FOOTWEAR INDUSTRY

The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011.

Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07.

Presently, the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market.

By products, the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of the total footwear retail market.

As footwear retailing in India remain focused on men's shoes, there exists a plethora of opportunities in the exclusive ladies' and kids' footwear segment

The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production, abundant raw material, and has huge consumption market.

The footwear component industry also has enormous opportunity for growth to cater to increasing production of footwear of various types, both for export and domestic market.

LIBERTY SHOES

THE COMPANY: Liberty Shoes Ltd. is the only Indian company that is among the top 5 manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million.

We produce more than 50,000 pairs of footwear a day covering virtually every age group and income category. Products are marketed across the globe through 150 distributors, 350 exclusive showrooms and over 6000 multi-brand outlets, and sold in thousands every day in more than 25 countries including fashion-driven, quality-obsessed nations like France, Italy, and Germany

With 50 years of excellence, today Liberty produces footwear for the entire family and is a trusted name across the world. In the domestic market it is one of the most admired footwear brands and holds the largest market share for leather footwear.

HISTORY: It was the 25th December of 1954 when India was nurturing its growth as a free country, three dreamers in a small town in erstwhile Punjab thought of producing an Indian brand of footwear to make a basic necessity available to their countrymen.

Mr. D P Gupta, Mr. P D Gupta and Mr. R K Bansal allowed their vision to cross every barrier and brought cutting-edge technologies to their own country. Within a short span of time, the name, Liberty became a synonym to quality footwear in the domestic market and this encouraged the company to invest further for enhancing production capacities and to cater to the demands of international markets.

With 50 years of excellence, today Liberty produces footwear for the entire family and is a trusted name across the world. In the domestic market it is one of the most admired footwear brands and holds the largest market share for leather footwear.

CORPORATE PHILOSOPHY: Steeped in a philosophy that has at its core innovation, technology and advancement, we at Liberty, pride ourselves over and above everything else on our healthy and heart-felt respect for the human ethos, which projects itself in the expectancy and excitement with which one greets the arrival of the new combined with a sincere and deep regard for the old, which is appreciative of and adopts at every stage the unique balance between modernization and tradition.

Liberty as a brand is constantly evolving to keep pace with the changing trends, styles, beliefs, and aspirations of people while maintaining the sanctity of certain traditions like workmanship and good value.

CORPORATE SAGA: With people as its leitmotif, Liberty, has for over 50 years, always stayed in touch with the aspirations of every successive generation even as it developed the largest range in the industry catering to every income bracket and age segment. Using the patented ' Humantech ' approach that combines the best of talent with the latest in technology. From the price-conscious, value for money seeking buyer to the trendy, global, price-indifferent customer from the with it all attitude teenager to the conservative seen it all adult, just about everybody today finds a good reason for being in Liberty.

Liberty is today consolidating and expanding its following from the fashion alloys to the sidewalks with styles that compliment the newest most happening trends. And also by turning footwear selling into a byword for personalized service in an ambience of five star comfort. This can be experienced in the hundreds of Liberty five star showrooms and shoe stations in India and abroad.

But beyond that lies another but equally significant involvement.

It's all about making a difference in the lives of thousands of people all over India by ensuring direct and indirect employment. Creating wealth,

sharing prosperity, and generating progress. For Liberty, there can be no greater honour than that and no bigger reason for walking tall.

SOCIAL RESPONSIBILITY: Liberty conducts its business with honesty, integrity and respect for all those who come in contact with it in course of business. Fully appreciative of the fact that its reputation stems from not just quality products and technological innovations but also from the manner of its dealings with customers, suppliers, government officials and all those who are outside the Liberty Group. Utmost importance is also given to ensuring a safe, healthy and non-discriminatory work environment for all Liberty employees where they are free from harassment of any form by supervisors, seniors, co-workers, customers and suppliers. Ethical standards and practices are rigorously adhered to which is why Liberty finds place in the most favored list of respectable brands like Wal-Mart, Reebok, Nike, etc who recognize it as an Equal Opportunity Employer.

BRANDS: Liberty has developed a spectrum of 10 exclusive brands, each of which have been given that extra edge to cater to a specific target group. Today, the new range from Liberty is all about style, design, and comfort. The range imbibes the spirit of fun and is trendy to the core.

Liberty has something for every occasion, for every income bracket & every age group. It pampers its customer by keeping pace with global footwear fashion trends & by walking that extra mile which is why, special care has been taken to make sure that the outlets' design meets the specific needs & taste of the target groups.

