“Indian Footwear Industry”; a Perspective | by: Adesh Gupta | ET Retail

“For the Indian footwear to explode and deliver, favorable government policies, infrastructure, removal of high doses of taxation, infrastructural support in capacity building, skill education and technology up gradation, brand building exercise should be initiated expeditiously no later than now”… 

India is the largest global producer of footwear after China, accounting to approx 13% of world footwear production, which is close to 16 billion pairs. This means that the average consumption globally is about 2-3 pairs/person. India produces approximate 2,000 Million pairs annually in different categories of Footwear. India exports about 115 million pairs, thus nearly 95% of its produce meets its own domestic demand.

With an estimated global population of 7-8 billion, India constitutes a share of approx 15%, which means 1.2 to 1.3 billion feet needs to be covered from heat, cold, injuries, protection etc. Footwear sector is a very significant segment of Leather and Non Leather products in India.

Size of Indian Domestic Footwear Industry is estimated to be worth 20-25,000 crores where leather and non-leather Footwear per capita consumption is estimated to be approx 1.1 pairs. In addition to this, Slippers (Hawai Chappals)segment is close to 10000 crores with per capita consumption are estimated to be 1 pair.

Our immediate Asian Neighbors reflect good per capita consumption between 3-4 pairs, whereas the developed nations such as US, EU, UK etc. enviably enjoy a far better per capita of 7 to 8 pairs.

The challenge for Indian Footwear Industry is lit large but anticipating India to become amongst top 5 Superpowers in 2030, our consumption rates can reach as high as 7-8 Pairs. In such a scenario, India would need to produce anywhere between 8-10 billion pairs consider yearly population growth.

Consolidating mid-term status by 2020, the potential target for Indian Footwear Industry will equalize consumption pattern of 3-4 pairs. With six/seven years to go, we need to scale our production from current level of 2 billion pairs to nearly 5 billion pairs at a CAGR rate of 30-40%.

Favorably for us, India ranks No.1 in milk production & we have the largest resource of cattle population in the world. Additionally, on the strength of raw material available domestically, the large pool of skilled and unskilled manpower, we have all the capability to take this challenge head on.

Given this backdrop of homogeneous potential it would not be an exaggeration to say that Footwear Sector is today, on engine of incremental growth. With global integration of Indian Industry, rapid change in lifestyle, income growth at bottom of the wealth pyramid, Footwear industry is expected to grow leaps and bounds.

Sadly, overall industrial growth remains moderate and is struggling to take off due to lingering on infrastructural constraints. For the Indian footwear to explode and deliver, favorable government policies, infrastructure, removal of high doses of taxation, infrastructural support in capacity building, skill education and technology up gradation, brand building exercise should be initiated expeditiously no later than now.

Six Ways You’re a Workplace Bully Without Even Realizing It

Leading with Trust

Mike RiceBullying has been on primetime display this week as basketball coach Mike Rice was fired from his head coaching job at Rutgers after a leaked practice video showed him pushing, grabbing, throwing balls at players, and cursing them with gay slurs. As a youth sports coach for over 15 years and the father of a 20 year-old college student, I was sickened at Rice’s conduct. There is absolutely no room for that kind of behavior in sports, school, or the workplace. Leaders have to be held to a higher standard.

Bullying is not just verbal or physical intimidation of someone. Especially in the workplace, bullying can manifest itself in many subtle ways. Any behavior you use to intimidate, dominate, embarrass, harass, or purposely make someone feel inferior could be considered bullying.

Here are six subtle ways you may be acting like a workplace bully without even realizing it:

1. You are condescending – When…

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Asia’s Century: Where and How to Win in Asia – BCG, by:Larry Kamener, Ross Love, Jim Minifie & Tom von Oertzen

Asia’s century has arrived. Asia is the world’s largest and fastest-growing regional economy.

By 2030, its real GDP is expected to more than double to US$67 trillion, outstripping GDP projections for Europe and the Americas combined. Its growth stems from three phenomena. First, Asian economies have sustained high investment in infrastructure, housing, industry, and human capital. By 2030, real investment in Asia could rise to as much as US$22 trillion per year. Second, Asian economies are increasingly sophisticated and integrated across the region and the globe; intra-regional trade in Asia has tripled since 2000. Third, rising household incomes  are causing a surge in consumer demand for a broad range of products and services.  Indeed, real consumption may reach US$45 trillion per year by 2030. This enormous growth raises the question, how can companies outside the region capture the Asia opportunity?

In Australia, many companies in the resources sector are already benefiting from the boom fuelled by Asian demand. But given the scale of growth, it is clear that untapped opportunities exist in other sectors, too. To find out where, The Boston Consulting Group conducted in-depth interviews at 13 leading Australian companies that operate in Asia outside the resources sector. Our findings offer valuable insights for companies around the globe that have an eye on the Asia prize.

Asia: Local Differences, Regional Advantages: 

The companies we surveyed demonstrate that there is no pan-Asia approach to entry and growth. Cultures, economics, demographics, and business practices differ widely across the region. For example, Japan’s slow-growth, technology-driven economy contrasts sharply with Vietnam’s high-growth, low-labour-cost economy. Asian consumers are different not only from Australian consumers but also from their peers in neighbouring countries—and even in different provinces within the same country.

Nor is there an approach that all companies can take to capture the Asia opportunity. Each of the Australian companies we surveyed has developed its own strategy, making smart overtures into Asian markets in the last few decades and reaping the rewards. Each faced its own challenges, but some common themes emerged. (See the sidebar below.)

The Australian Success Story

To understand Australia’s success in Asia outside the resources sector, first look at the following three core Australian capabilities:

  • A sophisticated skills and services sector
  •  A geographic advantage in the region
  • The ability to add value to natural assets such as grain and wool

Then consider how those capabilities intersect with the underlying drivers of Asia’s economic transformation:

  • High levels of investment in Asia are creating opportunities for Australian companies to participate in infrastructure development, the financial sector, human-capital investment, and resource development.
  •  The increasing sophistication and integration of Asian economies are creating opportunities for Australian companies to provide professional and technology services to Asian customers and to deploy transport and logistics capabilities to facilitate the linking of Asian economies.
  •  Growing consumer demand in Asia is providing avenues for Australian manufacturers of health care and pharmaceutical products. In addition, some Australian companies are developing new businesses to attract Asian tourists and are servicing the Asian demand for quality food products.
  • These drivers of growth in Asia, together with Australia’s capabilities, translate into nine specific areas, where companies must focus their efforts in order to succeed in Asia.

For all these organizations, Asian businesses are central to overall success—and most are already valuable financial contributors. Without exception, the companies we surveyed believe that entering Asia has strengthened their position and made them more productive and resilient. They have built their Asia businesses through such efforts as developing their staff; building scale; investing in capacity, technology, and intellectual property; and diversifying their cost and revenue bases.

To unlock the secrets to their success, we asked each company about its customer value proposition, how it achieved growth, and the key to its operating model in Asia. From our discussions, we concluded that companies that have succeeded in Asia have tailored their business models to reflect the importance of customization, relationships, and adaptability.