A

MINI PROJECT REPORT

ON

“ARTIFICIAL INTELLIGENCE AND THE FASHION INDUSTRY”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE REQUIREMENTS OF THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
(2021-23)

(Dr. A P J Abdul Kalam Technical University, Lucknow)

Submitted By Under the guidance of

SURAJ KUMAR Name of the Faculty :-Dr. Mehdi
Father's Name - Shyam Kumar
Batch of 2021-23

LLOYD INSTITUTE OF MANAGEMENT & TECHNOLOGY

PLOT NO 11, KNOWLEDGE PARK-2, GREATER NOIDA-201306 (UP)

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CERTIFICATE OF ORIGINALITY

I SURAJ KUMAR of Batch 2021-23 is a fulltime bonafide student of first year of MBA Program of Lloyd
Business School, Greater Noida. I hereby certify that this mini project work carried out by me at
"ARTIFICIAL INTELLIGENCE AND THE FASHION INDUSTRY " the report submitted in partial
fulfillment of the requirements of the program is an original work of mine under the guidance of the faculty
mentor Dr. Mehdi and is not based or reproduced from any existing work of any other person or on any
earlier work undertaken at any other time or for any other purpose, and has not been submitted anywhere else
at any time

(Student's Signature)
Date: ________________

(Faculty Mentor's Signature)

Date: ___________________

ACKNOWLEDGEMENT
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This project is the outcome of sincere efforts, hard work and constant guidance of not only me but a number of
individuals. First and foremost, I would like to thank LLOYD, GREATER NOIDA for giving me the platform to
work with such a prestigious company in the financial sector. I am thankful to my faculty guide Dr. Mehdi for
providing me help and support throughout the Project Report period.
I owe a debt of gratitude to my faculty guide who not only gave me valuable inputs about the industry but was a
continuous source of inspiration during these months, without whom this Project was never such a great success.
Last but not the least I would like to thank all my Faculty members, friends and family members who have helped
me directly or indirectly in the completion of the project.

SURAJ KUMAR

DECLARATION

The project report on “ “ARTIFICIAL INTELLIGENCE AND THE FASHION INDUSTRY " has been

undertaken as a partial fulfillment of the requirement for the award of the degree of Master of Business

Administration of Dr. APJ AKTU, Lucknow. I hereby declare that this Project is my original work and the analysis
3
and findings are for academic purposes only. This project has not been submitted by the any student earlier to any

other institution/ university.

SURAJ KUMAR

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 CONTENTS
Chapter 6: Analysis of Footwear Industry
6.1.) PESTN Analysis
6.2.) SWOT Analysis
6.3.) Trend Analysis
6.4.) Michael porter‟s five forces model
6.5.) Critical success factor of footwear industry

Chapter 7 : Impact Analysis of Footwear Industry

7.1.) Impact of Import Duty
7.2.) Impact of Budget

Chapter 8 : Outlook of Footwear Industry

8.1.): Short term Outlook
8.2): Long term Outlook

Chapter 9 : Conclusion

Chapter 10 : References and Bibliography

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FOOTWEAR INDUSTRY- PEST ANALYSIS
PESTN analysis ('Political(Politico-legal), Economic, Social and Technological, Natural analysis''') describes a
framework of macro-environmental factors used in the environmental scanning component of strategic management. It
is a tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors
that have an impact on an industry as a whole. It deals with „FOREST‟ and not „TREES‟. This analytical tool helps in
identifying the threats and weaknesses to an industry which is used in SWOT analysis

Table 7: PEST Analysis of Footwear Industry

POLITICAL ECONOMICAL
Import duty on
specialized chemicals - GDP Contribution
is high and is in range - Consumer s discretionary income spend on footwear
of 25% to 40% - Employment Generation
Impact of budget 2015 - Rise in income levels, (Growing middle class) higher disposable
: Reduction in Excise income and increasing discretionary spending.
Duty - Marginal share of 2.44 percent in global trade worth US$ 97.606 billion.
Difficulty in availing - Growth of Indian footwear exports at CAGR of 14% in dollar terms
credit from the and by 20% in Indian Rupee (INR) during the last 5 yr period (2010-
banking institutions 14)
especially in case of SOCIAL
medium and small
Growth of image consciousness among the youngsters.
scale units
Rising younger working class population-Increase in the demand for
Taxation procedures is
formal footwear.
very cumbersome and
Increase in the old-age group demand for medical footwear offering
time consuming and in
some occasions not comfort and health benefits.
transparent. Consumer attitudes and opinions changing favourably towards branded
footwear.
Security deposit of
25% on foreign Lifestyle trends – upward
exchange earning shift Demographics
blocking working Participation in sports –part of Indian culture
capital of exporters
TECHNOLOGICAL
Complex
administrative - Increased use of electronic-commerce.
procedures to get - Increasing popularity of Social media systems for marketing to
SSI Status consumers.
Foreign Trade Policy - Emergence of new technologies helping to reduce manufacturing costs.
(2015-2020) - The adoption to improved technology especially for tanning is low due
Foreign Direct to small scale nature of the industry
Investment(FDI) - Labour-intensive industry and thus, technical know-how among the
Policies workers are poor.
Currency exposure
Risk NATURAL
De-licensed market - Climate Change
creating expansion - Raw-material base
opportunities in the - Water Consumption
- Carbon-Footprint
production capacities.

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POLITICO-LEGAL FACTORS:

1. Import Duty on Specialized Chemicals- Specialized chemicals are used for processing of leather. The chemicals
available in the domestic market are of poor quality. The chemicals available in the domestic market are of inferior
quality forcing the manufacturers to rely on imports from countries in EU. The import duty on chemicals for leather
and footwear industry ranges from 14.7% to 31.7% .The customs duty on chemicals for leather and footwear industry
in China ranges from 5% to 10% and is lower as compared to India.

2. Impact of Budget 2015- The proposal of Budget 2015 to reduce the excise duty on footwear with leather uppers
and having retail price of over Rs 1,000 will provide boost to the domestic leather footwear industry and help it
compete globally. Shoes having MRP of above Rs 1,000 per pair will now attract half the excise duty by halving the
duty from 12 to 6 per cent. It would also help provide a level-playing field for the organized sector and would result in
integration of unorganized sector into organized sector.

3. Difficulty in Availing Credit by Medium & small-scale units- Procurement of credit from the banking
institutions especially in case of medium & small-scale units is difficult is on account of too many formalities , no
requirement for credit(the purpose of credit cited is not satisfactory ), high interest rates, difficult to give collateral
security. delay in disbursement while sanctioning the loan etc.

4. Cumbersome Taxation Procedure-Taxation(Indirect-taxes)issues in footwear industry are concerned mainly with

Custom Duty & Excise Duty .Custom Duty on specified machinery for manufacture of leather and leather goods
including footwear is reduced from 7.5 to 5 percent whereas Excise Duty reduced from 12% to 6%(Budget 2015). The
labor-intensive footwear manufacturing units find it difficult to afford the complicated paperwork required for the
excise duty procedures. The tax procedures held back many units from expansion& fobbed off new units from being
set up. In this regard, tax procedure is very cumbersome & time-consuming.

5. Blockage of Working capital of exporters- The Foreign trade policy(2015-2020) accounts for reducing the
working capital of exporters by way of Security Deposit of 25% on foreign exchange earnings.

6. Complex Procedure to SSI Status- Filing memorandum & meeting other legal formalities account for complex &
cumbersome administrative procedure to get the SSI status.

7. Foreign Trade Policy 2015-2020- The following two major aspects are to be noted regarding leather footwear -
 Merchandise Exports from India Scheme (MEIS): Schemes notified under Foreign Trade Policy like Focus
Product Scheme (product-specific), Focus Market Scheme (country-specific) and Market Linked Focus
Product Scheme merged into one scheme namely Merchandise Exports from India Scheme (MEIS). This
MEIS scheme is a country-specific, product-specific scheme.
 EPCG(Export Promotion Capital Goods) : The Zero Duty EPCG scheme is continuing but second hand Capital
Goods cannot be imported under this scheme. Also, the condition of maintaining average level of exports
achieved by the applicant in the preceding three licensing years for the same and similar products within the
overall EO(Export Obligation) period including extended period stays. However, domestic procurement of
capital goods will entail reduction in export obligation by 25%.

8. FDI Policies-

The Government has permitted 100% Foreign Direct Investment through the automatic route for the footwear sector.
Under the automatic route, no Central Government permission is required.

9. Currency Exposure Risk-

It is a form of risk that arises from the change in price of one currency against another. Whenever investors or
companies have assets or business operations across national borders, they face currency risk if their positions are not
hedged. According to a report of ICRA(Indian Credit Rating Agency) Research Indian footwear exports which have a
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high dependence on European markets witnessed a contraction by nearly 25% in the past year. The on-going crisis in
the Euro zone has led to moderation in footwear demand; the exports from India were further impacted on account of
the appreciation of rupee against Euro during FY15 as compared to FY14.

10. De-licensed Footwear Sector-

 The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern
lines with state-of-the-art machinery. A Conducive Investment climate towards attracting overseas investments
prevails which in turn increases cost -competitiveness.

 The Government of India is setting up dedicated Footwear Complex and Footwear Components Part where
footwear clusters are located.

 There has been active interest in collaborating with Indian Footwear companies from European countries like
Italy, Spain and Portugal.

 The entire leather product sector is de-licensed, facilitating expansion on modern lines with state-of-the-art
machinery and equipment.

 Under the Integrated Development of Leather Sector (IDLS)sub-scheme of Indian Leather Development
Programme (ILDP), 30% grant is provided on the cost of plant and machinery for Micro and Small units and 20% for
other units, with a ceiling of INR 20 Million for each product line.

