Indian Footwear Industry. 2 nd largest footwear producer in world The size of Indian footwear market is around 26300 crores and expected to reach Rs . 38700 crores with a CAGR of 15% by 2015 Indian footwear retail is mainly an unorganized market with around 60% market share
Relaxo footwear has the following differentiating advantage over the competition:
India is the world's second largest footwear producing country
Per capita footwear consumption is 2.5 pairs per year in 2012
Size of Indian footwear market is around 26300 crores and expected to reach 38700 crores with a CAGR of 15% by 2015
At present, Men's contribute around 60% of footwear market against Women's share of 30%.
Indian footwear retail is mainly an unorganized market with around 60% market share.
The size of the organised sector which was around 7500 crores in 2010 increased to 10000 crores in 2011, growing at a CAGR of 30% every year since 2008.
The market is expected to reach 17500 crores by 2015 growing at a CAGR of 19% p.a.
Amounts in Rs. crore
Relaxo has already targeted the urban segment with its SPARX brand of sandals
Points of difference: performance(durability) high strength, use in any weather and cheap
Target the semi-urban markets
Segmentation and Targeting
Over 50% of the retail shops have managed to break even while the remaining continues to make losses.