shoes business plan in india

Start shoe & Footwear Business in India

Radha Dhaked | April 1, 2022 April 1, 2022 | Company Formation

The fashion and footwear industries are transforming the world. Shoes have become more than simply a way to keep your feet safe and comfortable; they’ve become a fashion statement and a way to show your social position. Because of the advent of social media and the rising standard of living, more and more individuals invest a lot of money in fashion and shoes. As a result, the footwear industry has seen a significant increase in sales. The market is expanding. Easy to set up and high demand are attracting investors to it. With the help of this article, you’ll learn how to start shoe & footwear business in India.

The process to start shoe & footwear business in India

To begin, make a list of your company’s unique selling proposition and your long-term goals. After that, create a detailed strategy that will aid you in identifying your objectives and implementing the necessary changes.

As an additional benefit, a well-prepared business plan and project report can help you secure business funding. Furthermore, A shoe store can sell shoes, sandals, slippers, boots, heels.

You need to decide your niche and then make the business plan accordingly.

Apply for company Registration

You’ll need a variety of permits and registrations to start your shoe business. You have to make a decision on the kind of business you want to start. Hence, you should get an Online company registration

Other mandate Registrations to start a shoe

There are a few registrations required to start shoe & Footwear Business in India which are written below:

• GST Registration
• Shop Establishment Registration
• MSME Registration  
• Trademark Registration
• ISO Certification

Hire Merchandise

Hire employees that embody your shoe store’s identity, since they will be the primary brand ambassadors for your business to your consumers.

They should be well-versed in your shoes and be able to assist customers in making shoe purchases.

Furthermore, a sufficient number of people should be recruited to staff for the sales counter and the store’s floor. You will also need to hire an accountant to maintain your books. However, you can avail Online Bookkeeping and Accounting Service  

Open a current account

Establishing a current bank account distinct from your company account is crucial for for-profit tracking. There are also several other benefits of current bank accounts.

For example, this safeguards your assets, and somewhere helps you to get a business loan .

Get Insurance

If you want to run a business in a safe and legal manner, you’ll need the right insurance, too. In the event of an unexpected event, it can also aid in coping with the financial consequences.

Decide the appropriate Location

You’ll need to find a space to keep and exhibit your shoe products. The need for a high-traffic shopping area is always great. You might be able to find a location near other shoe stores that you could rent. However, Keep an eye out for other renters’ offers when looking for a place to live. Locate yourself in areas where there are fewer stores selling the sort of shoes that you are interested in.

Get Advertising

Social media is utilized by nearly everyone on the planet. There’s a good chance that at least one person in your neighborhood is on some sort of social networking platform.

Making use of social media platforms such as Facebook and Instagram as well as SEO techniques as well as marketing efforts to start shoe & footwear business.

Placing advertising with special discounts and deals on your website is usually a good thing to do for your business. Investing in both online and offline marketing through website development is essential to the success of a firm.

The shoe business comes with lots of opportunities.  Once you’ve got it down straight, you’ll reap the rewards without too much effort. To know more about how to start shoe & footwear business in India or any other business you can consult our business advisors.

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Step Up Your Game: How to Start and Succeed in a Footwear Shop Business in India

Starting a footwear shop business in India can be a great entrepreneurial opportunity for individuals looking to make a profit in the footwear industry. The footwear market in India is expected to reach a value of 249.8 billion Indian Rupees by 2024, with a compound annual growth rate of 5.1%. This growth can be attributed to factors such as increasing disposable income, changing fashion trends, and rising awareness about foot health.

If you’re wondering how to start a footwear shop in India, there are several key steps you can take to get started. In this blog post, we’ll explore the essential components of starting a successful footwear shop business in India, and discuss how you can differentiate your business in a crowded marketplace.

• Conduct Market Research  

The first step in starting any business is to conduct market research. This will help you understand the demand for footwear in your local market, identify potential customers, and determine your competition. To start, you can survey your local area to determine how many footwear stores already exist and what products they offer. You can also look online for market research reports to get a better understanding of industry trends and growth potential.

• Develop a Business 

Plan Once you’ve conducted your market research, it’s time to develop a business plan. This plan should outline your goals, target market, financial projections, and marketing strategies. It should also include an analysis of your competition and a description of how your footwear shop will differentiate itself from others in the market.

• Secure Funding  

To start a footwear shop in India, you’ll need to secure funding. This may involve applying for a small business loan, seeking investment from angel investors or venture capitalists, or using personal savings. It’s important to have a solid business plan in place before seeking funding, as this will help potential investors or lenders understand your vision and the potential for your business to succeed.

• Choose a Location 

Choosing the right location is critical for the success of your footwear shop business. Look for a location that is easily accessible to your target market, has good foot traffic, and is in a safe area. Consider the size of the space you’ll need to display your products, and factor in costs such as rent and utilities when choosing a location.

• Stock Your Inventory  

Once you’ve secured funding and chosen a location, it’s time to stock your inventory. Consider offering a wide range of products to cater to different customer preferences, including comfortable footwear for women, men’s formal shoes for weddings, kids’ school shoes, running shoes for men, affordable boots for women, and vegan shoes for men. You should also consider offering a range of sizes and styles to appeal to a wider audience.

• Hire Staff  

As your footwear shop business grows, you may need to hire staff to help manage the day-to-day operations of your store. Look for employees who are knowledgeable about footwear trends and can provide excellent customer service. You may also want to consider offering training programs to help your employees develop their skills and knowledge of the industry.

• Market Your Business 

Marketing is an essential component of any successful business, and your footwear shop is no exception. Consider using social media platforms such as Facebook and Instagram to showcase your products and engage with potential customers. You can also run targeted ads on these platforms to reach a wider audience. Additionally, consider offering discounts or promotions to encourage customers to visit your store.

Starting a footwear business in India can be a rewarding and profitable venture for individuals looking to make their mark in the shoe shop industry. By conducting thorough market research, developing a solid business plan, and differentiating yourself from the competition, you can build a successful business that caters to the diverse footwear needs of your local community. With the right strategy, even small-scale businesses and individual entrepreneurs or women can make a profit in this industry. In fact, many successful footwear shop owners started out as small-scale businesses or individual entrepreneurs.

One way to stand out in the crowded footwear market is to offer a unique value proposition to your customers. For example, you could specialize in eco-friendly or sustainable footwear, or offer customized shoe fitting services to help customers find the perfect fit. By offering something that sets your business apart from others, you can build a loyal customer base and increase your profitability.

Another way to increase profitability is to stay on top of industry trends and adapt your business accordingly. For example, if you notice a growing demand for athletic shoes or vegan footwear, you can adjust your inventory to meet the needs of your customers. Additionally, consider offering seasonal promotions or discounts to help drive foot traffic to your store and increase sales.

When it comes to marketing your shoe store, it’s important to develop a strong brand identity that resonates with your target market. Consider creating a memorable logo and slogan that reflects the values of your business, and use these elements consistently across all marketing channels. You can also leverage social media platforms like Facebook and Instagram to showcase your products and engage with potential customers.

In conclusion, starting a footwear shop business in India can be a great way to enter the a retail business industry. By conducting thorough market research, developing a solid business plan, and differentiating yourself from the competition, you can build a successful business that caters to the diverse footwear needs of your local community. Whether you’re a small-scale entrepreneur or an established business owner, there are ample opportunities for growth and profitability in this industry. So, put on your entrepreneurial hat and step into the world of footwear shops!

