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Footwear india case study
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Foot wear industry in India: The heart of Indian footwear industry is the leather industry in India. The entire leather industry in India is driven by the footwear industry. India is the second in producing footwear for the entire world after china, with a local footwear industry evaluated to be about INR 20,000 crore. More than 1 million people are engaged in the footwear industry. The potential is set to change yet gradually, however with a populace matching China for measure, there is no uncertainty the tussle for global control in footwear supply is between these two nations. Today the life style of people has a drastic change and the buying capacity of a customer has been increased. There are as of now numerous new local brands of footwear and numerous outside brands have likewise possessed the …show more content…
• Presently, the Indian footwear market is ruled by Men's footwear that records for about 58% of the aggregate Indian footwear retail market. As footwear retailing in India stay concentrated on men's shoes, there exists a plenty of chances in the restrictive women's and children's footwear section with no composed retailing chain having a national nearness in both of these classes. The footwear component industry additionally has gigantic open door for development to take into account expanding creation of footwear of different kinds, both for fare and household showcase. Difficulties in the Footwear business: Largely disordered and scattered in various parts of the nation. Greatest market being Uttar Pradesh and Tamilnadu. Most of the creation is as yet high quality. We have not been great or open about tolerating new advances in assembling shoes. Highly subject to talented craftsman. This is a stress as the new entrants of craftsman are not willing to join and work in the assembling fragment. Product
Price: They have pricing strategy for different group of consumer. The price of their shoes varies depending on the type of the shoes, the feature of the shoes, and even design and edition matter. The shoes can be price at a standard price where most customers can afford. Yet some special feature shoes are specially design and created for premium customer who can afford to pay a higher price. For this reason they can capture different group and level of customer.
An extensive research study will be initiated determining what the male customers want in an athletic shoe. These studies will take place online, by ground mail, and by telephone. Once the information is gathered the various types of men's shoes will then be developed focusing on the most popular needs determined by the survey results, which will include a question regarding price. L.A. Gear will then compare the needs of the customers to the industry leaders and determine how the leaders achieved the needs of the male customers and what opportunities L.A. Gear could use to "one up" the competition. L.A. Gear's shoes already focus on comfort, style, and fashion and will now include high performance.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
Although we have been expanding our facilities by building extra capacity, we have not been able to contribute shoes to the private-label and therefore, we have not employed a global strategy for that market. When we are able to sell shoes to the private-label footwear industry, we will also use a global strategy for that region as well.
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
Puma Inc. (Puma) is a multinational sporting goods company which designs and develops footwear, apparel and accessories. Puma and its subsidiaries have operated in more than 50 countries (Puma 2012, p. 156) and employed more than 11,000 people worldwide (Puma 2013). The company’s supply chains are supported by 540 factories (Puma 2012, p. 44), which is mostly in Asia (Puma 2012, p. 43), and its products have been distributed to more than 120 countries (Puma 2013). The company is the seventh ranked athletic apparel company in the world in terms of revenue in 2011 (Schulz 2012). As a multinational company, Puma strives to be the most desirable and sustainable sport lifestyle company in the world (Puma 2012, p. 9) and contributes in creating a more sustainable future for the generations to come (Puma 2012, p. 15).
The financial ramifications for the accidental cultural oversight may cost the company severely. In order to bounce back and win their loyal customers back, Footwear Bangladesh needs to strike back quickly and effectively. In addition, they will need to continue to promote their good name so as to not fall under any further scrutiny. This will involve planning and awareness of what is important to retaining their client base, including cultural sensitivities.
manufacturing products overseas, specifically in Bangladesh. The focal point of the article was how Nike was attempting to achieve the lowest possible manufacturing costs while still maintaining worker safety and producing high-quality products. Both consequences and benefits of manufacturing in foreign companies was discussed in the article. In addition to how manufacturing costs affect the financial outlook of the company, the article addressed how having factories in less-developed countries has an impact on public opinion of Nike.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Nowadays, there are so many famous sportswear companies that exist in the market globally, which make people have more product varieties that they can choose. In addition, most of those companies have become very important for its host countries, in terms of supporting their economic development. Yet, the existence of those companies can also possibly bring some problems to the host countries, as well as negatively affect the countries’ people (Pettinger, 2008). In order to explain it better, the existence of Adidas in Indonesia is used in this report to give more information about what makes Adidas becomes a successful company in the world, as well as providing problems that Adidas has in Indonesia.
From selling purely ladies’ footwear, Charles and Keith expanded their range of products to include ladies’ bags and accessories in order to cater different demands of the customers. Charles and Keith owns a team of designers that come out with new products regularly and the company has their own R&D team frequently travels to fashion cities to get in touch with the latest design and trend (Singapore Press Holdings, 2009).
This project concentrates on the Nike Sports shoe; Nike is one of most significant shoe manufacturing company worldwide. Sportswear manufactured by Nike is known for quality and is most liked brand of athletes. (Daniel, 2011)
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
To become leading alloy castings producer in India by providing qualitative products to customers and create value towards
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.