PESTLE ANALYSIS

1. Political Factors:
By providing financial assistance, the Indian government is assisting the leather
industry in improving its competitiveness by upgradation and modernization.
 The Department of Industrial Policy and Promotion (DIPP) offers a wide
range of services. From tanneries to boots, footwear parts, and saddlery, there
is a plan for modernization and technological advancement in all segments of
the leather industry.
 “Integrated Development of the Leather Sector” is the name of this
programme (IDLS). It began in 2002 and will be completed in 2012.
 The government has allocated Rs 290 crores to this initiative, which will be
carried out by two Program Implementation Units (PIUs), CLRI and FDDI.
2. Economic Factors:
A larger percentage of the population favours branded accessories in terms of tastes
and attitudes. The popularity of fashion figures and models, as well as awareness of
fashion trends, has increased. The country's demographic structure is favourable to
our industry (Median age- 28.6 years female)
i. Trends in the industry:
Rising disposable income, particularly among the lower and middle classes,
continues to encourage consumers to increase their footwear purchases,
primarily for higher-value products. The economy began to show signs of
improvement, prompting customers to increase their spending.
ii. Landscape of the competition
In 2014, Bata India Ltd remained the market leader in footwear, with a retail
value share of 7%. Bata maintains a large presence in terms of store count
throughout the region. Advertising and shop design are two areas where the
business spends. Despite not being the best performer in terms of percentage
increases, the organisation managed to post the largest rise in absolute terms
during the year.
iii. Prospects
Footwear is projected to rise at a 7 percent CAGR over the forecast period,
with sales reaching Rs860 billion in 2019. The latest trends show a compound
annual growth rate of about 15% and a total market share of Rs 26,300 crores,
according to the latest data.
3. Social Factors
 There has been an upward change in people's lifestyles in recent years as a
result of technological advancements and rising real income levels. Most of
that may also be due to the availability of lower-cost goods. The Indian
footwear industry will flourish as a result of this upward change in people's
lifestyles.
 Consumer views and opinions about branded shoes are shifting in favour of
them: - People are increasingly gravitating toward branded shoes as their
income and modernization rise. They would rather buy a more expensive shoe
with more durability than a less expensive shoe with less durability. The sector
 is expected to boom, with all of the big brands already having manufacturing
facilities in India.
 Consumer demand is driving market dynamics affecting footwear
manufacturers, according to demographics. These demographic patterns are
related to the size and preferences of different demographic groups. Men's
footwear accounts for around 55% of the Indian footwear industry, followed
by ladies' and children's footwear, which account for 30% and 15% of the
market, respectively.
4. Technological Factors:
 The innovation in our product mainly complements comfort, activity and
endurance.
 Increase in investment in R&D (has tripled in the last decade)
 It is easier to find research funding in this industry today.
 India occupies the 10th rank in resident patent filing
5. Legal Factors:
 Multiple legalities must be taken into account, including labour rules, e-
commerce legislation, job contracts, and business registration.
 Any legislation should hopefully have no negative impact on our business
because the permissibility is straightforward.
 The government has enacted legislation to encourage the country's startup
culture by offering a three-year tax exemption, self-certification consent, and
enhanced intellectual property protection.
6. Environmental Factors
 A favourable market environment is created by low production costs,
abundant raw materials, and strong demand.
 Product production has become simpler as a result of government efforts,
resulting in a healthier market climate.

MARKET DESCRIPTION
India produces over 22 billion pairs of shoes per year, accounting for nearly 9.6% of global
footwear production. With approximately 1.1 million workers, India's footwear industry is
one of the most important sources of jobs. India consumes about 90% of the footwear it
produces, making it the world's third largest footwear user after China and the United States.
Male footwear dominates the industry, accounting for 58 percent of total footwear retail in
India and expected to rise at a rate of 10% by 2020, while women's footwear is expected to
grow at a rate of 20%.
Casual footwear is the largest group, accounting for approximately 67 percent of the overall
retail market, while non-leather accounts for 56 percent. SME's and the unorganised sector
currently dominate the industry; however, footwear produced by medium and large brands is
expected to generate more sales in the near future. Tamil Nadu, Uttar Pradesh, Maharashtra,
and other states in India produce a lot of footwear. The industry is transitioning from being a
labor-intensive sector to one that is more technology and innovation oriented. With computer
development and a systematic 9 labour flow, the footwear industry has become more
specialized. . The Indian government recently announced a Rs. 2600 crore special package to
help the leather and footwear industries develop. The growing fashion consciousness among
the youth, as well as consumer tastes for their lifestyles, is causing a shift in the industry. The
Indian footwear market is expected to develop at a rapid pace. Furthermore, the growing e-
commerce market and the improvement in footwear retail sector is expected to further
improve the performance of the Indian footwear industry in the near future.
After China, India is the world's second-largest footwear manufacturer. India's annual
footwear output accounts for nearly 9% of global production. Its footwear industry has seen
year-on-year growth in recent years and is expected to continue in the coming years. Over the
last decade, India has seen a growing pattern of consumer health and wellness adaptation. A
hectic lifestyle is the product of rapid urbanisation, which has led to an increase in the
incidence of lifestyle diseases. In India's metro and larger cities, this has resulted in an
increase in spending on comfortable footwear and sportswear.
Starting with Mumbai, our target market, metros, will be an ideal place to work. This industry
is worth between 40,000 and 50,000 crores and is expected to expand to 80,000 crores in the
next five years. Urban India accounts for roughly two-thirds of this industry, with the top
eight metro cities accounting for roughly 40% of urban footwear demand, followed by tier 2
and tier 3 with 35% each. The highest contributors in tier 1 cities are Mumbai and Delhi,
which account for about 60% of the industry, and the highest contributors in tier 2 cities are
Jaipur, Nagpur, and Indore, which account for about 3300 million.
The number of women working in corporations and enrolling in colleges is increasing. This
group has a strong sense of self-sufficiency and therefore spends more on luxury goods.
Equality between men and women has become a subject of debate, with many people
changing their minds regarding women's inferiority. Even in the home, women have begun to
have more influence than they did previously.
There has been an increase in the sense of independence and self-expression as a result of
rapid modernization and a change in family structure from joint to nuclear. As a result,
women have been gradually leaving their homes for reasons other than household chores.
Fashionable footwear is even more affordable as brands have been able to spread to even
smaller cities. Women can now order goods from brands that are not available in their
hometown through the internet as recognition and acceptance of e commerce grows.

