1

FOOTWEAR

2

CONTENTS:

1. (A) Market size of the Foot Wear industry in India.

(B) Coverage by Value, Volume and Per Capita Income

2. Organized and Unorganized Foot Wear Companies

3. Major company and its Market Share

4. Two players in Foot Wear Industry: BATA and LIBERTY

5. Financial data of these two competating companies

3

1. (A) MARKET SIZE OF FOOT WEAR INDUSTRY IN INDIA:

•

•Estimated size stands at 16000 crores

• about 55 per cent of the country's overall footwear

industry

• About 70 per cent of the labour

-intensive footwear industry in India

• Accounts for 15% global share

4

TOTAL MARKET BY VALUE (2010-11) :

• Rs. 193.2 Billion market by value• 10.1% Growth rate of market • Increased 62.1% since last five years

5

TOTAL MARKET BY VOLUME (2010-2011):

• Rs. 3.2 Billion Pairs Market by volume• 9.7% of growth rate• Increased 59.2% since last five years

6

ORGANIZED SECTOR VS UNORGANIZED SECTOR

The Indian footwear market is estimated to be worth Rs.13,750 Crore and constitutes just about one percent of Indian retail.

The ladies footwear segment still remains the most untapped as nearly 80-90 percent purchases happen in the unorganized market

Organised MarketUnorganised Market

37.80%

62.20%Indian Footwear Market

7

MAJOR PLAYERS IN THE FOOTWEAR INDUSTRY :

1. ADIDAS : largest sportswear manufacturer

2. REEBOK :

3. BATA : worlds largest shoe manufacturer

4. RELAXO : casuals, joggers, slippers, etc.

5. LIBERTY : leading leather shoe brand

MAJOR PLAYERS IN FOOTWEAR MARKETPUMANIKE

                                                                                                                                                                                         

 

WOODLANDADIDASBATARELAXOLIBERTYACTION

                                                                                                                                                                                         

 

Companies Profile:ADIDAS:Adidas ltd is a German sports apparel manufacturer and part of the Adidas group,which consist of Reebok sportswear company, Taylor Made-Adidas golf company, andRockport. Adidas is the largest sportswear manufacturer in Europe and the second largestsportswear manufacturer in the world. Company’s revenue for 2006 was listed at about US $13.625 billion and the 2007 figure was listed about $ 15.6 billion. It has more than 170subsidiaries guarantee marketplace presence for Adidas products around the world.Liberty:Liberty shoes ltd. is a leading leather shoes brand and is engaged in the manufacturing,supplying and exporting of the footwear’s. It is the only Indian leather shoe brand that occupiesfifth ranking among the top shoes manufacturing companies in the world.Reebok:Reebok specializes in the design, marketing and distribution of sports and fitnessproducts including footwear, apparel and accessories, as well as footwear and apparel for non-athletic use. The company has three main product categories: Rbk, Performance, and Classic.Each of these product categories features product offerings for both men and women that aredesigned for specific consumer groups. Reebok has operations in the UK, Europe and in variousand in various Asian countries. It is headquartered in canton, Massachusetts. The acquisition of Reebok by Adidas-Salomon was completed in January 2006. Bata:Bata industries is a specialized division of the world’s largest shoe manufacturer: the Batashoe Organization (BSO). Bata industries has operations and production facilities in most of the

D,M & D of sports andFitness products

8

MARKET SHARE OF MAJOR PLAYERS :

9

BY VALUE AND BY VOLUME :

10

11

VIDEO

12

Bata India is the largest retailer and leading manufacturer of footwear

Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small operation in Konnagar (near Calcutta) in 1932

Its retail network of over 1200 stores gives it a reach / coverage

stores are present in good locations and can be found in all the metros, mini-metros and towns

also operates a large non retail distribution network through its urban wholesale division

caters to millions of customers through over 30,000 dealers

13

BATA’S MARKET SHARE : BY VOLUME

14

Bata India reports excellent growth for second quarter of 2012

` Quarter Ended Quarter Ended Increase % 30th June 2012 30th June 2011 Sales 51084.7 43450.9 18(Rs. in lacs )

Net Profit(Rs. in lacs ) 5265.2 4098.9 29

15

SEGMENTATION:

CUSTOMERS WISE :

MEN’S CATEGORY: segmented with 48% WOMEN’S CATEGORY : segmented with 41%

CHILDREN’S CATEGORY : segmented with 11%

16

targeting:1. STATUS/CLASS WISE :

Adidas, Reebok

Liberty, Reebok

Bata,Liberty,Reebok,Relaxo

Bata, Relaxo

RICH CLASS

UPPER CLASS

LOWER MIDDLE CLASS

LOWER INCOME CLASS

17

MAIN TARGETS IN THE MARKET :

Has already targeted the footwear for entire family

Position itself in Price and Quality

Target market to the RICH CLASS and UPPER CLASS

18

POSITIONING :

To introduce FLAGSHIP stores and unique shopping experience.

International trends – Bata’s new marketing strategy

High brand recall for consumer lead to higher footfalls

19

MARKETING MIX OF FOOTWEAR :

PRODUCT OFFERINGS

20

PRICE :

All Over The Footwear’s : Minimum Rs. 199 – Maximum Rs. 7500

PLACE : BATA Flagship Store – Block D Cannaught Place

PROMOTION :Sales Promotion : Display of new Products at cash Counters

Promotion of Brand Equity : Gift coupons “ Discover New” Campaign

Online Processes : Purchased from various shopping websites free delivery promise

21

liberty

22

23

Liberty India reports excellent growth for second quarter of 2012

` Quarter Ended Quarter Ended 30th June 2012 30th June 2011 Sales 332.54 297.32 (Rs. in lacs )

Net Profit 7.63 10.29(Rs. in lacs )

24

SEGMENTATION :

Supreme Premium Usage

Premium Segment

Middle Segment

Lower Segment

Sports Shoes

Party Wear

Professional

Casual

25

TARGETING :

Already moved to Middle and Upper class segment

Aimed at positioning as a Complete Family Footwear

Focused on the Upper Class as Core Target Market

Shifted attention towards the middle and upper middle class

26

POSITIONING :

Attempt to take its offerings closer to the consumer.

Large format retail outlets, each offering unique experiences to fashion-conscious shoppers

Exclusive Stores to offer the entire Liberty Collection range under a single roof Factory Price Stores should offer affordable products.

27

MARKETING MIX :

PRODUCT (BRANDS) :

28

PRICE :

Price range 250-7999Middle Class

PLACE(DISTRIBUTION):Main store is at Rajori Garden

PROMOTION :

distribution network comprises 150 distributors, 350 exclusive showrooms and more than 6,000 multi-brand outlets.