most popular shoe type, contributing to about ~% market share in FY’2017, in terms of revenues. Owing to the style quotient and comfort of these products, synthetic footwear’s occupied a market share of ~%. Crocs and slippers made mostly of rubber material are used widely as regular wear footwear products.
Kids’ footwear industry has been largely an unorganized one, with organized brands comprising ~% of the overall market as of FY’2017. Products manufactured by local players are much in demand due to their lower costs. Higher bargaining and lower prices for the customers have provided a boost to the dominance of the unorganized sector. Higher availability of raw material in the country has allowed the unorganized sector to flourish by offering products at affordable prices. Bata Liberty, Lancer, Relaxo, Nike, Reebok and others have been the prominent players in the organized branded wear market amongst others. However, most of these brands are characterized by poor penetration in rural areas and have their presence only in the urban, tier I and tier II cities.
With inclining number of double-income households and formation of nuclear families, there have been an enough monetary surpluses that can be spent on kids’, demand for kids’ wear is hence expected to rise. The kids’ footwear industry is estimated to grow at a faster face as compared to apparel at a CAGR of ~% during FY’2017-FY’2022 and register sales of INR ~ billion by FY’2022.