Footwear. Sampl. Essential sourcing intelligence. India supplier profiles. Product gallery. Industry trends.
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1 Footwear Essential sourcing intelligence May 2012 US$150 India supplier profiles Detailed profiles of 24 suppliers with verified manufacturing and export credentials Product gallery Specifications and full-color images of 154 top-selling export products ranging from women s sandals to sneakers Industry trends Coverage of current issues, plus insights into supply centers, products and pricing Sampl DELHI Uttar Pradesh INDIA Sri Lanka China Nepal ge Global Sources is offering this series of Developing Country Sourcing Reports as part of its corporate social responsibility undertakings in partnership with the Hinrich Foundation, a philanthropic development organization whose mission is promoting sustainable global trade. The aim is to give international buyers new sourcing opportunities from experienced exporters, generating orders and creating lasting jobs in developing economies.
2 Executive Summary Supplier capability in India FOOTWEAR Exports of footwear from India Key findings remain strong in light of the generally improving global economy and the 1. Almost all suppliers profiled in this emergence of new overseas markets. report plan to push up quotes These developments are expected to within the next six months in an solidify further the country s distinction effort to maintain viability. Increasing as the world s second-biggest producer expenditure on raw leather, textiles, in the line. labor and electricity are adversely The US and the Middle East are affecting profitability, prompting the key destinations driving demand. manufacturers to adjust prices Short-term forecasts indicate the EU to upward at least over the short-term. continue being the industry s largest 2. A number of educational and foreign market in spite of the financial support institutes provide problems faced by a number of assistance to the industry in economies in the region. helping improve their design The sector boasts a number technological, management and of strengths that have aided in its marketing capability. Some of them development. The most important of are operated by the government, these is the domestic availability of while others are run by private and raw leather, which is itself one of India s nonprofit groups. leading manufacturing sectors. Robust 3. Competition on with other sourcing OEM capability attracts numerous centers is the most critical global brands to partner with local hurdle facing the sector. China enterprises. and Bangladesh are the major Objective, methodology ology scopeple & scope This India Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise. The Developing Country Sourcing Report series is part of Global Sources corporate social responsibility initiatives. It is offered in conjunction with the Hinrich Foundation, whose mission is promoting sustainable global trade. One of its objectives is to help create jobs in developing Asia through export promotion. To produce this report, large, midsize and emerging manufacturers, all with substantial export experience, were surveyed. The selection of suppliers is designed to reflect the composition of the industry in India in terms of geographic location, materials used and range of products offered. Sample For in-depth profiles, our researchers visited the facilities of each company and interviewed senior executives who discussed their recent performance and provided forecasts for the next 12 months. All other makers in this report were either visited or contacted by phone. In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including a breakdown of exports by product type and market. Suppliers also participated in a survey designed to provide insight into the industry. This report covers different types of footwear available in India, including casual, formal, sports and children s models. Individual segments are classified as distinct product categories, each of which has its own price guide that describes features of low-end, midrange challengers since both can generally offer lower prices. The cost and availability of manpower, and inadequate power supply are other issues confronting the industry. 4. Exporters are based in various locations throughout the country, with the most significant being Delhi, and the states of Tamil Nadu and Uttar Pradesh. These areas have specially designated industrial towns where manufacturing is concentrated, raw materials are readily obtainable, and infrastructure and logistics are stable. 5. Casual footwear accounts for the largest share of exports, contributing close to two-fifths to turnover. Taking materials into consideration, leather footwear is the dominant product category as it represents more than 90 percent of exports. In this report 15 in-depth company profiles 9 short company profiles 154 top-selling export products Supplier demographics Supplier survey Industry statistics and charts and high-end models. The Industry Overview section discusses key issues affecting export manufacturers. It provides insight on the composition of the industry and elaborates on the important supply centers within India. The Products & Prices section details the features and price ranges of footwear. It also examines the design and manufacturing processes, main materials used, and sourcing centers where components are procured. 3
