It is understood that due to the new crown epidemic, the Indian footwear industry has lost export orders worth approximately US$1 billion.
Aqeel Ahmed, chairman of the Indian Leather Export Council, said that according to India’s “Business Standard”, brands and retailers canceled a large number of orders, resulting in the industry losing about US$1 billion in export orders.
He added that factories have been shut down in the past two months, and many forward contracts and credit lines are causing operational difficulties for exporters.
Ahmed said at the “Indian Footwear Industry Alliance” online seminar that the industry may need a government bailout to reduce the goods and services tax (GST), especially Shoes priced above Rs 1,000 will help improve market demand.
He added: Retailers and suppliers alike must take a more targeted and thoughtful approach to storage space and product assortment as more consumers turn to Online Shopping.
ClarkaIndia CEO N Mohan said: India’s footwear consumption has been rising at a compound annual growth rate of 7.6%. He added that per capita consumption of footwear has increased to two pairs of shoes per person per year, which represents a “huge opportunity.” The Indian footwear industry manufactures and sells 1,000 pairs of shoes every day, initially creating 425 jobs from manufacturing to peripheral industries to retail.
He said: The industry needs to focus on the export of non-leather footwear. In terms of consumption, nearly 86% of the world’s shoes fall into this category.