If you’re interested in learning more about business, entrepreneurship, and digital marketing related to a business, visit the  ffreedom app . With a wide range of  courses and resources , the ffreedom app can help you develop the skills and knowledge you need to start and grow your own business. Whether you’re just starting out or looking to take your business to the next level, the ffreedom app has something for you. Visit our page today to learn more and take the first step towards achieving your business goals.

Q: How do I source quality footwear products for my shop?

A: You can source quality footwear products for your shop by working directly with manufacturers or wholesalers, attending trade shows and exhibitions, or partnering with established distributors.

Q: What legal requirements do I need to comply with to start a footwear shop business in India? 

A: To start a footwear shop business in India, you need to register your business and obtain necessary licenses and permits such as a Shop and Establishment Act registration, Goods and Services Tax (GST) registration, and trade license.

Q: How much does it cost to start a footwear shop business in India? 

A: The cost to start a footwear shop business in India varies depending on factors such as location, rental fees, inventory costs, and marketing expenses. It is recommended to create a detailed business plan and budget to estimate the initial investment required.

Q: How can I ensure customer satisfaction in my footwear shop business?  

A: You can ensure customer satisfaction in your footwear shop business by offering high-quality products, providing exceptional customer service, maintaining a clean and organized store, and listening to customer feedback to improve your offerings.

Q: What are the latest trends in the footwear industry? 

A: Some of the latest trends in the footwear industry include sustainable and eco-friendly materials, innovative designs and technology, and customizable footwear options. Keeping up with these trends can help you stay relevant and attract new customers to your shop.

Q: Can I sell footwear online in addition to my brick-and-mortar shop? 

A: Yes, selling footwear online can be a great way to expand your business and reach a wider customer base. You can create an e-commerce website or sell through established online marketplaces such as Amazon, Flipkart, or Myntra.

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How to start a New shoe business in India?

Shoes are now widespread and no longer used solely for functional purposes. Shoes are now used as an accessory for both men and women. From weddings to sporting events to job interviews, there are countless occasions where shoes fit. As long as there is a shoe market, starting a shoe company makes sense.

Whether you are offering fashion or party shoes, decide whether your target market is men or women. If you want to sell formal shoes, choose your speciality. In this post, I will show you how to start a shoe company in India and what factors you should consider before starting.

Things to consider before opening a shoe retailer Whether you are online or offline in the footwear industry :

Use the Internet to Do Business : Starting an Internet company can save you rent, electricity and construction costs. / maintenance cost. To start an Internet company, all you need is a website. Your website should be easy to use and well thought out. Successful online shoe companies need effective social media marketing.

Offline business:  A shoe company sells products in its stores. As a result, the first thing you need is a showcase to market and sell your merchandise. This store should be between 150 and 200 square feet. Decide what to reach with the message.

Defining your target market allows you to focus your efforts and resources. You can’t please everyone, so offer your product or service to people you think could benefit from. Then, as the owner of the company, you have to choose who will buy the product. Whether the shoe is intended for children, adults, middle-aged or the elderly, alternatively, you can subgroup your audience based on factors such as gender, wealth, or desired metrics. Keep your ideas short and healthy rather than spinning around.

Financing options include corporate loans, government grants, help from friends and family, and your funds. Decide where to start funding sources based on your financial situation.

Learn About Competitors: Conduct

Market research and analyze your competitors’ business models to verify your assumptions. Since the footwear industry is not new, there will be many domestic and international competitors. As a result, it is essential to decide who to compete with. Local merchants will be a direct competitor if they produce shoes that the general public, i.e. low-income people, can also afford.

Building a brand and selling products to high-income segments of society requires competing with several global and local companies.

The next step is to visit a competitor’s store and study their customers. Because customers are the people, you want to convey in your message. List your store’s assets and liabilities and find growth prospects and risks. Do a SWOT analysis of your business. Consider both your organization’s strengths and potential shortcomings when performing a SWOT analysis.

Location is the last item to consider after researching and working on the previously listed items. Location-based choices can increase or decrease your company’s chances of success, so think carefully. We recommend that you place your business near a supermarket or other popular location. Alternatively, you can set your business near an IT park or busy workspace where people can easily see it.

The next step is to develop a business plan and register your shoe company after receiving the necessary money. Let’s see how to write a retail company in India.

Your State’s Municipal Corporation Intent.

Proof of identities such as passport or driver’s license and proof of residence such as utility bill and rental agreement is required.

• Power of Attorney of the Company.
• A is the form number.
• Taxpayer Identification Number (TIN)

All businesses, whether wholesalers or retailers, require a GST number. A store license is required to obtain a GST number. Contact a CPA who can help you get a GST number or visit www.gst.gov.in. To start the registration process, select “New Registration” from the menu bar. The form will open. Please fill out the form with the requested information. Don’t forget to add the state name in the location field.

A One Time Password (OTP) is sent to your mobile phone or email for authentication. Upon completing the procedure, we will create a temporary reference number (TRN) (don’t forget to copy the TRN to your clipboard). We must also write a newly generated RNN. Click the button and re-enter your one-time password to continue.

The company has a checking account to cover company expenses. A checking report serves the same purpose as a savings account. In other words, it encourages people to save and invest. If you want to use it for commerce, you can open it at any bank. Unlike a savings account, a checking account does not accrue interest, which is a significant difference to keep in mind.

A minimum balance is required to maintain a checking account (e.g. SBI’s minimum requirement is INR 10,000). Unlike savings accounts, which have a daily transaction limit, a checking account allows you to make unlimited daily payments by check or online payment, no matter how much is in your account. Online banking is also available, and overdraft with predetermined limits is also available.

Once the legal process is complete, and the company is ready to go, the next important step is marketing! Since footwear is not specific to any particular industry, it has to face a lot of competition in this field. As a result, footwear marketing is essential to the success of a company.

Digital Marketing is your best choice. Advertise your business by posting product images on social media platforms like Instagram, Facebook and Pinterest. Build Instagram awareness for your shoe company, hire a few micro-influencers to help with your branding, voila! Compared to more traditional forms of marketing, this type of advertising is less expensive.

Before starting any company, you need a well-planned strategy to develop services and products according to your target market and choose the right funding source. Starting a company is not difficult, but it takes a lot of hard work to expand and strengthen your reputation. The competition is fierce, and only those with a sound strategy and a solid plan can succeed.

Article Proofread and Edited by Shreedatri Banerjee

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How to Start a Shoe Business in India

India's shoe market is expanding quickly and has a lot of promise. In India, launching a shoe business involves thorough preparation. This blog will give a general overview of the shoe industry, including the licenses necessary, the raw materials and equipment needed, the investment necessary, the labour required, and the steps to launch a shoe business in India.

There is a tremendous opportunity for business owners who want to launch a shoe business in India, where the shoe industry is expanding quickly. Over the next five years, the Indian shoe market, presently valued at Rs. 30,000 crores, is anticipated to expand at a CAGR of 8%. The demand for footwear is rising along with disposable income and the expansion of the Indian economy. The numerous aspects of launching a shoe business in India will be covered in this article.

