Indian coaching market is attractive to overseas companies [Getty Images]
You may not have heard of Taiwan’s Hong Fu Industrial Group, but instead look at a busy street where you may see its products.
Hong Fu is the world’s second largest trainer (sports shoes), providing shoes for Nike, Converse, Adidas, Puma and others. It produces about 200 million pairs of sneakers each year.
So, when it invests heavily in the Indian market, the footwear industry has noticed.
Hong Fu is currently building a giant factory in Panapakkam, Tamil Nadu state, southeastern India. When fully operational, at some point in the next three to five years, it will produce 25 million pairs of shoes each year, employing up to 25,000 workers.
The project has Indian partners, including Florence Shoe Company Chairman Aqeel Panaruna: “The international market has been saturated, they [Hong Fu] Looking for a new market,” he explained.
Mr Panaruna added: “India’s non-leather footwear has increased dramatically. It has great potential.”
The Indian government is eager to attract such investment, hoping it will raise standards in the footwear industry and increase exports.
To stimulate the industry, last August, the Bureau of Standards of India (BIS) introduced new quality rules for all shoes sold in India.
For example, according to these standards, the material will have to pass the strength and flexibility test.
“These BIS standards are really about cleaning up the market. We already have too many low-quality products that consumers should get better choices,” said Sandeep Sharma, a journalist and shoe industry expert.
India has a large network of small shoemakers [BBC]
But many people in India can’t afford shoes from well-known brands.
Serving them is a huge and complex network of small shoemakers known as the unorganized department.
It is estimated that their affordable products account for two-thirds of the total footwear market.
Ashok (who retains his full name) sees himself as part of the industry, and in the Agra region of northern India, the shoes make units. He estimates that operations like his entire Agra make 200,000 pairs of shoes a day.
“Many consumers, especially in rural and low-income urban areas, have chosen cheap local footwear over brand choices,” he said.
“Many organized brands are working to expand their retail footprint in semi-urban and rural areas because we cater to them.”
So, how will the new government standards affect manufacturers like Ashok?
“It’s complicated,” Sharma said.
“I think the government is trying to walk a rope here. They can’t just close thousands of small businesses that employ millions of people, it will be economic suicide.
“What I’m seeing is more of a carrot and sticky approach. They’re pushing standards, but also rolling out programs to help small manufacturers upgrade their processes. It’s not about erasing unorganized departments, but gradually bringing them into folding.”
To make the situation even more complicated, the unorganized industry is known for making fake shoes from large brands.
Despite its popularity among Indian shoppers seeking fashion bargaining, the losses that other countries have long been due to come to light.
Zen Barefoot attempts to popularize barefoot shoes in India [Zen Barefoot]
Meanwhile, many new Indian coaching manufacturers are emerging to serve India’s growing middle class.
Sabhib Agrawal is trying to get buyers interested in barefoot footwear – the manufacturer says shoes stay healthy for the feet because they encourage natural or barefoot exercise.
Mr Agrawal said his company, Zen Barefoot, is unusual because most of the Indian footwear industry is not very innovative.
“Seldom people are ready to spend time and invest in new technologies here. Indian manufacturing is a very profitable first market, ROI [return on investment] drive.
“And in many cases, even the government is not ready to implement these industries through grants or tax relief, which makes it very difficult.”
Comet is an Indian company seeking innovation.
It claims to be the first local coaching brand to own the entire production process (from design to manufacturing).
“This level of control allows us to try the materials, introduce innovative contours, and continuously improve comfort and fit based on real feedback,” said founder Utkarsh Gupta.
He said the Comet Shoes are suitable for India’s climate and roads.
“Most local brands rely on ready-made soles on the market, but when we created Comets, we realized that these soles lack quality, durability and grip,” he said.
The change he said is about to change. “There is a high value shift now.”
He added: “Many high-value brands need to move their manufacturing to India. Within 3-5 years, we should have a strong ecosystem to compete in the international sports shoes market.”
Comet shoes handle their own design and production [Comet]
Back to Agra, Ashok hopes that the unorganized sector will not be overlooked in the growth of the Indian footwear industry.
“The government should give us certification and certificates so that our factories will not close. Once we are also included in an organized industry, we will not beat India in the shoe manufacturing industry.”
But Mr. Sharma said change is inevitable.
“The market will definitely change. We will see bigger players getting bigger – they have money to adapt quickly.
“But I don’t think the little guys will go away completely. Smart people will find their niche.”
