CHAPTER I

INTRODUCTION

1.1 Historical background of Footwear:

The history of the use of Footwear by human kind can be traced back to the ice age about
5 million years ago. Due to unkind weather conditions the need for footwear started
growing. Other evidences show that footwear came to use at the end of the Paleolithic
Period, at about the same time the early humans learned the art of leather tanning. Earlier
footwear was made of wrappings of dried grasses and only later on the art making
footwear from pieces of leather was developed. Until the mid-nineteenth century shoes
were made as straights i.e., there was no distinction made between the right and left shoes
(Veres, 2005). The left and right footwear were identical and hence could be worn on
either foot. Only prolonged usage shaped them into right and left boots. The right and left
shoes were invented by a fashionable boot maker, William Young from Philadelphia in
1800. The first crafted footwear is the Sandals, which are known to be the successors to
these wrappings. In India these Sandals were called as Padukas, which were mainly worn
by the Saints.

Over centuries many varieties of footwear were made in the Himalayan region in order to
protect the feet from cold weather. Footwear was made of leather, wool or remains of the
plants. Since most part of India is warm, footwear was not a necessity and therefore
Indians were barefooted for many years. Innumerable references to foot worship in Indian
culture convey the impression that the foot is regarded as an important part of the human
body. Touching the feet of elders was considered as the height of good manners. It was
considered as a civilized behavior (Viswam S, 1997). Until half a century ago, India was
described as a barefoot country. They were characterized by such toughness of foot that
they can travel for long distances without any discomfort. It seems likely that the cultural
adjustments lead to the adoption of footwear. Furthermore, the ascetic Hindu, Buddhist
and Jain sects were not generally permitted the worldly luxury of footwear. Therefore
footwear was considered as a luxury until half a century ago. But even then India was
known for its traditional craft of footwear making.

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 The Indian Footwear sector is a promising one with tremendous opportunity for growth
both in the international and domestic market. With low production cost, abundant supply
of raw material, evolving retail system, buying patterns and huge consumption market,
this sector is posed to grow to great heights. But this market is highly fragmented. The
unorganized sector dominates the industry posing a threat to the organised players. The
Indian consumers have become more discerning these days. The double income stance,
increased disposable income among the urban middle class, brand and fashion
consciousness due to globalisation have all led to changing lifestyle of the Indian
consumers.

1.2 The Indian Footwear Industry:

India being a country of artisans is known for its traditional craft of footwear making.
Some of the traditional footwear created by village craftsmen include leather chappals in
Kohlapur' embroidered Juttis in Jodhpur, Indo-Tibetan felt boots in Sikkim and vegetable
fibre shoes in Ladakh. The industrial policy 1967 reserved the leather industry including
footwear only for small scale sectors. It was only during the mid 1970s, 100% export
oriented footwear units in large scale sector were promoted. From June 2001 onwards the
Government of India de-reserved the leather sector.

Fig 1.1: Footwear exports in the past four decades (in million US $)
2500

2000 2077.27

1500

1000

655.35
500 443.85
119.72
0
1981 - 1982 1991 - 1992 2001 - 2002 2011 - 2012

Source: Council for leather exports, (Sponsored by the Ministry of Commerce and Industry, Govt. of
India)

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 During the past four decades starting from the year 1981 – 1982, the export of footwear
from India had increased tremendously. Though India has a negligible proportion of
exports in world trade, it is the second largest producer of footwear next to China. India
accounts for 14% of the global annual footwear production of 14.52 billion pairs. India
manufactures around 2065million pairs of footwear every year of which 909 million pairs
are made of leather, 1056 million pairs of non leather footwear and 100 million pairs of
shoe uppers. Nearly 70 percent of the labour constituting around 15 lakh people are
employed in the unorganised sector majority of them are rural artisans, cottage and
household units, while the organised sector accounts for remaining 30 percent and
employs over 5 lakh people.

Table 1.1: India’s Share of Footwear Exports in the Global Scenario

(in million US $)
Year

2006 2007 2008 2009 2010

Global Imports 73795.96 81574.25 88731.08 78249.66 91373.82
Exports from India 1236.91 1489.35 1534.32 1507.59 1758.67
Exports from China 21014.63 24181.69 28115.96 26571.20 33665.11
% Share of India 1.67% 1.82% 1.72% 1.92% 1.92%
% Share of China 28.48% 29.64 31.69% 33.96% 36.84%
Source: Council for leather exports, (Sponsored by the Ministry of Commerce and Industry, Govt. of
India)

Compared to China, India’s contribution to the global market is negligible. The major
market for China’s footwear is United States. The reason can be attributed to automation
of the footwear industry as a result of which, China has the capacity to respond to mass
standardized order whereas the Indian footwear Industry has the capacity to serve only
medium or small scale orders. Due to reliable quality, China is able to serve the high
priced discount retail stores in United States. But India is able to serve only medium sized
price driven markets. Furthermore the Indian footwear designs are not innovative and
fashionable as compared to the Italian footwear designs. The slow growth in the
international trade can also be attributed to negligible availability of branded products. In
India most of the footwear manufacture takes place in the unorganized sector, which is
another drawback to promote the products in the international market.

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 Table 1.2: Footwear Exports from India to other Countries (in Million US $)
Years % Share
Country 2006 –‘07 2007-‘08 2008 – ‘09 2009 – ‘10 2010 – ‘11 2011 – ‘12 of exports
Germany 217.23 246.84 229.65 224.3 286.7 353.77 17.03%
UK 208.2 241.37 247.06 296.45 339.65 360.48 17.35%
Italy 186.11 229.81 221.09 210 219.72 219.79 10.58%
USA 127.15 136.92 163.03 123.6 143.02 183.1 8.81%
France 99.81 116.03 119.2 144.56 154.95 159.27 7.67%
Spain 64.57 76.69 91.86 95.94 112.05 113.85 5.48%
Netherlands 48.57 72.91 76.2 65.13 78.19 101.72 4.90%
Portugal 35.03 37.34 28.21 22.63 25.69 28.77 1.38%
UAE 34.64 39.23 39.4 39.45 41.82 62.06 2.99%
Denmark 14.65 17.48 14.78 17.01 16.55 24.3 1.17%
Australia 10.11 12.52 13.34 15.5 12.82 15.59 0.75%
Sweden 7.99 12.04 12.64 12.2 12.07 14.08 0.68%
Canada 10.91 10.41 8.96 9.3 10.56 15.01 0.72%
South Africa 12.11 8.52 8.49 9.87 11.33 14.75 0.71%
Japan 3.07 4.63 8.23 5.45 7.51 14.63 0.70%
Others 156.76 226.61 252.18 216.2 282.23 396.10 19.07%
Total 1236.91 1489.35 1534.32 1507.59 1758.67 2077.27 100.00%
Source: Council for leather exports, (Sponsored by the Ministry of Commerce and Industry, Govt. of
India)

The major importers of footwear from India are Germany, United Kingdom, Italy and
USA. These countries alone constitute 53.77% of the total exports as on 2011 -2012. As
mentioned earlier due to high labour cost these countries either outsource their production
process or import from the Asian countries. Out of the total exports in the year 2011
2012, the revenue earned from leather footwear alone constitutes US$ 1715.17 million
which had increased from US$ 1174.03 million in 2007 – 2008. Through the export of
footwear components, the country earned US$ 281.83 million in 2011-12, which was
US$ 269.30 million in 2007-08. Further non-leather footwear contributed US$ 80.27
million in 2011-12 which had increased from US$ 46.02 million in 2007-08. Therefore
there has been a steady increase in the footwear sector over the period of years and it is
likely to continue in future also.

1.3 Purpose of the Study:

The Indian consumer markets are growing and changing rapidly in terms of its nature and
composition. With the revolution taking place in the distribution system through entry of
super markets, shopping malls, chain stores etc in the metros, small cities and towns the

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 potential for lifestyle products have increased drastically (S L Rao, 2000). With the
change in the lifestyle patterns among the people especially the youth, this product has
also undergone a tremendous transition in terms of its character. Though Indians have not
been the ones to spend on items like footwear, for the past two decades there has been a
tremendous change in the buying habits of the consumers (Bijapurkar, 2001). It all started
with the New Economic policy passed in the year 1991, which opened doors for
multinational corporations. This led to urbanization, favorable patterns of demography,
increase in income levels and double income instances, media proliferation and the desire
to look good. Therefore the consumers became more aware of the different varieties of
products that are produced and marketed all over the globe. India’s population is no
longer a liability but an asset to the marketers especially for the consumer market (Bijoor,
2001). The Young - working population of India and its growth are the biggest positive
factor at present and in the coming years. At present they represent 30% of the total
population. The boom in the IT sector has led to the emergence of ferociously growing
youth who can command large salaries from Indian and foreign multinationals. These
young consumers create an identifiable mark in shopping. Their preferences are
noticeably different because they are a generation with economic power unlike any youth
before them. Today's youth were born in an era of technological and media advances that
affords them limitless access to the global market. This age group is growing fast and is
expected to number 241 million by 2030 (Source: UN). It is no surprise that the national
and international players are paying attention to this generation's buying habits. With the
woman becoming more brand-conscious as opposed to the past state of being
productconscious, more and more internationally renowned players are expected to enter
the market to fill this need-gap. Footwear is no longer looked upon as a commodity but as
image (Troy, 2000), attitude and lifestyle. Therefore profiling the consumers on the basis
of their behaviour would help the managers to position their products in a better way.
Therefore there is plethora of opportunities still untapped in the footwear sector.

Footwear manufacturers in recent years along with the powerful new role that
retail is playing in organizing the Indian domestic market, driven in part by surging
consumer demand from entirely new mid-market youth segments associated with the

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 country’s IT-BPO boom is all poised to new heights. For products which are
manufactured indigenously and for which the competition is less, segmenting the market
on the basis of demography will be typically sufficient. But these days consumers are
exposed to many varieties of products. Therefore effective segmentation using new
parameters are required for products where the market is flooded with many national and
international brands and thus leading to heavy competition. With increasing
globalization there is stiff competition between the multinational, national and the
unorganized players to expand their market.

1.4 Statement of the problem:

In the organised sector, men’s footwear accounts for almost half of the total market.
Therefore it is clear that only 50% - 55% of the sales take place in the organized sector
even in the men’s sector. The anomaly is even very high in the women’s sector wherein
80-90 percent of the purchases take place in the unorganized sector. There is no organised
retailing that has a national presence in this sector. The anomaly exists due to the fact that
the manufacturers and retailers have failed to understand the fine nuances of their
customers be it men or women. The profile of the Indian consumer has changed. Though
footwear is considered as lifestyle enhancement product, the manufacturers and retailers
have failed to understand this. Still the traditional segmentation patterns are followed in
this industry, which include materials used for construction of the footwear, usage
patterns and demographics.

Also there are innumerable literatures that focus on trade policies followed in the
footwear market in international countries, treatment of workers in the footwear industry,
therapeutic use of footwear, supply chain patterns etc but there are hardly any study that
explores the consumer behaviour of Indians and their association towards the footwear
preferences. Behavioral segmentation though has been used in many other products like
apparels, insurance, real estate etc., but not in the footwear sector. The present study is an
attempt to fill the gap. This sector is a highly promising one with less knowledge about its
customers.

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 1.5 Objectives: From the problems stated above the objectives have been derived as
under:

• To explore the transition and trends in the footwear sector globally in the pre and
post World War scenario

• To study the major clusters in India, engaged in manufacturing footwear for the
domestic and foreign markets.

• To investigate the characteristics of the Indian Footwear market

• To study in brief the key players in the Indian Footwear industry
• To profile the men and women consumers into different clusters based on their
activities, interest and opinions and study their profiles in detail

• To examine the differences that exists in the preferences towards the formal and
casual footwear attributes according to the consumers’ behavioural patterns across
the genders.

1.6 Hypothesis: The study aims to test the following:

H1: The preference towards the footwear attributes varies according to the consumers’
behavioural pattern

The Footwear attributes considered for the study include:

1. Coordinated Colours
2. Elegance
3. Comfort
4. Brand
5. Friends’ opinions
6. Family’s opinion
7. Posture Enhancement 8. Store Ambience
9. Salesmen’s behaviour
10. Amenities

1.7 Study Area:

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 The study was conducted in Bangalore being the capital of Karnataka and a fast emerging
metropolitan city. Further it is the third most populous city and stands fifth in the urban
population. As on 2011 the total population of the city stood at 8,425,970.

Geographically the city is divided into 5 regions namely East, West, North, South and
Central Bangalore. Bangalore has only 41% of local population and the rest of them
belong to other states and countries especially from Europe. Hence, it is vivid that
Bangalore has a population with diverse profiles. Therefore the city of Bangalore has
been selected for the study purposively.

1.8 Sample Respondents:

The respondents for the study include men and women between the age group of 20 – 55
yrs and between the income classes of Rs 12000 to Rs 200000 per month. Men and
Women were categorized separately for the study as the preferences for footwear
attributes varied across genders. Further the aim of the present study is to investigate the
association between the behaviors of the consumers across genders towards the various
footwear attributes. The respondents were drawn randomly from the various strata of
East, West, North, South and Central Bangalore. 500 men and 500 women respondents
were selected from each stratum totaling to 2500 men and 2500 women. Out of the total
respondents only 2074 men and 2365 women qualified for the study as the responses
furnished by the rest of them was incomplete hence were eliminated.

1.9 Data Collection:

Both primary and secondary sources of data were utilized for the study. As mentioned
above primary data was collected from the respondents through stratified random
sampling technique. The primary data was collected during the period December 2009 to
June 2010. For data pertaining to trends in the global and domestic footwear market,
footwear clusters etc Government and industry sources, their official websites, journal
publications and trade publications were used.

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 1.10 Survey Instrument

Primary data was collected through distribution of questionnaires. The questionnaire

comprised of two sections. Section I includes 50 statements (Mitchell, A. 1983,
Anderson, W.T. and Golden, L. 1984; Hanspal et al, 1999; Hanspal et al, 2000 ) that
would help in profiling the customers into behavioural clusters based on the activities
they normally engage in their day to day life, interests and opinions on certain common
issues. These statements were to be rated in a 7 point likert scale. Section II comprised of
their demographic details and the attributes they expect their formal and casual footwear
to possess. These attributes were arrived after an exploratory study. The exploratory study
was conducted to a group of 20 members. The group members comprised of consumers
who belonged to different age groups. They were asked to list the attributes they
generally preferred their footwear to possess. Eighteen attributes were listed. Though all
the eighteen attributes were included in the instrument only ten attributes were selected
for analysis. These ten attributes were selected based on the ranking given by majority of
the group members. These attributes were also to be rated in a 7 point likert scale. The
instrument so constructed was pre-tested on thirty respondents to find out if the questions
framed had sufficient clarity. Then based on their suggestions the final instrument was
constructed and administered. The Questionnaire is enclosed in appendix 1

1.11 Statistical Tools Used

The statistical tools used for the study include Reliability Test, Factor analysis, ANOVA,
and Multiple Regression Analysis. Statiscal packages such as SPSS 16 and EXCEL were
employed in the study. A brief note on all the statistical techniques used in the study is
given below

a) Reliability Test

In order to test the degree of consistency between the variables, reliability test is
conducted. The most widely used method Cronbach’s alpha has been used in this
study. It is a reliability coefficient that assesses the consistency of the entire scale.

