India’s Footwear Market Set to Reach Rs 1,91,000 Crore/US$ 23 Billion by FY28

Indian Footwear Market to reach Rs 1,91,000 crore in FY28 from Rs. 1,23,000 in the current FY24
Indian Footwear Market to reach US$ 23 Billion by FY28

In a recent report by market research firm 1Lattice, India’s footwear market is slated for a remarkable growth spurt, aiming to hit a colossal market valuation of Rs 1,91,000 crore by the fiscal year 2027-28. This projection underscores an impressive compounded annual growth rate (CAGR) of approximately 13 per cent.

As of the fiscal year 2023-24, the current market size stands at approximately Rs 1,23,500 crore, signaling substantial potential for expansion and robust opportunities for both newcomers and established players within the industry.

Ashish Dhir, Senior Director at 1Lattice, emphasized the pivotal juncture at which the footwear industry finds itself. He cited several influential factors driving this growth, including shifting consumer preferences, rapid technological advancements, increasing demands for sustainability, and the burgeoning resale market.

“The footwear industry stands at a crucial juncture, influenced by shifting consumer preferences, rapid technological advancements, growing sustainability demands, and the emergence of the resale market,” Dhir remarked.

He further elaborated on the projected growth trajectory, stating, “The industry is set for significant growth, with a CAGR of around 13%, and will reach Rs 191,000 crore by FY28. Going forward, there lies tremendous potential for significant growth and expansion for both new players and existing brands.”

However, amidst this promising outlook, the report also sheds light on several challenges hindering the industry’s growth momentum. Counterfeit products, inefficient inventory management, low profit margins, and labor-intensive manufacturing processes are identified as key obstacles for retailers.

Moreover, the report highlights that a significant portion of the footwear market, approximately 70 per cent, remains unorganized. This lack of organization poses challenges for organized retailers in terms of pricing competitiveness and market presence.

Additionally, intense competition from established brands and the influx of new players exacerbate price wars and exert pressure on profit margins, further complicating the landscape for industry stakeholders.

To conclude India’s footwear market is on an upward trajectory, set to achieve substantial growth in the coming years. With a projected valuation of Rs 191,000 crore by FY28 and a compounded annual growth rate of approximately 13 per cent, the industry presents significant opportunities for both new entrants and established players. However, challenges such as counterfeit products, inventory management inefficiencies, and intense competition persist, necessitating strategic measures to navigate and capitalize on the sector’s burgeoning potential.

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