Beyond Utility: From Functionality To Fashion

In the last letter on footwear, dated July 2024, we saw the Indian footwear industry evolve through distinct phases—from its functional roots in the 1930s to the fashion-forward designs of 2024. Have you ever considered that shoes might be the first thing people subconsciously notice about you? Once just a necessity for protection, footwear has become an essential part of modern identity, reflecting personality, lifestyle, and taste.

Have you ever encountered questions like, "How much is your outfit worth?"

It's not uncommon to see outfits where one item steals the spotlight, and footwear often takes center stage. Shoes are more than just an accessory—they're a statement, a comfort, and sometimes even an investment. While the rest of your outfit might be modest, a high-value pair of kicks can say a lot about your style and priorities. It's money at your feet, proving that sometimes, the real flex is what's underfoot.

My journey with sneakers began with a functional purpose, but it soon evolved into a lifestyle. I still recall my first pair of Puma Running Shoes—more than just gear, they were a pathway to confidence and self-expression. Today, Footwear has moved far beyond function to blend style and purpose. It mirrors changing trends, rising affluence, and evolving consumer values, offering a way to express identity and lifestyle.

But how did sneakers, once functional sportswear, become luxury items with booming resale markets in India? Let’s understand this evolution through our own special 'Cycle of 3As' model, which we first talked about at our 5th Annual conclave, ‘BHARAT BEYOND METRO’:

Awareness

The first A is about Awareness where the sneaker culture, originally rooted in the West, was brought to India through social media, global influencers, and celebrity collaborations with major sneaker brands. Platforms like Instagram, YouTube, & sneaker-focused events introduced Indian audiences to the hype surrounding limited-edition sneakers. As global streetwear culture permitted Indian youth through these channels, they became aware of the exclusivity and desirability of owning unique kicks.

“Whatever Happens In The West, Happens Five To Six Years Later In India!”

-Prabal Bagla, [Founder of Sneaker Marketplace Solesearch India]

Aspiration

The next A stands for Aspiration, Sneakers evolved from mere footwear to a symbol of individuality and status. For consumers in India, particularly Gen Z & millennials, sneakers became a way to connect with a global streetwear culture they admired from afar. They weren’t just shoes; they represented a piece of something bigger—a movement, a lifestyle. Owning rare sneakers became a way to express style and align with global trends, turning them into aspirational lifestyle products.

Access

The last A of the cycle is Access, E-commerce platforms, resellers, and the rise of Indian sneaker boutiques bridged the gap between demand and supply. Websites like StockX, and homegrown platforms like VegNonVeg and Superkicks, made it easier for enthusiasts to purchase or resell rare pairs. The introduction of global brands like Nike, Adidas, & Yeezy into Indian markets further fueled this trend.

This seamless interplay of awareness, aspiration, and access has transformed sneakers into not just a fashion statement, but a cultural movement and a lucrative market in India.?

But hey, how did footwear brands successfully transition from being purely functional to coveted fashion statements?

From a brand’s perspective, positioning shoes as a fashion statement rather than just a utility was a strategic move to tap into evolving consumer behaviour. Consumers, especially younger ones, now view shoes as a symbol of identity and status. By introducing exclusivity, limited-edition drops, and celebrity collaborations like Michael Jordan brands created hype and a profitable resale market. This allowed them to expand their reach beyond athletic wear, appeal to style-conscious consumers, and drive higher engagement with Gen Z and millennials. Ultimately, it transformed footwear into a valuable, sought-after part of the modern wardrobe.

Beyond The Basic Shoes

Our shoes themselves are becoming canvases for self-expression, thanks to all these cool charms and collectibles. It's like turning your footwear into a work of art!

Remember these Jibbitz for Crocs? That was just the beginning. Now you've got charms for sneakers & even loafers, each one a little badge of your personality. Jibbitz sales grew 17% in 2023 to $250 million in sales. Also, sneakers. They used to be just for athletes or hardcore collectors, but now everyone's into them. It’s not just about fashion these days; it’s about craving something unique, something with a story behind it. Whether it's a customized charm that reflects your hobby or a pair of vintage sneakers that remind you of a special time, these accessories are more than just decorations – they're a way to express yourself and connect with people who share your passions!

Ever thought about what compliments with shoes? YES, you're right ‘socks’ & You know, it's crazy how something as simple as a pair of socks can say so much these days. Remember when they were just, well, socks? Plain, boring, hiding away inside your shoes. Now, you see people rocking the Craziest patterns, the most vibrant colours & even characters and stuff – all peeking out from their Shoes. A way to show the world you're not afraid to be different. And honestly, it makes sense, right? We're all about expressing ourselves these days, so why not have some fun with even the smallest details? A cool pair of socks might seem like a little thing, but it can say a lot about who you are.

An Attractive Industry

India is a key player in the global footwear industry, ranking as the 2nd largest producer and consumer of footwear. The country contributes approximately 13% of global footwear & leather production, India's footwear production is nearly 3 billion units as of 2024.

According to Metro Brands' annual report The Indian footwear market was valued at ~? 1.23 trillion in FY 2023-24. The industry is expected to witness significant growth, with a CAGR of 11%, reaching ? 1.91 trillion by FY 2027-28. Non-leather footwear is expanding, contributing 90% to the Indian footwear market. The Indian Footwear industry is dominated by MSMEs, with key production hubs in Tamil Nadu, Andhra Pradesh, and West Bengal.

Analysis of historical and cross-country trends indicates that footwear in India is an attractive industry with low per capita consumption 1.9 pairs vs. global average at 3.2 pairs, on the other side countries like USA, UK, and Japan ranks as the top 3 countries with per capita consumption at 8.1, 6.4, and 6.2 respectively and a relatively higher income elasticity.

India’s footwear spending is likely to grow higher than nominal GDP growth in the medium term. It is a category that is skewed more towards the discretionary side and in times of a favourable macro, it is well poised to grow faster than nominal GDP growth. Unorganized channels still constitute 65% of the industry and a steady shift towards organized channels would add further growth levers.

The Men’s segment dominates the footwear market with 48% market share in FY20 but the women's segment is on the rise with 41% market share in FY20 and is expected to dominate the Indian footwear market through the forecast period. The Indian women's footwear market is highly varied, offering various styles and designs to meet the involved needs of women. Flats, heels, sandals, boots, and sneakers are among the most popular classifications. Fashion trends and aesthetics are critical in driving consumer favourites.

In the end, footwear has become a powerful medium of self-expression. It's not just about protecting our feet; it's about projecting our personality and aspirations into the world.

Have you ever paused to consider how your choice of footwear represents your personality?

Be it sneakers that reflect athleticism, loafers symbolizing sophistication, or eco-friendly innovations aligning with sustainability values, footwear now speaks volumes about who we are.

“Until next time, let your style guide your steps!”

Some Good Reads!

1. How Personalization and Sustainability are Redefining Retail in India’s Footwear Industry
2. India’s athleisure boom: How young consumers are shaping the trends