Global Footwear Trade

An Overview

India is a happening destination amply corroborated by a number of foreign footwear manufacturers who have set up their showrooms and sell in India. This enthusiasm has galvanised the Indian industry to take advantage of the positive response from the entire world to channelise its efforts and maximize the benefits accrued. The ripple of interest generated will turn to a wave of commercial orders with focus on quality, timely delivery and informed planning and productivity”. In 1999, the global import of footwear (leather and non-leather) in terms of value was around US$ 43,278 million. Out of this, import of leather footwear alone accounted for US$ 26379 million and non-leather footwear US$ 16899 million.

Export

India’s export of footwear touched Rs. 26,073 million in 2003-04, recording an increase of over 30% as compared to the preceding year. Government Initiatives

Key announcements – Budget 2005-06

The Indian footwear industry is strongly supported by the Government of India. The Budget 2005-06 opened a new avenue for the leather and footwear industry, which stands to get benefited from customs duty cuts. Custom Duties on seven machinery used in leather and footwear industry have been cut sharply to 5% from 20%. Custom Duty on Ethyl Vinyl Acetate (EVA), an input for the footwear industry, has also been halved to 10% from current 20%. These steps will greatly encourage import of new technologies, which would bring the Indian footwear industry in line with the world footwear industry. Government Initiatives

Institutional Support

The Indian footwear industry is provided with institutional infrastructure support through premier institutions like Central Leather Research Institute, Chennai, Footwear Design & Development Institute, Noida, National Institute of Fashion Technology, New Delhi etc in the areas of technological development, design and product development and human resource development.

Eva Injected Footwear

CLRI, chairman has estimated the production of non-leather footwear in India as 960 million pairs per year. The major demand in nonleather footwear sector in India is for chappals (Hawai and Eva) as it is the cheapest footwear available in India. The chappals have captured 70% of demand in rural areas, the same being used as multipurpose footwear. Earlier in the rural areas, rubber based hawai chappals were used because there was no other substitute before them. Upto year 2002 the demand of rubber hawai was on increasing side, because at that time Eva injection products were very costly and far from the reach of rural people. After 2002, the demand of Eva injected products was on increasing trends as rural people too adopted these products. Now a days 70% demand of rubber based footwear has been replaced by Eva footwear. Eva footwear is light in weight, durable and has cosmetic appeal as compared to traditional Hawaii chappal. According to the survey conducted by the Delhi Footwear Market News and Footwear Today the demand of Eva injection products would increase with increase in population, because in India, no other cheap and durable footwear available in Indian market . If we assume the demand of chappal on the basis of population the demand will be as below in future.

1 Population of India 12000 Lacs
2 70% of Population wear footwear 8400 Lacs
3 12.0050% of 840 million people only wear chappals 12.004200 Lacs
4 A person who wear only chappals needs two pairs of chappals per year 8400 Lacs pairs
5 420 millions people need one pair chappal per year 4200 Lacs pairs
Total Demand

As Per The Market Studies By The Footwear Experts Based On The Above Estimates The Demands Are As Follows

35% people like rubber chappal 4410 lacs pairs
65% people like Eva injected chappal and fabrication footwear 8190 lacs pairs
12.00Assuming that 30% of people like Eva injected footwear 12.002457 lacs pairs
Total machine in India Average production per day per machine Total production per day Total production per year
165 (Automatic) 3000 pairs 9.5 Lacs pairs 1485.00 Lacs pairs
220 (Manual) 500 pairs 11.0 Lacs pairs 330.00 Lacs pairs
Total 1815.00 Lacs pairs

Demand & Supply Analysis

Demand Supply Shortage Demand Supply Ratio
2457.00 lacs pair 1815.00 lacs pair 642.00 lacs pair 1.35:1

Sources: – CLRI, Delhi Footwear Market News, Footwear Today PU SHOES According to CLRI 2005 report the production of leather footwear in 2004 was 7760 lacs pairs (shoes, sandals, etc) made up of PU, TPR, PVC AND RUBBER soles.As per the market survey done by the footwear market news in 2005 the demand and supply of various soles of the Formal Shoes will be as follows:

Demand Figures in lacs
Domestic marke 3590 pairs
Export market 5400 pairs
Total Demand 8990 pairs
Supply Shortage 7760 pairs
PU and other Sole Footwear 861 pairs
Leather Sole Footwear 369 pairs
Sources: – CLRI, Delhi Footwear Market News, Footwear Today.