Apart from the existing brands, Liberty is busy fashioning the look of the future in footwear. Introducing new designs that redefine styles and comfort associated with the finest in workmanship.

ACTION GROUP

THE COMPANY: The Action group is one of the India's leading business conglomerates. The group commenced its operations as a source of

footwear and its components in domestic and export markets and became the market leader for footwear in India. Driven by business processes that are dynamic, quality that is world class, and an innovative approach to understanding market dynamics, the Group moved its core competence into other diversified fields such as: (API) Chemicals and Plasticizers, (MICROTEK) Computer Monitors and Peripherals, Power Back Up/Inverters, (OKAYA) Batteries, (SUN CITY) Housing Projects and (SRI BALAJI ACTION MEDICAL INSTITUTE) Health Care.

With a vision to cater the needs of nation & meeting the challenges of global markets, and contribute towards country's economy, the Group has embarked on a journey towards a steel and power generation venture.

As it rises to conquer new horizons, its commitment and steadfast drive to excel and achieve, fuels its aspirations. Action Group strives to deliver beyond expectations; and envision a leadership position to be the best in the world.

ACTION SHOES:

“A relentless race against time...,                   The burning passion to win...,                                  A strong desire to set the trends....,

                                                        No wonder, life is all Action...."

Action Shoes was incorporated in the year 1972. The beginning was with a range of footwear made from PVC by the name of  , with a vision to serve the average Indian population at that point of time. In the year 1979, the group ventured into sports shoes market by the brand name of Action and made a revolution.

Today, Action is synonymous with quality footwear for the whole family-ranging from casuals to formals from daily wear to sports wear and from an elegant collection for ladies to a fun range for kids. Action Shoes is the highest shoe producer in the country with more than 100,000 pairs every day and revenues in excess of 100 million dollars. We have a network of more than 50,000 retail outlets all over India to sell our footwear, which are being supported by more than 500 distributors

throughout the country and this ensures that the customer wherever located is served efficiently.

Action has had the best media campaigns which have set a high bench mark. Our brand have been associated with the world known sports celebrities like Kapil Dev, Sachin Tendulkar, Ajay Jadeja and so on is the list of different celebrities of different fields including Indian Cinema like, Amrish Puri, Mahima Chaudry, Apoorva Agnihotri, Aman Talwar, Renuka, Pallavi Joshi etc. 

CORPORATE PHILOSOPHY: Our success has its roots in our commitment to quality and excellence in all spheres of our activities.

They firmly believe that no business venture is successful unless its clientele is satisfied. To achieve this end, we supply high quality goods, while ensuring cost efficiency and timely deliveries, culminating in long terms associations.

Innovation in product development (materials, properties and design) is key in our efforts to offer the best products available in the market and to maintain safety and comfort on the highest level. Application of latest technologies and regular feed-back from our consumers, have led to Quality-Improvement at all levels.

SOCIAL RESPONSIBILITY: Action group endorses the principles of social responsibility and recognizes responsibility to the environment and the community in which they operate.

These principles are central to the values of Action group and guide business activities. At Action group constantly strive to be the best and responsible corporate citizen and extends support to various social organizations. They are able to reach out to a diverse range of families and communities, and they do it in many different ways.

The Action group runs "Lala Muni Lal Mange Charitable Trust" since 1977. Today it is engaged in various kinds of charitable activities. It is running an 80 - bedded hospital at Hissar (Harayana). This hospital has been working since 1979. It also started a day care OPD in 1984 at Daya Basti, Delhi. 

To cater to the needs of pilgrims at Vrindavan, the trust built an Ashram in 1994. This Ashram has large accommodation and a beautiful temple. This Ashram is a boon for the widows living in different parts of Vrindavan. Over 700 widows gather in this Ashram daily. They participate in the Bhajan organized by the Ashram daily and get the ration and other required goods of their daily use. Many a times Lala Mange Ram, who is the chairperson of this trust himself joins this Bhajan Samaroh and gives them moral support.  Now Lala Mange Ram has openened Sri Balaji Action Medical Institute in Delhi. Spread over 6 acres of land and 400 bedded hospital (out of which 100 beds are ICU beds), mission of this trust is to set up an institute for providing world-class integrated healthcare facilities to all sections of the society with a humanitarian touch.

BRANDS: The brand ' ACTION ' has been able to maintain its aura of exclusivity and distinction since its first pair of non-formal sporty shoes hit the stores. It continues to be the most preferred brand in India.