Shoe Business – Overview

The shoe industry consists of the creation, production, and sale of footwear. The shoe industry can be broken down into various segments, such as footwear for sports, casual wear, formal occasions, and ethnic wear. Depending on their hobbies and market need, entrepreneurs can decide to concentrate on one or several categories. 

License Required for Shoe Business

The following licences must be obtained in order to launch a shoe business idea in India:

• Register the corporation as a sole proprietorship, partnership, or private limited company to conduct business.
• GST registration: Ensure that your company is registered for GST.
• Trade licence: Request a trade licence from the neighbourhood government.
• FSSAI licence: An FSSAI licence is essential if the shoe business produces or sells food items, such as leather goods.
• BIS certification: BIS certification is required if the shoe industry involves manufacturing.

Raw Materials Required for Shoe Business

Leather, rubber, plastic, synthetic materials, adhesives, and other components are the basic materials needed for a shoe business. The quality of the finished shoes will depend on the quality of the raw materials utilised in their production.

Equipment Required for Shoe Making Business

A cutting machine, last-making machine, sewing machine, sole-making machine, and finishing machine are among the tools needed for a shoe manufacturing business. These devices can be purchased from Indian suppliers or imported from other nations.

Investment Required For Shoe Making Business

The amount of capital needed for a shoe manufacturing company varies on the size of the business. A medium or large-scale firm would require an investment of at least Rs. 50 lakhs, whilst a small-scale shoe business might be launched with an expenditure of about Rs. 5 lakhs.

Manpower Required for Shoe Making Business

A shoe manufacturing company needs designers, pattern makers, cutters, seamstresses, quality control inspectors, and sales personnel. The size of the business will determine how many workers are required.

Procedure to Start a Shoe Business

The following procedures must be taken in order to launch a shoe business in India:

• Business licencing: Create a private limited corporation, partnership, or sole proprietorship in order to register the business.
• Obtain the required permits: Obtain the required permits, such as a trading licence, an FSSAI permit, and a BIS certification.
• Decide on a location: Pick a site for your company that is both accessible and has the necessary infrastructure.
• Purchase equipment and raw materials: Purchase the necessary machinery and raw materials from vendors in India or other nations.
• Hire staff: When hiring personnel, consider the demands of the business.
• Create shoes: Produce shoes in accordance with market trends and consumer desire.
• Then, market and sell the shoes via a variety of channels, including wholesalers, brick-and-mortar retailers, and internet marketplaces.

Entrepreneurs interested in the footwear sector have a lucrative opportunity to start a shoe business in India. To launch a successful shoe business, one needs to secure the required permits, buy top-notch supplies and machinery, engage qualified personnel, and create a marketing plan. An Indian shoe business can eventually turn a profit with adequate preparation and execution.

Vakilsearch assists business owners in launching and successfully operating their enterprises. Our team of professionals can help you through the process of registering your business, getting the necessary licences, and adhering to the law. To start a shoe business in India, get in touch with us right away.

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How To Start A Shoe Business?

Gone are the days when it was just the women folks who were obsessed with shoes. Joining the league are men and children who are just as selective of how they adorn their feet as women are. So now would be a great time to be wondering how to start a shoe business?

They say, a journey of a thousand miles begins with a single step, albeit, in a fabulous pair of shoes. Shoes are an integral part of every person’s wardrobe and a necessary accessory too. Unlike other accessories that are for adornment only, shoes are a practical necessity or how else would you walk around and get to places. Apart from their practical use, shoes add a stylish edge to your wardrobe. In fact, they say, a woman can never have enough shoes.

So, if shoes are a point of fascination for you too, as budding entrepreneurs, then you too can convert the love for shoes into a business. For shoe affiandos the shoe business is a good entrepreneurial opportunity and even for those aspiring entrepreneurs who are looking to venture into a popular and profitable business idea, the footwear business is a great idea to start their own business. So if you think you have an eye for shoes then you should definitely ask yourself how to start a shoe business!

There are several aspects of a shoe business that can be explored as a business opportunity. Entrepreneurs can start a shoe designing business or a shoe manufacturing business or, the most popular one of them all, start a showroom to sell a variety of shoes (it could even be franchise) that are manufactured by someone else. Out of all these choices, it is better to start a shoe shop because a manufacturing business, especially for sports shoes and leather shoes and boots, requires a lot of machinery and thus a sizeable capital investment which might not be possible while starting out, especially for a new business. In fact, even the majority of the large, global brands do not own manufacturing centres. Global brands too outsource the manufacturing process while concentrating on features and design to make their product unique and focus on marketing it. 

Within the shoe business also there are a variety of specialities and niche product markets to choose from while planning on how to start a footwear business , especially in the retail sector. Entrepreneurs can select their target audience by choosing to deal in men’s footwear or women’s footwear or children’s footwear exclusively or selling all three types within the same store. Additionally, after this broad classification, shoes can further be categorised according to the occasion they are meant to be worn at and also the type of material that is used to manufacture the shoe or by the type and style of shoe. This means that men’s shoes can further be classified into formal shoes, athletic sports shoes, moccasins, sandals, flip flops, chappals and so on. Women’s shoes have an even wider variety ranging from stilettos to platform heels to kitten heels to wedges to pumps to peep-toes to ballerinas to belles to ankle booties to gladiator sandals to Mary Jane’s to flat sandals to loafers to sports shoes to boots to slippers to flip flops and many more. Children too have a variety of shoe types, though the number is limited as compared to the adults. Additionally, the choice in the material used for the shoes is vast too, ranging from leather to suede to canvas to rubber to fake leather or resin to plastic and many more as per the creativity and innovative thinking of the manufacturer and designer. Shoes can be even be categorised as per the occasion, such as formal shoes, party shoes, casual wear shoes, school shoes, sports shoes (with specific shoes for different sports such as football shoes, cricket shoes, tennis shoes, running shoes, etc.), traveling boots and shoes, rain-wear and many more.

In short, the shoe business is huge and provides several avenues for budding entrepreneurs to explore and start a footwear business.

A shoe business, just like most other businesses, cannot just be started by having an interest in the field or on the basis of enthusiasm to turn into an entrepreneur. Prior knowledge and thorough planning are required to understand how to start a shoe business and run it successfully. Getting to know a few basic essential pointers, initially, can help ease the entrepreneurial journey. 

Choosing The Specific Shoe Types

While starting the shoe business, the first step is to choose the speciality that you, as an entrepreneur, want to specialise in, whether it is in men’s footwear or women’s footwear or whether you want to deal only in leather shoes or stock only boots of various types in the store or house shoes only from a particular brand in the store or have an exclusive multi-designer shop. Alternatively, you can even support certain small scale designers or local artisans or can decide to display only ethnic wear shoes such as juttis or mojris or only Kolhapuri chappals or only organically sourced leather shoes, etc. The choice for the type of footwear to be kept in the store and the audience that is to be targeted must be made as a first step towards getting the business started. Once the niche product is selected, how the products can be sourced must be the next step. It is vital to know where the niche products are manufactured and how they can be obtained easily. Thus the type of shoe business you wish to venture into must be decided as a first step.

