MBA Aspirants are expected to know markets of established Brands. This helps them to understand industry for which they are dreaming to join in future. Today, you will read on Sports shoe industry in India
Indians are becoming health conscious, and this is evident in the number of gymnasiums and sports centres that have mushroomed in the last one decade. The media is partly responsible for spreading the fever of health consciousness, and it has benefitted the Indian society.
One sector that has benefitted the most from the growing health consciousness of Indians is the sports shoe industry. One cannot take part in sports related activities without proper footwear and this has pulled up the revenue of sports shoe companies greatly.
The sportswear industry in India is valued at between Rs 3,500 crores and Rs 5,000 crores. And the unchallenged market leader in sports shoes is Reebok. In fact, Reebok holds a 46% market share in India and India is the only country in which Reebok’s brand value has surpassed that of both Nike and Adidas. In fact, Nike has a mere 11% market share.
The top four sporting brands in India are Reebok, Adidas, Nike, and Puma. There are other brands that manufacture sports shoes such as Bata, Liberty, Woodland, Fila, and Lotto, but their brand value is not as strong as the four leading brands mentioned earlier.
India’s footwear segment in general caters to men, women and kids, and men’s footwear comprises 55% of the entire industry, followed by women’s footwear at 30% and kids’ footwear at 15%.
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Studies have shown that there is not much brand dilution in the sports shoe industry but there is brand confusion among consumers. The average consumer, who is not extremely knowledgeable about shoe technology, finds it difficult to distinguish between shoes produced by Nike, Adidas and Reebok.
In fact, Puma is the only brand that has managed to carve out a space for itself as a fashion brand too. In fact, the design of Puma shoes is slightly different from the rest – Puma shoes are sleek.
In India, people do not just wear sports shoes while taking part in sporting activities; they wear them with casual attire too, which is why Reebok has managed to garner a huge market share. Reebok shoes are designed in such a way that they can be worn with casual attire too – the designs and colors are not as flashy as other brands.
Another reason why Reebok has made its way into so many Indian households is because Reebok shoes are relatively more affordable than the other reputed brands. Indians, especially those in the middle class, are conscious about the price.
Given such market conditions, Reebok has an advantage over other brands because it has a wide price range for shoes, from Rs 1,200 to Rs 7,000. This way, consumers have more options while choosing Reebok shoes as opposed to Nike, Puma or Adidas shoes, whose prices start at a much higher level.
The sports shoe industry in India is definitely going to grow, given people’s awareness and how conscious they are about their health. One of the selling propositions of sports shoe brands in most parts of the world is the technology behind the shoe.
At present, the average Indian consumer is not as aware of these technologies as he should be, which is why brands such as Nike, which develops shoes with unique technologies, are not very popular in India. However, this will soon change with greater publicity and awareness.