ASSOCHAM has just released their analysis of the Indian Footwear Industry. This study indicates that the online retail of shoes is growing at a good pace.
ASSOCHAM arrived at these these findings on the basis of a study of 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) of Ahmedabad, Bangalore, Chandigarh, Chennai, Delhi-NCR, Hyderabad, Kolkata, Lucknow, Mumbai and Pune.
The study says that the footwear industry is currently worth Rs. 22,000 crore and the online shoe shopping has a decent chunk of this which amounts to somewhere around 8% or Rs. 1760 crore.
DS Rawat, Secretary General of ASSOCHAM commented on the study saying, “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 per cent of overall footwear market making India the second largest global producer of footwear across varied segments after China.”
The study reveals that the sector is growing at a compound annual growth rate of 15%. With this kind of growth rate, the entire footwear industry is expected to reach Rs. 38,000 crore by 2015. India currently produces around 300 crore pairs of footwear annually with over 10% accounting for exports. The annual production of footwear is 2000 crore pairs and Indian production figures amount to 15% of the global estimate.
Services like Bestylish.com and Fashos.com sell shoes exclusively whereas Yebhi.com and Myntra.com also retail shoes besides other fashion apparel. The Indian consumer is slowly paying more attention to style and looking good. Online shopping offers them a very easy way to look and search for a variety of footwear products and that too at a very good price thus making the act of shoe shopping less troublesome. Indian e-commerce start-ups have geared up since the last year to increase their funding as well as scale up their business. We will soon be looking at a time when online retail of shoes increases beyond 8% and gets to a sizable majority.
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