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 The generally accepted lower limit of Cronbach’s alpha is .70 which can also
decrease to .60 in case of exploratory research

b) Factor Analysis

It is a multivariate statistical method that analyses correlation among large

number of variables through common dimensions known as factors. The primary
objective of factor analysis is summarization and data reduction. For factor
extraction, principal component analysis was employed. Though there are two
methods of factor extraction namely common factor analysis and component
analysis, the latter method is widely used. As principal component method is
used, only those factors with Eigen values greater than 1 are considered
significant. If there are 50 or more variables then too many factors can be
extracted. For selection of factors especially in social sciences, it is not
uncommon to consider factors with less than 60% of the total variance, which is
still considered satisfactory. The Scree test can also be used to identify the
optimum number of factors that can be extracted. The Scree test is derived by
plotting Eigen values against the factors in the order of extraction. Starting with
the first factor, the plot starts slopping downwards vertically and then slowly
becomes a horizontal line. Starting from the first factor till the point at which the
curve begins straightening can be considered for factor extraction. The next step
is to interpret the role each variable plays in defining the factor. For this purpose
factor loadings are computed. Factor loadings are the correlation between each
variable with a factor. Higher the loadings then greater is the association of the
variable with the factor. As unrotated factor loadings are meaningless, factor
rotation becomes essential. Varimax factor rotation has been followed in the study
as the correlation between the variable and the factor are indicated between +1
and -1, thus indicating a positive or negative association between the variable and
the factor. If the sample sizes are 350 or more factor loadings of +/- 0.30 can be
considered as having practical significance.

c) ANOVA Technique:

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 The Analysis of Variance (ANOVA) technique aids in investigating the variation
among any number of factors that influence the dependent variable. It can be used
for testing the hypothesis as to whether the variance has occurred by chance or
due to specified causes. ANOVA can be either one way or two ways. Two
estimates are computed one based on between sample variances and the other
based on within sample variance. F Test is computed. The value of F is compared
to the F-limit for given degrees of freedom. If the calculated F value is equal or
exceeds the F Table value then it may be concluded that significant differences
exist between the factors and the dependent variable.

d) Multiple Regression Analysis

Multiple regression analysis is a statistical technique that is used to analyse the

relationship between the independent variables (predictor) and the dependent
variable (criterion). The ANOVA Table assesses the overall significance of the
regression model. The standardised Beta Coefficient gives the measure of the
contribution of each variable to the model. The t values give a rough indication of
the impact of each independent variable. A larger t value indicates that the
concerned independent variable is having a larger impact on the dependent
variable. The collinearity diagnostics gives the tolerance value and the variance
inflation factor. The tolerance value is a measure of the correlation between the
independent variables and varies from 0 to 1. Tolerance value closer to 1 indicates
that there exists no stronger relationship among the independent variables
therefore indicating that they are fit enough to be regressed with the dependent
variables. Therefore variables with low tolerance value closer to 0 should be
eliminated from the study.

1.12 Scope:

The study will be helpful for the retailers to restructure their product offerings. The report
will also be useful for new retailers for designing their market strategies. It also offers a
scope for further research as there is not much study done in this area. Many international
brands are looking out for a place of business in India, this study will help them in

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 understanding the consumer characteristics and the factors that influence their purchase
decision. The study can be extended to global markets as similar purchase patterns may
exist in multiple countries.

1.13 Limitations:

The study was restricted to the respondents from Bangalore between the age
group of 20 -55 yrs. Segments like Kids, Sports and health have not been studied. As
there is wide variation in income and culture among different cities, generalization of the
conclusion will be a difficult task. This study was done for a period of 3 years. The
consumers’ preferences are not stable. It could change over a period of time.

CHAPTER II

AN OVERVIEW OF THE GLOBAL AND DOMESTIC FOOTWEAR INDUSTRY

2.1 The Footwear Industry – A Global Perspective

Prior to the First World War most countries concentrated their footwear production only
in the domestic markets. Very few countries namely, United States, United Kingdom,
Germany and Switzerland concentrated on exports. From the eighteenth century onwards
the North American footwear industry was growing tremendously. From the early
nineteenth century onwards the country introduced mechanization. Therefore between the
years 1863 – 1895, the footwear industries in North America became completely
automated as a result of which they were able to achieve extraordinary increase in
productivity. Before the First World War, United States exports increased to 11 million
pairs of shoes as against 2, 75,000 pairs in 1870s. Prior to the growth of United States in
the footwear exports, United Kingdom was the prime contender exporting around 8
million pairs per year. In order to resist competition from the United States, the British
Footwear Industry also automated its production process. Similar process was followed
by Germany and Switzerland. Thereafter many other European Countries also followed
suit. Close to First World War, the footwear sector in United States and in European
Countries comprised of either medium or large scale industries. The First World War
increased the footwear exports of Great Britain and United States substantially. For
instance Great Britain alone manufactured around 60 million pairs of military shoes and
supplied a quarter to its allies. Whereas footwear exports in United States reached about
17 million pairs by 1919. The demand for footwear during the First World War
accelerated modernization in many other European countries like France. These
countries modernized their footwear industry not only due to demand but also due to non
availability of labour. Also many other countries even though they did not participate in
the World War still modernized their industry due to accelerated demand, for instance,

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 Spain (Miranda, 2009). Post World War I, the international trade in footwear took a
different turn. After 1921, there was a sharp decline in footwear exports. The reason
being the countries which were importing footwear had developed production internally
and imposed protection measures. These countries included Italy, Australia, New
Zealand, Argentina and Union of South Africa. The large footwear exporting countries
like United States and UK gradually became world’s leading importers. Between the
years 1920 – 1933, North American exports fell to 95% of its pre-war exports in 1900.
The footwear exports of the United States and United Kingdom did revive prior to II
World War. But it was only for a short period, as the United States and United Kingdom,
had already started importing footwear to a large extent from other countries like Spain,
Italy and Czechoslovakia. During the second half of the twentieth century the growth of
international footwear trade was enormous. Between the years 1960 to 1965, the overall
footwear export rose to 136 million pairs per year, which were only 20 million pairs
before the Second World War. In 1970s the footwear exports tripled and in 1990s it was
almost ten times more. The principal importers for these products were the countries with
highest GDP namely, United States and the European countries led by United Kingdom
and Germany. The imports by the United States were primarily on non-rubber footwear
which in 1950s amounted to around ten million pairs per year, which represents 2 percent
of the global consumption. In 1965, the non-rubber footwear imports by the United States
increased to 95 percent amounting to 13 percent of the global consumption. In 1969 it
still exceeded 200 million pairs and represented a quarter of the total global consumption.
The trend continued and in the year 1998, the consumption of footwear rose to 1200
million pairs. In the year 2010 the imports of footwear in United States further increased
to almost twenty two thousand million pairs, making it as the leading importer of leather
and non-leather footwear globally.

The 1960s saw the emergence of Czechoslovakia, Yugoslavia, Hungary and Brazil as
leading exporting countries and this trend continued till the mid 1970s. The 1960s also
stood as a witness for the growth of fashion footwear in the Women’s sector. Therefore

more diversified and specialized footwear products were introduced in the footwear
market. In 1980s Taiwan and South Korea followed by the People’s Republic of China
and Vietnam in the 1990s entered the International Trade. With reduced labour cost and
abundant raw materials the Asian countries created powerful trade in the international
market. At the end of twentieth century, the European countries found it very difficult to
face the Asian competition. It should be noted that in 1980, world footwear output was
$42 billion. By 1995, the output grew to 44% more than in 1980 amounting to $60.5
billion. But during 1980 – 1995 the Asian output grew by 424% as against 16% in
America and 10% in Europe. The Table 2.1 given below denotes the footwear imports of
United States, Germany, France, United Kingdom, Italy, Hong Kong, Japan, Russia,
Spain, Netherland, Belgium and Canada during the period 2006 to 2010. Table 2.2 gives

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 the representation of the countries that exports footwear both leather and non leather
between the year 2006 and 2010.

Table 2.1: Global Trends in Footwear Imports (Value in Million US $)

Country 2006 2007 2008 2009 2010

USA 19835.93 20039.13 20104.41 17904.13 21530.97

Germany 5591.77 5966.99 6529.33 6037.73 6814.89

France 4778.07 5473.04 5714.00 5379.78 5802.18

UK 4950.49 5281.55 5213.00 4772.59 5529.01

Italy 4047.37 4529.77 4810.25 4484.10 4928.22

Hong Kong 4984.59 4881.67 4944.40 3974.30 4676.06

Japan 3509.83 3750.04 4112.99 4077.58 4468.16

Russia 1121.68 2067.82 2843.81 2149.42 3768.80

Spain 2036.21 2388.74 2917.97 2464.34 2816.83

Netherlands 1978.33 2297.95 2570.86 2481.35 2752.38

Belgium 2057.39 2543.04 2892.62 2554.50 2554.59

Canada 1507.21 1677.05 1748.04 1645.09 1869.25

Source: Council for leather exports, (Sponsored by the Ministry of Commerce and
Industry, Govt. of India)

Table2.2: Global Trends in Footwear Exports (Value in Million US $)

Country 2006 2007 2008 2009 2010

China 21014.63 24181.69 28115.96 26571.20 33665.11

Italy 8246.51 9712.94 10218.75 8189.14 8754.52

Hong Kong 5692.82 5639.64 5666.05 4502.49 5243.74

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 Vietnam 3591.01 3999.99 4500.00 4100.99 5070.19

Belgium 2960.28 3375.63 3680.80 3464.10 3716.77

Germany 2607.89 2999.19 3611.90 3194.69 3443.61

Spain 2147.74 2440.47 2670.35 2487.12 2449.73

Indonesia 1514.63 1567.05 1828.44 1688.35 2428.72

Netherlands 1577.03 1811.96 2240.70 2235.80 2412.14

France 1535.21 1840.51 2015.13 1800.70 1969.58

Portugal 1465.11 1695.88 1797.00 1552.74 1719.67

Brazil 1863.07 1911.74 1881.30 1359.98 1472.42

India 1236.91 1489.35 1534.32 1507.59 1732.04

Source: Council for leather exports, (Sponsored by the Ministry of Commerce and
Industry, Govt.

of India)

The Table 2.1 clearly suggests that United States of America is the largest importer of
footwear. From Table 2.2 it can be inferred that China is the largest exporter of footwear
in the world market. On analyzing both the Tables, it is evident that the year 2009 has not
been very attractive year especially for the exporting countries. All the major countries
have suffered a setback in the year 2009. The reason can be attributed to the downturn in
the US economy. Due to the economic recession the household disposable income had
reduced. Decrease in the household disposable income lead to a decrease in the
discretionary income. As the quantity, quality and frequency of purchase of footwear in
United States depends on discretionary income, the domestic consumer spending on
footwear also decreased. It was estimated that the domestic consumer spending fell by

3.4% in the year 2009.

Table 2.3: Decrease in exports in the year 2009

Countries Decrease in exports

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 (in percent)

China -5.49

Italy -19.86

Hong Kong -20.53

Vietnam -8.87

Belgium -5.89

Germany -11.55

Spain -6.85

Indonesia -7.66

Netherlands -0.22

France -10.64

Portugal -13.59

Brazil -0.28

India -1.74

In the year 2010 the market started reviving. Therefore the footwear exports also started
increasing in the year 2010.

2.2 The Footwear Market in India

Footwear though it seems to be a pedestrian’s topic of study but it is a commodity that

leverages mass production, popularly consumed and personal expression (Michael, 2007).
It is the engine of growth for the leather Industry. India is the second largest producer of
footwear next to China. India accounts for 14% of the global annual footwear production
of 14.52 billion pairs. India manufactures around 1965 million pairs of footwear every
year of which 909 million pairs are made of leather and 1056 million pairs of non leather
footwear. India exports around 115 million pairs of footwear. Low cost production,
abundant availability of raw material and a huge consumption market are the basic
features of the Indian footwear market. At present the domestic footwear industry is

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 expected to touch a size of Rs 38,500 crores by 2015 due increasing income level and at
present the footwear sector is estimated to contribute Rs 22,000 crores (ASSOCHAM).
The Industry is project to grow at 8 – 10%. The categories include casual, formal, semi-
formal, sports shoes and sandals. Bulk of its production is consumed internally. Therefore
domestically there is a huge market. Much of its growth is driven by the middle-class,
especially in the urban market (Source: fMM&T). Despite the fact, the Indian population
is becoming more eminent, still we find that the footwear market is divided into
organized and the unorganized sector. The unorganized sector dominates the market. The
overall contribution of organised retail is only 20% and is expected to reach 25 – 30% by
2015. Urban India constitutes 70% of the overall purchase.

In the mental space of our time, footwear is no longer a commodity but an image,
identity, attitude, personality enhancer (Belk, 2003), experience and lifestyle (Bernard,
2003). The footwear industry can be called as a “one world employer”, as international
subcontracting is widely practiced in this sector. This industry is experiencing a
tremendous growth globally more than any manufacturing sector. It is highly influenced
by global competitiveness and the strategies implemented by international companies. It
is no longer a commodity that is produced in the factories and dumped in the market
(Jeff, 1999).

In terms of employment, India is the fourth largest employer of labour in the footwear
manufacturing sector. As the footwear industry is labour intensive, labour costs tends to
be important in production. Western European countries, USA and South Korea, have
high labour costs in the footwear sector where as the Indian labourers are paid low level
wages. Further the average weekly hours worked is the highest in Asia.

Fashion changes are rapid in footwear market. Therefore the firms should adapt their
production pattern and methods and manage their inventories accordingly. Certain
multinational marketing organisations like Reebok chose India as their base as “an
alternative to China”. In 1990s China and Indonesia were a primary source of footwear

imports for the USA. India was considered as a fallback in the event of an interruption of
Chinese supplies. Further the wage rate, at which the Indian labour is engaged in the
footwear manufacturing process, makes India as the most cost and price competitive
country globally. India is considered as a huge emerging market and a sourcing base for
global exports by many International players. Therefore International players have
entered into a joint venture agreements with Indian forms. For instance Reebok entered
into a joint venture agreement with the Indian shoe manufacturer Phoenix where in the
former conducts marketing and trading and the latter was to manufacture and share in
marketing.