 Under the Mega Leather Clusters (MLC) sub-scheme of ILDP, 50% grant with a ceiling of INR 1.25 Billion based
on size is provided for the establishment of to boost infrastructure facility and support services for production and
export.

 Under the Leather Technology, Innovative and Environmental Issues sub-scheme of ILDP, assistance is provided
for up to 50% of the project cost with a ceiling of INR 500 Million for up gradation/installation of Common Effluent
Treatment Plants (CETPs) to address environmental pollution caused by leather units.

 The (IDLS) sub-scheme implemented as part of the ILDP has significantly contributed to capacity modernization
and technological up gradation of the leather sector.

 Capital goods (machinery) required by the industry can be imported without import duty under the Export
Promotion Capital Goods (EPCG) Scheme of Foreign Trade Policy, subject to meeting the export obligation of six
times the duty saved in six years.
 As a measure to boost manufacturing in the leather footwear segment, excise duty has been reduced from 12% to
6% for footwear costing between INR 500 and INR 1000.
 The tanning industry has adopted Zero Liquid Discharge (ZLD) systems to meet environmental regulations. To
achieve ZLD norm, the tanneries have to set-up mechanisms for reverse osmosis plants in CETPs(Common Effluent
Treatment Plants) and to secure sanitary landfill facility to discharge the solid garbage. Installation of ZLD system is
capital intensive and also involves substantial expenditure in Operation and Maintenance(O&M) of ETPs. On a rough
estimate, O&M cost for ZLD system will range between Rs. 0.55 to Rs. 0.65 per square feet of leather.
 Under leather technology, innovation and environment issues, a sub-scheme of the (ILDP), assistance is provided
for technology benchmarking and environment management for the up- gradation of Common Effluent Treatment
Plants (CETPs), for Solid Waste Management and for holding environmental workshops.
 State governments have a single window clearance system- (a single point contact to reduce the time and efforts
involved in various clearances and approvals of layouts/applications for the proposed investment, submitted by
investors)in place to fast-track clearances for the establishment of production units.

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ECONOMIC FACTORS

1. GDP(Gross Domestic Product) Contribution- GDP means the total value of all the goods and services that are
manufactured within the territory of a nation within a specified period of time. The composition of Indian GDP
includes many sectors like Industry, Agriculture and Services. The percentage of the share of these sectors in the
composition of India GDP differs & has also changed over the years. The sector-wise contribution is Agriculture
(17%), Industry (26%), and Services (57%). The contribution of footwear industry(manufacturing) to total GDP in
2014 was 2.24% (www.StatisticsTimes.com).

2. Consumer discretionary income-Economic Times (2013) suggested a shift in consumption pattern, with Indian
consumers scaling back spending on footwear for the first time in nearly a decade and increasing the expenditure on
travel, eating out and communications services. However, according to a recent report published by mother-child-
nutrition organization (2015), high –income households are increasingly spending on branded footwear to meet the
fashion trends. Thus, as a whole rising disposable incomes have led to the growth of an entire clothing and footwear
market. Spending on clothing and footwear has been fuelled by the opening of large shopping malls in big cities such
as Delhi, Mumbai and Bangalore. On the other hand, rural consumption is highly sensitive to the prices of footwear.

Figure 11: Share of Various Expenditure Items, 2011-12

Source: NSSO Report (2011-12)

3. Employment Generation- Footwear industry has tremendous potential for employment generation. Direct and
indirect employment of the industry is estimated around 1.1 million people(ICRA Report,2015). The skilled and semi-
skilled workers constitute nearly 50% of the total work force. The estimated employment in different sectors of
footwear industry is as follows (Data Source: Central Leather Research Institute( (CLRI),2013).
Table 8: Employment Generation in Footwear Industry

Sector Total Employment

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 Flaying, curing & Carcass 8,00,000
Recovery
Tanning & Finishing 1,25,000
Full Shoe 1,75,000
Shoe Uppers 75,000
Chappals& Sandals 4,50,000

4.Rise in Income levels, higher disposable incomes & discretionary income-

India‟s economic reforms, begun in 1991 have substantially improved the country‟s well-being& further
improvements are yet to come. As Indians continue to climb the economic ladder, the composition of their spending
will change considerably. Along with a shift from rural to urban consumption, India will witness the rapid growth of its
middle class resulting in an increase in household‟s disposable income.

As per the United Nations, urbanization in India is expected to increase from about 30% in 2010 to about 40% by 2030
and the number of people living in urban areas will increase by about 62% to 59 billion. Also, the middle class
population in India will increase by about 12 times to 580 million and will constitute 41% of the population by 2025 as
against about 5% in 2005, according to data sourced from MGI. The per capita income of India is expected to increase
about 18 times by 2039, according to Emerging Market Forum. Disposable income for households is expected to
increase by about three times by 2025, according to MGI (McKinsey Global Institute). Growing urbanization, a young
working-age population, higher income will result in increased spending and there will be a consumption boom over
the next two decades. Growing income and rising disposable income over the next two decades will result in the
discretionary spending to increase from about 52% in 2005 to about 70% of the customer wallet by 2025, according to
MGI. The growing discretionary spending will result in demand for footwear to meet the fashion trends & growing
lifestyle issues.

5. The Footwear industry accounts for Marginal share of 2.44 percent in global trade worth US$ 97.606 billion. India is
the second largest global producer of footwear after China, accounting for 9% of the global annual production of 22
billion pair as compared to China‟s share of more than 60%. India annually produces 2.1 billion pair of which, 90%
are consumed internally while remaining are exported primarily to European nations.

Due to this, India‟s share in the global export market of US $ 120 billion is a paltry 1.9% in value terms making it
much lower than China‟s share of 40%. (Source: ICRA Report,2015)

6. Growth of footwear exports(Compound Annual Growth Rate(CAGR)-

India exports largely leather footwear to its main trading partners which include United Kingdom, Germany, USA,
Italy and France. The major dominance is f the European continent whose share is almost 75% in India‟s total
exports. This is in contrast to other major exporters like China, Indonesia and Vietnam which export non leather
footwear mainly to USA. The footwear exports from India have grown at a CAGR of 14% in dollar terms and by 20% in
Indian Rupee (INR) during the five year period ending March 2015 backed by growing demand from European nations
and increasing focus of main importing countries to shift sourcing from China to other low cost producing countries.
Besides this, the ASP for exported footwear has also been on an uptrend with rising raw material prices and
favourable foreign currency movements during this period. In absolute terms, footwear exports from India have risen
from Rs. 71.5 billion in FY10 to Rs. 180.0 billion in FY15.

SOCIAL FACTORS

1. Growth of image consciousness among the youngsters- The footwear industry has shifted from „need-based
industry‟ to a „fashion-based industry‟. In the past, comfort was the most important factor during the selection of
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footwear. However, with the advent of media, online offerings and increased global travel, Indians have become style
conscious. Fashion footwear with comfort is now the trend in the market. Consumers are also realizing that footwear is
not just an accessory, but an important finishing touch to the ensemble.

2.Rising younger working class population- With the rise in the employed youth, the demand for formal footwear
has too witnessed an increase. The formal footwear- (footwear demanded for schools, colleges, offices or any other
workplace) is thus expected to witness an increase in demand in the coming years.

3. Demand for medical footwear- Such footwear is specially-designed to relieve discomfort of old-age groups
suffering from associated foot and ankle disorders, such as blisters, bunions, calluses and corns, hammer toes, plantar
fasciitis, or heel spurs. They may also be worn by individuals with diabetes or people with unequal leg length Such
footwear includes

 Orthopedic Footwear which typically have a low heel, tend to be wide with a particularly wide toe box, and have a
firm heel to provide extra support. Some may also have a removable insole to provide extra arch support.
 Diabetic shoes sometimes referred to as extra depth, therapeutic shoes or Sugar Shoes, are specially designed
shoes, or shoe inserts, intended to reduce the risk of skin breakdown in diabetics with co-existing foot disease.
 Acupressure Sandals which stimulates the pressure points at the feet.

4. Consumer Attitudes & Perceptions :

-Favourable Attitudes of Consumers towards branded footwear- A favourable change in consumers‟ attitudes and
opinions towards branded footwear can be felt .The premium footwear market is gaining popularity in India. With
factors like increasing disposable income among urban middle class, inclination towards procuring branded products
and efforts on the part of luxury footwear manufacturers to adopt international designs in India, the premier footwear
market is expected to witness growth of around 30% annually in the coming year according to a report published by
Council of Leather Exports(2013).

5. Attitude of consumers towards local footwear-

The quality of locally made shoes compared to imports can also create changes in demand and consumer perceptions,
especially for shoes categorized as discretionary purchases. Domestic consumers may prefer local products due to a
sense of loyalty to local firms. Consumers may also be willing to pay more footwear made in certain countries, such as
Italy, China, Russia etc. over footwear manufactured in developing countries.

5. Upward Shift in Lifestyle Trends-

With growing „urbanization‟, there has been an increase in the income level of people which in turn will affect their
lifestyle .An increase in income level will bring about an increase in the disposable income & discretionary income as
well. Thus, an upward shift in lifestyle trend is observed which will result in an increased demand of footwear –to hold
a status in the society, to be more fashion-conscious & developing an image in the society.

6. Demographics-
There is a large growing domestic market.‟ More is the population, more are the feet required to be protected. The
statement clearly indicates the increase in demand of basic footwear with the increase in population. This will lead to
growth of the industry. Moreover, the footwear can be classified based on gender (Men, Women), age(kids footwear,
adults footwear, footwear for children) etc. The level of fitness awareness and the age of the population are social
factors that affect demand. These affect the demand for particular types of shoes. For example, with an ageing
population in some developed countries, the demand for walking shoes may gradually increase over sport shoes and
school shoes.

