A comparative analysis of customer perception towards, and expectation from footwear industry

A report submitted towards the partial fulfillment of the requirement of the two years full time Post Graduate Diploma in Management.

SUBMITTED BY: SHAHID EKABAL

Post Graduate Diploma in Management Roll No. : 2K81/M/31 (Session: 2008-10)

ASIA-PACIFIC INSTITUTE OF MANAGEMENT 3, Institutional Area, Jasola, New Delhi 110025

Asia-Pacific Institute of Management

PREFACE
The Footwear Component Industry is a segment of the Leather Industry in India. The Footwear components, which are mainly exported from India, are Leather Shoe Uppers and Leather Unit Soles. The estimated annual production capacity of Leather Shoe Uppers is 112 million pairs The major production centers are Chennai, Ranipet, Ambur in Tamil Nadu, Agra and Delhi. The components industry has enormous opportunity for growth to cater to increasing production of footwear of various types, both for export and domestic market. Indias export of Footwear Components touched US$ 229.49 million in 1999-2000, holding a share of 15% in Indias total export of leather and leather products. Nearly 75% of the total export of footwear components is from the Southern Region, followed by the Northern Region, with a share of 13%. The major markets for Indian footwear components are the U.K., Germany, Italy, the USA, France, and Portugal. Nearly 83% of Indias export of footwear components is to the above countries. In the year 2007-2008, India exported footwear components to the tune of 38 million pairs mainly consisting of leather shoe uppers, leather unit soles and other components, out of which Leather shoe uppers (gents and ladies) alone constituted a share of 84%.

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ACKNOWLEDGEMENT
This journey into project methodology would have been a travesty had it not been for the guidance, assistance, encouragement and moral support from many. It would be unjust if I do not commence this study by acknowledging their efforts. First of all I would like to thank Prof. S.GOSWAMI, Head of department, PGDM (marketing) Asia-Pacific Institute of Management for his able support during the course of my Project. I would also like to thank Mr. Rajiv Sharma, Sales Manager (Lakhani) for his supervision. I am greatly indebted to Mr.S.PAPPU, Trader of footwears, delhi for sharing his invaluable knowledge and vast experience in ensuring that I remained on the right course. His innovative ideas provided me clarity of thoughts essential in completing this study. It has also been my proud privilege and good fortune to work on this study under the able guidance of Prof. Pratima Sharma, Faculty of Asia Pacific Institute of management. Her thoughtful comments and conceptual insights into the subject kept me from floundering in my quest. Despite her busy schedule she spared valuable moments for reviewing and rectifying this work. I also extend my thanks to various department heads for the co-operation and help extended to me during the preparation of the project.

Shahid Ekabal Asia Pacific Institute of Management

Asia-Pacific Institute of Management

TABLE OF CONTENTS
PAGE NO. PREFACE ACKNOWLEDGEMENT CHAPTER-1 1. 2. CHAPTER-2 CHAPTER-3 CHAPTER-4 1. 2. 3. 4. 5. CHAPTER-5 CHAPTER-6 1. 2. CHAPTER-7 CHAPTER-8 INTRODUCTION Introduction of footwear industry Title of the Project REVIEW OF LITERATURE OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY Steps of Report generation Type of Data & Data collection Research Design Data Analysis Techniques Limitations of the study COMPANY PROFILE DATA COLLECTION & ANALYSIS Analysis of Questionnaire through SPSS Market Share Analysis CONCLUSION RECOMMENDATION EXECUTIVE SUMMARY BIBLIOGRAPHY ANNEXTURE

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CHAPTER-1 INTRODUCTION

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1.1 Introduction
The Indian Footwear Industry provides employment opportunities to a total of 1.1 million people, mostly from the weaker sections of the society. Out of this, about 0.2 million are employed in the organized sector, 40% of who are women. Remaining 0.9 million people are engaged in unorganized footwear sector like rural artisans, cottage and household units etc. The Footwear Sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art the footwear sector is a very significant segment of the Leather Industry in India. Footwear is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China, accounting for 14% of global footwear production Of 14.52 billion Pairs. India produces 2065 million pairs of Different Categories of Footwear (Leather Footwear 909 million pairs, Leather Shoe uppers 100 million pairs and Non-leather footwear 1056 million pairs) India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand.The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other Materials. Nearly 75% of Indias Export of Footwear is to the European Countries and the USA. India exports about 115 million pairs. Thus, nearly 95% of its Production goes to meet its own domestic demand. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for The Footwear Sector.

1.2 TITLE of the Project: Comparative analysis of customers perception towards, and expectation from footwear industry.

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CHAPTER 2 REVIEW OF LITERATURE

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Questionnaire
Objective: To find out the customer preferences towards & expectations of Branded Footwears. Dear Respondent, We appreciate your views and time you spent on filling this questionnaire. These responses would be treated as confidential and the information would be used only for the research purpose.

1)

Do you use Branded Footwears? Yes No

2)

Which brand do you prefer? Bata Relaxo Action Morp Liberty Lakhani

Any Other (please specify _____________)

3) Rank the Branded footwears purchased on the basis of

Price Accessibility Appearance Guarantee

4)

Which Type of footwears are you using? Sport Shoes Tennis Casual shoes Gas Hawai Formal Shoes Slippers

Any other (please specify ____________)

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5)

What is the source of information for the Branded New Arrivals? Print Media Family & Friends Electronic Media Internet Any Other (Please specify______________

6) Distribute 100 points to the following brands according to your preference.

1.

Bata Action Liberty Lakhani Relaxo Others (please specify___________)

2. 3. 4. 5. 6.

7) From where do you purchase your footwears?

Proper outlet Any nearby Retailer Please specify__________ modern retail supermarket

8) Does the celebrity endorsement attracts the consumers towards the products?
Yes No

9) Does the sales promotion attracts the consumers towards the products?
Yes No

Name : - .. Age - -------------------------------------------------------Occupation : - . Contact No : - Asia-Pacific Institute of Management 9

Thank You.

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