The footwear industry is susceptible to certain vital issues namely, market volatility due
to frequent changes in fashion, diverse market, competition from innumerable

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 manufacturers both from the organised and unorganized sector and the dissimilar buying
habits of the customers. Design is the key for creating competitive advantage for the
retailers and wholesalers (Perves et al, 2004). As the consumers both in the domestic and
international markets continue to become more sophisticated and demanding, it becomes
inevitable for the manufacturers to develop quick response strategies (Amrik, 2001). It is
essential to study the fashion and stylistic changes in footwear. While style related to the
cut or type of shoes, fashion relates to the footwear features. Also in the emerging
competitive markets it becomes vital for the manufacturers to develop and maintain brand
images (Kumar and Kumar, 1988). On an average the number of shoes worn by
individual is about 2.5 shoes per year (ASSOCHAM). The footwear market can be
fragmented into men’s, women’s and the kids segments.

Fig 2.1: Percentage share of Men, Women and Kids segment in the Indian Footwear
Market

15%
Men
Women
30% 55%
Kids

The footwear market is dominated by the men’s segment at 55%, followed by the
women’s and kids segment at 30% and 15% respectively.

2.3 The Indian Footwear Retail Industry:

Though, the Indian consumers are highly discerning but still the Retail industry of the
country is bifurcated into organised and the unorganized sectors. Organised sector is
categorized by the retail formats that pay their Income Tax, Sales Tax etc constituting
37.2% of the total footwear retail sector. Excusive retail outlets that may be either
exclusive stores or multi-brand stores that are owned by large corporate houses, public or
private companies come under the organised category. The retail formats like pavement
vendors, hand carts, small stores which can be either privately held or partnership which
do not pay their income tax or sales tax come under the category of unorganized sector
which constitutes 62.2% of the total footwear retail in India.

Fig 2.2 Indian Footwear Retail Sector

INDIAN FOOTWEAR RETAIL INDUSTRY

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 ORGANISED (37.8%) UNORGANISED (62.2%)

The footwear retail sector is expected to grow at a compound annual growth rate of 15%
and likely to earn Rs 38,700 crores of earnings by 2015. At present the footwear retail
sector earns Rs 22,000 crores with a CAGR of 5% (Source: ASSOCHAM). India

produces nearly 300 crore pairs of footwear annually. Of which only 10% is exported the
remaining 90% is consumed domestically. Presently about 50% of the men’s purchases
takes in the organised sector whereas about 80% – 90% of purchases by women take
place in the unorganized sector. But with growing fashion consciousness along with
increased disposable income among India’s urban middle class this trend is likely to
change in the near future. Further the Indian consumers are also becoming more brand
conscious. The Indian consumer market is younger when compared to the markets in the
developed nations, which comprises more of older consumers presently and therefore the
retail markets have become more saturated. Therefore many foreign brands have already
started establishing themselves in India namely, Aldo, Bally, Clarks, Ecco, Florshiem,

Ferragammo, Hush Puppies, Lee cooper, Lloyd, Marks & Spencer, Nike, Nine West,

New Balance, Reebok, Rockport, Stacy Adams, Tod’s, Geox and Louis Vuitton.

Similarly domestic brands are also moving beyond national boundaries namely, Red
Tape, Bata, Liberty, Khadims, Lakhani, Metro and Action shoes.

Most of the footwear brands have exclusive retail outlets and account for about 55
percent of the footwear market while multi-brand retail outlets account for about 30
percent. With customers preferring to purchase footwear along with clothes, most of the
retailers are re-working on their channel strategies. Online shoe shopping is also a fast
emerging segment and currently accounts for about 8 percent of the footwear purchase of
the overall industry and is expected to reach nearly 20 percent by 2015.

2.4 Segmentation Patterns in the Footwear Retail:

The different segmentation patterns followed at present by the footwear retailers include:

On the basis of material used in construction the footwear:

• Leather Shoes

• Rubber Shoes

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 • PVC Shoes  Canvas Shoes

• Multi-product Shoes

On the basis of consumers:

• Men’s Shoes

• Women’s Shoes

• Boys’ Shoes

• Girls’ Shoes and

• Baby Shoes

On the basis of usage pattern:

• Formal Shoe

• Casual Shoes

• Slippers for house use

• Military Shoes

• Sports Shoes

On the basis of Types of Shoes:

• Police Boots

• Formal wear, closed and pump shoes

• Sandals

• Hawai Chappals

• Slippers

On the basis of Price:

• High end Shoes

• Medium Price Shoes

• Low-Priced Shoes

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 2.5 Key Players in the Indian Footwear Industry:

a) Bata India Ltd: The Company was founded in 1894 in Zlin of the Czech Republic by
Tomas Bata. In India, the company was established in 1932 as a small unit in Konnagar,
near Calcutta. Two years later it further expanded its operation in 155 acres of land
purchased partly from Calcutta Port trust and the rest from other land owners. Few years
later it further expanded its operation. Now this manufacturing facility is referred as
Batanagar. This company was the first one to receive the ISO 9001 certification in the
shoe industry. At present it sells in more than 400 cities. It serves nearly one million
customers each day. It employs more than 40,000 people. It operates over 4600 retail
stores and manages its presence in 50 countries. Bata has sold more than 15 billion pairs
since its inception in 1894. Tomas Bata was a ninth generation shoe maker. Therefore the
number “9” appears in all the Bata pricing and not as it believed to be psychological
pricing

The Company went public in 1973 when it changed its name to Bata India Limited.
Today, Bata India has established itself as one of Asia's largest footwear retailer. It has
cornered around 35 per cent market share in the organized sector (and approx. 8.5% of
the total footwear market) Almost 98 percent of the company's revenue is from the
domestic market while the rest is from exports.

Over the years, Bata India has established a leadership position in the footwear industry
and is easily the most trusted name in branded footwear. Its retail network of 1250 stores
in India gives it a coverage that no other footwear company can match. The stores are
present in good locations and can be found in all the metros, mini-metros and towns

Table 2.4 : Net Sales of Bata India ltd for 2007 – 2011 (in crores)

Year 2007 2008 2009 2010 2011

Sales 867.76 989.96 1096.22 1258.08 1540.59

Fig 2.3: Increase in Net Sales of Bata India Ltd

2500
2000
1500 1540.59
1000 989.96 1096.22 1258.08
867.76 Sales
500
0
2007 2008 2009 2010 2011

Source: [Link]

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 b) Liberty Shoes Ltd: The Company was established on 25th December, 1954. Initially
the company was into manufacture of shoe uppers. Then they forayed into footwear
manufacture for the domestic market in the year 1982. It was established by three
individuals namely Mr. D P Gupta, Mr. P D Gupta and Mr. R K Bansal in a small town in
Punjab. The company was incorporated on the 3rd September, 1986 as a Public Limited
Company and obtained the Certificate of Commencement of Business on 11th March
1988. The company has been set up to manufacture and sell leather and non leather shoes,
leather shoe uppers and leather garments.

It has also set up a joint venture in Russia to manufacture shoes in 1991 under the name
of M/S Liberty &Go, with M/S Gorky Production & shoes Unit, Gorky. The Company is
marketing its product nationally and internationally under the brand name LIBERTY and
is well established in the national and international market. The company has entered into
an agreement with one of the group firms M/S Liberty Enterprises for using the
established brand name LIBERTY.

Table 2.5 : Net Sales of Liberty Shoes ltd for 2007 – 2011 (in crores)

Year Mar ‘07 Mar ‘08 Mar ‘09 Mar ‘10 Mar ‘11

Sales 222.43 248.79 241.69 260.71 296.90

Fig 2.4: Increase in Net Sales of Liberty Shoes Ltd

Sales
400
260.71 296.9
222.43 248.79 241.69
200
Sales
0
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

Source:[Link]
[Link]

c) Khadim India Ltd:

Khadim India Limited forayed into the footwear retail sector in 1993 in Kolkata. It has
more than 630 exclusive retail outlets across the country. The company is completely
automated. The company received the ISO 9001:2008 certification from TUV NORD.
Khadim’s was awarded the “Most admired Footwear Retailer from East Asia” in the East

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 India Retail Summit 2011. It is situated in 21 states around the country. The sale has
increased from Rs 180 crores in 2008 to Rs 320 crores in 2012. About 70% of the
Khadim’s retail outlets are located in Tier II and Tier III cities. Khadim’s main
concentration is in the East and North Eastern parts of the country. Started in a 300 sq ft
store on Chitpur road in Kolkata as a wholesaler in footwear, only in the year 1993 they
forayed into the retail business. But still 60% of their sales are from the traditional
wholesale business.

2.6 Major Footwear Clusters in India:

The major footwear clusters in India are Chennai, Ranipet, Ambur in Tamil Nadu,
Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal,
Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million
are engaged in the footwear manufacturing industry.

In Agra, the shoemaking tradition began during the early days of Mughal Empire in the
16th century. By 1885, it had become major centre for production of footwear. The first
mechanised factory was established in Agra in the same year by the British Government
to produce military and civil officers’ boot (Kumar, 1997). In the year 1950, footwear
manufactured from Agra were exported at a smaller extent to the East Asian countries.
From 1955 onwards footwear from Agra were exported to a larger extent to the
communist block. In the year 1963 the communist block imported 13% of the total shoes
that were manufactured in Agra. This trend further continued in 1980s as well. But after
the fall of Soviet Union in the 1990s, the shoe exports also declined to 100 crores leading
to the closure of 60% of the export oriented units. After a decade, export started picking
up. Therefore in the footwear cluster of Agra alone there are about five thousand small
scale business units that employ around sixty thousand workers. On an average from this
cluster alone three lakhs pairs of footwear are produced per day (Knorringar, 1998). The
Agra footwear cluster can be broadly divided into two categories namely the organised
sector, which are mechanised and cater to the needs of the global market and the
unorganized sector that caters to the needs of the domestic market. The units in the
unorganized sector can be further classified as semi-mechanised, smaller workshops and
tiny household units. The semi-mechanised units produce around 200 – 2000 pairs per
day, the smaller workshops produce 50 – 200 pairs per day and the tiny household hold
units produce 12 – 50 pairs per day. In addition this cluster also manufactures footwear
accessories like shoe soles, insoles etc. This cluster does not have the presence of any
corporate sector or Multinational Organisations. It comprises of mainly family business
units or partnership firms. The footwear units in this cluster concentrate mainly on the
men and women shoes. The footwear exports from Agra are completely leather based. In
the domestic market synthetic leather shoes are sold. Non-leather based slippers or
casuals are also manufactured for the domestic market. Exporters sell their product either
through buying agents directly to the retail chains or wholesalers in Europe (U.K.,
Germany, France, Italy, etc.), Middle East and South Africa. The footwear manufactured

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 in the workshops or household units are sold in the domestic market through the
wholesaler. The wholesaler sells these shoes under his own brand name which can either
be formal or informal. Some of these workshops sell directly to big retailers. These
workshops also undertake subcontracts for large organisations like Bata, Action Shoes
etc. Many firms in Agra prefer to operate from workshops or remain as household units,
the reason being in Utttar Pradesh as long as the annual turnover of the firms from
footwear sales are less than Rs 1 crore they are exempted from excise duties. Also they
are exempted from paying sales taxes if the maximum retail price of a pair of shoe is less
than Rs 300.

The Kolkata cluster mainly manufactures non-leather, synthetic or leather like Chappals
or Slippers. This cluster caters to the needs of the lowest end of the domestic market. The
cluster no longer produces leather chappals due to stringent norms prevailing in the State
regarding leather tanning industry. Bata Shoes, pioneers in organised footwear, is situated
in Batanagar, near Kolkata. Bata concentrates on industrial and non-leather shoes. Firms
like Khadims and Ajanta shoes also dominate this cluster. Footwear produced in the
Kolkata cluster is sold to local wholesalers and who in turn sells to the retailers in their
state and neighboring states as well. Competition among small producers is primarily
based on prices. Increasing competition from mechanised moulded non-leather footwear
has also affected the price of chappals produced in this cluster.

Chennai is the major hub for leather footwear exports from India. The reason being, close
proximity of towns of Ambur and Ranipet where leather tanning and processing industry
is located. The availability of excellent sea port and airport facilitates export of footwear
with ease. The Institutions like CLE and CLRI provide ample support to this cluster. The
State Government also provides the necessary support through various schemes and
promotional measures. There are about 50 manufacturers in this cluster with 4 large scale
industries. The export of footwear components dominates this cluster than the footwear as
such. 90% of the leather footwear produced in this cluster is exported. In addition they
undertake outsourcing with many foreign brands. Most of the world’s major footwear
brands namely, Clarks, Versace, NEXT, Hugo Boss, Florsheim, K shoes, Liz Claiborne,
Guess are sourcing from the factories in and around Chennai. It is comprised of mainly
mechanised units. The organizational structures of the large scale industries are either
public or private in nature. The small scale industries are normally proprietary or
partnership firms. A striking feature of this cluster is that it is a modern cluster and does
not follow traditional artisan based production system. The unit price realization is the
highest in this cluster.

More than sixty international brands are sourced from India. Most of these brands are
manufactured in Agra, Kanpur or Chennai clusters. Besides, the Government of India has
also established dedicated footwear complex and footwear component parts proximate to
the footwear clusters. Further there has been healthy collaboration from the European
countries like Italy, Spain and Portugal.

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 2.7 Brands Sourced from India:

The brands Red Tape and Oakridge that are mainly meant for the high fashion ladies shoe
segment in the European Market are manufactured and marketed by Mirza Tanners. Lady
Comfort, another leading exporter of ladies shoes and sandals, sells its high-end products
in West Asia and Greece under the brand name Verona. M&V Shoes of Noida is the
manufacturer of Lee Cooper shoes. M&B manufactures Reebok and Bata as well. Adidas
sources from the Nellore units in Andhra Pradesh. Liberty shoes manufactures Nike shoes
from it Uttarkhand plant. Liberty shoes are the suppliers of footwear to Wal-Mart as well.
Sierra Industrial Enterprises, Uttar Pradesh in a strategic alliance with Madura Garments
is a footwear licensee for the brands owned by apparel majors, Louis Philippe, Van
Heusen, Allen Solly and Peter England. Sierra is a brand licensee for the Italian
sportswear brand Lotto. The company is also the footwear licensee for Tommy Hilfiger,
Disney, Levis, and Dockers.