7. Indian culture –
Participation in sports is a part of Indian culture and thus athletic, sports footwear witness a rise in their demand
including both men & women athletic footwear. The active involvement of people in sports in India at local, national
or international level account for the demand of sports footwear.

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TECHNOLOGICAL FACTORS

1. Increased use of electronic-commerce-

The online trading(buying & selling ) of footwear is more in vogue today. Shoe shopping used to be an exclusively
bricks-and-mortar experience. Today, online shoe sales are among the biggest revenue generators for retailers of all
stripes, not only those who specialize in fashion and footwear. Online sales accounts for nearly 8% of footwear sale in
India.(ASSOCHAM Report, 2012). The key drivers for increased use of e-commerce in India will be significant
percentage of young population (below 35 years of age) with higher acceptance of technology(Smart-phones, Tablets
and/or laptops.), growing middle class, multi-fold increase in internet penetration driven by mobile (3G and 4G) and
availability of capital to fund the initial growth phase. With people using technology to shop, more online retail stores
are opening up, making way for more employment.

2. Increasing popularity of Social media systems for marketing to consumers-

Marketing of brand names are important ways for footwear producers to differentiate their products.The social media
sites including Facebook, Twitter, and WhatsApp have gained wide popularity with respect to marketing of footwear to
consumers. Social media is an inexpensive way for small businesses to market their shoes. A business page on
Facebook, Pinterest and Instagram can be created where pictures of products that customers might be interested in can
be posted which will allow customers to post positive testimonials of their experiences with the company‟s shoes. In
fact, some retailers are pinning photos on Pinterest that link directly to where consumers can buy the shoes they're
looking at.
Emergence of new technologies helping to reduce manufacturing costs-The credit of emerging new technologies in
footwear industry goes to Shoe and Allied Trades Research Association (SATRA).The real innovations in materials
and processes used in the manufacture of footwear have arrived since SATRA was founded 90 years ago. The
following changes in technology should be noted in this regard.
Figure 12: Footwear Water–resistance testing machines

(A) New technology in last design: Today, manufacture of lasts

is a fast process. Computerized digitizing allows for the scanning of amodel

last so it can be reproduced accurately on the screen. Software can be used to
manipulate the last in digital form, altering such elements as the heel height or
adding allowance for an insock. Data stored in a program can be used to cut
accurate lasts quickly, with modern machinery allowing a number of different
sizes to be formed at the same time. In addition, digitized last information can
be shared by e-mail between last manufacturers around the world. Last making
was once a craft needing the trained skills of a foundry worker and a carpenter.
Nowadays, it requires knowledge of programming and CAD-CAM systems.

Figure 13: Footwear testing computerized machine

Source: SATRA

(B) Developing new machinery: The demands made by

innovative designers of modern footwear have forced the development of new technology – from the introduction of
large automatic footwear-molding machines, to an improvement in the quality and strength of some of the smallest
elements of the shoemaking process such as the needles used in the stitching process and threads which also have more
colour resistance than those used in years gone by.
In recent years, computerized machines controlling such processes as pattern cutting and decorative stitching are very
common around the world. Little had altered in stitching machinery for more than half of the 20th century.

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( c) Testing comes of age: Chemical testing of footwear and components plays a vital role in the production of well-
made shoes and boots. One of the noticeable changes in chemical testing today is the ability to detect incredibly minute
quantities of certain substances. Twenty years ago, heavy metals could be identified to 0.01 per cent.
Also, whereas analysis of organic chemicals was previously very rudimentary, now the detection of pesticides,
fungicides, antioxidants, dyestuffs and flame retardants is normal
practice – both qualitatively and quantitatively. Physical testing of
whole footwear and components has also improved beyond recognition in
recent years. Sophisticated whole-shoe tests, such as the Advanced
Moisture Management Test (AMMT) and PEDATRON sole abrasion test
have been developed by SATRA, providing rapid analysis of footwear
problems that previously took months of wear trials to establish.
SATRA remains at the forefront of test machinery development and
continues to introduce new developments into the footwear industry.

3. Outdated technology used in tanning-

The adoption to improved technology especially for tanning is low due to small scale nature of the industry. Limited
resources, small scale of operations, lack of technical expertise and a hand-to-mouth situation prevent a majority of
small-scale tanneries from opting for modernization or improved process technologies.

Figure 14: SATRA Sole Abrasion Testing machine.

4. Poor Technical know-how among the workers-

Being a labour-intensive industry, there is a lack of

awareness of new technology among the workers as the
workers in the industry include children involved in the
manual sewing process of shoe-manufacturing. A large chunk
of illiterate workers are involved in the assembling process of
footwear lacking in proper technical knowledge thus
contributing to wastage of raw-material. This in turn leads to
fall in productivity of workers.

Source: SATRA

NATURAL FACTORS

1. Climate Change:

Seasonal factors and weather conditions factors also cause changes to demand conditions in the footwear industry.
Footwear sales vary according to seasonal and weather conditions around the world. For example, during the cold
winter months, the sale of sandals will decrease and the sale of galoshes, shoes will increase. Thus, moderate
fluctuations in aggregate sales volume is observed in the industry as a whole.

2. Raw-material base:

The leather & non-leather footwear sector relies heavily on natural products like leather, rubber as the raw-material for
the footwear production. Hides and skins of cattle‟s, buffaloes, goats, and sheep‟s are procured for the manufacturing
process.
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3. Water consumption :

For footwear production the water footprint will be largely associated with the production of any natural and synthetic
materials used in the uppers, linings, components and reinforcing materials.
Water footprint is a measure of the consumption and pollution of water through the manufacturing process. Many of
these processes have the potential to cause significant pollution if not controlled adequately, and whilst, no doubt, there
remain inefficient operations throughout the world, more and more effort is being made towards efficient production
processes and new technology means that pollution is largely preventable.

The main impacts of industrial water use are „water extraction and water pollution‟. Material production inevitably
relies on some water extraction from a nearby river or lake. This can impact on the flow or size of the source and also
potentially affect flora, fauna and human populations who may rely on that source of water.

Although small in the grand scale of things, the process of 'heat setting' probably uses the most water during the actual
shoemaking phase. Heat setting is a process by which the shape of the footwear upper is 'fixed' to the shape of the last.
Tanning is highly demanding and is capable of producing waste water contaminated with toxic and polluting
substances such as organic matter, salts, tanning agents and dyestuffs, and has historically been a major potential
source of pollution. It is therefore important that tanneries ensure that waste water leaving the facility meets all the
requirements for such emissions in the locality. The introduction of new water treatment technology and ETP‟s
(Effluent Treatment Plants) will significantly reducing any waste water discharges with water being recycled back into
the tanning process.

4. Carbon Footprint-

A typical pair of running shoes generates 30 pounds of carbon dioxide emissions, equivalent to keeping a 100-watt
light bulb on for one week, according to a new MIT-led lifecycle assessment. More than two-thirds of a running shoe‟s
carbon impact can come from manufacturing processes, with a smaller percentage arising from acquiring or extracting
raw materials. This breakdown is expected for more complex products such as electronics, where the energy that goes
into manufacturing fine, integrated circuits can outweigh the energy expended in processing raw materials.

The researchers divided the shoes‟ lifecycle into five major stages: materials, manufacturing, usage, transportation and
end-of-life. These last three stages, they found, contributed very little to the product‟s carbon footprint. The bulk of
emissions, they found, came from manufacturing. While part of the manufacturing footprint is attributable to a
facility‟s energy source, other emissions came from processes such as foaming and injection molding of parts of a
sneaker‟s sole, which expend large amounts of energy in the manufacture of small, lightweight parts.

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SWOT ANALYSIS A SWOT analysis is a structured planning method used to evaluate the Strengths,
Weaknesses, Opportunities and Threats involved in a project or in a business venture. A SWOT analysis can be carried
out for a product, place, industry or person. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Specifically,
SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential
opportunities and threats. Brief description of SWOT is as follows:
 Strengths: characteristics of the business or project that give it an advantage over others.
 Weaknesses: characteristics that place the business or project at a disadvantage relative to others.
 Opportunities: elements that the project could exploit to its advantage.
 Threats: elements in the environment that could cause trouble for the business or project.

STRENGTHS WEAKNESS
High Growth 1.Less no. of organised product manufacturers 2.Low level of modernisation
Easy availability of low cost labour 3.Large raw material base 3.Poor labour productivity 4.Lack of investment 5.Weak infrastructure 6.Less focu
4.Policy initiatives by government 5.Exposure to export market
Capabilities to assimilate new technologies
Continuous emphasis on product development and design upgradation

OPPORTUNITIES THREATS

1.Growing fashion consciousness 2.Use of information technology 3.Increase in population

Entry of multinational companies in domestic
4.De-reservation of footwear sector 5.Use of e-commerce in direct marketing 6.Product innovation
market
Changing fashion trends 3.Foreign currency fluctuations
4.Limited scope for mobilising funds 5.Non-tarrif barriers

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STRENGTHS: The strengths of Indian footwear industry are as follows:

1. HIGH GROWTH- A sample of footwear companies rated by ICRA which includes 12 leading companies in
domestic and export markets have witnessed CAGR growth of 17% in operating income during five year period ending
March 2014. Profits/ cash accruals of these companies have remained healthy and expanded almost four times during
this period with better economies of scale, improvement in product mix and rationalization of cost structure. In terms
of product mix, companies manufacturing leather footwear tend to have higher profitability (between 10-18%) as
compared to rubber and plastic footwear manufacturing companies. Within rubber and plastic footwear category as
well, companies into plastic footwear manufacturing have higher operating profitability (between 5-12%) as compared
to rubber footwear manufacturing companies (between 3-8%). Thus we can say that Indian footwear industry has a
potential of high growth with overall growth rate of about 12%. [SOURCE: ICRA]
Figure 22: Growth of Footwear Market (2012 & 2015)

SOURCE:ASSOCHAM
2. EASY AVAILABILITY OF LOW COST LABOUR- The footwear industry is a labour- intensive sector. The
industry requires both skilled and unskilled labour which are easily available in India at low cost. It provides job to
nearly about 1.10 million people, mostly from the weaker and minority sections of the society in which women
employment is predominantly more in comparison with other industries. Thus low cost labour forms strength for the
industry.