Planning The Business

After selecting the products for your shoe business, the next step involves planning the business in detail. This involves creating a shoe business plan that lists the exact nature of the business and the way in which the business will be operated. Also, whether the shoe business will be operated through a store or via online marketing only can also be mentioned in the business plan. Other details to be included in the plan include- 

• The cost of setting up the business
• Location of the business
• Time taken to break even after starting the business
• Ways of procuring funding for the business
• The number of employees required to run the business
• The equipment and materials required for the business 
• Study of the competitors in the same business

A business plan is like a map that covers the specifics of the business and helps discover and consider unknown aspects about the business in the planning stages itself.

Registering The Business

When starting a new business, registering the business is an essential step and must be done immediately to carry out the business sans any hurdles and legal issues. A business registration gives recognition to the business and provides a business structure. Entrepreneurs starting a shoe business can choose from a sole proprietorship or a partnership or a limited liability partnership or a one person company. Each type of business entity has its own advantage and the most appropriate one must be chosen which will benefit the business.

Along with choosing an appropriate business entity, the shoe business needs to obtain certain licences that are mandatory to operate the business. These include the Shop Act, if the shoe store is within municipal limits, and also GST registration to comply with a uniform tax structure across the nation and to conduct the business smoothly. These registrations must be done prior to starting operations of the footwear store.

Marketing The Business

Marketing of the business is the next vital step and must be given due importance since the shoe business is a popular business which has several competitors and for your business to be successful, you need to stand out against the crowd. The basic factors to consider in order to market your business is to have a business name that is unique, with which customers can easily connect and can identify. A logo along with the name will help create a brand image for the business and act as a source of identification for the business. 

Along with the business name and logo, marketing strategies need to be planned for the shoe business in order to create a recall value for the brand and products and also to advertise about the shoe business. Advertising via newspapers and flyers can be done. Also the business can participate in events where their shoes can be displayed or spoken about such as fashion shows, photoshoots for magazines, or stalls at exhibitions such as bridal shows or lifestyle exhibitions. All of these events are indirect ways of advertising the business.

Digital marketing techniques can also be employed to advertise and market the shoe business. A website can be generated to create a digital identity through which information about the business can be conveyed and also the shoes can be sold online to any part of the country or even the world. Thus, a website can broaden the reach of the shoe business. Additionally, the business can have a presence on various social media sites and platforms. For instance an Instagram page of the shoe brand can be created with daily updates on looks of the day with the latest footwear from your brand or store being features, or you can have a Facebook page talking about the latest styles and trends in footwear or blogs about how to take care of one’s footwear and similar informative and creative blogs and posts to talk about the business and advertise it indirectly. 

These factors will help hasten the process of starting a shoe business and advertising it across various platforms. Shoes are a practical necessity along with being an attractive accessory that has numerous takers, thus making it a great business idea to explore. We have pointed out the important factors of how to start a shoe business. For further guidance and assistance regarding starting a fashion business , experts at deAsra can help you out. 

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Start a Shoe Making Business Today! A 7 Steps Successful Guide to Starting a Profitable Shoe Making Business.

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Get started on your shoe making business today with this 7-step guide! Learn how to develop a business plan, source materials and manufacturers, choose the right pricing strategy, and more. Take the first step towards launching a successful shoe making business! Continue reading

1. A brief History Of Shoe Making Business in India

Shoe making is one of the oldest and traditional businesses in India. India has a rich history of making high-quality leather shoes, and the country is known for its skilled craftsmen and traditional techniques. The shoe making industry in India is primarily concentrated in the states of Uttar Pradesh, Tamil Nadu, and Punjab.

There are different types of shoe manufacturing that are done in India, including modern style formal shoes, casual shoes, sports shoes, sneakers etc and traditional Indian shoes like Jutti, Mojari and Kolhapuri Chappals. The shoe industry in India is a highly fragmented industry which is also labour-intensive, with a significant number of people employed in shoe-making units across the country.

2. What is the Current Market Of Shoe business in India

The shoe business in India is a growing industry with a lot of potential. According to a report by Research and Markets, the Indian footwear market value currently stand around USD $ 20 Billion i.e, INR ₹ 16,000 Crores and is expected to grow at a CAGR of 12% during the period of 2023-2030 and reach around USD$ 30 Billion i.e, INR₹ 25,000 Crore till 2030. This growth is attributed to the increasing disposable income of consumers, changing lifestyles, and growing fashion consciousness among people.

3. Which is the Top Shoe Making Footwear Brands in India.

The Indian Shoe Business is a highly competitive industry with razor thin margins and cut throat competition with both domestic and international players vying for a share of the pie. T

Here is the list of top Shoe making Footwear Brands in India

• Bata India : Bata is one of the oldest and most renowned shoe brands in India.
• Woodland: Woodland is a popular brand known for its rugged and durable outdoor footwear. .
• Liberty Shoes : Liberty Shoes is a well-established brand that offers a diverse range of footwear for men, women, and children.
• Puma India: Puma is a global sports lifestyle brand that has gained significant popularity in India.
• Adidas India: Adidas is another renowned global sports brand that has a strong presence in the Indian market
• Reebok India: Reebok, a subsidiary of Adidas, is a well-known brand that specializes in sports and fitness footwear.

4. How to Identify a Niche in Shoe Industry when you start a Shoe Making Business

How to Identify a Niche in Shoe Business?

In the competitive space of shoes manufacturing business, identifying the right niche market segment is very important for the success of a new shoe making company. By understanding the customers’ needs and preferences, new shoe businesses can create shoes that are tailored to meet those demands. Creating a unique and attractive product offering will draw customers from all walks of life. Additionally, by targeting a specific niche, manufacturers can better position themselves in the marketplace as a reliable and quality provider of footwear.

Here are some steps that can help you identify a niche market in the shoes manufacturing business:

1. Identifying the opportunistic gaps in the Shoe Industry

Conduct market research to identify gaps in the market and understand the needs and preferences of consumers. Look for areas where existing brands are not meeting the demands of customers.

Here are of some gaps in the shoe industry which a shoe manufacturing business can explor

1. Limited Availability of Sustainable Footwear

There is clear lack of eco-friendly and sustainable shoes options in India. Currently, the market lacks a wide range of sustainable shoe choices, thus providing a gap and opportunity for brands that can offer eco-friendly shoe options. Few example are;

• Shoes made from natural fibres
• Shoes made from Vegan Leather
• Shoe made from Cork, Bamboo, Organic materials etc
• Shoes made out of recycled organic waste or natural materials

2. Lack of Customization Options

Many consumers desire personalized footwear that suits their individual style and preferences. The shoe industry in India has very limited options for customization, leaving a gap for new shoe businesses to make made-to-order shoes. Few examples are;

Shoe Business allowing individuals to design and tailor their shoes according to their preferences and specifications

Nike By You: Provides customers the opportunity to customize their shoes allowing them to choose from a range of colours, materials and even add custom text or graphics

3. Inadequate Shoes for Niche Segments

Certain niche segments, such as individuals with specific foot conditions like diabetic foot or other requirements like orthopaedic shoes, people with irregular shoe sizes, or those seeking inclusive footwear options, face limited choices in the market. Shoe manufacturing business addressing these niche segments can lead to untapped opportunities. Few examples are;

• Orthopaedic Shoes: Orthopaedic shoes are designed to provide comfort, support, and alleviate foot and lower limb conditions.
• High Performance Athletic Shoe: Niche brands focus on creating high-performance athletic footwear for specific sports or activities.
• Adaptive Shoe Footwear: Adaptive footwear is designed for individuals with mobility or physical limitations.

