Markets and Risks

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Markets and Risks 2016-10-22T09:14:49+00:00

Markets

Economic & Demographic Snapshot

  • India is poised to be 3rd largest economy by 2030
  • Increase in private consumption- key driver for GDP growth
  • Large population, demographic advantage, and increasing incomes are the key drivers to the growth in consumption in India
  • Increasing urbanization and nuclearisation, rising female employment and ease of financing are other factors driving growth
  • Rising household income coupled with growing aspiration levels is leading to a shift to increasing discretionary spend
  • Consumer growth continues to remain concentrated in Tier I cities in India; However, India’s rural markets offer a sea of opportunity

Indian Retail Sector

    • Evolution of Indian Retail Sector

Evolution of Indian Retail Sector

    • Retail sector in India is at the cusp of growth and is expected to grow at a CAGR of 20% till 2017

 Retail sector in India is at the cusp of growth and is expected to grow at a CAGR of 20% till 2017

    • Footwear forms 4% of the organized retail sector

Footwear forms 4% of the organized retail sector

Online Retail & Internet Penetration in India

    • Indian consumers are increasingly getting online and spending

 Indian consumers are increasingly getting online and spending

    • …despite Internet penetration in India at 6% currently significantly lower than the global average

despite-Internet-penetration-in-India

    • Going forward internet penetration is expected to be driven by growth in mobile internet users

Going-forward-internet-penetration

    • The “common service centers” program is expected to add 135,000+ counters with high speed internet in tier 3/ rural towns bridging the digital divide

common-service-centers

Footwear Sector in India

    • Indian Footwear Sector (Valued at 5 bn and growing at 15% CAGR)

Indian-Footwear-Sector

    • Key Growth Drivers
Evolving retail system- Organized footwear industry is direct beneficiary of modern retail

Evolving retail system- Organized footwear industry is direct beneficiary of modern retail

 

Growing fashion consciousness

Globalization resulting in rising pool of fashion conscious urbanites
Increasing presence of high-end designer labels creating aspirational value across categories
Need for brand & lifestyle winning over cost-conscious Indian Customers

 

    • Key Characteristics of the Footwear Industry in India compared globally