3. LARGE RAW MATERIAL BASE- Leather (major raw material for footwear) in India is the cheapest in price as
compared to most of the countries of the world, as India is the largest producer of livestock and thus the livestock is
readily available. Other raw materials such as leather fabrics, plastic, rubber, fabrics, wood, jute fabrics, and metal are
also easily available to the industry.

4. POLICY INITIATIVES BY GOVERNMENT- Government of India largely supports Indian footwear industry
through their various policy initiatives. Financial support and other support from government are provided to a huge
extent like:
 Cheap Bank Finance
 Under the government‟s Focus Scheme, the company is funded by 50% for buying the machines.
 Duty Drawbacks
 Exempt from Sales Tax
 Exempt from Excise Duty
 It is even easier to get licenses and permissions, etc.

5. EXPOSURE TO EXPORT MARKETS- The Indian footwear industry has easy exposure to export markets.
Export promotion council works as a guide for the industry. It informs them about the various know how, for e.g. the
way to get the various licenses from the DGFT, any new type of schemes, or any important technical know-how. The
main markets for Indian Footwear are UK with a share of 19.16%, Germany 16.15%, Italy 12.46%, USA 8.04%,
France 8.93%, Spain 6.45%, Netherlands 4.51%, Portugal 1.41%, U.A.E 2.45% and Denmark 0.97.%. These 10
countries together accounts for 80.53% share in India‟s total footwear export.
[SOURCE: ITC, Geneva & DGCI &S].

17
6. CAPABILITIES TO ASSIMILATE NEW TECHNOLOGIES- The footwear sector has matured from the level
of the manual footwear manufacturing method to the automated footwear manufacturing systems. Footwear production
units are installed with world class machines. Manned by skilled technicians, these machines help to turn any new
innovative idea into reality. Support systems created for the sector have indeed served the footwear industry well. Thus
we can say that Indian footwear industry has the capabilities to assimilate new technologies in their operations.

7. CONTINUOUS EMPHASIS ON PRODUCT DEVELOPMENT AND DESIGN UPGRADATION

The organized segment is incorporating advanced technologies in footwear production to increase its share in the
market. For instance, Adidas has launched its new shoe, which has superior cushioning, optimal fit and temperature
independence, in India. Medical foot-wears are also being designed for old age group. Thus footwear sector is
emphasizing on product development & design up-gradation in order to increase their market share. MBM-104
INDUSTRY ANALYSIS: FOOTWEAR INDUSTRY 50 30%70%Organised sectorUnorganised sector

18
WEAKNESSES: 1. LESS NUMBER OF ORGANISED PRODUCT MANUFACTURERS-The major weakness
of Indian footwear industry is that major part is unorganized. According to an ASSOCHAM report Indian footwear
industry was dominated by the unorganized sector with a share of 70% in 2012. The unorganized segment comprises
of small cottage industry based manufacturers. The organized sector comprising of major domestic and international
players like Bata, Liberty, Adidas and Metro etc, accounted for only 30% of the market.
Figure 23: SHARE OF ORGANISED AND UNORGANISED SECTOR IN FOOTWEAR INDUSTRY 2013

SOURCE:ASSOCHAM
2. LOW LEVEL OF MODERNISATION–
There is low level of modernization and up gradation of technology in the Indian footwear sector due to many reasons
like unawareness amongst the manufacturers, lack of adaptability, unskilled labour etc. and also integration of
developed technologies is also very slow which hinders the growth of the firm and hence the industry.

3. POOR LABOUR PRODUCTIVITY–

There is low level of labour productivity in the industry due to inadequate formal training and large no. of unskilled
labour.
4. LACK OF INVESTMENTS –
The production capacity in the footwear industry has not increased even after the de-reservation of the sector from
small scale sector. Huge investments are required to make the industry technologically and environmentally sound and
competitive. However, the industry has not been able to attract high investments to address these issues. In spite of
having a liberal FDI policy. Thus there is lack of investments in the industry which is affecting its productivity.

5. WEAK INFRASTRUCTURE –
The inadequate infrastructure has been a major bottleneck in the growth of the Indian footwear industry. Much of
growth in the industry ,prominent in traditional hubs of Agra, Kanpur, Jalandhar,Ambur‐Ranipet‐Vaniyambadi and
Kolkata was unplanned and was almost entirely due to private sectorinitiative. The existing infrastructure in various
footwear clusters i.e. integrated supply chain infrastructure (material markets, tanneries), production infrastructure
(water supply, drainage facilities, power supply, effluent treatment plants) and support facilities (design and product
development studios, testing laboratory, training institutes, buyer‐interaction showrooms etc.,) is not upto the mark and
requires a major reformation to make the industry internationally competitive.

6. LESS FOCUS ON BRANDING–

Branding is the process involved in creating a unique name and image for a product in the consumers' mind, mainly
through advertising campaigns with a consistent theme. Since the unorganized sector constitutes a major part of the
industry, they do not have any specific marketing strategy to create a brand image amongst the consumers.

7. HIGH INFLATIONARY TRENDS–

High inflationary trends since the past few years have reduced India‟s cost competitive advantage against the other low
cost footwear producing countries like China, Vietnam, Myanmar, Indonesia etc.

19
OPPORTUNITIES:

1. GROWING FASHION CONSCIOUSNESS–Footwear industry has now changed from a basic „need based‟
industry to a „fashion and style‟ industry. The domestic footwear market is being driven by growing fashion
consciousness due to increased disposable income among urban middle-class. Many companies in the market are
dealing in a range of stylish eco-friendly footwear to ensure that the buyers do not sacrifice on comfort or style, while
opting for green shoes. Similarly, more and more people are now opting for custom-made or designer footwear
providing opportunities for footwear designers.

2. USE OF INFORMATION TECHNOLOGY -The organized segment is incorporating advanced technologies in

footwear production to increase its share in the market. They have also incorporatedecision support software to help
eliminate the length of the production cycle for different products.Thus use of information technology is creating new
opportunities for them to increase their market share.

3. INCREASE IN POPULATION -India is the second most populous country in the world, with over 1.271 billion
people (2015), more than a sixth of the world's population. Already containing 17.5% of the world's population, India
is projected to be the world's most populous country by 2025. Its population growth rate is 1.2%.Not only in India
Population in the world is currently (as of 2015-2016) growing at a rate of around 1.13% per year which clearly
indicates increase in no. of feet, so there is rising potential in domestic and foreign market.

4. DE-RESERVATION OF THE FOOTWEAR SECTOR-The Government has taken major policy measures since
the early 1990‟s for making Indian industry, including the footwear Sector, competitive to unleash its growth potential.
One of the crucial measures have been the gradual and calibrated removal of restriction in the form of reservation of
items to be exclusively produced in the Small Scale Sector. This policy has been undertaken essentially to:
 To increase the competitiveness of industry.
 To facilitate adequate flow of credit.
 To upgrade technology so that the product produced are of world class and competitive in the global market.

Enable Indian industry to compete with imports.

 To achieve the economies of scale.
 Promote creation of job opportunities

5. USE OF E-COMMERCE IN DIRECT MARKETING–There is immense opportunities for increasing trend of

online footwear retail market. Shoe manufacturers have gained a sudden upsurge in the retailing of footwear with the
rise of e-commerce and the growing trend of online shopping. Also various new marketing techniques like crowd-
sourcing, social-media; mix media etc are used to attract more customers.

6. PRODUCT INNOVATION –There is lot of scope in innovation in designing of the footwear. The footwear
industry in India is presently witnessing various shifts in the trends that are indicative of contributing in the future
growth of the industry. For instance, many companies in the market are dealing in a range of stylish eco-friendly
footwear to ensure that the buyers do not sacrifice on comfort or style, while opting for green shoes. Similarly, more
and more people are now opting for custom-made or designer footwear providing opportunities for footwear designers.

20
THREATS:

1. ENTRY OF MULTINATIONALS IN DOMESTIC MARKET- Although entry of numerous international

players like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann, Elefanten, St
Michaels, Hasley, Salamander and Colehaan has resulted in providing a significant boost to the Indian footwear market
but it has also created a threat for the domestic players.

2. CHANGING FASHION TRENDS- Since the industry has become a fashion based industry, it is difficult for it to
adapt the changing fashion trends. People have now become more style conscious along with being comfort conscious.

3. FOREIGN CURRENCY FLUCTUATIONS- According to ICRA report the on-going crisis in the Euro zone has
led to moderation in footwear demand; the exports from India were further impacted on account of the appreciation of
rupee against Euro during FY15 as compared to FY14. The footwear exports from India which witnessed a healthy
YoY growth of 36.2% and 36.0% in the FY14 and 1HFY15 respectively; ended the FY15 with a much lower growth of
17.6% in Indian rupee terms. Further, the profitability of footwear players has also been affected in FY15 due to
adverse foreign currency movements.

