What is Footwear industry

The footwear sector is a diverse industry which covers a wide variety of materials (textile, plastics, rubber and leather) and products from different types of men's, women's and children's footwear to more specialised products like snowboard boots and protective footwear. This diversity of end products corresponds to a multitude of industrial processes, enterprises and market structures

History - Khadim India Limited

With its foray in footwear retailing in 1993 Khadim's has scripted one of the biggest success stories in the footwear industry. With the birth of independent India began a journey that was to set an example for others to follow. Growing from strength to strength, we have converted every obstacle we encountered into a stepping-stone towards success.

The Company

Today - Khadim India Limited

Khadim s the moniker was retained as a tribute to its previous owner is today the countrys third-largest organized footwear retailer. It is the top player in the east with a mushrooming empire of 606 retail stores across India.

Chairman s Overview
Mr . Satya Prasad Roy Burman, is our Chairman cum Whole Time Director . In 1965, Mr. Roy Burman took over K.M.Khadim & Co., then owned by Mr. K. M. Khadim. Thereafter, the business of Khadims grew all over Eastern and North Eastern India under his able leadership. He has tremendous contribution in making Kolkata Footwear Industry a vibrant and competitive industry at par with other centers of excellence. The Achievements of Khadims would not have been possible without his vision and values. It was he who made the common man to believe that they can actually " Afford a Branded Footwear ".

Business Segments
KHADIM INDIA LTD .

FOOTWEAR DIV .

LARGE FORMAT RETAIL DIV .

RETAIL MANUFACTURI NG

WHOLESALE

APPERALS & FOOTWEAR

GOLD ORNAMENTS & FASHION JEWELLARY GROCER Y

HOME ACCESORI ES COSMETICS

Khadim s Vision
To be in every Indian step.

Khadim s Mission Ensuring customer delight and stakeholders return by delivering quality product at affordable price through extensive retail network.

Background - Khadim India Limited

With a wealth of experience behind us, we have emerged as the marketing leaders and trendsetters in the footwear industry. Right from its inception, Khadim Shoe has been synonymous with quality products available at affordable prices. Our state of art production methods ensure economies of scale and we pass on the benefits to our customers. Hence, they get the best, not only in terms of style and quality, but also in terms of price.
Opened its 1 st Retail Outlet in 1993 . Biggest Third Retailing . player in footwear

Turnover of around 300 crores . Has presence across 187 districts in 21 states . Market leader in its category in East Zone . Are into departmental store and Gold jewellary business also . ISO 9001 : 2000 manufacturing facilities . Inaugurated 500 th retail outlet at

Flow of Materials

Manufacturer

Distribution Center (DC / RDC)

Company Owned Outlet (COO)

Exclusive Branded Outlet (EBO)

Branded Outlet (BO)

Multi Branded Outlet (MBO)

Consumer

Segment Analysis
BRANDED
40% of total Market Growing at a rate of 14-15%. Total Market Size around 4200 crores. About 10% of Branded footwear selling in unorganized segment.

UN BRANDED
60% of total Market Growing at a rate of 6-7%. Total Market Size around 6248 crores.

INDIAN FOOTWEAR INDUSTRY ( 10500 crores .)

ORGANISED
25% of total Market. Growing faster than unorganized Total Market Size around 2500 crores.

UNORGANISED

75% of total Market. Total Market Size around 7948 crore

Overall footwear industry is growing at a rate of 10 % Price per pair increases by 7 . 5 % per annum .

Retail Formats

Company Owned Outlet (COO) Exclusive Branded Outlet (EBO) Branded Outlet (BO) Multi Branded Outlet (MBO)

Shoe Materials
Uppers Leather Synthetics Fabrics Rubber Bottom Leather Rubber Polyvinyl chloride (PVC) Thermoplastic rubber (TPR) Polyurethane (PU) Ethylene Vinyl acetate (EVA) Blown PVC

PROBLEMS FACED BY MULTIBRAND DEALERS

Lack of proper supply of finished product to the multi-brand dealers. KHADIM is not providing all products(LEATHER Products) to MBDS which creates a grievances among sellers. KHADIM provide lower profit margin than other local dealers(22-25%). Single dealer in every area creating a monopoly.

Visual Merchandising Process

Store In-charge should check the display product every morning The front Window Glass should be clean and free of stress cracks and the framing should be in good condition Front display Backdrop (If any) should be clean and it should be fastened properly. Shelves should carry the products according to the header. Sufficient lights should be focused on the products. Store In-charge should check that all the POPs Danglers, Posters are according to the season and theme. All the promotional offers should be clearly visible in the stores. Vinyl Board should be clean and all the lights should be in working condition. Product display should be having a colour blocking.

OVERVIEW OF WHOLESALE MARKET

Wholesalers are not controlled by the company but on the contrary, distributors are controlled by the company. Wholesalers get less discount(2%)

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Strength Weakness Availability of low cost man Poor Investment Climate for power-skilled and unskilled large scale Large domestic consumer base investment. World class institutional Lack of labour policy reforms support Weak physical and enabling Access to relevant technology Infrastructure Largest livestock wealth Inadequate availability of Access to relevant technology indigenous and design capabilities footwear components Opportunities Threats Migration in installed Higher competition from global capacities from brands European countries to Asia on Diminishing margins on account account of of high wages and environmental higher marketing costs issues Frequent change in consumer Emergence of marketing tastes opportunities leading to quicker obsolescence from the advent of foreign brands and Recent Government measure to higher stocks lower Possible environmental issues excise on footwear, expected to address competition from unorganised sector and imports