Earlier footwear was a necessity, but that’s not the case now. Every sector has changed significantly after the COVID-19 lockdown. The demand for athleisure has been booming, and millennial parents support the idea because health is everything now. Since the footwear market is now divided into athletic and non-athletic segments, there is a hyped demand for the former. Also, e-commerce platforms have made it more accessible and affordable for the youth to purchase footwear online. Despite supply-chain challenges and consistent pressure on the margins of footwear makers, this market is expected to grow at 12.83% annually between 2021 and 2028.
Also, walking out of the pandemic has given the fashion industry a direct road to growth. Changing lifestyles and preferences has made these brands, including footwear, a run for success. There’s a clear shift in the preferences, which will contour the industry in the coming months.
Should This Concern You?
The Indian footwear sector has been growing at 15% per annum in terms of revenue over the past few years. So it can be assumed that this space will only grow from here. However, it’s advised to be mindful of the stocks you invest in. The top market players like Bata and Relaxo have made it big on the investors’ list, but their valuations are also costly. Footwear stocks can amp up portfolios, but it’s equally important to select ‘the one’ stock, or else all your profits can go for a toss.
What Lies Ahead?
The Indian government has given a 100% FDI automatic route to this space, making it highly competitive. Footwear makers that are affordable, trendy and focus on quality can grab the market share. It can be said that this sector is rooting for higher strides.