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Technological journalist
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The market for trainers from India is attractive for companies abroad
It is likely that you have not heard of the Hong Fu industrial group in Taiwan, but look at a lively street and you may well see its products.
Hong Fu is the second largest world manufacturer of coaches (sneakers) providing shoes to Nike, Converse, Adidas, Puma and many others. It makes around 200 million pairs of sports shoes per year.
So when this made a big investment in the India market, the shoe industry took note.
Hong Fu is currently building a giant factory in Panapakkam, in the state of Tamil Nadu in south-eastern India. When you fully operate, over the next three to five years, it will make 25 million pairs of shoes per year, employing up to 25,000 workers.
The project has Indian partners, including Aqeel Panaruna, president of Florence Shoe Company: “The international market is saturated and they (Hong Fu) were looking for a new market,” he explains.
“There is a drastic increase in leather shoes in India. It has enormous potential,” added Mr. Panaruna.
The Indian government would like to attract such investments, hoping that this will increase the standards of the shoe industry and stimulate exports.
To stimulate industry, the Bureau of Indian Standards (BIS) has introduced new quality rules for all shoes sold in India.
According to these standards, for example, the materials will have to pass resistance and flexibility tests.
“These bis standards are really intended to clean the market. We have had too many poor quality products that flood and consumers are worth better,” said Sandeep Sharma, a journalist and an expert in the shoe industry.
India has a large network of shoemakers on a small scale
But many in India cannot afford well -known brands shoes.
Serving them is a huge and complex network of small shoe manufacturers, known as the non -organized sector.
It is estimated that their affordable products represent two thirds of the total shoes market.
Ashok (he held his full name) being part of this sector, with shoe units throughout the district of AGRA in the north of India. He estimates that 200,000 pairs of shoes are manufactured every day by operations like his through AGRA.
“Many consumers, especially in rural and low-income urban areas, opt for cheaper local shoes instead of brand options,” he said.
“Many organized brands find it difficult to extend their retail footprint in semi-urban and rural areas because we answer them.”
So how will new government standards allocate creators like Ashok?
“It’s complicated,” said Sharma.
“I think the government is trying to walk a tightrope here. They cannot just close thousands of small businesses that employ millions of people – it would be economic suicide.
“What I see is more a carrot and stick approach. They put pressure for standards, but also deployed programs to help small manufacturers upgrade their processes. It is not a question of wiping the non -organized sector but of gradually bringing them into the fold.”
Making the situation more complicated is that the non -organized sector is well known for making counterfeit shoes of major brands.
Although popular among Indian buyers looking for a good deal, other countries have long complained about the losses caused.
Zen barefoot
Zen Barefoot tries to popularize barefoot shoes in India
Meanwhile, a crowd of new Indian coaches springs to serve the growth middle class in India.
Sabhib Agrawal tries to take an interest in bare feet buyers – shoes that say their manufacturers, are healthy for the foot because they encourage natural movement or bare feet.
Mr. AGRAWAL says that his company, Zen Barefoot, is unusual because a large part of the Indian Shoe Industry is not very innovative.
“There are very few people who are ready to take time and invest in new technologies here. Indian manufacturing is a very profit market, the return on investment (return on investment) focused on the king.
“And in many cases, even the government is not ready to allow these industries through subsidies or tax relief, which makes the task quite difficult.”
Comet is an Indian company that seeks to innovate.
He claims to be the first brand of local trainers which holds the entire production process, from design to manufacturing.
“This level of control allows us to experiment with materials, to introduce innovative silhouettes and to constantly refine comfort and adjustment according to actual feedback,” explains the founder Utkarsh Gupta.
He says that comet shoes are adapted to the climate and the roads of India.
“Most local brands are counting on standard market soles, but when we started the comet, we realized that they lacked quality, sustainability and adhesion,” he said.
The change arrives in the shoe sector, he said. “The transition to a high value occurs now.”
“Many high-value brands must move their manufacture in India. In 3 to 5 years, we should have a robust ecosystem to compete on the international sneakers market,” he adds.
Comet
Comet Shoes manages its own design and production
Back in Agra, Ashok hopes that the non -organized sector is not overlooked in the growth of the India shoe industry.
“The government should give us accreditation and certificates so that our factories do not close. Once we are also included in the organized sector, no one can beat India in the shoe manufacturing industry.”
But Mr. Sharma says that change is inevitable.
“The market will certainly change. We will see the biggest big players to adapt – they have the money to adapt quickly.
“But I don’t think the little guys disappear completely. The smartest will find their niche.”
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