With the growing popularity, proliferation comes along. The company has elaborated the brand concept by launching a variety of sub-brands and shoes to suit different occasions. The new products were coined with attractive catchword, thus helping the customers finding the right shoes.

CORPORATE PORFOLIO: For more than 30 years Action has been manufacturing top quality footwear and its components for the domestic and export markets.

Having pioneered the development of footwear range from casuals to formals, from daily wear to sports wear and from elegant collection for ladies to fun range for kids.

Action now operates a specialized technology and research driven 'CORPORATE SALES' division which caters to the variant needs of institutional segments.

Corporate division of Action shoes manufactures a full range of shoes i.e. (Safety boots) with Steel toe and Fibre toe-cap for Industrial workers, comfort, sturdy and Heat/Cold resistance shoes for Military, Navy & Police, oil resistant and anti skid shoes for working in professional Kitchens and water resistant and anti- fungal shoes for Miners. 

It is the policy of Corporate Division to listen to customers’ needs & specifications assess the communication points at both the ends, develop a detailed but concise survey instrument, gather customer perspectives and then finally develop and deliver high quality products and services meeting the customer requirements from time to time.

R&D department with well-qualified professionals in diverse streams who constantly research and develop new products. Their long-term experience, services and quality are evident in every product we create to perfection. They are able to manufacture products as per client's specifications with the Shortest Lead Time and the Highest Quality.

Their clientele includes… Asian Paints, Asashi India Glass, Jet Airways, Hindalco Industries, Maruti Udyog Ltd, Samsung India Ltd, Indian Army, Indian Air Force, Delhi University, Park Royal, Parle Biscuits, Mother Diary, Hyatt Regency, Le- Meridian and many more.

BATA

THE COMPANY: Bata is one of the world's leading footwear retailers and manufacturers with operations across 5 continents managed by 3 regional meaningful business units (MBUs). The MBU approach provides quality resources and support in key areas to the companies operating in similar markets such as product development, sourcing or marketing support. Each MBU is entrepreneurial in nature, and can quickly adapt to changes in the market place and seize potential growth opportunities.

Bata's strength lies in its worldwide presence. While local companies are self-governing, each one benefits from its link to the international organization for back-office systems, product innovations and sourcing.

Although Bata operates in a wide variety of markets, climates and buying power Bata companies share the same leadership points. Two important ones are product concept development and constant improvement of business processes in order to offer customers great value and the best possible service.

CORPORATE SOCIAL RESPONSIBILITY: Bata is one of the world's leading footwear retailers with consumers, employees, business partners and shareholders in more than 70 countries. In keeping with the responsibilities that a world-wide organization holds, international and local social concerns are intrinsic parts of the Bata culture. Our historical presence in many developing countries provides us with a deep understanding of the local cultures and their needs and enables us to tackle global concerns, with local initiatives – in close partnership with specialists in the field.Children, their wealth fare and their future are a main focus of our work. Following the belief that our business has a role to play in improving lives, the Bata Children’s Program Foundation has been established with the mission of creating a brighter future for the children of the communities in which we operate. Currently, there are more than 30 initiatives across the world. By respecting the integrity of local cultures and refocusing all our initiatives into one focus area: children, we can work in close collaboration with our local sustainability team to meet the needs of the communities in which we work.

THE PRESENT:

Serves 1 million customers per day

Employs more than 40,000 people

Operates 5000 retail stores

Manages a retail presence in over 70 countries

Runs 33 production facilities across 22 countries

BATA’S OFFERING:

Hush Puppies Bubblegummers Scholl North Star Power Maire Claire

MARKETING STRATEGY OF LIBERTY SHOES:

Liberty has an extensive distribution channel which has enabled them to develop a firm grip over the market.

02 Overseas Offices 14 Branch Offices 20 Overseas Showrooms 300 Liberty Exclusive Distributors 375 Retail Stores (10 outside India) The company is broadening their product range from need based

shoes to lifestyle shoes. Liberty Shoes is increasing their presence in the high end market

through concept stores called "Revolutions”. Revolutions’ strategy is to target women and children to increase

footfalls. Apart from having presence in malls, Revolutions is also expanding

its reach through the Shop in Shop concept. In September 2005, Liberty Shoes and Pantaloon Retail entered in

to a joint venture for the business of footwear retailing.

