Footwear in India Feb 2019 EXECUTIVE SUMMARY PROSPECTS DEMAND FOR ATHLEISURE FOOTWEAR GAINS MOMENTUM AMONG CONSUMERS IN SMALLER CITIES Demand for athleisure footwear is rising due to the growing aspirations of young consumers in smaller cities and towns. While the athleisure trend is already strong in metropolitan areas, there has been a lack of affordable athleisure footwear in smaller cities and towns. INCREASING FOCUS ON WOMEN’S FOOTWEAR DUE TO RISING PER CAPITA EXPENDITURE Manufacturers are increasingly focusing on women’s footwear as per capita expenditure more than doubled over the review period. With a rising number of women in the workforce and growing disposable incomes, many are buying multiple pairs of shoes. FAVOURABLE GOVERNMENT INITIATIVES TO BOOST FUTURE FOOTWEAR SALES The footwear industry in India is facing many challenges which could stop the category from achieving its true potential in the future. One of the key issues is stagnation in production capacity.

Revenue in the Footwear market amounts to US$18,712m in The market is expected to grow annually by 10.1% (CAGR ). The market's largest segment is the segment Sandals, Textile & Other Footwear with a market volume of US$10,633m in Leather Footwear Revenue in the Leather Footwear segment amounts to US$4,403m in The market is expected to grow annually by 10.4% (CAGR ). Athletic Footwear Revenue in the Athletic Footwear segment amounts to US$3,676m in The market is expected to grow annually by 13.6% (CAGR ). Sandals, Textile & Other Footwear Revenue in the Sandals, Textile & Other Footwear segment amounts to US$10,633m in The market is expected to grow annually by 8.7% (CAGR ).

In India, the unorganized footwear market accounts for 85% of total market and give stiff competition to organised sector players. The Indian footwear market is dominated by unorganized players but as consumer preference and buying behavior is changing, With increasing internet penetration and rising popularity of the e-commerce market, footwear manufacturers, having a presence over the e-commerce ecosystem, are using the internet not only for driving sales but also to monitor consumer-buying behavior, and are accordingly offering a personalized experience to customers. Through e-commerce platforms companies also provide fast and convenient functional experience to customers like easy payment option, grievance management, after sales service and competitive pricing. "Footwear Market in India ( )"

Market segmentation The Indian footwear market is segmented by end user- wise sales, and type-wise market segmentation in which casual footwear contributes chiefly to the total revenue. Key growth factors Increase in disposable income and per capita income has revolutionized the consumers’ buying and spending pattern towards apparel and footwear. A greater proportion of the overall Indian population, which includes tier I and II cities as well as smaller towns, now have considerably higher spending power, as a result of which, expansion of the footwear market is gaining mass momentum. The emergence of organized retail and e-tailing plays a major role in the development of the Indian footwear market. The modern retailing has resulted in increased accessibility, evaluation of a large number of alternatives, and special offers and discounts to attract customers.