From Shoes to Sustainability: The Indian Footwear Market's Franchise Potential

According to the Economic Survey 2023-24, the current value of the Indian footwear market is $26 billion, which is expected to grow to $90 billion by 2030. A report by 1lattice suggests that the market could reach Rs 190.9 thousand crores by FY28, growing at a CAGR of 11% between FY25 and FY28. With a burgeoning middle class, increasing urbanization, and a shift in consumer preferences towards comfort, style, and sustainability, the market is witnessing significant transformation. From traditional footwear to high-end fashion brands, the Indian footwear market is evolving rapidly, driven by changing lifestyle patterns, technological advancements, and rising consumer awareness.

It is expected to experience significant growth in 2025 and franchising is likely to play a critical role in its expansion:

1. Growing Middle-Class Population: India’s middle class is expanding, with increasing disposable income, making branded footwear more accessible and attractive to consumers. This is expected to drive demand for footwear, creating opportunities for franchised footwear brands to capture a larger market share. “The rising numbers and the disposable income of the middle class will drive growth in the Indian Footwear market and this from the current context looks promising. These will also improve the per capita consumption and take it to the global average of 3 from the current 1.9 which indicates a huge scope for growth in the coming years,” opines Anupam Bansal, Director, Liberty shoes.

2. Brand Consciousness and Urbanization: The rise in brand consciousness, especially among younger consumers, is pushing demand for premium and branded footwear. Urbanization continues to increase, leading to a higher concentration of potential customers in metro cities and tier-2 cities. Franchising offers an efficient model for brands to tap into these diverse locations.

3. Franchising as an Attractive Model: Franchising allows footwear brands to expand quickly with lower capital investment, which is attractive to both investors and brands. The local knowledge and entrepreneurial spirit of franchisees can also contribute to the brand's success in varied markets across India. “India is an extremely diverse, continent sized market and any international or national brand looking to grow beyond the metros has to seek local expertise and the most efficient way to do this is through franchising. This in turn will ensure the rapid growth of footwear franchising and we expect it to grow to 3X of the current numbers over the next five years”, says Sandip Baksi, COO, AstorMueller India.

4. Digital Integration and E-Commerce Growth: With e-commerce on the rise, footwear franchises are also shifting to an omnichannel model, combining physical stores with online platforms. This hybrid approach is helping businesses thrive in both metros and interiors, where online shopping is becoming more prevalent. “The online market has increased the competitive set and hence the quality of offering among the brands. The entry of large multiproduct, multi brand retailing stores has kept the cost of sale in check for the brands. The per capita consumption of footwear in India is just 1.9 and the growing Indian middle class and the increasing disposable income make for a very growth oriented domestic market”, opines Anupam Bansal, Director, Liberty.

5. Demand for Value for Money and Customization

• The demand for affordable yet stylish footwear, along with increasing consumer preference for customized and personalized designs, will likely lead to innovation in product offerings. Franchises that can adapt to these trends by offering unique collections at competitive prices will fare well. “There is a fashionable shift amongst consumers in India towards a non-formal way of dressing up. The non-formal way of dressing is trending with stylish casual wear that is shooting the non- leather footwear sales. Also, athleisure footwear, gender neutral casual footwear and speciality sports footwear are trending and we collaborate with the consumer desires to pursue a health-conscious lifestyle. There is also a growing attraction towards more serious sports like Marathons, Soccer, Cricket and many manufacturers are developing low price products that can be available to Tier 1 & Tier 2 towns with the help of online market places,” explains Anupam Bansal.

6. Government Support and Ease of Doing Business

• The "Make in India" initiative of the government may result in more locally produced footwear, benefiting franchises with reduced production costs.

Walking into 2025

In 2025, franchising will likely be a significant driver of growth in India’s footwear market, particularly with the increasing demand for branded, affordable and innovative products. Brands, both local and international, are responding to changing demands and trends by offering innovative products and creating personalized experiences to cater to a wide range of consumers. “Immersive experience for customers by allowing them an interaction with the product without making a purchase should become a differentiator amongst franchisees. Superior Technology and AI will drive the preference for customers and will find acceptance in product ordering and customer servicing”, concludes Anupam Bansal.