Another significant market that Liberty Shoes addresses is the institutional market. They manufacture safety shoes for industrial workers. 9% of their revenues came from this segment

‘Sapne Hue Apne’ the entire look of the campaign was thoughtfully stylized to strike a chord with the up market, fashion centric.

SALES THROUGH DIFFERENT SEGMENTS OF DISTRIBUTION CHANNELS:

PRICING STRETEGY OF LIBERTY:

Liberty’s strategy is to scale up in all directions, i.e.to widen customer base by introducing products for all categories of customers, through different channels of distribution.

Liberty wants to create foothold in the domestic and export market. With the implementation of VAT at a flat rate of 12%, the company

has taken a long term view of their pricing strategy which has been revised from the April 2005.

Liberty's strategy of introducing various price points to cater to different income groups will help them in garnering a greater market share.

Moving up the value chain by introducing brands to cater to higher income groups as well as putting up retail shops in malls will auger well for the company.

This strategy will help establish their brands as well as increase margins.

Another interesting aspect is the company's change in focus from men's shoes to concentrating on shoes for the entire family.

Scaling in all Directions:

MARKETING STRATEGY OF ACTION SHOES:

Action is headquartered in Delhi.

Quality shoes for the whole family-ranging from casuals to formals.

Most Action offerings are in the mid - range price segments.

COMPLETE FAMILY FOOTWEAR

A backward integration strategy.

A forward integration strategy.

Quality commitment.

Manufacturing excellence.

Quality people.

Quality customers.

Social responsibility.

"Lala Muni Lal Mange Charitable Trust" since 1977. Today it is

engaged in various kinds of charitable activities.

Marketing strategy.

Wide consumer base.

Wide price products.

BATA INDIA LIMITED:

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.

Bata India is the largest company for the Bata Shoe Organization in terms of sales pairs and the second largest in terms of revenues.

Bata India Limited is the largest footwear retailer in India.

Bata India has more than 1250 stores across the Country.

BATA : WRONG TARGET

In the early 1990s, Bata decided to embrace the high-end segments of the Indian shoe market as a part of its target market.

The segment constituted a mere 5 to 10 per cent of the footwear market in India.

This segment was not sizable for a company like Bata and the segment did not gel with Bata’s distinctive competence.

The top end of the market suddenly became the main focus of the company and it forgot its bread-and-butter shoes that had given the company its identity.

The year 1995 saw the company running a loss of Rs. 42 crores.

After learning the lesson the hard way, Bata did an about-turn from its adventure with high-end segment and returned to the mass segment.

MARKETING STRATEGY OF BATA:

Bata is reinventing itself and has introduced the concept of flagship stores to provide complete and unique shopping experience at par with their stores abroad.

International trends, relaxed ambience, great products, and courteous staff at the new-look Flagship store are all a part of Bata’s new marketing strategy.

Reposition brand 'Bata' - High brand recall for consumer lead to higher footfalls and better conversions

Target new market (ladies and kids) - Filling the missing 45% pie of footwear market

Improving shoe line - Launching international brands, focus on style will attract new young customer class.

95 Paise Price Tags:

It was a strategy to begin sales talk with buyers curious about price like Rs 299.95.

It would automatically create interest in the product. And from there salesmen can start their talk.

The Bata price also had a psychological impact on the prospective buyers as it fell short of an amount that might have looked like a high price.

The price tag was devised to communicate to customers that Bata values even their five paise.

BATA OVERVIEW:

Market segment

low to medium priced footwear for the common person across the globe

Local Strategy

Bata runs semi-autonomous companies targeted at the low to medium end of the scale.

Marketing Approach

Bata clusters countries geographically into groups; the expatriate would build regional specialization & training activities would be more relevant on a regional basis for similar counties

International strategy

Bata follows a multi domestic strategy. It stands for low integration across country units & high local responsiveness

COMPANIES TARGETING THE CONSUMERS BASED ON INCOME PER ANNUM:

Rich Class: PUMA, NIKE, ADIDAS

Upper Middle Class: ACTION, NIKE, LIBERTY, ADIDAS

Lower Middle Class: BATA, ACTION, LIBERTY, RELEXO,

NIKE, ADIDAS

Lower Income Class: BATA, ACTION, RELEXO

COMPARISON OF THE COMPANIES:

COMPANIES BATA LIBERTY ACTION

BASIS OF COMPARISONBarrier to entry Absent Absent AbsentBargaining Power of Buyers

High High High

Bargaining Power of Supplier

High High High

Threats of substitutes

High High High

Rivalry among existing Competitors

High High High