Hindustan Lever had been exporting Le Baron to different countries for many years. The
company has a capacity to manufacture a million full shoes and another million shoe
uppers at its plants at Puducherry and Chennai. It supplies Puppies and Clarks to United
Kingdom, Salamander and Gabor to Germany and Bata shoes to France. Reebok and
Nike shoes are also sourced from Mooja manufacturers from Uttarkhand. Acme shoes
from Madhya Pradesh are manufacturers for China where in the products are sold under
various brand names namely R-Power, Delta Venitex, Haolin, Ann Royal, Wofulin,
Langfeng, OEM, Credit, Richane, RS, Chunjiang Shoes, Allexim, Glorysafety, LF Shoe
and Huate. The other footwear brands that are woruced from India include Ann Taylor,
Bally, Charter Club, Coach, Colehann, Daniel Hector, Deichmann, DKNY, Double H,
Ecco, Elefantan, Etienneaigner, Geoffrey Beene, Guess, Harrods, Hasley, Hush Puppies,
Kenneth Cole, Marks and Spencer, Nautica, Nunn Bush, Pierre Cardin, Rockport, Stacy
Adams, Tony Lama, Y ves St. Laurent, Zara, Johnston and Murphy, Docksteps,
Timberland, Armani, Geox, Diesel, Ted Baker, Lacoste, Kickers, Calvin Klein, Sioux,
Brasher, Zegna, Massimu Dutti, Buggatti, Lloyd, Christian Dier, etc.

CHAPTER III

REVIEW OF LITERATURE

This section comprises of review of literatures on domestic and international Footwear

sectors and consumers behaviour

3.1 Literatures on Footwear Sector

The study by Bale et al (1981) explores the reasons behind the fall of the US footwear
sector and it emergence as a major importer of non-rubber footwear. The industry has
declined in terms of output, number of firms and employment and therefore the imports
had increased considerably. Over the period of years the wage rates have increased

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 tremendously that has led to decrease in productivity as against the foreign countries
especially the developing ones which enjoy a pool of low cost labour.

Due to rising cost of labour, changes in the fashion trends of customers very frequently,
the footwear manufacturers have started turning to automation techniques. With the
customers becoming more savvy demanding high quality but smaller quantities, lower
prices in very less time, the author in his study stresses on the need for incorporating
robotics for manufacturing solutions. James (1996) has compared the manufacturing
operations of the three companies namely ACTIS Engg, DESMA and Intelligent
Machines Corporation. The study provides an insight into the superiority of the agile
manufacturing system provided by Intelligent Machines Corporation over the others as
different materials are used in the manufacture of footwear. The other two operations do
not support the use of soft and variable materials. Therefore incorporating agility in
manufacturing system would support mass customization and reduction in manpower

cost.

According to knorringar (1998) India is a country of artisans comprising of footwear

clusters spread in many parts of the country. These clusters predominantly consist of
small-scale manufacturers with skilled craftsmen, out dated technologies having less
access to automation. In a developing country like India, there exist tremendous
opportunity for combining the artisanal touch with high technology. The products
manufactured in these clusters are exported to medium price shops in America and
Europe. By employing capital intensive manufacture, footwear produced in these clusters
can also find a place in the high priced malls and boutiques in the International market.

Carmody (1998) explores the reasons behind the collapse of textiles and clothing
industries in Zimbabwe. The author attributes the reason for collapse as being improper
restructuring that was undertaken by the government in Zimbabwe during liberalization.
The author also observes that these industries though labour intensive do not high
productive labour as do the Indian, Korean and 5Taiwanese firms. The study throws
insights on the industrial development right from the time the European’s colonized in

1890s. The collapse of Textile, clothing and footwear industries from 1994 has been
attributed to the hike in the interest rates that forced the producers to increase their prices.
The author finds the African market to be generally uncompetitive due to shrinking
markets, low labour productivity, and poor infrastructure with poor political instability
due to which foreign investment is scarce when compared to the Asian countries. O’Brien
et al (1998) explored the prehistoric footwear which were about seven thousand five
hundred years old. The study reveals that the slip-ons and sandals were produced earlier
also. These shoes were discovered from Arnold cave, United States. On examining the
physical characteristics the authors found that these shoes were made of fibrous and
leather constructions. The authors have also compared the earlier extractions of footwear

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 and observe that though the style of prehistoric footwear found in various parts of United
States appear to be similar they varied widely in terms of construction techniques

Heather (1998) draws attention to the existence of fashion consciousness of the people
towards footwear even before 8000 years ago. The author throws light on the evolution of
the bear-fur shoes that the Japanese Samurai used to wear to the platform sandals that is
worn by people today are all due to the fashion desire. The article was the result of
excavation of shoes dated more than 8000 years from the Missouri cave. The complex
weaving and design of the excavated shoes reveal that the people were fashion conscious
as we are today and specialized artisans and craftsmen existed even at that time.

Jeff (1999) describes the footwear are product that is subject to plenty of innovations. The
author lists some of the innovations namely skate boarding shoes with exchangeable
soles, creaking shoes to walk through rivers and creaks, digital shoes to extract electrical
energy through walking and spin grip outsole shoes that allows the foot to pivot if the
player twists.

The article by Vicky et al (2000) evaluates whether choice of footwear impacts the
measurement instruments used to test the performance and gait in older women. Three
types of footwear conditions were considered that include barefoot, walking shoes and
dress shoes. The measurements instruments included Functional Reach Test (FRT), the
Timed up and Go test (TUG) and 10-meter Walk test (TMT). A sample size of 35 women
between the age group of 65 – 93 years was selected for the study. The study reveals that
the scores differed with the type of footwear measurements instruments used. The authors
advocate the use of one type of footwear constantly across all the tests. The authors find
that gait and balance among older women can be improved through footwear intervention

According to Umemoto et al (2000), the rules of origin in NAFTA affected the non
members and proved to be more advantageous to its member countries especially
Mexico. The authors describe the slump in the textile and apparel imports from the North
East Asian countries. Inspite of these discriminatory policies, still the footwear imports
from the Asian countries have increased due to the rise in the productive capacity of the
ASEAN countries. The ASEAN countries due to their low cost labour are taking
advantage inspite of stiff competition from Mexico. The authors have suggested a model
that can be implemented by the WTO and thereby ensure that the non member countries
are not affected due to the NAFTA’s restrictive rules

The study by Troy (2000) stipulates the need for appropriate footwear as they are more
than just shoes. According to the author shoes give identity and image and is also a
symbol of status. The article addresses the appropriate use of footwear particularly for
lawyers as self presentation is supremely important. It also brings to light the
disadvantage of using sandals in the work place. The author notices a change in trend

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 among the men where in they have started preferring more of light weight shoes at the
same time comfortable to wear.

Amrik et al (2001) opine that there is a change in the business environment where the
suppliers and customers are inextricably linked. The managers should also realize that
their customers’ demand will continue to increase and so do the competitors. Therefore
understanding and cooperation between each and every member in the supply chain
becomes important.

Despite the benefits, diabetes patients refrain from purchase of therapeutic footwear as
they are not attractive with limited colours and designs. Therefore Carolyn et al (2002), in
their study of 309 male and 91 female have emphasized the need to design variety of shoe
types with different styles. The authors classify footwear into three types namely
optimum, adequate and dangerous according to their appropriateness for use by diabetic
patients. The study finds that a combination of adequate footwear features along with
acceptability and reasonable pricing can motivate the diabetic patients to purchase
therapeutic footwear otherwise use of inappropriate footwear can cause foot ulcers
(Gautham et al, 2004) which can lead to amputation.

D’Mello (2003) in his study examines the plight of the workers in shoe manufacturing

companies. The author has followed a case study method considering Phoenix India, a
subsidiary of Reebok Shoes. The study brings to light the anomalies faced by the workers
in these manufacturing units. The study also emphasizes on the fact that these anomalies
are greater especially with the third world countries like India, where in corruption plays
a major role. Therefore it becomes easier for these international players to corrupt the
district magistrate to the police. As a result the Government of these developing countries
turns a deaf ear to these workers.

Edward et al (2004) classified therapeutic shoes as good, bad and ugly. Good shoes are
the ones that prevent foot ulceration among diabetic patients. Bad shoes are the ones that
cause ulceration and ugly shoes are the ones that are cosmetically unattractive as a result
of which the patients do not purchase though it was prescribed. The authors suggest the
use of computer aided designs and also highlight the need for educating the use of good
footwear that can benefit high – risk diabetic patients

Perves et al (2004) compares the export marketing channels in the developing and
developed countries. The article describes the purchase process of Netherland, Uganda
and Eritrea. One of the striking features of the Netherland retailers and wholesalers is that
they design and negotiate with the South East Asian manufacturers. They find the South
East Asian manufacturers to be more trust worthy, reputed and flexible in their approach.

The authors conclude with the note that the Dutch market is a promising one of the
manufacturers from other countries.

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 Mera (2005) examines Argentine’s regional trade policy behaviour in 1999. The author
brings to light the decision making process in framing an appropriate trade policy that
would protect the footwear sectors of Argentine and Brazil in 1999. Brazil being the
major exporter of shoes to Argentine threatened to flood the Argentine’s market with its
products due to devaluation of its currency. The domestic manufacturers in anticipation of
devaluation of Brazilian currency had already started pressurizing the Argentine’s

Government to provide compensatory measures as the domestic footwear manufacturing

sector was affected largely due to imports from Brazil which would further aggravate the
situation due to its currency devaluation. Eventually Argentine succeeded in executing
voluntary export agreement (VER) with its private sector and a compromise with its
Ministry of Economy and the MERCOSUR (foreign policy makers and diplomats)
without straining its diplomatic relationship with Brazil. The article shed’s light on the

Neo-classical approach of policy making as a result the government had to play a

protectionist role to the private sector

According to Tina (2005) footwear can be considered as personal protective equipment,

especially when it comes to safety footwear. The author elaborates on how the footwear is
developed and produced in a footwear manufacturing firm at Saint-Hippolyte-du-fort in
France, which is otherwise referred to as the world wide capital of safety footwear started
in 17th century. The firm relies on the Indian and the Tunisian market for shoe uppers as
the labour costs are very cheap where as indigenous manufacture would be too expensive,
The article concludes with a note for the employer that whatever may be the work
environment, it is the responsibility of the employer to provide right foot protection for
their workers.

The article by Veres (2005), traces the footwear fashion in Australia. In the 1830’s men’s
footwear had squared toes. In the 1840s the gently pointed shoes became popular. In
1850s long beets worn above the trousers became fashionable. In 1890s men started
wearing buttoned shoes that came just over the ankle. But by 1910, men’s fashion
reverted back to pointed shoes. By 1914 buttoned shoes were out of fashion. By 1920’s
fixed pattern of reserved style had evolved in men’s footwear as men no longer preferred
elaborate style. But certain subtle changes in terms of colour did occur. As of now few
styles exist which look identical from a distance. Women’s shoes were subject to many
changes that included boots, slip ones, heels and sandals from 1800 onwards. The First
World War introduced flat-heeled, sturdy and durable shoes for women as men had to
serve the military and women had to adopt men’s role. The study also throws insights into
the footwear Regulation Act 1916 that required the seller’s or manufacturer’s name to be
embossed on the sole. During this period the footwear were embossed with retailers’
name. Therefore footwear from any number of factories could all be branded with the
retailer’s name without any indications of the actual place of manufacture. This is in
practice even today.

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 The study by Padmore et al (2007) explores the process of developing competitive
advantage by the SME’s in the Mexican Footwear Industry. The authors have described
the economic events that took place between the years 1985 – 1999 and the impact on the
Small and Medium Scale footwear enterprises. The authors have argued that for
achieving competitive advantage three important factors namely entrepreneurs’ decisions,
availability of resources, capabilities, and institutional support are mandatory. The
authors have employed a case study method. The study captures the growth of SME’s

from 1985, the period when these enterprises were comfortable with the domestic market
till 1999, when entrepreneurs with strategic vision capitalized on the market opportunities
as a result of liberalization. Later many more entrepreneurs followed suite. The study
clearly illustrates how the Mexican SME’s in the footwear sector gained competitive
advantage by establishing synergies between entrepreneurs, supporting institutions and
strategies.

Bob (2008) stipulates the use of right kind of footwear. The author observes that most of
the time people buy footwear for their looks and do not consider comfort. With the
advancement in technology even safety shoes come in all styles. The author deliberates
on certain variety of shoes namely electrical hazard safety shoes, ankle protection shoes
and chemical shoes and points out the importance of having these shoes depending on the
kind of job one is in.

Yu (2008) examines the Corporate Social Responsibility policies of Reebok and its effect
on its local partner, a Taiwanese invested footwear firm located in South China. The
article describes the sweat shop conditions that were prevalent in the footwear industries
in the 1990s. The author brings to light the initiative of Reebok, one of the largest athletic
shoe manufacturer fro USA on labour practices. Reebok was a pioneer in implementing
strict labour laws. It has achieved industrial leadership against sweatshop abuses by
addressing labour issues proactively. The article also explores the way in which its local
partner fortune sports had to adopt CSR codes due to constant monitoring from Reebok.
The inhuman labour practiced in the footwear industry include child labour, forcing the
workers to work in unsafe environment, overtime than legal maximum or imposing
corporal punishments. The author finds that in athletic industry branded merchandisers
like Nike, Adidas, Reebok and retailers such as Footlockers, generally enjoy higher profit
margins than the suppliers such as Yue Yuen. The average profit margin of Nike,
Footlockers and Yue Yuen (the largest firm at wholesale, retail and production node of
athletic footwear supply chain) was 40%, 31% and 26% during 1996 – 2004 respectively.
However branded merchandisers and retailers have made no commitments to sharing
costs for improving labour standards with suppliers. Athletic footwear industry had the
worst record of human rights abuses accounting for 50% of the total sweat shops in
global factories between the years 1994 – 2002.

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 The study by Curran (2009) explores the impact of trade defence actions by the European
Union on China on low cost goods especially textiles and footwear. The author in his
study argues that such kind of trade defence actions against China has benefited other
developing economies like India, Brazil and Indonesia than the European Union.
According to the study, footwear imports by the European Union from India rose from
486.4 Euro Million in 2004 to 732.1 Euro Million in 2007 after the imposition of
antidumping duties in China. The restrictions imposed on China have become a boon for
other developing countries.

Miranda (2009) explores the rise of Bata as a major player in the footwear sector. Post
World War I, the international trade in footwear took a different turn. The large footwear
exporting countries like United States and UK gradually became world’s leading
importers. Between the years 1920 – 1933, North American exports fell to 95% of its
prewar exports in 1900. The decline was mainly due to the economic depression in 1930s.
In 1923, Bata had 1800 workers with the daily production of 8000 pairs. In the next eight
years the work force was almost 20,000 and the production capacity exceeded 1, 30,000
pairs per day. Bata was a family-run company located in Zlin of Czechoslovakia and it is
the one and only firm with an extraordinary size. Czech was a small developing country
at the time with abundant cheap labour. The success of Bata can be attributed to
producing footwear at very low costs directed at the low purchasing power market
segment. By 1931, Bata was exporting more than 2 million pairs of Blake Women’s shoes
to the United States with a price as much as 60% less than the similar footwear made in
America.