3 Contents CONTENTS INDUSTRY OVERVIEW...9 Supplier summary Export statistics Products & prices Production & export statistics Price guides Supplier survey Export prices Export sales Export markets Major challenges R&D focus SUPPLIER PROFILES Supplier matrix Raw materials & exports Supplier profiles PRODUCT GALLERY Top-selling export products CONTACT DETAILS Sample page only Copyright 2012 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited. Published by Publishers Representatives Limited (on behalf of Trade Media Limited) 4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box SMB, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong ISBN Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, Contents ), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof ). All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affiliates, and our affiliates respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof ) which infringe on any intellectual property or other rights of a third party. 4 India Sourcing Reports
4 Industry Overview Industry Overview The footwear industry in India exhibits strong export performance as it continues to recover from the global economic crisis and shifts focus to new markets. Foreign revenue has been consistently growing over most of the past half-decade, and is expected to keep doing so within the next few years. The country is the second-largest producer of footwear in the world after China, and is among the 15 biggest exporters globally. In the first quarter of fiscal year , turnover increased roughly 12 percent compared with the same period the preceding year. According to the Department of Commerce, this improvement was on top of a 15 percent surge recorded the year before. Revitalized demand from the US as a result of better economic conditions is seen as a key factor behind this development. Footwear exports to that country in exceeded $139 million, a 15 percent ent growth over the previous fiscal year. In addition, expanding sales to emerging destinations s such as the Middle East are helping drive up revenue. The UAE and Saudi Arabia are the significant markets there, taking up almost 80 percent of Exports Srts Value $ million shipments to the region. Accounting for nearly four-fifths of turnover, the EU is the industry s largest market abroad. The sector s outlook for the association, however, is not as bright as those for the US and the Middle East. With several of its members at risk or already suffering from the sovereign debt crisis, the bloc is expected to post flat or slightly lower inbound shipments this year. A number of individual economies, nevertheless, are seen to remain registering strong demand. They include the UK, Germany, Italy and France, which are among the five largest overseas destinations. An estimated 90 percent of orders are taken up by repeat eat clients. The rest is accounted for by new customers, most of which are from emerging markets. Competitive advantages The footwear sector benefits from a number of strengths that have helped it grow over the years. India boasts a strong raw leather industry, which provides suppliers easy access to hides and skins in a variety of grades. Composed of more than 2,000 tanneries employing roughly 2.5 million people, the domestic leather segment is the seventh-largest export revenue Footwear types 2010 Supplier summary Suppliers surveyed 24 Export sales $212.2mn Export ratio 30% Capacity utilized 84% Full-time employees 9,906 Data: All surveyed suppliers earner for the country. The footwear sector enjoys strong OEM capability, which has played a key role in its development as an important subcontracting center for several well-known brands. These include Nike, Reebok, Clarks, Ecco, Deichmann, Florsheim, Elefanten, Hasley and Salamander. In addition, several global retail chains that have an in-house line of fashion products purchase from India to complement a China-plus-one sourcing strategy. Several support organizations provide the sector vital information concerning various aspects of footwear and leather manufacture. The Footwear Design and Development Institute is a governmentoperated educational establishment that offers professional programs on shoe design and technology, fashion and visual merchandising, and CAD/ CAM design. The National Institute of Fashion Technology has courses Sample page only Markets ,280 1,477 Rubber & plastic footwear 3% Fabric footwear 3% Other footwear 1% Non-EU 1% Asia- Pacific 3% Middle East 4% Africa 1% Others North 2% America 11% * *April to June Includes HS codes 6402 to 6405 Fiscal year begins April and ends March Source: Department of Commerce Export Import Data Bank Leather footwear 93% Source: International Trade Centre EU 78% 9