4. Improved Accessibility to Rural Markets

While the urban shoe market in India is well-served, there is a gap in distribution network for rural consumers with affordable and durable footwear. New Shoe business bridging this gap of distribution networks in rural lifestyles have huge potential. Few examples are;

• Improving Distribution Networks and supply chain management
• Engaging local artisans and craftsmen in the shoe manufacturing process
• engage in community outreach programs to directly connect with rural consumers.

5. Innovation in Material and Technology

  Another clear gap in the Indian markets are innovative shoe materials and technologies. Brands that focus on incorporating sustainable materials, advanced cushioning, moisture-wicking fabrics, or odour-control technologies can stand out in the industry. Few example are;

• NIKE Flyknit: Flyknit is a high strength fibre yarn
• UA HOVR a foam compound
• breathable fabric
• Carbon fiber plates
• 3D printing technology

2. Identifying Your Strengths as Shoe Making Business

Identifying your strengths as Shoe making business is an essential part of running a successful shoe business. By analysing your own capabilities and determining your strengths in areas of design, materials science, latest production technology.

With this identity create a Unique Selling preposition (USP) that sets your business apart from competitors. With this knowledge, you can better tailor your services to meet customer needs and create competitive advantages that will help you stand out in the industry.

Here are few strengths your shoe company can start working on the onset.

• Validate Quality Craftsmanship: Demonstrate your proficiency in making top-notch shoes. Showcase your emphasis on the details, accuracy in stitching and the use of high quality materials for creating long-lasting pleasant footgear.
• Use Ergonomic Shoe Design and Innovation : Showcase your expertise and knowledge about fashion trends and create eye-catching shoe designs. Exhibit features that stand out from others, have an attractive look, and incorporate the latest shoe manufacturing technology in your products to show your ingenuity.
• Emphasize on Building Strong Supply Chain: Emphasis on consistent supply of good quality raw materials. Highlight your efficient production processes and reliable delivery timelines to build trust with customers and retailers.
• Value Based Competitive Pricing: Position your Shoe products as a value-driven brand by offering competitive pricing without compromising on quality.

3. Looking Forensically for Unexplored, Untapped and Underdeveloped Markets in Shoe Industry

The shoe industry is fast evolving landscape, with new trends and styles emerging every day. Keeping with that idea look forensically for unexplored, untapped, and underdeveloped markets in the shoe industry can offer unique opportunities to those who are willing to take a risk.

By utilizing market research and analytics, businesses can gain valuable insight into customer preferences and design shoes that cater to their needs. By doing so, businesses can capitalize on these untapped markets and reach new heights of success.

Here are some strategies and approaches to consider:

• Niche Segmentation: Explore niche markets within the shoe industry that are underserved or have specific needs.
• Geographic Expansion: Consider expanding your business into new geographical areas that have untapped potential
• Collaborations and Partnerships : Seek collaborations with complementary businesses or influencers to tap into their existing customer base and expand your reach.
• Leverage Online Platforms and E-commerce: Leverage the power of online platforms and e-commerce to reach a wider audience
• Cultural and Lifestyle Considerations: Consider cultural and lifestyle factors that influence footwear choices in different regions or communities.

5. How Much Money is Needed to Start a Shoe Making business?

The cost of starting a shoe manufacturing business in india.

Starting a shoe manufacturing business in India is a profitable venture. It is important to understand the cost of starting such a Shoe making business, as it will help entrepreneurs to make informed decisions about their investment.

• Local Traditional Shoe Manufacturing Unit: INR ₹ 5 to ₹ 10 Lakhs (USD$ 6000 to $12000)
• Medium Scale Shoe Manufacturing Factory: INR ₹ 25 to ₹ 50 Lakhs (USD$ 30,000 to $60,000)
• Large Scale Shoe Manufacturing Business : INR ₹ 1.5 Crore onwards (USD$ 200000)

How to Create a Successful Business Plan for your Shoes manufacturing business?

Constructing a well thought-out business plan that covers all your bases is an essential piece of document for new shoes business as it would help set clear goals and objectives, while providing a road map for achieving success. It allows entrepreneurs to thoroughly analyse their market, identify their target audience, define their products or services, outline their marketing and sales strategies, and establish financial projections.

A well-developed business plan help your Shoe startup make informed decisions, anticipate challenges, and effectively communicate your vision to potential investors, lenders, and stakeholders. It serves as a comprehensive guide for the business’s growth, helps secure funding, and increases the likelihood of long-term success.

Here are some important pointers to guide to help you develop an effective business plan:

1. Company Description

Describe your shoe manufacturing business in detail, including its legal structure, location, history, and ownership details. Explain the purpose and vision of your business, its value proposition, its USP and how it would differentiate itself from the underlying competitors.

2. Market Analysis

Your business plan should conduct in-depth market analysis and have an extensive detail of research on the shoe industry and its target market. Identify market trends, consumer choices, and rivals in the market. Research your target costumers’ demographics, psychographics and buying patterns, buying habits etc, to gain an insight into the consumer behaviour

3. Product Line

Detail the types of shoes you plan to manufacture, including their design, materials, quality standards, and any unique features or innovations. Explain how your product line meets customer demands and fills a gap in the market. Highlight the top features in product line, that you believe will resonate with customer demands and will continue to do so for many years to come.

4. Marketing and Sales Strategy

Device a Marketing and sales strategy for promoting your New Shoe Brand and Shoes product line. Implement your market positioning strategy, pricing strategy, distribution channels, and marketing campaigns. Include all marketing channels like both online and offline marketing initiatives, such as social media, influencer marketing, retail partnerships, and trade shows.

5. Operations and Manufacturing Plan

Describe your manufacturing process, production facilities, equipment, and raw material sourcing. Mention the details of your state-of-the-art manufacturing facility its latest equipment and technology which would ensure that all of our products meet the highest standards of quality and safety.

Explain your quality control measures and any certifications standards that your shoe company adhere to. Outline your supply chain management, inventory control, and last mile order fulfilment processes.

6. Financial Projections

Present a comprehensive financial forecast for your shoe manufacturing business. Which Include figures for projected revenue, expenses, and profitability over a specific period (e.g., three to five years).

Include a break-even analysis, cash flow projections, balance sheets, and income statements. Provide details on how you will fund your business and any anticipated return on investment for potential investors.

Remember to Regularly revising and refining your business plan can help keep your venture on track for success.

In conclusion,

Starting a shoe business can be an exciting and rewarding venture for aspiring entrepreneurs. It requires careful planning, market research, and a clear understanding of the industry. By identifying a niche market, developing a strong brand, and offering unique and quality footwear, you can differentiate yourself from competitors. With determination, passion, and a solid business plan, starting a shoe business can pave the way for a fulfilling and profitable journey in the footwear industry.

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It’s hard to imagine a day without using footwear in our daily life! The global footwear market is expected to grow at a compound annual growth rate of 3.8% from 2019 to 2025 to reach USD 269.9 billion by 2025.