The study by Martinez (2010) focuses on the outsourcing decision in the Spanish
Footwear Industry. The study throws light on the transformation in the Spanish footwear
market between the years 1975 – 1995, due to the entry of foreign competitors. The
author observes that the firms outsourcing decisions depend on certain factors like the
search cost, the intensity to innovate according to the customers’ requirements and
linkages with other institutions like the Chamber of Commerce or other public
organisations. Further certain geographic areas are more preferred such as Vinalpo and
Arnedo-Calhorra as they are considered as principal footwear districts. The study
becomes very important in the present scenario of competition from other low-labour cost
countries due to globalization. The Spanish footwear market is highly price sensitive.
Therefore concentration is more on selecting low cost labour intensive partner.
Investment on marketing or branding operations is normally postponed.

Heasun (2010) focuses on the pressure exerted by media, government and public for
exploitation of labour in the clothing and footwear firms. As it was evident in the cases of
Walmart and Nike for which they became infamous in the 1990’s in United States.

Therefore inorder to incorporate fair labour practices, government and industry coalitions
were formed. The author observes in his study that with accelerated pace of globalisation

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 in clothing and footwear the vulnerability to competitive pressure increases and therefore
sweat shop risks shall also increase.

3.2 Literatures on Consumers Behaviour

Kassarjian’s (1971), study is basically a review of collection of consumer behaviour

theories namely psychoanalytic, social, trait and factor, self and self concept and lifestyle.
The author gives credit to Freud’s psychoanalytic theory and appreciates the contribution

made by Freud to the advances in marketing through the concepts of ego and superego
that are vital in shaping the personalities and behaviour of individuals. The author
highlights the strong relationship between personality and the way in which consumer
behaves and its impact on the product choice. The author concludes with caution note that
though these theories can be highly trusted by the manufacturers but still the validity
depends highly on the instrument administered.

According to Alpert (1972), a consumer’s choice of product attributes depends on his

personality traits. The study establishes that the preference of place for residence depends
upon ones personality. The study identified fifteen personality traits namely achievement,
deference, order, exhibition, autonomy, affiliation, intraception, succorance, dominance,
abasement, nurturance, change, endurance, heterosexuality and aggression. Canonical
correlation was used to analyse the data. The study found that the preference of attributes
differed across the personality traits. For instance the author finds that people who
possessed orderly personality preferred to reside in no noise area. William R et al (1972)
in his study with 18000 women as the sample size finds that psychographic items helps in
predicting the out shopping behaviour better when compare to demographic tests. Since
the out shopping behaviour is multidimensional and not product specific, psychographic
measures would help the managers to formulate their strategies in a better way.

Wolter et al (1973) emphasize the need for adopting psychographics and lifestyle
approaches especially in the field of advertising as the consumers generally feel that most
of the advertisements are stereotyped and boring. The authors advocate the use of
psychographics to demographics. The reason being consumers with similar demographic
profile have differed psychological profiles. Therefore advertisements should be
presented in such ways that penetrate the inner consciousness of the customer for which
advertisers should adopt psychographic approach.

Plummer (1974) discusses how lifestyle patterns can evolve as an effective method of
segmenting the market. The study is based on the premise that only if the retailers and
manufacturers understand their consumers better can they get closer to them. The study
describes the procedure involved in segmenting the market using Activities, Interests,
Opinions and Demographics (AIO). The author also narrates the benefits of lifestyle
segmentation wherein it helps in redefining the target consumers all together. The study

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 concludes with the view that lifestyle segmentation will help in understanding the
consumers better compared to other approaches as it helps the companies to secure
detailed knowledge about their target.

The study done by Wells (1975) reviewed the earlier literatures that were carried on
lifestyle, psychographics, personality, activity and attitude and also discusses the
reliability and validity of these measurements using four different approaches that include
preferences of shot gun heavy users, ecologically concerned consumers, choice of
products like beer, cigarettes, air travel, deodorant and magazines. It was observed that
psychographic profiling yield better results in consumer research. It can also be used to
study the changing trends in consumers.

Goldberg (1976) points out that psychographic approach though powerful but heavily
depends on the test batteries or the statements that are used to group the consumers under
their respective lifestyles. Furthermore these test batteries should be designed in such a
way that correlates with product functions. Therefore validity of this approach depends
upon the test batteries and selection of the products. The author identified three
personality traits that include venturesome, esthecism and practical. The study reveals
that venturesome consumers prefer to try new products, esthetic consumers chose those
products that are more appealing and the practical types were hypothesized towards
performance of the product.

Kendall et al (1983), have reviewed the reliability of psychographic analysis considering

eight studies. The authors emphasise the need of pre-testing the psychographic
instruments as unusual items may affect the validity of this approach. They have also
suggested the use of jack knife method to split half which has been proved through a
study conducted on the usage patterns of communication equipment.

The study by Palmer et al (1984), examines those characteristics that are associated with
the differences in the amount of life insurance owned. The study considers both
demographic and psychographic variables, where in earlier studies have concentrated on
the former. The study considered psychographic variables such as work ethics, fatalism,
socialization preference, religion salience and assertiveness. The demographic variables
that were considered included, Education, number of Children and Income. The study
proves that a combination of both the variables would yield a better result.

According to Kahle et al (1989), Consumers rarely purchase anything exclusively for the
functional aspects of the product. They always expect greater benefit from the purchase.
Values are one of the abstract forms of knowledge when tied to a product or service can
help to remember that specific item. In order to serve the diverse market profitably, the
marketing managers must segment the market on the basis of information of the
consumers who make the market. Therefore segmenting the market with value

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 information about the consumers can help in developing effective and consistent
marketing strategy.

The study by Peter et al, (1993) advocates the use of lifestyle constructs to measure
service quality expectation of the customers. SERQUAL a tool that was developed n
1990 was used to measure the service quality expectation and perception of the
customers. But this tool relies on the demographic profiling of the consumers. Based on
the expectations of the customers the healthcare practitioners were categorized as
empathy, reliability, responsiveness and assurance. The study finds that demographics
alone cannot be used to measure the service quality expectations of the customers.

The study by Orsay (1999) classifies the Turkish consumers on lifestyle basis and finds
that there is a relationship between the resultant clusters and ethnocentrism. The study
identifies eight factors namely, fashion conscious, leadership, family concern, health
consciousness, carefree, community conscious factor, cost consciousness and practicality.
The study utilizes CETSCALE (17 items) to measure ethnocentrism. The study reveals
that fashion conscious and leadership oriented consumers are less ethnocentric whereas
family concern and community conscious consumers were more ethnocentric. The study
concludes with the implications for the international manufacturers.

Verma & Savita, (1999) in their study have identified seven lifestyle factors from the
middle-class segment in Delhi and established a relationship between the resultant
clusters with the perception on advertisements. The clusters that were identified include
Stay-at-home traditionalists, progressive provident, social-climbers, security-seekers,
conservatives, privileged and independents. The study reveals that perception on
advertising varied across different lifestyles. It was inferred through the study that the
security-seekers and independents consider advertising as essential whereas the stay-
athome traditionalists and the privileged did not think that it was essential

Dennis et al (1999) have brought out in their study as to the gender differences in the
bargaining tactics. The authors have developed a scale to assess consumers’ propensity to
employ bargaining tactics. The study finds that men are more assertive where as women
generally employ defensive strategies in bargaining.

In another study by Savita and Verma (2000), it has been observed that buyer’s lifestyle
has an influence on his purchase behaviour. The study identifies seven lifestyles that
include stay-at-home traditionalists, progressive provident, social-climbers, security
seekers, conservatives, privileged and independents from the middle-class segment in
Delhi. The buying characteristics that were considered include Interest in trying new
brands, seeking friend’s advice on choice of brands, preference for reliable stores and
store-loyalty. It was found that majority of the conservatives and privileged were more
likely to try new brands than the other segments. The social climbers and the

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 conservatives seek their friend’s advice on choice of brands. Privileged lifestyle prefers
the reliable store that offers guarantee.

According to Inamdar & Chandra (2001), marketers in India have focused only on the
higher socio-economic classes i.e., SECA & B, because it was thought that income alone
decided the consumption behavior and only these classes can afford. But now due to
changes in the average household monthly income and the education level that has led to
improvement in the standard of living, the SECC&D classes cannot be ignored.
Examining all these four classes will better reflect their lifestyle and consumption
patterns.

The study by Wu (2001) reveals that the benefits sought by consumers on online
marketing varied according to their lifestyle patterns, demographics and benefits sought.
The study reports three clusters that include Effectiveness and Modern seeker,
Convenience Information and Safety Seeker, Service and Freedom seeker. The study
helps the online retail managers to promote different products depending on the clusters.
Since the 1st cluster seeks more of effectiveness, promptness and modernization of online
marketing, products such as CD, audio etc can be promoted to them. Sports products
could be marketed to the 2nd cluster and low priced products such as maps, magazines or
books could be promoted to the 3rd cluster.

The study by Bello et al (2002), gives a detailed outlook on the different form of travel
tourism. The study establishes a relationship between different lifestyle factors and
different categories of short and long trips. The first segment was the home-loving
segment that preferred short trips that was under four nights and long trips that was more
than four or more nights. At the same time they would like to journey with their family
mostly inland that is within Spain. The Idealistic segment prefers more of rural visits. The
autonomous segment prefers to travel with their friends and mostly to coastal areas. The
Hedonistic consumers prefer to travel to European countries and they would like to stay
in big star hotels. The conservative lifestyle segment choose either their own member’s
region to visit or choose rural areas but would travel only with their family.

Wirtz et al, (2003), in their study have segmented the library visitors in Singapore on the
basis of learning and reading related lifestyles. Data was collected from diverse
demographics i.e., the sample included people belong to different countries, age groups
and religion. The study identified seven groups that include, the career minded, active
information seeker, self supplier, casual reader, narrow focused, low motivator and
facilitator. Each of these groups exhibit different characteristics towards learning system.
The career minded people prefer to read work related materials. The active information
seeker prefers to read both work related and non-work related materials. The self
suppliers prefer to purchase the learning materials. The casual readers like to read
entertainment related materials. The narrow focused learners are generally students who
like to read those materials that are related to their curriculum. The low motivators are

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 low learners also and the facilitators are generally the older generation who accompany
children to the library. The study was basically undertaken to devise strategies such that it
would give a broader patronage to the library system in the country.

Parashar (2003) in her study explores the changing behaviour of consumers due to
globalisation. The author emphasizes on new heuristics rule in the study of consumer
behaviour as determination of consumer behaviour with respect to utility function has
become redundant given the present market structure. The heuristic rules which the
author has emphasized in the study include determination of consumer behaviour on the
basis of the environment and social structure of the consumer thus leading to the
evolution of behaviorism.

The study by Craft et al (2005), identify the need for developing global segmentation
strategy preferably based on behavioural patterns as similar purchase patterns can exist in
multiple countries that leads to similar purchase behaviors that transcends national
boundaries. The study becomes very vital given the current scenario of globalization
where in consumers existing across national boundaries can have similar buying
behaviors. The study finds that hybrid segmentation that looks for similarities across
word markets is better than the traditional segmentation approach that emphasizes on
different strategies for different markets. Therefore segmenting the global market based
on lifestyle and behavioural patterns can help global marketers to leverage their brands
better. Because brand image can be established across different counties through a single
segmentation and in turn positioning strategy.

The study by Kamineni (2005) throws light into the concept of Enneagram a study on
personality traits that was founded about 2500 years ago. Enneagram has been used
vastly in the fields of human resources and strategic management but hardly used in
marketing. In the later stage of theory development, Oscar Ichazo (1982) and Claudi
Naranjo (1990) had synthesized nine personality traits namely, Idealistic perfectionists,
who always prefer to follow directives, Open hearted helpers, eager to socialize,
HardDriving performers, who finish their job perfectly and quickly, Aesthetic
Connoisseurs, who have aesthetic appeal, Thoughtful sages, who stay up to date on the
latest technology, Prudent trouble shooters, who always keep complaining types, the
upbeat visionaries, who are fun loving and always looking for a change, Take charge top
dogs, who are dominant in nature, Easy going mediators, who are calm and do not engage
in any direct outburst. The author in his study vouches the use of enneagram as tool for
market segmentation.

Fraj & Martinez (2006) have used lifestyle profiling for ecological products. According to
this study, individuals characterized by self-fulfillment feeling are more conscious
towards the environment and hence select eco friendly products such as recycled products
and also take part in the events that are directed towards protecting the environment. The
consumers with this lifestyle will be interested in the firms that are committed to the

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 environment. Therefore, when new products are launched by these firms, the consumers
belonging to this lifestyle show special interest and tend to be more excited about it.

The study by Goswami (2007), examines the purchase behaviour of the urban consumers
in Kolkata in on the basis of demographic and psychographic variables. The study also
throws light on the difference in the shopping orientation between brand and non-brand
loyal customers. The aspects that were considered for studying the shopping orientation
include gratification, Idea, Value, Diversion, Socialising, Utilitarian, Price-Quality
Association, Price consciousness, Fashion, Brand loyalty, Need-based buying, Window
shopping, multi-brand stores versus exclusive company stores. From these facets the
author identifies certain shopping behaviors like utilitarian, conservative, hedonic,
socialising etc. The resultant clusters were then compared with the store choice attributes.
Interestingly the study finds that store choice behaviour varied across these segments For
instance, the utilitarian shoppers gave less importance to nearness of the store.

A study by Goutam et al (2007), explores the changing lifestyle of Indian Women and its
impact on the dress preference. The study mainly focuses on the middle class segment.
The lifestyle segments selected in the study include, voluntary simplicity, me generation,
blurring gender role, poverty of time and component. The study reveals that most of the
women in India are turning towards component lifestyle where in they are a combination
of all the other four lifestyle. This is a hybrid lifestyle in which women change their
lifestyles depending upon the situations. Further the study also reveals that that most of
the American women belong to this category. Therefore the time lag between US and
India in terms of social cultural changes is getting reduced and hence the challenge for
the dress manufacturers to satisfy this segment is more.

The study by Larsen et al, (2009) throws insights into the influence of ambivalence on the
choice of convenience food in Norway. Ambivalence is described as the contradictions
people experience in their individual attitudes, beliefs or preferences. The authors have
clustered the consumers on the basis of attitudes, ambivalence and moral aspects. Three
consumer segments that were identified include convenient, ambivalent and dissatisfied
consumers. The study reveals that the ambivalent consumers experience feeling so guilt
when they purchase and consume ready meals. But they buy ready meals that would
please their children. The study adds another segment to the already existing benefit
segmentation by including ambivalence as one of the key characteristics found among the
consumers. The study also adds that about 40% of the consumers fall in this category.