4. LIMITED SCOPE FOR MOBILISING FUNDS- The footwear businesses in India are mostly family owned; therefore
there is less scope of mobilizing funds through private placements and public issues. Also Procurement of credit from
the banking institutions especially in case of medium & small-scale units is difficult on account of too many
formalities.

5. NON-TARIFF BARRIERS-It is a form of restrictive trade where barriers to trade are set up and take a form other
than a tariff. Nontariff barriers include quotas, levies, embargoes, sanctions and other restrictions, and are frequently
used by large and developed economies. Developing countries are resorting to more and more non – tariff barriers
indirectly, which is becoming a threat for Indian footwear industry.

21
 TREND ANALYSIS
A trend analysis is a method of analysis that allows traders to predict what will happen with a stock in the future. Trend
analysis is based on historical data about the stock's performance given the overall trends of the market and particular
indicators within the market. Trend analysis of Indian footwear industry includes:
 Contribution of India in Global Footwear export
 Contribution of India in Global Footwear import
 Trend of India‟s export value


Table 1 : Contribution of India in Global footwear export (Value in Million $)

Year Global Export of India's Export Of Percentage

Footwear Footwear
2005 66412.21 1044.34 1.57
2006 73690.05 1190.81 1.61
2007 82844.14 1412.03 1.7
2008 92090.86 1581.20 1.71
2009 82043.26 1481.17 1.81
2010 96420.69 1642.89 1.71
2011 113828.16 2090.53 1.84
2012 115897.91 1958.29 1.69
2013 127386.85 2609.80 2.05
2014 140953.35 2990.73 2.12
Source:
DGCI& S, Kolkata and ITC, Geneva
Sources: ITC calculations based on Directorate General of Commercial Intelligence & Statistics statistics

Figure 2 : Contribution of India in Global footwear export(in US $million)

2014 2990.73
140953.35
2013 2609.8
127386.85
2012 1958.29
115897.91
113828.16
2011 2090.53 96420.69
2010 1642.89 82043.26
2009 1481.17 India's Export value (in US$ million)
2008 1581.2 Global Export of Footwear
2007 1412.03
92090.86
82844.14
73690.05
2006 1190.81 66412.21
2005 1044.34

0 20000400006000080000 100000 120000 140000 160000

TREND OF EXPORT
Figure 3 : Trend of India's Export value (in US$ million)

22
 Trend of India's Export value (in US$ million)
3500

3000 2990.73
2770.57
2500 2609.8

2000 2090.53 India's Export value (in US$

1958.29
million)
1581.21481. 1642.89
1500 17 Linear (India's Export value (in US$ million))
1412.03
1044. 1190.81
1000 34

500

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Figure 4 : Trend of India's Export value (in %)

Trend of India's Export value (in %)

2.5

2.05 2.12
2
1.81 1.84
1.7 1.71 1.71 1.69
1.57
Figur 1.61 rend of India's Export value (in US$ million)
1.5 Figuree 3 : TTrend of India's Export value (in US$ Trend of India's Export value (in
million)

1 Linear (Trend of India's Export

value (in %))

0.5

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Interpretation: The recession of 2008-09 had the adverse effect on the exports of 2009-10 as a result it increased
very less, but as the environment improved the growth started again but there is a constant but slow growth. The
growth in contribution of India is stagnated near 2 %

23
Table 2 : Contribution of India in Global footwear Import (Value in Million $)

Year Global Import of India's Import Of Percentage

Footwear Footwear
2005 73612.13 83.29 0.11
2006 81329.28 120.25 0.15
2007 89263.03 139.56 0.16
2008 97346.78 172.27 0.18
2009 87695.83 146.45 0.17
2010 101090.43 255.85 0.25
2011 115467.74 315.01 0.27
2012 114980.96 358.84 0.32
2013 122416.34 408.43 0.34
2014 131491.78 432.05 0.33

Source: DGCI& S and ITC

Sources: ITC calculations based on UN COMTRADE statistics and on Directorate General of Commercial Intelligence &
Statistics

TREND OF IMPORT

Figure 5 : Trend of india's Import value (in US$ million)

Trend of india's Import value (in US$ million)

500
450
400 432.05
408.43
350
300 358.84
250 315.01
Trend of india's Import value (in
200 255.85 US$ million)
Linear (Trend of india's Import value (in US$ millio
172.27
150 120.25 139.56 146.45
100
83.29
50
0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Interpretation: The import of footwear from India is continuously increasing but at a very slow pace and till now the
import has not crossed the 1% of the total world Import. And the major import comes from China.

24
 Figure 6: Trend of India's Import value (in %)

Trend of India's Import value (in %)

0.4
0.35
0.3 0.34 0.33
0.32
0.25
0.2 0.27
0.25 Trend of india's Import value (in %)
0.15
0.18 0.17
0.15 0.16 Linear (Trend of india's Import
0.10.11 value (in %))
0.05
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

25
MICHAEL PORTER’S FIVE FORCES MODEL
Named after Michael E. Porter, this model identifies and analyzes 5 competitive forces that shape every industry. It is a
framework to analyze the level of competition within an industry and business strategy development. Porter referred to
these forces as the micro environment, to contrast it with the more general term macro environment. They consist of
those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the
forces normally requires a business unit to re-assess the marketplace given the overall change in industry information.
Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or services, the
threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining
power of suppliers and the bargaining power of consumers. The cumulative strength of these forces determines the
profitability of the incumbent & emerging firms in the industry.

(1) BARGAINING POWER OF SUPPLIERS

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components,
labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes.
India has a large raw-material base required for manufacturing of footwear. Thus, the raw-material (leather), labour can
be easily procured from anywhere. India also has a large untapped skilled labour supply.

The bargaining power of suppliers depends on the level of supplier concentration, importance of volume and threats
of forward integration. Suppliers are powerful when they are concentrated & there is a high threat of forward
integration, affecting the buyer‟s ability to achieve profitability (Porter, 1980).

Footwear manufacturing sectors in India are highly fragmented & characterized by a high density of suppliers, mostly
operating independently on a small-scale. The fragmented nature of this sector diminishes the power of Indian suppliers
due to the lack of capabilities to achieve scale economies.

The threat of forward integration is low due to high entry barriers .Any supplier that meets quality standards for the
company will be able to supply these commodity goods. Switching costs refer to costs for the buyer (retailer) in switching
from one supplier to another (Porter, 1980).

Switching between suppliers is also very high in the industry. Major firms can switch suppliers quickly without worry of a
significant decrease in quality. When a buyer switches vendors, the change may require altering product specifications,
processes or information systems & retraining employees to be familiar with new product, process, system resulting in
increased costs for the buyer (Porter, 2008). However, footwear manufacturing is a labour-intensive process & does not
require heavy investments in specialized equipment, resulting in LOW SWITCHING COSTS.
The following figure summarizes the above assessment of bargaining power of suppliers in Indian Footwear Industry.

(2) BARGAINING POWER OF CONSUMERS

The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm
under pressure, which also affects the customer's sensitivity to price changes. Consumer power accrues with lower
Consumer -to –supplier ratio, large purchase volume (Porter, 1980). However, the Consumer‟s bargaining power should
be separated by retail sectors due to significant differences between organized & unorganized retailers in India. Retailers
in the organized sector in India are characterized by large size, differentiated products, high purchase volume & greater
geographical spread & revenue, thus creating a consumer‟s market. On the contrary, unorganized retailers are
characterized by small size, undifferentiated products, small purchase volume & revenues, factors limiting their market
capability and the number of suppliers from which to choose, thus creating a supplier‟s market (Sternquist& Gupta,
2007). Switching cost is low for the consumers as options are endless except in the case where brand loyalty is extremely
high.
Consumers have easy access to the products through online shopping as well. Though the big players dominate the
industry's rate but they cannot decide these prices ignoring customers. Billions are spent by these players on market
research and studying consumer profiling and buying patterns which shows that Consumers have high bargaining power
26
in

27
the market. Brand identity is high and large companies in the industry set price points for their products. Regarding
substitute availability, except athletic, orthopedic, dancing shoes all other types can be substituted by normal sandals.
Consumer‟s incentives are offered by seasonal sales by reputed brands and stores. As regard to consumer concentration,
the consumers are less concentrated, which in turn reduces the buying power.

(3) THREAT OF SUBSTITUTES: The threat of substitute products can be evaluated in terms of availability &
performance of substitutes, switching costs incurred by the consumer & the propensity of the consumer to substitute.
(Porter, 1980). Indian consumers tend to be very price-and value driven, presenting a high propensity to substitute the
next door unorganized retailer due to the geographic location, cultural proximity of their offerings(Sinha and Banerjee,
2004, Goswami and Mishra, 2008) and low-priced merchandize resulting from their tax exemption & low-cost operation.
Substitutes are available in various forms as the substitute of sandals can be slippers, flip-flops. Shoes can be substituted
with boots, moccasins etc. However, for athletic, orthopedic, dancing shoes, substitution is quite low. For example- it is
not possible for sneakers to be replaced by fashion or high- heeled shoes. Similarly between tennis shoes and running
shoes, there cannot be a replacement. Generally, the switching costs involved is thus low to moderate except for athletic,
medicated shoes or shoes suitable for a particular purpose.

(4) BARRIERS TO ENTRY :

Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will
decrease profitability for all firms in the industry. Therefore, the existing firms try to raise the threat of new entrants.
The threat of new entrants are increased when incumbent players have achieved economies of scale, switching costs are
high, there is a limited access to distribution channels, there is cost disadvantage, government policy is favourable to
domestic firms.(Porter,1980)
In Indian footwear industry, access to inputs is easy as there is a large availability of raw-material base in India. The
„Access to distribution channels‟ also need to be considered which refers to accessible resources that a new entrant can
use to distribute its product (Porter, 1980).