With advancements in technology, innovation, automated machinery, workforce availability, the growth of eCommerce, and changing consumer habits, the footwear industry's prospects have improved. The demand for trendy, fashionable, athletic, and sports shoes has further opened the scope of development and growth for the footwear Industry.

Footwear is one of the essential accessories for both men and women. Not only do they make you look good, but they also provide protection and comfort to your feet. The online footwear business in India is growing rapidly as more and more people buy shoes and sandals online every day. If you are thinking of starting an online footwear business in India, these are the proper steps to help you get started:

1) Decide your online footwear store’s name

When starting an online footwear store, the domain name is one of the most critical decisions. The domain name is what customers will see in their browser window, and it is also how they will find your online footwear business in a search engine.

You want to choose a name that accurately represents your business, is easy to remember, and is available as a web address. Catwalk is an attractive domain name of a famous footwear brand that has exclusive footwear products like boots, heels, sandals, sporty shoes, and ballerinas for women.

2) Determine your target customers

It's up to the footwear brand to research, launch and find target customers for their products in the market. You must choose a specific niche to serve your target customers. It can be trendy, chic & casual footwear for women or light sporty, pure leather, or recyclable formal shoes for men.

Aspiring footwear businesses can 

• Research the competition to find the target customer age group, their buying habits (online/offline channels)
• They can create a buyer persona that can help define the exact target audience to whom they want to sell their products.

For instance, the target customer for your footwear brand can be a city folk in the age group 30-35 years, that is commuting 25-30 Kms every day on his bike. He wants a dark-colored shoe that is easy to wash, is airy, comfortable to wear, and has a good grip. Another customer avatar can be young women who love going to parties on the weekend and want hand-embroidered shoes. 

3) Get an Online footwear business license

The business license for an online footwear store depends on the type of products and your business license. Moreover, every state and city has some different requirements which you need to find out.

Some licenses that an online shoe business requires include:

• A Business Operation License is for your online footwear business to operate in your city, country, or state.
• An Employer Identification Number (EIN) is a tax identification number that uniquely identifies your business as a separate tax entity.
• A Seller's Permit (or Seller's License) is required to sell shoes lawfully online.

4) Have an excellent brand logo

Footwear is a very personal product, and it is crucial that the customer feels an emotional connection to the product. A well-designed logo can help create this connection by communicating the essence of the footwear brand. 

It is also essential for a logo to be memorable so that customers will see it and recognize the brand name. Finally, a logo should accurately reflect the company's values and mission. By taking all of these factors into account, an online footwear business can create a compelling and lasting brand identity with its logo. Fila & Nike are examples of famous footwear brands in India with memorable logos.

5) Product pricing

As an online footwear business owner, it is essential to balance the price as higher pricing would lower sales, and lower pricing would affect the profits. Choose the most appropriate pricing plan for your online shoe business after considering elements such as product and business costs, competitive pricing, and revenue targets.

Here are some key strategies that can help decide the price of footwear products.

• The price recommended by the shoe manufacturer
• Competitive pricing is the practice of using rival pricing data as a standard and purposefully pricing the product lower or higher than their price.
• You are using keystone pricing, a method of determining the retail price of a product where you double the wholesale cost of the product. It can be used to plan discounts purposefully on different products.

6)  Marketing your footwear business

If you have creativity, style, and a little business sense, you can build a strong marketing plan for your footwear brand that rivals your competition. Here are some unique ways to market your footwear business.

Marketing your customer service

Developing a marketing strategy around what sets your brand & customer service apart can help you attract business. Zappos is a shoe company that offers excellent customer service, and its shipping service is free, offers a 365 days return policy, with the famous Zappos call center.

Market to your community

Market your product to your community, which may show a desire to support you and local businesses. This way the community is exposed to your customers first -- whether you have a local store or people see you and your customers wearing your styles around town.

Market to your niche

Find a famous footwear line that sells products similar to yours and analyze their marketing strategies. Focus on finding answer to these critical questions - To what audience do they market their products? What marketing media do they use? Ask yourself how you can improve on similar techniques to sell your line?

7) Using SaaS eCommerce platform to launch your footwear business

You can use SaaS eCommerce platforms like Fynd Platform that helps footwear businesses in hosting, shipping, catalog management, order management, inventory management, SEO & other marketing tools if you do not want to deal with the technical complications of managing an eCommerce website.

Here are some of the striking features of the Fynd Platform that can help develop a business-ready online footwear business in India. Fynd Platform has helpful features specially curated for building your online footwear store:

• Custom domain: Connect your custom domain to your website
• Fynd Payment gateway: For accepting safe online payments from multiple payment modes
• Selling locations: The number of selling locations you can plug in inventory for.
• SSL certificate helps build trust for your online clothing store and is inbuilt in Fynd Platform websites.
• Email & SMS Marketing: Get email and SMS marketing for driving marketing campaigns and reaching the target audience.
• Logistic Support: Get 24 hours logistic support from Fynd Platform
• Coupon & discounts: You can create custom coupons & discounts for targeting new & existing customers, which will also help grow their loyalty
• SEO friendly: Fynd Platform provides SEO friendly online store for growing organic traffic from search engines and social media platforms
• Blogging support: You can create, write & manage blogs on online business websites created with Fynd Platform.

Start a free trial today! Build your online footwear business with Fynd Platform. Subscription packages start as low as INR 599 per month to INR 2499 per month.

8) Select wholesalers & manufacturers

Make contact with several distributors and manufacturers. Ideally, you should purchase directly from the manufacturer rather than a wholesaler. It means you can buy the shoes for a lower price, but it may require you to place a larger order.

It is also important to investigate which of them provides good shipping services, enabling you to keep your inventory levels low. Choose the wholesaler or manufacturer who will provide you with the lowest cost per unit of footwear for your business.

9) Fulfilling the order with faster delivery

When customers place orders, place an order with your footwear supplier. Pay the wholesale footwear supplier the wholesale footwear cost, and ship the footwear to clients in boxes labelled with the customer's shipping information.

The quicker is the delivery time of your business, the happier the customers are that help grow repeat business and brand loyalty for your footwear business. You too can start an online footwear business in India. The online footwear market is huge in India and gets bigger every year, and the best way to profit in this market is to sell online.

We hope this blog post can give you a head start in starting your own footwear business. If you would like to find out more about how you can start an online business in India, feel free to Book a Demo or Contact us anytime.

Numerous famous footwear brands like Leonish , Ameallyours & Catwalk have successfully utilized Fynd Platform to create their online footwear store and build a thriving business. Be a part of the growth story – Launch your online footwear business today with Fynd Platform.

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How to sell shoes online in India: a step by step guide

• by Hibathu Naseer
• August 25, 2021
• 11 minute read

Shoes are the kind of products that will always stay in constant demand. No matter what happens, shoe shopping will remain popular and essential. So selling shoes online is a good business idea for sure!

Any kind of business needs a lot of planning. From finding suppliers to marketing and delivery— there are a lot of things to consider before starting a shoe store online.

To make sure start your eCommerce business on the right foot, we have done some research and curated a step-by-step guide for you on starting an eCommerce shoe business.

• 1 Why sell shoes online in India?
• 2 How to sell shoes online – in 6 steps
• 3  Step 1. Register your business
• 4 Step 2. Find out how you want to be unique
• 5 Step 3. Decide on your footwear supply source
• 6 Step 4. Decide where to sell your products
• 7 Step 5. Delivery and payment systems
• 8 Step 6. Calculate cost and plan marketing

Why sell shoes online in India?