The study by Iyer et al (2007) focuses on the baby boomers segment in the US. The
authors further divide this segment into older and younger baby boomers. Older baby
boomers consist of the consumers born between the years 1956 – 1965 and the younger
baby boomers consist of the consumers born between the years 1946 – 1955. Though the
study finds more similarities than differences among the younger and older baby
boomers, what is interesting is the suggestion given by the authors. The authors feel that

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 baby boomers if segmented on the basis of psychographics or cognitive age than the
traditional age segment would provide a valid market for the manufacturers.

The study by Park et al (2010) throws insights into the American women’s lifestyle and

their choice of kitchen home appliances. The study identifies six segments that include
Wellbeing-oriented, Social- and dining-oriented, Family-oriented, Innovation- and action-
oriented, Price-conscious, and Convenience-oriented. The study finds that the wellbeing
customers are highly health conscious and take interest in purchase of sophisticated home
appliances. The social and dining oriented customers prefer to dine out therefore they do
not show much interest in kitchen appliances. They are also not price conscious. The
family-oriented consumers are very price conscious and they prefer cleanliness and like
to purchase kitchen appliances but refrain from purchase of sophisticated ones. The
innovative and action oriented customers are progressive ones and they show interest in
purchase of large kitchen appliances. The price sensitive customers are highly price
conscious and they do not show any interest in cooking or even purchase of kitchen
appliances. The conveniences oriented customers prefer convenience to health. They
prefer to purchase large refrigerators that could stock large quantity of food. Therefore
the study can be useful to the manufacturers to identify the lifestyles of the American
Women and formulate the marketing strategies accordingly.

According to Laurent et al (2010) older consumers generally buy older brands and the
younger consumers prefer innovative products. The data was from the French perfume
market. The study reveals that older consumers offer a unique opportunity to the
manufacturers as they are likely to develop long term attachment to a product or brand.
The reasons identified for the attachment could be nostalgia developed during the
formative years. Therefore any move to either delete established brands or introduce new
brands or modify the contents of the existing brands should be considered with great care.
Also young consumers though preferred to try new brands still they tend to adopt brands
or products that are atleast more than three years old. The study gives a valid input on
how establishment of brand image becomes vital for the manufacturers. The study though
conducted on the perfume market can be generalized to other products or brands as well.

CHAPTER IV

CONSUMER PROFILING

4.1 A brief study on the profiles of the respondents

Out of 5000 questionnaires distributed, 4766 were collected and only 4439 were
considered fit enough for the study as the rest of them were incomplete. The study
considered 2074 men and 2365 women between the age group of 20 to 55 years with
monthly income spread between Rs 12,000 to Rs 2, 00,000.

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 Table 4.1: Gender wise classification of the respondents

Respondents Sample Size (Nos) % to total Sample size

Men 2074 47%

Women 2365 53%

Total 4439 100

The age wise profile of men and women is given in Table 4.2 and 4.3 respectively

Table 4.2: Age wise classification of the Men

Age of the respondents Total (Nos) % share of the total sample size

20s 465 22%

30s 544 26%

40s 523 25%

50s 542 26%

Total 2074 99%

Table 4.3: Age wise classification of the Women

Age of the respondents Total (Nos) % share of the total sample size

20s 772 33%

30s 662 28%

40s 522 22%

50s 409 17%

Total 2365 100%

Therefore from the Table 5.2 it could be inferred there 22% of the respondents were in
their 20s. Out of 2074 respondents 544 of them were in their 30s constituting around 26%
of the sample size. 523 of them were in the age group of 40s representing 25% of the

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 sample size. 542 representing 26% of the total male sample size were in their 50s. Among
the female respondents, 33% comprising of 772 members were in their 20s, 662 of them
representing 28% were in their 30s, 522 of them representing 22% were in their 40s and
409 of them representing 17% were in their 50s.

4.2 A Study on the Profiles of Men

For profiling the respondents on the basis of their behaviour, factor analysis was
employed on the 50 AIO statements (See Appendix1). Initially inorder to test the
reliability of these AIO statements, Cronbach’s alpha score was computed. The
Cronbach’s alpha on 50 AIO statements revealed a score of 0.803 showing that the

statements were reliable enough for further analysis. Also Kaiser-Mayo-Olkin (KMO)
Test was conducted to measure the adequacy of sample size. The test generated a score of
0.694. Thus KMO test also proved that the samples were adequate enough to conduct
factor analysis. On employing factor analysis 11 factors that constitutes 52% of the
variance was considered for the study. Further for authentication Scree plot was also read.
Only those factors that constituted Eigen value above 1 were considered as principal
component analysis was employed. Varimax rotation was used to extract the factors with
factor loadings greater than +/- 0.30.

Fig 4.1: Scree Plot representing the components extracted

Table 4.4 Components with total and cumulative variance

Initial Eigen values

Components Total % of Variance Cumulative %

1 5.81 11.63 11.63

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 2 3.20 6.40 18.03

3 3.07 6.13 24.16

4 2.46 4.92 29.09

5 1.98 3.96 33.04

6 1.87 3.74 36.78

7 1.68 3.36 40.14

8 1.56 3.11 43.25

9 1.40 2.80 46.06

10 1.39 2.79 48.85

11 1.34 2.69 51.54

As Varimax rotation was utilized, those statements which had a factor loading of 0.3 and
above was assigned to the respective component. Further case wise regression scores
were considered to classify each individual to the respective components. The 11
components that were extracted include Stylistic, Independents, Economicals,
Traditional, Socialising, Globe trotters, Strivers, Systematic and Dominant (See Table

4.5). It should be noted that the components have been named according to the variable
(Statement) with higher rotated factor loadings.

Table 4.5 Statements with Rotated Factor Loadings and assignment to respective
components

Components Rotated Factor

Loadings

Component 1: Stylistic 0.72

I like to spend a year in a foreign country 0.72

I have one or more outfits that are of very latest style 0.68

I pay cash for everything I buy 0.65

I enjoy stylistic dresses 0.58

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 The most important of life is to dress smartly

I am fashionable in the eyes of others 0.58

Component 2: Confident

I have more self confidence than most people 0.77

As far as possible after marriage nuclear family is better 0.74

I am more independent than most people 0.71

I have a lot of personal ability 0.64

Component 3: Cautious Shoppers

I visit many shops before I finalise my sales 0.81

I am active in all social functions 0.64

I check the prices even for small items 0.61

I watch advertisements for announcements of sales 0.56

One should bargain before a purchase 0.40

I prefer my friends to spend when I am out on a party 0.37

Component 4: Traditional

Women are dependents and need men’s protection 0.73

A women should not work if her husband does not like her to work 0.72

Looking after the house is primarily a woman’s responsibility 0.59

In the evenings, it is better to stay at home 0.53

Component 5: Relaxed

I drink soft drinks several times in a week 0.76

I spend a lot of time with friends talking about brands and products 0.70
I participate in sports activities -0.53

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 One should have own credit/debit cards 0.43

Component 6: Optimistic

Think I will have more money to spend next year 0.83

I want to take a trip around the world 0.77

Component 7: Strivers

Doing nothing makes me feel uncomfortable 0.77

I will take some courses to brighten my future 0.45

Component 8: Systematic

One should always keep the house neat and clean 0.66

One must save for the rainy day 0.63

A distinctive living attracts me 0.52

Component 9: Dominant

Friends often come to me for advice 0.66

Giving dowry in marriage is a tradition and cannot be done away 0.54

I would go for a walk than sit idle 0.52

I can be considered a leader 0.39

Component 10: Spiritual, Diet conscious and Socialising

I eat only home food 0.59

Spiritual values are important than material things 0.58

I can mingle with strangers easily 0.50

Component 11: Stay Trim (6%)

I skip breakfast regularly 0.77

I like to watch games than any other entertainment channels 0.71

A brief description of the profiles of the consumers is as follows:

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 a. Component 1 - Stylistic

In this study, about 200 of the respondents i.e., 9.6% of them belonged to this cluster. Of
which 92 respondents were in their 20s, 68 were in their 30s, 32 were in their 40s and 8
of them were in their 50s constituting 46%, 34%, 16% and 4% of this cluster respectively.
Further, out of 92 respondents in the age group of 20s, had the following monthly
income, 9 (10%) of them earned between Rs 10,000 – Rs 20, 000, 32 (35%) were earning
between Rs 20,000 – Rs 30,000 and 51 (55%) were earning around Rs 30,000 – Rs
40,000. Respondents in 30s had the following income patterns, 9 (13%) earned around Rs
20,000 to Rs 30,000, 23 (34%) of them earned between Rs 30,000 – Rs 40,000, 11(16%)
of them were earning between Rs 40,000 and Rs 50,000, 16(24%) of them were drawing
a monthly income of around Rs 50,000 and Rs 60,000 and there were around 9(13%) of
them who were earning around Rs 60,000 – Rs 70,000. 32 respondents who were in their
40s, comprised of 6 (19%) of them earning between Rs 30,000 – Rs 40,000, 11(34%) of
them drawing around Rs 60,000 to Rs 70,000, 6(19%) of them between Rs 70,000 to Rs
80,000 and there were 9 (28%) members who were earning around Rs 1,50,000 to Rs
2,00,000. Among the respondents who were in their 50s, only two categories could be
identified. 6 (75%) belonged to the income category of Rs 60,000 – Rs 70,000 and 2
(25%) of them earned around Rs 1,50,000 to Rs 2,00,000.

This cluster comprised of consumers who preferred to migrate to foreign lands. They
preferred to be trendy i.e., they preferred to be dressed according to the latest fashion
trends. This cluster also comprised of customers who were calculative in spending their
money. They always preferred to pay cash for all their purchases as they did not want
spend more than the cash they carried. They can also be referred to as budgeted spenders.
They enjoyed dressing stylistically. The smart dressers also were associated in this
category. The smart dressers are the ones who dressed according to the occasions. They
are not necessarily fashionable. The consumers in this category also wanted others to
perceive them as being fashionable.

b. Component 2 - Confident

260 (13%) of the male respondents were in the independent lifestyle category. 44 (17%)
were in their 20s, 78 (30%) in their 30s, 106 (41%) in 40s, and 32 (12%) of them were in
their 50s. Among the 44 respondents who were in their 20s, 1 (2%) earned a monthly
income between Rs 20,000 to Rs 30,000, 17 (39%) were earning between Rs 30,000 to
Rs 40,000 and 26 (59%) were earning between Rs 50,000 – Rs 60,000. Among the 78
respondents in the age group of 30s, 2 (3%) were in the income group of Rs 30,000 and
Rs 40,000, 1 (1%) in the income group of Rs 40,000 to Rs 50,000, 56 (72%) were earning
between Rs 50,000 to 60,000 and 19 (24%) between Rs 80,000 to Rs 1, 00,000. Among
the 106 members in the age group of 40s, between the income group of Rs 40,000 to Rs
50,000 there were 10 (9%), between Rs 60,000 to Rs 70,000 there were 16 (15%), Rs
80,000 to Rs 1, 00, 000 there were 76 (72%) and from Rs 1,50, 000 to Rs 2,00, 000 there

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 were 4 (8%). Among 32 (12%) in their 50s, between Rs 60,000 to Rs 70,000 there were 7
members (22%), Rs 70,000 to Rs 80,000 there were 21(66%) and between Rs 80,000 and
Rs 1,00,000 there were 4(13%).

The consumers who belonged to this category felt that they have high self confidence.

They also believed in a smaller family structure. They believed that they were more
independent and also felt that they have more personal ability.

c. Component 3 - Cautious Shoppers

There were 230 respondents in this cluster representing 11% of the total sample
pertaining to men. 12 (5%) of them were in their 20s, 24 (10%) in their 30s, 71 (31%) in
their 40s and 123 (53%) in their 50s. On the basis of the monthly income distribution of
the respondents in the age group of 20s, 8 (67%) earned between Rs 10,000 and Rs
20,000 per month, 2 (17%) between Rs 20,000 and Rs 30,000 and another 2(17%) were
earning between Rs 30,000 and Rs 40,000. Among the respondents in 30s, between RS
10,000 to 20,000 there were 4 (17%), Rs 30,000 to Rs 40,000 there were 9 (38%), Rs
40,000 and Rs 50,000 there were 11 (46%). Among the respondents in the age group of
40s, 7 (10%) were earning between Rs 30,000 to Rs 40,000, 4 (6%) between Rs 40,000 to
Rs 50,000, 23 (32%) between Rs 50,000 to Rs 60,000, 11 (16%) were between Rs 60,000
to Rs 70,000, 17 (24%) were earning between Rs 80,000 to Rs 1,00,000 and 9 (13%) of
them between Rs 1,00, 000 to Rs 1,50,000. Among the 123 respondents in the age group
of 50s, between Rs 40,000 and Rs 50,000 there were 5 (4%), Rs 50,000 to Rs 60,000
there were 7 (6%), Rs 60,000 to Rs 70,000 there were 6 (5%), between Rs 70,000 to Rs
80,000 there were 24(20%), between Rs 80,000 to Rs 1,00, 000 there were 67 (55%) of
them, Rs 1,00,000 to Rs 1,50,000 there were 12 (10%) and from Rs 1,50,000 and Rs
2,00,000 there were 7 (2%). This cluster is very careful in all its purchases. The
individuals in this segment finalized their purchases only after checking the prices of
many similar products and would visit as many shops before they took the purchase
decisions. The consumers who preferred to bargain also were associated in this category.

d. Component 4 - Traditional

There were 240 (12%) respondents who represented this cluster. Among them, there were
9 (4%) in the age group of 20s, 14(6%) in 30s, 61 (25%) in 40s and 156 (65%) in 50s.
Out of 9 respondents, 4 (44%) were earning monthly income between Rs 10,000 and Rs
20,000, 5 (55%) of them earning between Rs 30,000 and Rs 40,000. In the age group of
30s, 4 (29%) were in the income group of Rs 20,000 and Rs 30,000, 9 (64%) were in the
income group Rs 30,000 and Rs 40,000, 1 (7%) between Rs 50,000 and Rs 60,000.
Among the respondents in the age group of 40s, 21 (34%) were in the income group of

Rs 30,000 and Rs 40,000, 9 (15%) in the income group of Rs 40,000 and Rs 50,000, 20
(33%) in the income group of Rs 60,000 and Rs70,000, 11 (18%) in the income group of

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 Rs 80,000 and Rs 1,00,000. Among the respondents in 50s, 43 (28%) were earning
between Rs 40,000 and Rs 50,000, 51 (33%) were in the income group of Rs 50,000 and
Rs 60,000, 36 (23%) in the income group of Rs 70,000 and Rs 80,000, 17 (11%) were
earning between Rs 80,000 and Rs 1, 00,000 and 9 (6%) were earning between Rs
1,00,000 and Rs 1,50,000. They have certain strong convictions like women are
dependents and always require men’s protection. They also felt that women should not
work if her husband does not like her to work and looking after the house is primarily a
woman’s responsibility. They prefer to stay at home in the evenings than going out.

e. Component 5 - Relaxed

There were 210 (59%) respondents in this cluster. Among them 124 (59%) were in the
age group of 20s, 61 (29%) of them in 30s, 14 (7%) in the age group of 40s and 11 (5%)
in the age group of 50s. There were 42 (34%), 34 (27%), 26 (21%) and 22 (18%) earning
monthly income of Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs
50,000 and Rs 70,000 – Rs 80,000 respectively. Among the respondents in the age group
of 30s, 24 (39%), 9 (15%) and 28 (46%) were earning a monthly income of Rs 40,000 –
Rs 50,000, Rs 60,000 – Rs 70,000 and Rs 70,000 – Rs 80,000 respectively. From the age
group of 40 there were 4 (29%), 8 (57%) and 2 (14%) with the monthly income of Rs
70,000 – Rs 80,000, Rs 80,000 – Rs 1,00,000 and Rs 1,50,000 – Rs 2,00,000

respectively. In the age group of 50s there were 2 (18%), 6 (55%) and 3 (27%) with the
monthly income of Rs 70,000 – Rs 80,000, Rs 80,000 – Rs 1,00,000 and Rs 1,00,000 –
Rs 1,50,000 respectively.