5 Supplier Profiles SUPPLIER MATRIX * Company In-depth profile Year established Head office location Ownership Factory location(s) Full-time employees Part-time employees ISO certified * Anaemica 2000 Daryaganj Bruno Manetti 2001 Gurgaon (Haryana) CNB 2003 Mumbai (Maharashtra) Fancy Tex 1989 Gwalior (Madhya Pradesh) * Homera 1987 Kanpur *Instyle 2003 Chennai (Tamil Nadu) * J.D Hyderabad (Andhra Pradesh) J.J Noida (Uttar tar Pradesh) * J.K Mumbai (Maharasthra) * K.K Agra Kalpana Kraft 2006 Mumbai (Maharashtra) Leather Choice 2000 Chennai (Tamil Nadu) Daryaganj Agra Mumbai (Maharashtra) Gwalior (Madhya Pradesh) Kanpur Chennai (Tamil Nadu) Hyderabad (Andhra Pradesh) Noida Mumbai (Maharasthra) Agra Mumbai (Maharashtra) Chennai (Tamil Nadu) Pending Pending Pending Pending 600 1,000 No Pending Pending Pending No Sample ep page eo only Sa No * Malika 1991 Savitri Marg Greater Noida Pending *Maven 2008 Noida Noida Pending * Premier Foot 2009 Noida Noida Pending *Prime 1989 Agra Agra Pending Ramesh 2004 Karol Bagh Karol Bagh No 18 India Sourcing Reports
6 Supplier Profiles Anaemica Art Centre INQUIRE NOW Anaemica was established in It manufactures casual and formal shoes. Aside from footwear, the supplier produces leather accessories, costume jewelry and home furnishings. The main overseas market is the EU, which accounts for 60 percent of shipments. Germany, Norway, Denmark and Sweden are the important destinations there. North America absorbs almost one-third of shipments. The rest is sent to the Asia-Pacific region and the Middle East. The majority of orders are made under ODM basis. Anaemica focuses on women s sandals. Quotes range from $5 to $20, depending on the materials used and complexity. The company has three designers who release more than 200 models annually. Samples are available within 15 days. Cowhide, goat- and sheepskin, and suede are normally used for uppers and insoles. All are locally sourced. Company facts Year established 2000 Head office location Daryaganj Ownership Factory location(s) Daryaganj Full-time employees 23 Part-time time employees 40 ISO certified Pending Total annual sales (all products) $1,500,000 Sales & output: Footwear mp Annual sales $1,000,000 Share of total sales 67% Annual export sales $1,000,000 Total monthly capacity 35,000 pairs Average monthly output 30,000 pairs Capacity utilized 86% Average monthly exports 29,000 pairs Export ratio 97% Anaemica operates a 2,500sqm facility in Delhi s Daryaganj subdivision. The factory is equipped with machines purchased domestically and from Italy. All production steps, including cutting, stitching, pasting, assembly, polishing, finishing and packing, are done inhouse. There are 23 full-time employees. An additional 40 workers are hired during the peak season, which is from November to July. Five QC specialists are assigned to check items during each manufacturing stage. The monthly capacity is 35,000 pairs. On average, the enterprise creates 30,000 pairs every month. Cartons with silica gel are normally used as packaging. The minimum order requirement is 300 pairs. Delivery time is 45 to 60 days. Anaemica joins the annual Expo Riva Schuh trade show in Italy and the India International Leather Fair in Delhi. The company is associated with the Council for Leather Exports. e Capability Materials used Leather (genuine/synthetic) Fabric Rubber Plastic Wood & cork Other natural materials Contact details No Exports by product Casual shoes 60% Formal shoes 40% Sports shoes Children s shoes on y Exports by market North America 30% EU 60% Europe (non-eu) Asia-Pacific 7% Middle East 3% Other Business contact GUPTA Mayank Phone (91-11) Fax (91-11) anaemica@airtelmail.in info@handicraftsindian.com URL Address 2/30 Ansari Road, Daryaganj, Delhi, India 24 India Sourcing Reports
7 Supplier Profiles Popular export models Model: IMG5771 Price: $10.20 Model: IMG5773 Price: $9.30 Model: IMG5775 MOQ: 300 pairs Packaging: Carton with silica gel Delivery: 45 days Price: $9.30 ple page e only Model: IMG5777 Price: $9 Model: IMG5779 Price: $9.10 Model: IMG5781 Price: $
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