It sees a robust market share in india .

According to a report by Businesswire, the Indian footwear market is projected to display a robust growth with an annual growth rate of 8.28% during 2020-2025. In other words, now is the best time to start a shoe store online in India.

Footwear is an in-demand product

The average Indian buys at least 2 pairs of shoes every year. Footwear is an indispensable product and is replaced frequently. Therefore, shoe business owners have a good chance of getting repeat customers if the quality of their brand is good.

It is a good income source 

You can count on a decent income if you sell shoes. The profit margin is about 80-130%. 

If you offer customisation options, you can charge higher for it. You can also charge higher based on the material that you are using. Sustainable materials usually have a higher mark up.

However, you might face some obstacles when starting a shoe store:

• High financial investment- a shoe business needs a significant startup cost, though not enormous
• Competition from well-established shoe brands
• Changing fashion trends might make some products irrelevant and result in unsold stock

You will figure out how to overcome the risks listed above after reading our article.

Selling shoes online is comparatively more profitable than a physical shoe store. Here’s why: You have the potential to access a large customer base across the country, save a lot of money, and have the freedom to manage business remotely!

How to sell shoes online – in 6 steps

Waiting for the correct strategy, tips, and ideas to start your very own online shoe store?  Read along to find out how to sell shoes online:

Step 1. Register your Business Step 2. Find out how you want to be Unique Step 3. Decide footwear supply source Step 4. Decide where to sell shoes online Step 5. Delivery and payment systems Step 6. Calculate cost and plan marketing Bonus: Tips to make your online shoe store successful

 Step 1. Register your business

First things first. Get the legal matters out of the way.

Although it is not necessary to register as a small business, it’s always good to do so.

Make sure you have all the necessary documents. Several businesses in India faced issues with compliance and documentation last year.

This small business tax blog will help you know more about legal matters for small businesses.

Step 2. Find out how you want to be unique

The footwear market is extremely wide with many well-established brands. That doesn’t mean your shoe store can’t stand out. Provided you find your niche and position your shoe brand as one-of-a-kind.

Your ideal footwear niche is the crossing point between your interest and demand in the market.

For example, you might be interested in selling sports shoes, but there are already big players in this niche, so your brand might get overshadowed.

We will discuss exactly how you can find which products are in-demand later in this article.

It is always best to sell specific types of shoes because there will be lesser competition from the big players. Going niche is always the best strategy in eCommerce. Read more about it here.

If you choose to narrow down to a specific category, what shoes can you sell? How do you choose from the wide range?

Choose the type of shoe you want to sell online 

Here is a list that can help you decide how you choose the category of shoes you want to sell online:

1. Based on who wears them—men, women, or children:

• Women’s footwear: We don’t need any official data to say women are the most frequent buyers of shoes. If you decide to target women shoppers, that’s a great idea.
• Men’s footwear: Although men’s shoes don’t come in as much variety as women’s, the market is still good. Sports shoes, sneakers, and high-quality formal shoes are some types that can appeal to your male audience.
• Children’s shoes: This category can guarantee you the most active customers. Kids grow fast, as you know, which means they need a new pair of shoes every few months, literall y! So you will have customers coming back to you again if they find your product good.

2. Based on the category:

💡 Classic shoes: Shoes that never go out of style —high-heels, boots, sneakers, flats, sandals, and many more. Their demand remains constant. For inspiration check out the brand Truffle collection .

💡 Sport shoes: Here’s a great niche with a well-defined target audience! People who are into sports tend to regularly buy sports shoes. You can also consider cross-selling other sports products if you like. Reebok, Addidas, Nike – take your pick when choosing a role model!

💡 Indoor footwear: Selling comfortable indoor footwear such as slippers and flip-flops is also a good idea. You can get creative and create an assortment of beautiful indoor slippers! Remember Paragon ? An Indian favourite!

💡 Traditional designer footwear: In India, traditional footwear is high in demand because of its unique design, comfort, and cultural value. Varieties such as juttis, kolhapuri chappals, and mojharis are adored by Indians everywhere! So, selling traditional shoes in India has great scope!

💡 Handmade shoes: If you know how to craft shoes or know a source where you can get a supply of customisable shoes, it can go a long way. Selling customisable shoes online is a business model which has a high chance of being successful. It’s the best way to stand out and move yourself away from the competition.

💡 Eco-friendly shoes: Most shoes are made of plastic, rubber, and petroleum. Eco-friendly shoes reduce carbon footprint by using sustainable raw materials. This category of shoes appeals to eco-conscious people who want better choices. Neemans is an example of a D2C brand that made it big because of its sustainability promises.

If you have decided on the range of shoes, congrats! Half of your work is done. Now for the next important part- find out who your buyers are.

Choose your  ideal buyer 

Why is defining a target audience important? The more you know about your consumers, the better you can sell your products— especially in the digital world.

Once you identify your niche, it is easier to identify potential buyers. Also, note that finding a relevant audience and then identifying the best products for them is also a good strategy.

Some points to consider when defining the target audience:

• Average age and gender
• Average income
• Do they like classic items or quirky and colourful ones
• Shopping frequency for shoes
• Where they hang out mostly- social media

Here is our ultimate guide to identifying and catering to a target audience 

How to determine demand in the shoe market?

You need to know if your footwear niche will sustain in the digital world. Follow these simple techniques to find out what type of shoes are in-demand:

• Go to popular online marketplaces and see best-seller shoes. This will give you an idea of what shoe shoppers like
• Do a little research on Google trends to find out what online shoppers are searching for. Check which products have growing interest.
• Read reviews of footwear products on online shoe stores, especially your competitors. This will give you an idea of what your audience likes/dislikes.

Have you decided on your niche? To make sure it’s clear, try describing it in one sentence. You should be able to describe the type of shoes and the demographics of your target audience.

Here is a sample description of a footwear niche: Selling quirky sneakers with colourful patterns for young adults of age 18-26, located in metro cities.

Step 3. Decide on your footwear supply source

This step is probably the most important one because it determines your business model and elements such as how much money to invest, time to spend, and dependency.

You will know exactly how to sell shoes online. Consider these 5 points before deciding:

• How much money do you plan to invest?
• Warehouse availability and location- do you want it to be located in your state or somewhere else?
• Do you want a manufacturer to produce unique footwear?
• How involved do you want to be in the whole process from manufacturing to shipping?
• Your chosen niche

For shoes and almost any other physical products, you have three main options for supply:

1. Sell shoes via third-party (dropshipping):

This is the best way to start an online shoe store without inventory. In the dropshipping method, you act as an intermediate between the shoe manufacturer and the customer.

Your job is to promote the shoes online (mostly through social media), collect orders, and send them to the supplier who will pack and send the products.

The big advantage is that you need little to no start-up capital and don’t have to bother about production, storage, and shipping.

2. Get a reliable wholesale supply

Collect shoes from one or many sources in bulk and gradually sell them out. You can decide on an assortment of footwear.

The risk involved is one step higher than in the dropshipping method but you will be less dependent on the manufacturer.

