06 October 2023, Mumbai
The footwear industry is expected to experience moderate growth of 7-8 percent in FY24, down from 28 percent in FY23. This is primarily due to sluggish volume growth and the absence of a substantial increase in the average selling price.
The mass segment of the industry is facing challenges, and demand is unlikely to improve significantly in the near future.
Cautious optimism; However, there is hope for a sales recovery during the festive and wedding seasons in H2 FY24.
Industry players need to closely monitor market trends and adapt their strategies to navigate these challenging times effectively. The footwear sector's performance will depend on various factors, including consumer preferences, economic conditions, and supply chain dynamics.
Strategies for Success in a Challenging Environment:
Focus on premium segments: Industry players can focus on the premium segment, which is expected to continue to perform well.
Innovate and differentiate: Companies can innovate in terms of product design, materials, and manufacturing processes to differentiate themselves from the competition.
Expand distribution channels: Companies can expand their distribution channels to reach a wider customer base. This could include investing in e-commerce, expanding into new markets, and partnering with retailers.
Control costs:
Companies can control their costs to improve profitability. This could involve streamlining operations, negotiating better deals with suppliers, and improving efficiency.