The primary distribution channel for Indian footwear industry is retail space in the form of speciality stores, department
stores & shopping malls. Distribution opportunities are limited because of the top brands which have already recognized
in market. Switching costs are low in case of footwear industry. Government policies- permissions & licenses are not that
strict. In fact, Government of India has allowed 100% Foreign Direct Investment in this sector through the automatic
route. Intellectual property rights including patents and other types of proprietary intellectual property are effective in
limiting industry entry. Regarding capital requirement, it may be little costly because start up is labour and machines &
other equipments are required for manufacturing footwear.
Brand Identity dominated by branded products and strong brand loyalty exists in the market. Economies of scale and
scope also restrict entry for small players as the industry is dominated by few giant players who reap huge benefits from
the volumes and the supply chain integration. Economies of scale include advertising & marketing costs, R&D spent in
addition to voluminous production and economies of scope would include benefits like umbrella branding, available to
large conglomerates like Nike & Puma. When existing firms achieve significant scale economies, it becomes difficult for
new entrants to be competitive. Porter (2008) outlines two types of scale economies that act as barrier to entry: supply-side
scale economy & demand-side scale economy.

Supply-side scale economies arise when firms with large production volumes enjoy lower costs per unit by spreading
fixed costs over more units, utilizing more efficient technology, or demanding better terms from suppliers (Porter,
2008).The large domestic retailers have achieved supply-side scale economies through their large order volume &
extensive market presence. Demand-side scale benefits, also referred to as network effects, arise with the increase in
customer‟s willingness to pay for a company‟s products. Customers (buyers) tend to trust larger firms due to their large
customer base, preferring to be part of a large network of customers. (Porter, 2008).

Demand-side scale benefits discourage new entrants by lowering customer‟s willingness to buy from newcomers in a
market & by lowering the price new firms can command until they can develop a large network of customers. (Porter,
2008).large domestic retailers in India may enjoy network effects due to their early presence in the market,
established customer base, & depth of the knowledge of Indian consumers.

The following figure summarizes the above assessment of Barriers to Entry in Indian Footwear Industry.

28
Figure 19: Barriers To Entry
The negative components clearly indica
EASY ACCESS OF INPUTS (RAW-
MATERIAL) BARRIERRS TO ENTRY

LIMITED ACCESS TO
DISTRIBUTION CHANNELS
EXISTENCE OF STRONG BRAND
LOYALTY IN THE MARKET

ECONOMIES OF SCALE ACHIEVED

BY EXISTING PLAYERS

SLIGHTLY COSTLY SET

UP(MEDIUM-HIGH CAPITAL
REQUIREMENT

(5) RIVALRY AMONG EXISTING FIRMS:

The intensity of competitive rivalry is the major determinant of the competitiveness of the industry. The intensity of
rivalry is determined by industry growth, industry concentration, diversity of competitors, and product differences.
High rivalry within an industry drives down the profitability of an industry by influencing prices & costs of competition
(Porter,1980).Industry concentration refers to the number of companies competing in the same markets. Rivalry is
intensified if these companies have similar market shares, thus destroying profitability. The industry concentration in
footwear industry is very high. With high industry concentration & diverse no. of competitors there exists a high rivalry
among existing firms in footwear industry (especially in athletic footwear).Nike, Adidas-Reebok, Puma, and Fila are
rivals in the athletic footwear industry. All four of these companies need to anticipate the moves of their competitors.
They also need to be aware of newer competitors such as Under Armour. The running footwear sales of 2013 can be
seen in Picture G1showing intense rivalry among the firms. The presence of different types of retailers in India (foreign
retailers, domestic –organized & un-organized retailers) creates diversity in competition. Foreign retailers mainly
operate in specialty stores, or in shopping malls. In footwear industry, there is more of an emphasis on non-price
competition .Firms try to increase their range of products to capture more of the market. Brand image and customer
loyalty is huge in this industry, which leads to the brands competing in advertising. Each firm lives and dies by the
brand identity it creates. There is fierce competition between Nike & Adidas. Specialty shoes like Geox, Rockport and
Ecco also compete in niche segments.
Product differentiation can increase profitability by creating lesser rivalry in the market, and delivery of
customer value through non-price competition such as product features, services, delivery time,or brand image is
less likely to erode profitability (Porter,2008).Large domestic retailers are improving their strategies by carrying
more SKU‟s('Stock Keeping Unit )- (a store's or catalog's product and service identification code, often portrayed as
a machine-readable bar code that helps the item to be tracked for inventory) & embracing the self service-format.
Unorganized retailers, with no financial capabilities to improve store environment offset these limitations by offering
high levels of service & forming close relationships with their customers. Smaller retailers are moving towards
organized formats by including branded merchandize in their offerings or by acquiring licensing/franchising
agreements with popular foreign brands. Some companies acquire other brands

29
CRITICAL SUCCESS FACTOR OF FOOTWEAR INDUSTRY
Critical success factor (CSF) is a management term for an element that is necessary for an organization or project to
achieve its mission. It is a critical factor or activity required for ensuring the success of a company / organization or
country. The critical success factors identified in footwear industry are-

(1) Raw-material Adequacy:

The raw materials used in manufacturing footwear are- leather fabrics(chief), plastic, rubber, fabrics, wood, jute
fabrics, and metal, dyes, adhesives, threads. There is an existence of large raw material base in India. The hides and
skins of cattle‟s, buffaloes, goats, and sheep‟s are procured. Thus, wide availability of raw-material (large reserves
of bovine population) domestically proves to be a great success factor for footwear industry reducing the reliance
on foreign countries.

(2) Increased Product Variety-

Modern lifestyle demands footwear with comfort at reasonable price. With consumer preferences shifting towards
casual & younger styles, international trends & lifestyle brands especially for the working population,
manufacturers today can offer increased variety of footwear. This has been possible owing to use of latest
information-technology like CAD (Computer-aided Designing) &CAM (Computer-Aided Manufacturing).

(3) Well-established presence in export markets-

The footwear industry has witnessed healthy growth in export earnings in the recent past and remains amongst the
top ten foreign exchange earners for the country. India exports largely leather footwear to its main trading partners
which include United Kingdom, Germany, USA, Italy and France. The major dominance is of the European
continent whose share is almost 75% in India‟s total exports. This is in contrast to other major exporters like China,
Indonesia and Vietnam which export non leather footwear mainly to USA. The footwear exports from India have
grown at a CAGR of ~14% in dollar terms and by 20% in Indian Rupee (INR) during the five year period ending
March 2015 backed by growing demand from European nations and increasing focus of main importing countries
to shift sourcing from China to other low cost producing countries. Besides this, the ASP for exported footwear has
also been on an uptrend with rising raw material prices and favourable foreign currency movements during this
period. In absolute terms, footwear exports from India have risen from Rs. 71.5 billion in FY10 to Rs. 180.0 billion
in FY15.

(4) Value-added Services-

Few footwear retailers started offering value added service in the stores like in-house cobbler service, pedicure-
centre etc.

(5) Innovative Products-

Medicated shoes, orthopedic shoes, diabetic shoes, Acupressure footwear are some of the innovative products
designed to relieve discomfort of old-age groups suffering from associated foot and ankle disorders, such as
blisters, bunions, calluses and corns, hammer toes, plantar fasciitis, or heel spurs. The medicated shoes will
massage pressure points to improve blood circulation. Owing to the development of such innovative products,
footwear industry is gaining a strong foothold in Indian market.

(6) Institutional support for designing & testing-

Some of the footwear manufacturers have their own design laboratories. Sophisticated whole-shoe tests, such as the
Advanced Moisture Management Test (AMMT) and PEDATRON sole abrasion test have been developed by
SATRA (Shoe and Allied Trade Research Association), providing rapid analysis of footwear problems that
previously took months of wear trials to establish. SATRA remains at the forefront of test machinery development
and continues to introduce new developments into the footwear industry. A number of research institutes & design
centers have been established to provide the support of designing & testing of footwear. They also provide an

30
encouragement to young designers &provide employment in Footwear Designing. The institutions include Central
Leather Research Institute, Footwear Design Development Institute, and National Design Center, National Institute
of Fashion Technology.

(7) Changing product-mix

The footwear industry in India is fragmented into casual footwear, mass footwear, premium and sports footwear.
The mass footwear usually refers to low price footwear and majorly consists of slippers. On the other hand, casual
footwear involves footwear preferred by people for their daily wear in schools, colleges or at the workplace etc.The
footwear market can also be bifurcated into men, women and kid‟s footwear segments. Thus, the product-mix of
footwear industry has wide range availability suitable for different purpose.

(8) Potential for employment

Indian footwear industry holds a crucial place in the Indian economy for its potential for employment, especially for
weaker sections. Direct and indirect employment in Indian footwear industry is estimated at around 1.1 million
people (ICRA Report, 2015). The skilled and semi-skilled workers constitute nearly 50% of the total work force.
Minority community and lower caste people have their sole source of livelihood from collecting carcasses,
skinning dead animals and tanning leather which also consist a large proportion of employment provided by
leather industry. Thus, footwear industry is a large generator of employment-both skilled & un-skilled.

(9) Government Support Measures-

The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern
lines with state-of-the-art machinery. The Government of India is setting up dedicated Footwear Complex and
Footwear Components Part where footwear clusters are located. The Government has permitted 100% Foreign
Direct Investment through the automatic route for the footwear sector. Under the automatic route, no Central
Government permission is required. The proposal of Budget 2015 to reduce the excise duty from 12 to 6 per
cent provided encouragement to the footwear sector. (10)Cheap Availability of Labour- Being a labour-
intensive industry, both skilled & unskilled labour is required in manufacturing footwear which is available at lost
cost in India. A large chunk of illiterate people are employed in the industry including women in the sewing
process especially in the manufacturing process. Thus, Indian footwear industry has a large low-cost
availability of labour (skilled & unskilled).

