New Delhi: India’s footwear market is projected to witness an early double-digit growth to reach a market size of Rs 191K crore by FY 2028, according to a report by market research firm 1Lattice.
As per the report, the footwear market in FY2024 stands at around Rs 123.5K crore.
“The footwear industry stands at a crucial point, influenced by shifting consumer preferences, rapid technological advancements, growing sustainability demands, and the emergence of the resale market. The industry is poised for significant growth with CAGR of ~13% and will reach Rs 191K Cr by FY28. Going forward, there lies a tremendous potential for significant growth and expansion for both new players and existing brands,” commented Ashish Dhir, senior director, 1Lattice.
The growth is attributed to key drivers such as rising disposable incomes, technological advancements, premiumization of the industry, changing consumer preferences, and growing urbanization.
Noting the trend of premiumisation, the report said that an emphasis on premiumization would push the premium footwear market share from 47 per cent in FY2021 to 49 per cent by FY2025. Additionally, the consumer price index is expected to increase the prices of footwear, which in turn will lead to the growth of the footwear industry. In the last 3 years, India has seen an average CPI of 5.5 per cent, the report read.
In terms of challenges, factors including counterfeit products, inefficient inventory
management, low margins and labour-intensive manufacturing processes pose as key growth barriers for retailers.
The report said that about 70 per cent of the footwear industry is unorganized, which leads to difficulty for organised retailers to compete effectively in terms of pricing and market presence.
Adding to this, close competition with established brands and entry of new players leads to price wars and pressure on profit margins.
Highlighting emerging trends in the footwear industry, the report said that there is rising awareness among consumers of the environmental impact of their purchases. Thus, footwear companies are exploring recycled materials, vegan leather, and sustainable manufacturing processes to reduce environmental impact. There is a noted shift towards non-leather footwear due to its affordability, durability, and versatility.
On the technology front, brands are exploring the integration of virtual try-on and AR technologies into online shopping experiences.
The report also highlighted the increasing trend of collaboration between fashion and luxury brands and athletic footwear companies along with the surge in sneaker culture leading to the rise of limited editions and resale market.