The consumers in this component prefer to lead a relaxed lifestyle. They are not very
health conscious as they do not mind drinking soft drinks frequently. Further they are
very analytical about the brands and products they purchase. But they do not enjoy
playing games. They are also practical in nature. As they thought that one should have
their own credit or debit cards.

f. Component 6 - Optimistic

There were 120 (6%) respondents in this cluster. Of which 53 (44%), 34 (28%), 24 (20%)
and 9 (8%) were in their 20s, 30s, 40s and 50s respectively. Among the respondents in
20s, 17 (32%), 6 (11%), 21 (40%), 6 (11%), and 3 (6%) were earning monthly income
between Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs
40,000 – Rs 50,000 and Rs 70,000 – Rs 80,000 respectively. Among the respondents in
the age of 30s, 21 (6%), 7 (21%) and 6 (18%) were earning between Rs 40,000 – Rs
50,000, Rs 60,000 – Rs 70,000, and Rs 80,000 – Rs 1,00,000. Among the respondents in
the age group of 40s there were 4 (17%), 12 (50%) and 8 (33%) earning between Rs
60,000 – Rs 70,000, Rs 70,000 – Rs 80,000 and Rs 80,000 – Rs 1,00,000 respectively. In

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 50s there were 1 (11%), 3 (33%) and 5 (56%) earning between Rs 70,000 – Rs 80,000, Rs
80,000 – Rs 1,00,000 and Rs 1,00,000 to Rs 1,50,000. They are very optimistic about

money. They like to take frequent foreign trips.

g. Component 7 - Strivers

There were 120 (6%) of the respondents in this cluster. Of which 34(28%), 52 (43%), 20

(17%) and 14 (12%) were in their 20s, 30s, 40s and 50s respectively. There were 6

(18%), 13 (38%), 12 (35%) and 3 (9%) in their 20s with monthly income between Rs

10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000 and Rs 40,000 – Rs

50,000 respectively. Among the respondents in their 30s, 24 (46%), 12 (23%), 9 (17%)
and 7 (14%) were with the monthly income of Rs 20,000 – Rs 30,000, Rs 30,000 – Rs
40,000, Rs 40,000 – Rs 50,000 and Rs 50,000 – Rs 60,000. 8 (40%), 6(30%) and 6 (30%)
in 40s were earning around Rs 50,000 – Rs 60,000, Rs 60,000 – Rs 70,000 and Rs 70,000
– Rs 80,000. Among the respondents in 50s, 9 (64%) were in the income group of Rs

40,000 – Rs 50,000 and 5 (36%) were in the income group of Rs 70,000 – Rs 80,000.
They keep themselves busy and do not prefer to remain idle. The consumers in this
cluster are hard working and strive to brighten their future.

h. Component 8 - Systematic

About 8% of the male respondents constituting around 160 of them come under this
cluster. Of which 20 (13%), 91 (57%), 32 (20%) and 17 (11%) were in their 20s, 30s, 40s
and 50s respectively. In the age group of 20s there were 4 (20%) and 16 (80%) earning
between Rs 20,000 – RS 30,000 and Rs 30,000 to Rs 40,000 respectively. In 30s there
were 33 (36%), 41 (45%), 6 (7%), 5 (6%) and 6 (7%) with monthly income of Rs 50,000
– Rs 60,000, Rs 60,000 – Rs 70,000, Rs 70,000 – Rs 80,000, Rs 80,000 – Rs 1,00,000

and Rs 1,00,000 – Rs 1,50,000. 8 (25%), 21 (66%) and 3 (9%) with income distribution
of Rs 60,000 – Rs 70,000, Rs 70,000 – Rs 80,000 and Rs 80,000 – Rs 1,00,000

respectively in the age group of 40s. Among the respondents who were in their 50s, 9
(53%) and 8 (47%) were in the income class of Rs 70,000 – Rs 80,000 and Rs 80,000 –
Rs 1,00,000 respectively. The consumers in this cluster are more systematic in nature.
They believed in keeping their house neat and clean. They preferred to save than spend
and they also wanted to live a distinctive lifestyle.

i. Component 9 - Dominant

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 There were 216 (10%) respondents in this cluster. Of which 16 (7%), 77 (36%), 69 (32%)
and 54 (25%) were in the age group of 20s, 30s, 40s and 50s. In the age group of 20s,
there were 5 (31%), 3 (19%) and 8 (50%) in the monthly income class of Rs 20,000 – Rs
30,000, Rs 30,000 – Rs 40,000 and Rs 40,000 – Rs 50,000 respectively. In the age group
of 30s, 31 (40%), 34 (44%) and 12 (16%) were in the income class of Rs 50,000 – Rs
60,000, Rs 60,000 – Rs 70,000 and Rs 70,000 – Rs 80,000 respectively. Similarly in 40s,
there were 41 (59%), 12 (17%), 16 (23%) in the income class of Rs 60,000 – Rs 70,000,
Rs 70,000 – Rs 80,000 and Rs 80,000 – Rs 1,00,000 respectively. Among the age group
of 50s there were 36 (67%), 13 (22%), 3 (6%) and 2 (4%) in the income class of Rs
60,000 – Rs 70,000, Rs 70,000 – Rs 80,000, Rs 80,000 – Rs 1,00,000 and Rs 1,50,000 –
Rs 2,00,000. The consumers in this cluster preferred to lead to a dominant lifestyle.
Friends often go to them for advice. There were certain consumers in this category who
had conventional thoughts about giving dowry in marriage. They do not like to sit idle
and felt that they can be considered a leader.

j. Component 10 - Spiritual, Diet conscious and Socialising

There were 186 (9%) respondents in this cluster. Of which 26 (14%), 25 (13%), 48 (26%)
and 87 (47%) were in the age group of 20s, 30s, 40s and 50s. Of the respondents in 20s

16 (26%), 5 (19%) and 5 (19%) were in the monthly income class of Rs 10,000 – Rs

20,000, Rs 30,000 – Rs 40,000 and Rs 40,000 – Rs 50,000 respectively. Among the

respondents in the age group of 30s, 16 (64%), 8 (32%), 1 (4%) were in the income
distribution of Rs 30,000 – Rs 40,000, Rs 50,000 – Rs 60,000 and Rs 60,000 – Rs 70,000
respectively. In the age group of 40s, there were 2 (4%), 8 (17%), 42 (20%) and 18 (38%)
with the monthly income of Rs 30,000 – Rs 40,000, Rs 40,000 – Rs 50,000, Rs 50,000 –
Rs 60,000 and Rs 60,000 - Rs 70,000 respectively. Among the respondents in 50s, there
were 11 (13%), 31 (36%) 42 (48%) and 3 (3%) earning between Rs 40,000 – Rs 50,000,
Rs 50,000 – Rs 60,000, Rs 70,000 – Rs 80,000 and Rs 80,000 – Rs 1,00,000 respectively.
They consumers in this segment do not like to eat out as they were diet conscious. They
always prefer to eat from home. For them spiritual values are very important and they
also can mingle easily with strangers.

k. Component 11 - Stay Trim

There were 132 respondents in this cluster representing 6% of the men considered for the
study. Of which 35 (27%), 20 (15%), 46 (35%) and 31 (23%) were in the age group of
20s, 30s, 40s and 50s respectively. There were 8 (23%), 10 (29%) and 17 (49%) earning
between Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000

respectively. Among the respondents in the age group of 30s, there were 3 (15%), 6

(30%) and 11 (55%) in the monthly income of Rs 20,000 – Rs 30,000, Rs 30,000 – Rs

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 40,000 and Rs 40,000 – Rs 50,000 respectively. In the age group of 40s there were 1
(2%), 21 (46%) and 24 (52%) in the monthly income of Rs 30,000 – Rs 40,000, Rs
40,000 – Rs 50,000 and Rs 60,000 – Rs 70,000 respectively. Among the age group of

50s, there were 7 (23%), 11 (35%) and 13 (42%) in the monthly income category of Rs
50,000 – Rs 60,000, Rs 60,000 – Rs 70,000 and Rs 70,000 – Rs 80,000 respectively. They
consumers in this segment wanted to stay slim and trim therefore they skipped their
breakfast regularly and they enjoyed watching sports channels to entertainment channels.

4.3 A Study on the Profiles of Women

The Cronbach’s alpha reliability test revealed a score of 0.762 on the battery of AIO
statements for women, thus making the dataset fit enough for further analysis. The KMO
for testing the sampling adequacy revealed a score of 0.727 which proves that the sample
size is adequate enough to conduct factor analysis. Similar to men, the women
respondents were also clustered into 11 components. Since principal components analysis
was used to derive the components, those with Eigen Value above 1 were selected.
Further Varimax rotation was used for extraction of components and therefore the
statements with rotated factor loadings of +/- 0.3 and above were assigned to the
respective component. For case wise analysis, regression scores were employed.
Therefore those cases whose regression scores were higher in a particular component
were assigned to that component. Further analysis of Scree plot and the Table gives
insights into the number of components extracted in the process.

Fig 4.2: Scree Plot representing the components

Table 4.6 Components with total and cumulative variance for female respondents

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 Initial Eigen values

Components Total % of Variance Cumulative %

1 6.15 12.30 12.30

2 3.55 7.10 19.40

3 3.08 6.15 25.55

4 2.57 5.13 30.68

5 2.00 4.01 34.69

6 1.74 3.48 38.17

7 1.62 3.25 41.42

8 1.52 3.03 44.45

9 1.49 2.97 47.42

10 1.37 2.75 50.17

11 1.34 2.68 52.85

Table 4.7 Statements with Rotated Factor Loadings and assignment to the respective
components

Components Rotated
Factor

Loadings

Component 1: Stylistic Lifestyle

I have one or more outfits that are of the very latest style

I like to spend a year in a foreign country

I pay cash for everything I buy 0.782 0.749 0.733

0.646 0.599 0.419
I am fashionable in the eyes of others 0.383

I enjoy stylistic dresses -0.361

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 I would go for a walk or do some exercise than sit idle

The most important part of life is to dress smartly

Spiritual values are most important than material values

Component 2 : Traditional Lifestyle

Women are dependent and needs men’s protection

Giving dowry in marriage is a tradition and cannot be done away

with

In the evenings, it is better to stay at home rather than going out A

women should not work if her husband does not like her to work 0.724 0.701
outside the house
0.595 0.539
Looking after the house is primarily a women’s responsibility
irrespective of whether she is working or not 0.502

Component 3: Cautious Shoppers

I visit many shops before I fianlise my sales

I check the prices even of small items

I watch advertisements for announcement of sales

0.818 0.659 0.608
I am active in all social functions 0.587

I prefer my friends to spend when I am out in a party 0.519

Component 4: Independent Lifestyle

I am more independent than most people

As far as possible after marriage nuclear family is better

I have more self confidence than most people 0.778 0.777 0.699

I have a lot of personal ability 0.583

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 Component 5: Systematic Lifestyle

One should always keep the house neat and clean

A fancy and distinctive living attracts me

I influence what my friends buy 0.756 0.754 0.665

Doing nothing will make me uncomfortable 0.459

Component 6: Health conscious Lifestyle

I Participate or have participated in sports activities 0.731

I drink soft drinks several times in a week -0.721

One should bargain before a purchase -0.409

Component 7: Social and diet conscious

I can mingle with strangers easily

0.742
I eat only home food and do not prefer to eat out
0.693
One should follow a proper routine such as eating meals at a regular
time etc -0.464

I'll take some courses to brighten my future 0.36

Component 8: Carefree Lifestyle

I want to take a trip around the world

Think I will have more money to spend next year 0.722 0.631

I like parties where there is lot of music 0.503

Component 9: Money Savers

One must save for the rainy day 0.717

I check my balances periodically 0.599

Component 10: Sociable 0.741

I like fast foods 0.72

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 I spend a lot of time with friends

Component 11: Dominating Lifestyle

Friends often come for advice

I can be considered a leader 0.686 0.631

Therefore the 11 components that were extracted have been identified as Stylistic,
Traditional, Economical, Independent, Systematic, Health conscious, Carefree, Futuristic,
Socialising and Dominant Lifestyles. It should be noted that the components have been
named according to the variable (statement) with higher factor loadings.

A brief note on the profiles of the women consumers is as follows:

a. Component 1 - Stylistic

There were around 202 respondents representing this cluster constituting around 9% of
the women sample size. Of which 33 (31%), 96 (47%), 33 (16%) and 10 (5%) were in the
age group of 20s, 30s, 40s and 50s. Among the respondents who were in their 20s, 7
11%), 34 (54%), 16 (25%) and 6 (10%) were in the monthly income group of Rs 10,000 –
Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000 and Rs 50,000 – Rs 60,000.