31
CHAPTER 7 :
IMPACT ANALYSIS

32
 IMPACT OF IMPORT DUTY / CUSTOM DUTY

Indian Custom Duty of HS Code

HS-Code Item Description

Import duty on - waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of
6401
which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or
similar processes

6402 Import duty on - other footwear with outer soles and uppers of rubber or plastics

6403Import duty on - footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather

6404Import duty on - footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials

6405Import duty on - other footwear

Import duty on - parts of footwear (including uppers whether or not attached to soles other than outer
6406
soles); removable in-soles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof

THE import duty on the shoes which are less than Rs.1000 is 21.872% and on the shoes which are more
than 1000 is 28.852%.

The anti-dumping duty on import of sports shoes, non-leather sports footwear, have been levied by
government of India on the shoes which have been imported from a people republic of china below their
normal value .India has initiated a probe into alleged dumping of rubber variants used for leather goods by
the EU, South Korea and Thailand following complaints from Reliance Industries.

The move is aimed at protecting domestic players in the sector against cheap imports.

The Twin Impact Of Anti-Dumping Duty And Minimum Import Price Is Likely To Help Players
Overcome Market Challenges Led By Domestic Weak Demand.

33
IMPACT OF BUDGET ON FOOTWEAR INDUSTRY

Budget Provisions

1. Setting up of dormitories for women workers in the 5-mega clusters relating to handloom
powerlooms and leather sectors.
2. The exemption limit of Central Excise duty available to non-leather footwear is being increased
from MRP Rs 250 to Rs 500.For non-leather footwear exceeding Rs 500, the applicable duty is
12%.
3. "The footwear industry is particularly bullish as for shoes having MRP of
above Rs 1,000 per pair will now attract half the excise duty by halving the
duty from 12 to 6 per cent,"
notification No.12/2015- Central Excise dated 1st March, 2015 [New S. No. 180A] refers.
4. Common Effluent Treatment Plants (CETPs) set up with the assistance of Central or State
Government in the leather industry.
5. Service Tax : To facilitate a smooth transition to levy of tax on services by both the Centre and the
States, the present rate of service tax plus education cesses to be increased from 12.36% to a
consolidated rate of 14%. The new Service Tax rate shall come into effect from a date to be
notified by the Central Government after the enactment of the Finance Bill, 2015. Till the time the
revised rate comes into effect, the „Education Cess‟ and „Secondary and Higher Education Cess‟
will continue to be levied in Service Tax.
6. The abatement for footwear as a percentage of Retail Sale Price is being reduced from 35% to
25% for all footwear. Notification No.49/2008-Central Excise (N.T.), dated 24th December, 2012
as amended by notification No.3/2015-Central Excise (N.T.) dated 1st March, 2015 [S. No. 56]
refers.
7. Central Excise Duty : Education Cess and the Secondary and Higher Education Cess will be
subsumed in Central Excise duty. Central Excise Notification No.14/2015-Central Excise dated
1st March, 2015 and Central notification No.15/2015-Central Excise dated 1st March, 2015
may be referred.

In effect, the general rate of Central Excise Duty of 12.36% including the cesses is being rounded
off to 12.5%.

34
 Type of footwear Existing Central Duty as per Changes made in
Excise Duty proposals in Union Union Budget
Budget 2015-16 2015-16
Footwear of MRP not Nil Nil No change
exceeding Rs.500/- per
pair
Footwear with MRP 6% Central Excise 6% Central Excise No change
above Rs.500/- and upto duty with 35% duty with 25%
Rs.1000/- abatement* abatement
Footwear with uppers of 12% Central Excise 6% Central Excise Duty reduced
leather with MRP above duty with 35% duty with 25% from 12% to 6%
Rs.1000/- (under 6403 abatement abatement
and 6405)
All other footwear 12% Central Excise 12.5% Central Peak rate of duty
duty with 35% Excise duty with will apply with
abatement 25% abatement 25% abatement.

IMPACT OF BUDGET
 The dormitories provided for women workers in five mega clusters will be great help in creating a
comfortable and secure boarding facility near the workplace for women, particularly for those
women whose residence is located beyond from work place. This scheme would also attract more
women workforce for the leather industry.

 Central Excise duty exemption for non-leather footwear of Rs 500 per pair is likely to benefit the
leather sector. The decrease in excise duty might lead to increase in the prices of leather products
on the back of passing the prices to the end users

 The move will provide boost to the domestic leather footwear industry and help it compete
globally, he said adding, "It would also help provide a level-playing field for the organised sector
and would result in integration of unorganized sector into organised sector." "The decrease in price
of footwear is a welcome move amidst the increase in cost of living of a middle class household on
account of increase in service tax and excise rates."

On overall, the Union Budget

2016-17 was quite satisfactory for the leather industry as their major recommendations were
accomplished.

35
MAJOR REFORMS AND RELAXATION OF NORMS FOR INDIAN FOOTWEAR INDUSTRY
Major reforms or we can say major milestones of footwear industry are as follows:

 Over the past two decades, the Indian government has provided several support measures for
growth of the leather industry, which has helped in transformation of the sector from a mere
exporter of raw material in the 1960s to one of the major exporters of the value added finished
products.

 Indian leather sector has witnessed extremely low FDI, which generally brings in state-of–the art
machinery, best practices in the industry and efficiencies in operations but now government has
allowed 100% FDI in the footwear sector

 The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of
capacities on modern lines with state-of-the-art machinery. A Conducive Investment climate
towards attracting overseas investments prevails which in turn increases cost competitiveness.

 The Government of India is setting up dedicated Footwear Complex and Footwear Components
Part where footwear clusters are located.

 There has been active interest in collaborating with Indian Footwear companies from European
countries like Italy, Spain and Portugal.

 The entire leather product sector is de-licensed, facilitating expansion on modern lines with state-
of-the-art machinery and equipment.

 Capital goods (machinery) required by the industry can be imported without import duty under the
Export Promotion Capital Goods (EPCG) Scheme of Foreign Trade Policy, subject to meeting the
export obligation of six times the duty saved in six years.

 As a measure to boost manufacturing in the leather footwear segment, excise duty has been
reduced from 12% to 6% for footwear costing between INR 500 and INR 1000.

 State governments have a single window clearance system- ( a single point contact to reduce the
time and efforts involved in various clearances and approvals of layouts/applications for the
proposed investment, submitted by investors)in place to fast-track clearances for the establishment
of production units

 “Ease of doing” Philosophy : With this, the government aims to eliminate unnecessary
regulations, shorten bureaucratic processes, upgrade infrastructure, open up sectors to foreign
direct Investment and most importantly , it wants to be seen as true business partner. These steps
could actually fulfill the “ease of doing” business philosophy and help solve the problems of the
footwear industry.

 Make in India : The “Make in India “ launched in September 2014. The primary aim of “Make in
India “ is to turn India into a manufacturing powerhouse by inviting global manufacturers to invest
in India and produce their product in India.

36
CHAPTER 8 :
OUTLOOK

37
LONG TERM OUTLOOK OF THE FOOTWEAR INDUSTRY

The Leather Industry plays significant role in the development of Indian economy. This sector is known
for its consistency in high export earnings and it is among the top ten foreign exchange earners for the
country. The Leather industry is bestowed with an affluence of raw materials as India is endowed with
21% of world cattle and buffalo and 11% of world goat & sheep population.

India‟s leather industry has grown drastically, transforming from a mere raw material supplier to a value-
added product exporter. Today, around 50 per cent of India‟s leather business comes from international
trade. Some extended bans on cow slaughter to bullocks are causing the concern for the sector. As bulls
are the main source for hides, this has caused a severe shortage in the leather market.
Nevertheless, the outlook of Leather industry seems to be positive in coming time as
government has included the sector as one of the Focus Sectors under Make-in-India programme launched
by the Government to boost exports from India.

 The Leather industry is bestowed with an affluence of raw materials as India is endowed with
21% of world cattle & buffalo and 11% of world goat & sheep population. And Indian leather
is considered superior in quality as compared to other leading manufacturing countries.

 And due to this the Average Selling Price (ASP) of Export of India is higher (Rs. 800 per pair) as
compared to ASP of other Asian countries (Rs. 300-500 per pair).

 Currently , the global market size of the footwear industry of india is around US $ 265 billion.
 The g lobal market for Footwear is projected to reach U S $ 331 billion by 2018 ,
 Global footwear sales are projected to increase at a CAGR of 5% during 2013-2018 , according to
estimates based on WFY data.

o driven by new desig trends and

o rising discretionary spending among the expanding base of middle class population.
o In the casual footwear market, timeless classics are making a comeback with women
preferring simple classicblack pair of shoe
o Population etc.

 In the long run, The Footwear Industry will slowly convert from labour intensive industry to
capital intensive due to this the relative employment may decrease .( Employment per 1000 pairs)

 As the Industry is expected to grow at a good pace so absolute employment level may increase .

 The ASP of domestic footwear which is just Rs. 160 per pair may go up . As people now are
preferring quality shoes sub standard shoes. So Domestic manufacturers will also start producing
quality shoes( which are of comparatively higher value) instead of substandard shoes.
38
  The share of Organised sector will gradually increase from 30% Because strict measures are being
taken by state and central governments to minimize the unorganized sector and to stop black
marketing

like authentic documents are required for the transportation of goods, and sale and purchase of
goods .
And at the same governments are giving some incentives to organized sector like SEZ, exemption
from tax etc.

