Tue, 08 Apr 2025

Tue, 08 Apr 2025 A revolution is under way in India's trainer industry

India wants to boost the domestic trainer industry but will small domestic makers suffer?
Taiwan's Hong Fu Industrial Group, the world's second-largest maker of trainers (sneakers), has invested in India's market by building a giant plant in Tamil Nadu that will produce 25 million pairs of shoes per year and employ up to 25,000 workers. The project aims to tap into India's growing demand for non-leather footwear. Indian partners, including Aqeel Panaruna, the chairman of Florence Shoe Company, have collaborated with Hong Fu on the venture. Panaruna notes that international markets are saturated, but India has huge potential due to its rising middle class and increasing demand for quality shoes. To boost exports and raise standards in the footwear industry, the Indian government introduced new quality rules last August under the Bureau of Indian Standards (BIS). These regulations require materials to pass tests of strength and flexibility, aiming to clean up the market and provide better options for consumers. However, many Indians cannot afford branded shoes due to their high prices. A vast network of small shoe makers in India's unorganised sector caters to this demand, producing around 200 million pairs of shoes daily. Ashok, a small manufacturer from Agra, estimates that the unorganised sector accounts for two-thirds of the total footwear market. The new government standards may pose challenges for small manufacturers like Ashok, but they also offer opportunities for growth and modernisation. Sandeep Sharma, a journalist and footwear industry expert, notes that the government is trying to walk a tightrope by pushing for standards while helping small businesses upgrade their processes. The unorganised sector is also known for producing counterfeit shoes of big brands, which may harm India's reputation in international markets. Nevertheless, new Indian trainer-makers are emerging to cater to the country's growing middle class. Some companies, like Zen Barefoot and Comet, are innovating by introducing barefoot footwear or owning the whole production process from design to manufacturing. As the footwear sector undergoes change, Ashok hopes that the unorganised sector will not be neglected and receives accreditation and certification to remain competitive in the market. Sharma predicts that while some small manufacturers may struggle to adapt, others will find their niche in the industry.
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