The most preferred product features were comfort, quality, fit, style and design. Other key
features would include price and functionality of footwear.
We aim to create a product that satisfies all these attributes by producing a heel that provides
comfort with superior design. Also, we aim to price the heel similarly to our luxury brand
competitors. Our selling point however is the utility provided in terms of various adjustable
heel sizes

Competition overview
1. A company that has been successful in a similar venture: Tanya Health, Paris
Every shoe in the TANYA HEATH Paris collection combines creativity with expert
craftsmanship to create the perfect shoe for the modern active woman. “I began
searching for a cure to hurting feet in January 2009,” Tanya Heath told Forbes when
asked about her journey. To cut a long storey short, the R&D process took 14
engineers and shoe technicians, and by July 2011, they had a proof of concept. It took
another two years to get the supply chain right because they were having trouble with
pricing, delivery times, and style in the beginning.” She regards them as official.
September 2013 was the planned launch date as a brand, but it was still a soft launch.
At that time, they didn't have heel walls or shelves to display shoes. Those came later,
and nothing was obvious.
As of 2018, they are in Paris, Toronto, Beirut, Beijing, Canada and the next one that
will open is Hong Kong. The firm has since shipped to 72 countries. Americans are
their largest client group on the website and Tanya Heath’s dream is to open a
boutique in New York, San Francisco, Miami or any of the mega cities. Once she
opened her first store in Paris, Heath began to win awards, including the 2015 MAPIC
Award for Best New Retail Concept.
 2. Similar Startups: Mime et Moi’s shoes
Mime et Moi was created in Munich, Germany, by four men. They found something
after a night out together. Since their feet were tired from wearing high heels, their
partners all went home barefoot.
After that, one of the guys, a mechanical engineering and construction student, set out
to find a solution.
Following a successful Kickstarter campaign, they are now available for purchase in
Europe. By winter 2017, the company had conducted a follow-up fundraiser, allowing
them to debut their designs worldwide.
If you live in Europe, you can pre-order Mime et Moi heels on Kickstarter or online.
Prices for a set that includes a shoe case, a pair of Mime et Moi shoes, the flat heels as
well as another pair of heels, and a heel bag start at 175 € (roughly $137).
Their high prices have allowed them to earn healthy profit margins, but two years is
insufficient to break even or generate sufficient profits. As a result, Mime et Moe
heels are still in production.

3. Similar Startups: Flipside

It is a Delhi-based Indian start-up that was established in March 2018. Their prices
start at Rs.3999 for a pair of heels, with two sizes of detachable heels to choose from.
They have been featured in BazaarIndia Magazine since their inception and have
chosen the direction of influencer marketing.
On the 1st of February 2019, they will hold their first public exhibition at the Hyatt
Regency in Delhi. The company's sales are currently inaccessible. At this time, it's
difficult to make any judgments about the company's results. Their target market is
the same as ours, but our telescopic concept sets us apart.
They haven't created a well-connected website in a year and must put in a lot of effort
in the product awareness department. With just 99 posts in a year's time and no
partnerships with fashion influencers, their social media accounts have low
interaction. To get to the growth point, the business needs to tap into a variety of
segments.
Below is a competitor-analysis sheet on some important differentiating factors.

Factor Sole-Ace Tanya Mime et Flipside Unorganised

Health Mo Sector
Products Interchangeabl Changeable Detachable Flips and Basic heels.
e heel, and loose heels and Slides.
telescopic heel, heels. loose heels
loose heels.
Price Rs. 2200-2500 Rs. 6000 to Rs. 16000 Rs. 4500 Varied
50000
Technology Fixed base and Clipping Sole Based Gravity Nailed.
screw mechanism. Mechanism. Lock.
mechanism,
Telescopic
mechanism.
Advertising Offline and Offline and Rolled out Inactive Mainly
 Online Online Youtube presence on offline and
(Exhibitions ( Stores in videos and social Minimal
and all social more than 5 Online media. and online
media city, proper marketing. No Offline presence.
platforms). shipping presence.
system
across the
world)
Location India( Mumbai Paris, Europe India Across the
) Canada, (Haryana) Globe.
Middle East
and China
Form of Online. Local Fancy Retail Only online. Online. Stores.
retail stores and
online
ordering
system.