 The share of footwear industry in the GDP will go up .

o Because the footwear industry is expected to grow at good pace over the years .
o The share of organized is also expected to grow.
o The implementation of GST will also increase the aggregate tax on the footwear as
compared to aggregate tax earlier GST.
 The Current consumption rate of shoes person in India is 1.9 and it is expected to grow in the long
run.
o Increase in the per capita income which leads to increase in the disposable income.
o Increasing fashion consciousness
o Increasing middle income sector in india.

To achieve the long term objectives and to be true on a long term outlook , the certain action must be done
by Industry or by government.

ACTION- PLAN

 To increase Indian exports, creation of a training center can be very useful where the laborers can
be trained,there are programmes run by Footwear Design and Development Institute(FDDI) ,
Council for Leather Exports (CLE) and Central Footwear Training Institute(CFTI).
 Up gradation of technology and modernization is another area where this industry have to be
given serious focus. So the government should make provisions to provide and facilitate new and
advance technology to the footwear industry so that it can become more competitive.
 In order to build strong market demand internationally , Indian footwear industry will have to
upgrade its quality standard of the product.
 In order to face tough competition outside as well as inside the country the problem of poor
infrastructure has to be tackled off. Government has to take quick action to sort out this problem. It
can be well settled off through PPP model.
 Necessary steps has to be taken to remove the problem of raw material. Outsourcing of raw
material may be the one solution.
 Government should focus on the up gradation of the animal husbandry project to increase the level
of raw material and increase its quality.
 Footwear industry needs to improve cost competitiveness through value chain efficiencies like use
of E-commerce in direct marketing.

39
  If manufacturing capacity of big units operating in the organized sector are combined they can
stand in competition to other countries , which are known to absorb large export orders and strictly
meet delivery schedules.
 As footwear Industry in India remain focused on men‟s shoes, there exists a lot of opportunities in
the exclusive ladies‟ and kids‟ footwear segment.

 The eco-friendly technological models including Chrome recovery extracted during the Chroming
process, Zero Liquid Discharge Technology which calls for establishment of decentralized secure
landfill system linked with CETPs should be implemented as soon as possible in the industry to
minimize the environmental impact of the industry. The above models have been implemented &
established to some extent yet some manufacturing units still remain ignorant of such eco-friendly
tools.

SHORT TERM OUTLOOK OF THE INDUSTRY

Decline in Export
3050
3000
2950
2900
2850
2800 Decline in Export
2750
2700
2650

2014 2015
20152016

The export of the Indian Footwear Industry is expected to decline in the year 2016 from around US $
3000 in 2015 to around US $ 2750 in 2016.

The Export is estimated to decline around 8.33% in the year 2016. And the major reasons for the decline
in the export are :

Slow down in the European economy : as around 70% of the indian footwear export goes to European
nations and currently European economy is majorly hit by the slowdown due to UK‟s Brexit , Greece
downfall and the problem of migration. So it is affecting the Indian footwear export.

Heavy dependence on Europe for export : Indian footwear Industry depends heavily on the European
nations for its Exports. Around 70% of the Indian Export goes to European nations and 30% goes to the
rest of the world.

Slow growth of GDP : The growth rate of GDP has come down to around 6% which was around 9%.

40
Recent developments

Beef ban in Maharashtra to hit leather industry

In its effort to protect cows, the Maharashtra Government has potentially delivered a death knell to India's
leather industry. The leather business in the state is said to have gone down by nearly 90% after the state
extended the ban on cow slaughter to bullocks in March this year. Around 1.5 lakh people have lost their
jobs in this period. Many tanneries are shutting down. Others are moving to less environmentally sensitive
and beef-eating countries in Africa. The leather industry survives largely on the hides of bullocks and
buffaloes. The ban in Maharashtra has created an acute paucity of hides, which has hit the industry hard.

J&K Govt inks MoU with CLE

The J&K State Government has signed a Memorandum of Understanding (MoU) with Council for
Leather Exports (CLE) to setup a Common Facility Centre (CFC) at Industrial Growth Centre (IGC)
Lassipora which will catalyze the development of leather industry in Jammu and Kashmir (J&K).
CLE has also committed to mobilize requisite investment in CFC by setting up manufacturing units of
tanneries and product units including footwear, leather goods and saddlery etc. The CLE will also help the
local entrepreneurs to brand and market their finished leather products in the national and international
markets.

41
CHAPTER 9

CONCLUSION

In view of its past performance, the industry‟s inherent strengths and growth prospects, the footwear
industry aims to augment production, thereby enhancing its exports from the current levels. According to
Assocham, exports are expected to grow at a CAGR of 15% in the next 5 years. The industry will
continue to focus on the European countries and the US markets for exports. With more and more Indian
woman joining the workforce, the ladies footwear market in all the categories/segments will grow rapidly
throwing up huge opportunities in an area yet to be fully tapped by various players.

The domestic leather and footwear industry has undergone a massive transformation owing to government
support measures recognizing the opportunities for Indian footwear industry from globalization, the
government over the last decade and a half has undertaken several initiatives in the areas of investment,
taxation, research and cluster initiatives. The government has been making efforts to improve the
prospects of the domestic leather footwear industry and its speedy expansion through the Indian Leather
Development Programme (ILDP), creation of training centres where the laborers can be imparted training
India has state-of-the-art manufacturing plants. The footwear sector has matured from the level of the
manual footwear manufacturing method to the automated footwear manufacturing systems. The future
growth of the footwear industry in India will continue to be market-driven, and oriented towards EU and
US markets. With technology and quality of the footwear improving year after year, the industry is
stamping its class and expertise in the global footwear trade. There are immense opportunities for
increasing trend of online footwear retail market.

Nevertheless, the footwear industry has witnessed healthy growth in export earnings in the recent past and
remains amongst the top ten foreign exchange earners for the country. In addition to this, the industry has
been providing large employment opportunities, especially for the weaker sections of the Indian society.
Direct and indirect employment in Indian footwear industry is estimated at around 2 million people.
Acknowledging the importance of footwear industry, the Indian government has taken various measures
and initiatives in order to support its growth, which has led to structural changes in the footwear industry.
However, for the footwear sector to grow rapidly going forward and compete aggressively with the other
low cost producing nations, strong push is required in various aspects including favourable policies which
would help in rationalizing tax structure, providing infrastructural support in capacity building, reducing
transaction costs and increasing the availability of skilled labour in the country.

42
CHAPTER 10 : REFERENCES AND BIBLIOGRAPHY

REFRENCES

1. World footwear yearbook, 2014, ftp://arrow.delcam.com/pdf/crispin/ftf2014/1_1_Ars_Sutoria.pdf

2. Trade Statistics 2014 , ITC Geneva
3. ICRA Report, June 2015
ftp://arrow.delcam.com/pdf/crispin/ftf2014/1_1_Ars_Sutoria.pdf
4. Council for Leather Exports, Chennai
http://www.leatherindia.org/products/footwear-23-4-13.asp
5. Kumar, Subas C. (1997), ‘Indian Leather Industry: Growth, Productivity and Export Performance’, APH
Publication, New Delhi.
6. VanimireddySambasiva‘ao, K Subashini, K Harish (2014) , “Management of HRD Requirements - A
CaseStudy of Indian Footwear Industry “
7. Dr. Santosh Sharma (2014), “Impact of Export Finance on Agra Shoe Industry”
8. ANSHU AGA‘WAL AND Dr. ‘ADHA KASHYAP (2013) ,” Occupational Hazards Caused By Leather
Product Manufacturing Units
9. ArpitaMukherji, DivyaSatija, Tanu M Goyal (2012) , “Are Indian consumers brand conscious? Insights for
global retailers “
10. ShavetaSachdeva, Laxmi ‘. Kulshrestha (2011) , “SMEs in the Economic growth of agra :opportunities and
challenges “
11. SandipSarkar (2009) , “A case study of indian footwear industry in india “
12. SHRI G P AGARWAL (2005), “Diagnostic study report For Leather footwear cluster, Agra “
13. K Manjushree Naidu (2003), “Development of footwear industry in andhra Pradesh “
14. Sri AwaliaFebriana, HardyantoSoebono, PieterJanCoenraads (2014) , “Occupational skin hazards and
prevalence of occupational skin diseases in shoe manufacturing workers in Indonesia”
15. Peter Knorringa (2012), “Artisan labour in the Agra footwear industry: Continued informality and changing
threats“
16. NAZNEEN AHMED AND ZIAD BAKHT (2010) , “leather Footwear Industry in Dhaka: A Case Study”
17. Massimo Bertolini, EleonoraBottani, Antonio Rizzi, Maurizio Bevilacqua
, “Lead time reduction through ICT application in the footwear industry: A case study”
18. B Levy Elsevier (1990) , “Transactions costs, the size of firms and industrial policy: Lessons from a
comparative case study of the footwear industry in Korea and Taiwan”
19. Indian Credit Rating Agency (ICRA) limited (2015) “Indian Footwear Industry”.
20. General News India (2009) ,”Agra footwear industry facing new challenges”

43
BIBLIOGRAPHY

• https://scholar.google.co.in/
• www.statisticstimes.com
• CLRI-www.clri.com
• ASSOCHAM- www.assocham.org/footwear industry statistics
• http://www.dgciskol.nic.in
• -Statistica- www.statisticbrain.com/india-leather-industry-statistics
• http://en.wikipedia.org/wiki/Literature_review
• ICRA Report, June 2015
“ftp://arrow.delcam.com/pdf/crispin/ftf2014/1_1_Ars_Sutoria.pdf “

44