A revolution is underway in India’s coach trade | EUROtoday

It’s possible that you haven’t heard of Taiwan’s Hong Fu Industrial Group, however look down on a busy avenue and chances are you’ll properly see its merchandise.

Hong Fu is the world’s second-biggest maker of trainers (sneakers) supplying sneakers to Nike, Converse, Adidas, Puma and plenty of others. It makes round 200 million pairs of sports activities sneakers a 12 months.

So when it made an enormous funding in India’s market, the footwear trade took observe.

Hong Fu is presently constructing an enormous plant in Panapakkam, within the state of Tamil Nadu in south jap India. When absolutely operation, someday within the subsequent three to 5 years, it should make 25 million pairs of sneakers a 12 months, using as many as 25,000 staff.

The challenge has Indian companions, together with Aqeel Panaruna, the chairman of Florence Shoe Company: “The international market is saturated and they [Hong Fu] were looking for a new market,” he explains.

“There is a drastic increase in non-leather footwear in India. It has huge potential,” Mr Panaruna added.

The Indian authorities is eager to draw such funding, hoping it should increase requirements within the footwear trade and enhance exports.

To spur the trade, final August the Bureau of Indian Standards (BIS) launched new high quality guidelines for all sneakers offered in India.

Under these requirements, for instance, supplies must cross exams of energy and suppleness.

“These BIS standards are really about cleaning up the market. We’ve had too many low-quality products flooding in, and consumers deserve better,” says Sandeep Sharma a journalist and footwear trade professional.

But many in India cannot afford sneakers from well-known manufacturers.

Serving them is a big and complex community of small shoe makers, referred to as the unorganised sector.

Their reasonably priced merchandise are estimated to account for two-thirds of the entire footwear market.

Ashok (he withheld his full identify) counts himself as a part of that sector, with shoe making items all throughout the district of Agra in northern India. He estimates that 200,0000 pairs of sneakers are made on a regular basis by operations like his throughout Agra.

“Many consumers, especially in rural and lower-income urban areas, opt for cheaper local footwear instead of branded options,” he says.

“Many organised brands struggle to expand their retail footprint in semi-urban and rural areas because we cater to them.”

So how will the brand new authorities requirements have an effect on makers like Ashok?

“It’s complicated,” says Mr Sharma.

“I think the government is trying to walk a tightrope here. They can’t just shut down thousands of small businesses that employ millions of people – that would be economic suicide.

“What I’m seeing is extra of a carrot-and-stick strategy. They’re pushing for requirements, but additionally rolling out packages to assist small producers improve their processes. It’s not about wiping out the unorganised sector however steadily bringing them into the fold.”

Making the situation more complicated is that the unorganised sector is well-known for making counterfeit shoes of big brands.

While popular among Indian shoppers looking for a stylish bargain, other countries have long-complained about the losses caused.

Meanwhile, a host of new Indian trainer-makers are springing up, to serve India’s growing middle class.

Sabhib Agrawal is trying to get those buyers interested in barefoot footwear – shoes which, their makers say, are healthy for the foot as they encourage natural, or barefoot, movement.

Mr Agrawal says his company, Zen Barefoot, is unusual as much of the Indian footwear industry is not very innovative.

“There are only a few people who find themselves able to take time and put money into new applied sciences right here. Indian manufacturing is a really profit- first market, ROI [return on investment] pushed.

“And in a lot of cases, even the government is not ready to enable these industries through grants or tax relief, which makes it quite difficult.”

Comet is one Indian agency seeking to innovate.

It claims to be the primary homegrown coach model that owns the entire manufacturing course of, from design to manufacturing.

“This level of control allows us to experiment with materials, introduce innovative silhouettes, and continuously refine comfort and fit based on real feedback,” says founder Utkarsh Gupta.

He says the Comet sneakers are tailored to India’s local weather and roads.

“Most homegrown brands rely on off-the-shelf soles from the market, but when we started Comet, we realized that these were lacking in quality, durability, and grip,” he says.

Change is coming to the footwear sector he says. “The shift to high value is now happening.”

“Many high value brands need to move their manufacturing to India. In 3-5 years, we should have a robust ecosystem to compete in the international sneaker market,” he provides.

Back in Agra, Ashok hopes that the unorganised sector is just not uncared for amid the expansion of India’s footwear trade.

“The government should give us accreditation and certificates so our factories don’t close down. Once we too are included in the organised sector no one can beat India in the shoe manufacturing industry.”

But Mr Sharma says change is inevitable.

“The market is definitely going to shift. We’ll see the bigger players getting bigger – they have the money to adapt quickly.

“But I do not suppose the small guys will disappear utterly. The sensible ones will discover their area of interest.”