Among the respondents in the age group of 30s, there were 12 (13%), 32 (33%), 46

(48%) and 6 (6%) in the income class of Rs 10,000 – Rs 20,000, Rs 30,000 – Rs 40,000,
Rs 40,000 – Rs 50,000 and Rs 50,000 – Rs 60,000. Of the respondents in 40s, there were
2 (6%), 2(6%), 21 (64%) and 8 (24%) in the income class of Rs 20,000 – Rs 30,000, Rs
30,000 - Rs 40,000, Rs 40,000 – Rs 50,000 and Rs 50,000 – Rs 60,000. In the age group
of 50s there were, 6 (60%) and 4 (40%) in the income class of Rs 60,000 – Rs 70,000 and
Rs 80,000 – Rs 1,00,000. There preferred to dress well. They felt that they were

fashionable in the eyes of others. They have a collection of outfits according to the latest
fashion trends. They do not believe in being spiritual. They enjoy stylistic dresses and
being so was one of the vital components in life. They also were non-believers of

spirituality.

b. Component 2 - Traditional

There were 261 respondents thus representing 11% of the total women samples. Of which

86 (34%), 53 (20%), 79 (30%) and 43 (16%) were in the age group of 20s, 30s, 40s and
50s respectively. Among the respondents in their 20s, 9 (11%), 24 (28%), 17 (20%) and

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 36 (42%) were in the income class of Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs
30,000 – Rs 40,000 and Rs 40,000 – Rs 50,000 respectively. Among the respondents in
30s, 16 (30%), 33 (62%) and 4 (8%) were earning between Rs 20,000 – Rs 30,000, Rs

30,000 – Rs 40,000 and Rs 60,000 – Rs 70,000 respectively. Among the respondents in

40s, there were 23 (29%), 28 (35%), 17 (22%) and 11 (14%) in the income categories of
Rs 20,000 – Rs 30,000, Rs 40,000 – Rs 50,000, Rs 50,000 – Rs 60,000 and Rs 70,000 –

Rs 80,000 respectively. Among the respondents in the age group of 50s, there were 1
(2%), 23 (54%), 13 (30%) and 6 (14%) in the income categories of Rs 40,000 – Rs
50,000, Rs 60,000 – Rs 70,000, Rs 70,000 – Rs 80,000 and Rs 80,000 – Rs 1,00,000
respectively. They felt that always men’s protection is required as women are dependants.

They thought that giving dowry was a tradition to be followed in marriages. They
preferred to stay at home and were not keen on going out. They also opined that a career
was not very important for woman as looking after the house was her primary

responsibility should be looking after the house.

c. Component 3 – Cautious Shoppers:

There were 270 (11%) respondents in this cluster among the women sample. Of which
there were 57 (21%), 106 (39%), 83 (31%) and 24 ((%) in the age group of 20s, 30s, 40s
and 50s. Among the respondents in the age group of 20s, there were 5 (9%), 36 (63%)
and 16 (28%) earning between Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000 and Rs
30,000 – Rs 40,000 respectively. Of the respondents in their 30s, there were 9 (8%), 8
(8%), 62 (58%), 15 (14%), 3 (3%) and 9 (8%) in the income categories of Rs 10,000 – Rs
20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs 50,000, Rs
50,000 – Rs 60,000 and Rs 60,000 – Rs 70,000 respectively. Among the age group of 40s,
there were 3 (4%), 27 (33%), 21 (25%) and 32 (39%) earning between Rs 10,000 – Rs
20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000 and Rs 40,000 – Rs 50,000
respectively. There were 2 (8%), 4 (17%), 9 (38%), 6 (25%) and 3 (13%) earning
between Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs 40,000 – Rs 50,000, Rs
50,000 – Rs 60,000 and Rs 60,000 – Rs 70,000. The consumers in this segment were very
price conscious. They would take purchase decision only after checking the price whether
it is small or big item. They are always on the look out for advertisements for
announcement of sales. They also prefer their friends to spend for them.

d. Component 4 - Independent

There were 271 respondents representing 12% of the entire women sample selected for
the study. Of which 88 (33%), 73 (27%), 79 (29%) and 31 (11%) were in the age groups
of 20s, 30s, 40s and 50s respectively. Among the respondents in 20s, there were 24
(27%), 31 (35%), 27 (31%) and 6 (7%) in the income category of Rs 10,000 – Rs 20,000,

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 Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000 and Rs 40,000 – Rs 50,000 respectively.
In the age group of 30s there were 3 (4%), 13 (18%), 21 (29%), 33 (45) and 3 (4%) in the
income category of Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs
40,000, Rs 40,000 – Rs 50,000 and Rs 50,000 – Rs 60,000 respectively. Within the age
group of 40s, there were 1(1%), 7 (9%), 21 (27%), 25 (32%), 12 (15%) and 13 (16%) in
the income categories of Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs
50,000, Rs 50,000 – Rs 60,000, Rs 60,000 – Rs 70,000 and Rs 80,000 – Rs 1,00,000
respectively. There were 9 (29%), 13 (42%) and 9 (29%) earning between Rs 50,000 – Rs
60,000, Rs 80,000 – Rs 1,00,000 and Rs 1,50,000 and Rs 2,00,000 respectively. They
preferred to lead an independent lifestyle and thought that they had more self confidence
than others. They also felt that they have plenty of personal abilities than others. They
also preferred to live in a nuclear family.

e. Component 5 - Systematic

There were 123 respondents representing 5% of the total women sample. Of which 24
(20%), 22 (18%), 46 (37%) and 31 (25%) are in the age group of 20s, 30s, 40s and 50s
respectively. Among the respondents in the age group of 20s, there were 5 (21%), 17
(71%) and 2 (8%) in the income categories of Rs 10,000 – Rs 20,000, Rs 20,000 – Rs
30,000 and Rs 30,000 – Rs 40,000 respectively. In the age group of 30s, in the income
categories of Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000 and
Rs 40,000 – Rs 50,000 there were 1 (5%), 8 (36%), 7 (32%) and 6 (27%) respondents
respectively. Among the age group of 40s, there were 10 (22%), 13 (28%) 9 (20%) and

14 (30%) in the income categories of Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs

40,000 – Rs 50,000, Rs 50,000 – Rs 60,000 respectively. In the age group of 50s there
were 2 (6%), 4 (13%), 18 (26%), 6 (19%) and 11 (35%) in the income categories of Rs

20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs 50,000, Rs 50,000 – Rs

60,000 and Rs 60,000 – Rs 70,000. They felt that one should always maintain their house
neat and clean. They were also attracted towards a distinctive living. As they were so
systematic, their friends also turned to them for any kind of purchase decisions. They also
kept themselves busy as they did not like to be idle.

f. Component 6 - Health Conscious

There were 292 respondents representing 12% of the women sample. Of which 96 (33%),
67 (23%), 66 (23%) and 63 (22%) were in the age group of 20s, 30s, 40s and 50s
respectively. In the age group of 20s there were 18 (19%), 9 (9%), 52 (54%) and 17
(18%) in the monthly income category of Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000,
Rs 30,000 – Rs 40,000 and Rs 40,000 – Rs 50,000 respectively. Among the age group of

30s, there were 9 (13%), 16 (24%), 13 (19%) and 29 (43%) in the income categories of
Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000 and Rs 40,000 –

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 Rs 50,000 respectively. In the age group of 40s, there were 2 (3%), 4 (6%), 12 (18%), 16
(24%) and 32 (48%) in the income categories of Rs 10,000 – Rs 20,000, Rs 20,000 – Rs
30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs 50,000 and Rs 60,000 – Rs 70,000

respectively. In the age group of 50s, there were 1 (2%), 1(2%), 4 (6%), 7 (11%), 21
(33%) and 29 (46%) in the income categories of Rs 20,000 – Rs 30,000, Rs 30,000 – Rs
40,000, Rs 40,000 – Rs 50,000, Rs 50,000 – Rs 60,000, 60,000 – Rs 70,000 and Rs
80,000 – Rs 1,00,000 respectively. The consumers in this cluster are more interested in
sports activities. As they were health conscious they do not prefer to drink soft drinks.

They do not mind spending therefore they did not prefer to bargain in a purchase.

g. Component 7 – Social and Diet Conscious

There were 164 respondents representing 7% of the women sample. Of which there were
84 (51%), 51 (31%), 17 (10%) and 12 (7%) respondents in the age group of 20s, 30s, 40s
and 50s. Among the respondents in the age group of 20s there were 20 (24%), 52 (62%),
and 12 (14%) in the monthly income category of Rs 10,000 – Rs 20,000, Rs 20,000 – Rs
30,000 and Rs 30,000 – Rs 40,000 respectively. In the age group of 30s, there were 2
(4%), 9 (18%), 11 (22%), 12 (24%) and 17 (33%) in the income categories of Rs 10,000

– Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs 50,000 and

Rs 50,000 – Rs 60,000 respectively. In the age group of 40s there were 1 (6%), 8 (47%)
and 8 (47%) Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000 and Rs 40,000 – Rs 50,000
respectively. Among the respondents in their 50s, there were 3 (25%), 2 (17%) and 7
(58%) Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000 and Rs 40,000 – Rs 50,000

respectively. The consumers in this category were socialising in nature. They preferred to
eat only at home and do not like to eat out as they were diet conscious. They did not
believe in following a proper routine. They would also like to brighten their future by
taking additional courses.

h. Component 8 - Carefree

There were 176 (7%) respondents in this cluster. Among them there were 63 (36%), 75
(43%), 22 (13%) and 16 (9%) in the age group of 20s, 30s, 40s and 50s. Among the
respondents in the age group of 20s there were 2 (3%), 7 (11%), 23 (37%) and 31 (49%)
in the income categories of Rs 10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 –
Rs 40,000 and Rs 40,000 – Rs 50,000 respectively. In the age group of 30s there were 3
(4%), 6 (8%), 6 (8%), 17 (24%), 25 (33%) and 18 (24%) in the income categories of Rs

10,000 – Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs

50,000, Rs 60,000 – Rs 70,000 and Rs 70,000 – Rs 80,000 respectively. In the age group
of 40s there were 2 (9%), 1 (5%), 1 (15%), 2 (9%), 7 (32%), 3 (14%) and 6 (27%) in the

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 income categories of Rs 30,000 – Rs 40,000, Rs 40,000 – Rs 50,000, Rs 50,000 – Rs
60,000, 60,000 – Rs 70,000, Rs 70, 000 – Rs 80,000, Rs 80,000 – Rs 1,00,000 and Rs
1,00,000 to Rs 1,50,000 respectively. In the age group of 50s there were 4 (25%), 6

(38%), 3 (19%) and 3 (19%) in the income categories of Rs 30,000 – Rs 40,000, Rs

40,000 – Rs 50,000, 1,00,000 to Rs 1,50,000 and Rs 1,50,000 – Rs 2,00,000 respectively.
The consumers in this cluster prefer to lead a carefree lifestyle. They wanted to take a trip
around the world. They were very optimistic about earning more money in the future and
they also like to party.

i. Component 9 - Money Savers

There were 168 (7%) respondents in this cluster. Of which 36 (21%), 31 (18%), 44 (26%)
and 57 (34%) were in the age group of 20s, 30s, 40s and 50s. In the age group of 20s,
there were 21 (58%), 6 (17%) and 9 (25%) in the income category of Rs 10,000 – Rs
20,000, Rs 20,000 – Rs 30,000 and Rs 30,000 – Rs 40,000 respectively. In the age group
of 30s there were 10 (32%), 9 (29%), 6 (19%) and 6 (19%) in the income categories of Rs
20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs 50,000 and Rs 50,000 – Rs

60,000 respectively. Among the age group of 40s there were 1 (2%), 1 (2%), 18 (41%), 3

(7%) and 21 (48%) in the income categories of Rs 20,000 – Rs 30,000, Rs 30,000 – Rs

40,000, Rs 40,000 – Rs 50,000, Rs 50,000 – Rs 60,000 and Rs 60,000 – Rs 70,000

respectively. In the 50s there were 2 (4%), 15 (26%), 27 (47%) and 13 (23%) in the
income categories of Rs 20,000 – Rs 30,000, Rs 40,000 – Rs 50,000, Rs 60,000 – Rs
70,000 and Rs 80,000 – Rs 1,00,000 respectively. The consumers in this cluster were
very conscious about saving for their future. They also check their balances very
periodically.

j. Component 10: Sociable

There were 265 (11%) respondents in this cluster. Of which 101 (38%), 72 (27%), 31
(12%) and 61 (23%) were in the age group of 20s, 30s, 40s, and 50s. Among the
respondents in the age group of 20s there were 51 (50%), 23 (23%), 21 (21%) and 6 (6%)
in the income category of Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs
50,000 and Rs 50,000 – Rs 60,000 respectively. In the age group of 30s there were 2
(3%), 7 (10%), 11 (15%), 21 (29%) and 31 (43%) in the income category of Rs 10,000 –
Rs 20,000, Rs 20,000 – Rs 30,000, Rs 30,000 – Rs 40,000, Rs 40,000 – Rs 50,000 and Rs

50,000 – Rs 60,000 respectively. In the 40s there were 9 (29%), 3 (10%), 9 (29%), 8

(26%) and 2 (6%) representing the income categories of Rs 20,000 – Rs 30,000, Rs

30,000 – Rs 40,000, Rs 40,000 – Rs 50,000, Rs 80,000 – Rs 1,00,000 and Rs 1,50,000 –

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 Rs 2,00,000 respectively. In the 50s there were 1 (2%), 17 (28%), 21 (34%) and 22 (36%)
in the income categories of 30,000 – Rs 40,000, Rs 50,000 - Rs 60,000, Rs 60,000 – Rs
70,000 and Rs 70,000 – Rs 80,000 respectively. The consumers in this category prefer to

spend a lot of time with their friends and like to eat fast food.

k. Component 11: Dominant

There were173 respondents representing 7% of the entire women sample. Of which 74

(43%), 17 (10%), 21 (12%) and 61 (35%) were in the age group of 20s, 30s, 40s and 50s.
Among the respondents in the age group of 20s, there were 11 (15%), 19 (26%), 21

(28%) and 23 (31%) in the income category of Rs 10,000 – Rs 20,000, Rs 20,000 – Rs

30,000, Rs 30,000 – Rs 40,000, and Rs 40,000 – Rs 50,000 respectively. In the age group
of 30s there were 6 (35%), 5 (29%) and 6 (35%) in the income categories of 30,000 – Rs
40,000, Rs 50,000 - Rs 60,000 and Rs 60,000 – Rs 70,000. In the 40s, there were 1 (5%),

1 (5%), 16 (76%) and 3 (14%) in the income categories of Rs 50,000 - Rs 60,000, Rs

60,000 – Rs 70,000, Rs 70,000 – Rs 80,000 and Rs 80,000 – Rs 1,00,000 respectively. In
the 50s there were 3 (5%), 10 (16%), 11 (18%), 25 (41%) and 12 (20%) in the income
categories of 40,000 – Rs 50,000, Rs 50,000 - Rs 60,000, Rs 60,000 – Rs 70,000, Rs
70,000 – Rs 80,000 and Rs 80,000 – Rs 1,00,000 respectively. The consumers in this

segment lead a dominant lifestyle. Friends often come for advice to them. They play the
role of opinion leaders and they also thought that they can be considered a leader.

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