(MENAFN- KNN India) New Delhi, Apr 8 (KNN) India's footwear market is projected to witness an impressive growth trajectory, reaching a staggering market size of Rs 191,000 crore by the fiscal year 2027-28, according to a report by market research firm 1Lattice.
This remarkable growth is attributed to a compounded annual growth rate (CAGR) of approximately 13 per cent.
The current market size for the fiscal year 2023-24 stands at around Rs 123,500 crore, highlighting the substantial room for expansion and the immense potential that lies ahead for both new players and existing brands in the industry.
Ashish Dhir, Senior Director, 1Lattice, commented, "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.”
“The industry is poised for significant growth, with a CAGR of ~13% and will reach Rs 191,000 crore by FY28. Going forward, there lies a tremendous potential for significant growth and expansion for both new players and existing brands," he further added.
The report also acknowledges challenges such as counterfeit products, inefficient inventory management, low margins, and labour-intensive manufacturing processes, which pose as key growth barriers for retailers.
Furthermore, the report states that approximately 70 per cent of the footwear industry remains unorganised, making it difficult for organised retailers to effectively compete in terms of pricing and market presence.
Intense competition with established brands and the entry of new players also leads to price wars and pressure on profit margins.
(KNN Bureau)
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