SWOT Analysis of Indian Footwear Industry
- Existence of more than sufficient productive capacity in tanning.
- Easy availability of low cost of labour.
- Exposure to export markets.
- Managements with business background become quality and environment conscious.
- Presence of qualified leather technologists in the field.
- Comfortable availability of raw materials and other inputs.
- Massive institutional support for technical services, designing, manpower development and marketing.
- Exporter-friendly government policies.
- Tax incentives on machinery by Government.
- Well-established linkages with buyers in EU and USA.
- Low level of modernisation and upgradation of technology, and the integration of developed technology is very slow.
- Low level of labour productivity due to inadequate formal training / unskilled labour.
- Horizontal growth of tanneries.
- Less number of organised product manufacturers.
- Lack of modern finishing facilities for leather.
- Highly unhygienic environment.
- Unawareness of international standards by many players as maximum number of leather industries are SMEs.
- Difficulties in accessing to testing, designing and technical services.
- Environmental problems.
- Non availability of quality footwear components
- Lack of fresh investment in the sector.
- Uneconomical size of manufacturing units.
- Competition among units vying for export orders leading to undercutting.
- Little brand image.
- Poor labour productivity. Lack of awareness about consistent in
plant training and retraining- Inconsistent quality
high rejection rate
- Low machine and material productivity.
Lack of quality job work units
- Delayed deliveries
- Weak support infra- structure for exports
- Abundant scope to supply finished leather to multinationals setting up shop in India.
- Growing fashion consciousness globally.
- Use of information technology and decision support software to help eliminate the length of the production cycle for different products
- Product diversification - There is lot of scope for diversification into other products, namely, leather garments, goods etc.
- Growing international and domestic markets.
- Exposure to newer markets through Fairs/ BSMs
- Retain customers through quality supplies and timely deliveries
- Aim to present the customer with new designs, infrastructure, country & company profiles.
- Use of modern technology
- Exhibit strengths in manufacturing, for example, strengths in classic shoe manufacturing, hand crafting etc.
- De-reservation of the footwear sector.
- Entry of multinationals in domestic market.
- Stiff competition from other countries.(The performance of global competitors in leather and leather products indicates that there are at least 5 countries viz, China, Indonesia, Thailand, Vietnam and Brazil, which are more competitive than India.)
- Non- tariff barriers - Developing countries are resorting to more and more non – tariff barriers indirectly.
- Improving quality to adapt the stricter international standards.
- Fast changing fashion trends are difficult to adapt for the Indian leather industries.
- Limited scope for mobilising funds through private placements and public issues, as many businesses are family-owned.
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