You can find footwear wholesalers and manufacturers who offer drop shipping services through a simple Google search or online directories of enterprises.

3. Create your own range of shoes

In this model, you are responsible for designing, sourcing raw materials, and manufacturing. In short, your own shoe company. Therefore, you have the opportunity to build a unique brand, and thus eliminate a lot of competition. 

Have you decided which model is best for your online shoe business? Make sure the supply is stable and products are of good quality.

Enjoying this blog? Subscribe to our weekly blog digest and get free business growth tips and inspiring stories straight to your inbox! Sign up to weekly newsletter

Step 4. Decide where to sell your products

You have decided on your business model and the range of shoes to sell. But where do you sell them online? How do you reach the target audience? You have three options:

• Social media
• Online marketplaces
• Own website

Selling on social media

Social media is the easiest place to sell shoes online. You can leverage influencer marketing to reach a wider audience.

Create eye-catching content by yourself or hire a social media manager for the job.

We would recommend Instagram and Facebook for selling shoes online. See how this D2C brand is using Instagram reels to promote their beautiful handmade Indian traditional shoes!

  View this post on Instagram   A post shared by HazelThread | Juttis (@hazelthread)

Important: When collecting payments on social media platforms, beware of fraud! You could ask customers to transfer via GPay, PhonePay etc. in the beginning.

But when orders start pouring in, this is not an effective method. We have a solution for you— Instamojo payment links . You will be able to collect payments online anywhere, anytime.

Selling on an online marketplace

Selling on big marketplaces like Amazon is more professional. You don’t have to worry about a shortage of customers because many online shoppers rely on such platforms.

There are some drawbacks like: 

• Delayed realisation of sales
• Little to no control over your inventory
• Getting overshadowed by the giants

There is one way to make your shoe brand stand out and attract repeat customers:

Start your own online shoe store

How to start selling shoes online? Selling on your own eCommerce store is one of the best ways.

To start your own shoe store online, you need a website. Creating an online store is easier than you think.

There are many platforms out there which offer hassle-free methods to set up an online store. A good eCommerce website has features like secure and integrated payments, a good user interface, shipping, and tools for marketing.

With Instamojo, you can start selling shoes online in minutes. You can easily create your own eCommerce shoe store that you have always dreamed of!

Related Read: How to set up your Instamojo Premium Online Store 

An eCommerce shoe store gives you full control over your business. You can build your very own shoe brand!

You will be able to experiment with different marketing strategies and scale up your shoe business online. With your own eCommerce website, the sky’s the limit!

Step 5. Delivery and payment systems

Integrate payment systems that are safe, and smooth, and provide the customer with as many choices as possible.

Every online business needs a reliable delivery partner as well. Luckily, with Instamojo, you get both of these features. Learn more about the best payment gateway for small businesses .

Step 6. Calculate cost and plan marketing

Now that you know exactly how and where to sell shoes online, you can easily decide the budget for initial costs.

Here is the most basic list of things you need to budget for when starting your own shoe business:

• Own eCommerce website
• Creating a stock of shoes (not applicable if drop shipping)
• Advertising and marketing
• Salaries for employees
• Office and/or warehouse rent

You now know the pathway to follow for starting your very own online shoe business!

Bonus: Tips to make your online business successful

There are a lot of things you can do to make your eCommerce website for shoes successful.

Here are a handful of tips:

• High-quality product images and convincing descriptions. 

Never compromise on the quality of pictures on your online store! The customer should get a clear idea of the shoes they intend to buy. Craft convincing product descriptions which include size charts, special features, material, and other relevant details.

• Unique brand name 

The name of your shoe brand should stand out and be memorable. It has to be easy to pronounce, and to recall.

• Collect customer feedback when possible

Always put your customers first. Address their issues and find ways to make their online shoe-shopping experience as smooth as possible. Ask them how you can improve customer experience.

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How to Start a Profitable Shoe Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a shoe business plan., 3. develop a shoe brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for shoe., 6. open a business bank account and secure funding as needed., 7. set pricing for shoe services., 8. acquire shoe equipment and supplies., 9. obtain business insurance for shoe, if required., 10. begin marketing your shoe services., 11. expand your shoe business..

Embarking on a shoe business venture requires a thorough understanding of the current market landscape. Identifying trends, understanding consumer behavior, and scoping out the competition are foundational steps in crafting a successful strategy. Below are key aspects to consider in your market analysis:

• Research current footwear trends to ensure your product line is in line with consumer preferences.
• Analyze demographic data to target the right customer segments, such as age, gender, income level, and geographic location.
• Study the competition to identify gaps in the market that your shoe business can fill.
• Assess the pricing strategies of existing brands to find a competitive yet profitable price point for your products.
• Understand the supply chain dynamics, including sourcing of materials and manufacturing processes that may affect cost and quality.
• Explore retail and distribution channels, deciding between brick-and-mortar stores, online platforms, or a hybrid approach.
• Gauge the market size and potential growth to estimate the scalability of your business model.
• Identify potential partnerships and collaborations that can help in brand building and market penetration.

Are Shoe businesses profitable?

Yes, shoe businesses can be profitable depending on the type of business and the market it is in. Many shoe businesses offer a wide range of products and services to customers, including custom designs, and can generate a substantial profit margin if managed properly. Additionally, the cost of production and overhead associated with the business can be low and the potential for growth is high.

Creating a comprehensive business plan is crucial for the success of your shoe business. It serves as a roadmap for your venture, outlining your objectives, strategies, and financial projections. Here's a guideline to help you draft a thorough business plan.

• Executive Summary: Summarize your business idea, mission statement, product offerings, and goals. Highlight what sets your shoe business apart.
• Market Analysis: Research the shoe industry, including market trends, customer demographics, and competitive analysis.
• Organization and Management: Outline your business structure, leadership team, and staffing requirements.
• Products and Services: Describe the types of shoes you'll sell, their features, and benefits. Include information on product sourcing and manufacturing.
• Marketing and Sales Strategies: Detail how you plan to attract and retain customers through marketing, branding, and sales tactics.
• Financial Projections: Provide an analysis of startup costs, pricing strategy, sales forecasts, profit and loss projections, and break-even analysis.
• Funding Request: If seeking investment, specify the amount needed and how it will be used.
• Appendix: Include any additional documents such as resumes, product pictures, or research findings that support your business plan.

How does a Shoe business make money?

A shoe business makes money by selling shoes to customers at a marked-up price. This can be done online, through physical stores, or through wholesalers. The business can also offer additional services such as repairs and customization. Additionally, the business may offer additional products such as apparel and accessories, which can be sold at a higher price point than shoes.

Developing a shoe brand is a pivotal step in starting a shoe business, as it sets the tone for everything from your design aesthetic to your marketing strategy. Your brand will become your signature, the unique identifier that sets your shoes apart in a competitive market. Here are some key points to guide you through the creation of your shoe brand:

• Define your brand identity by choosing a name, logo, and design theme that reflect the ethos and style of your shoes.
• Research your target market to understand the preferences and needs of your potential customers, tailoring your brand to resonate with them.
• Create a compelling brand story that connects emotionally with consumers and tells the journey of your brand's creation and its values.
• Ensure consistency across all platforms and materials, from your website to packaging, to establish a strong, recognizable presence.
• Develop a marketing strategy that leverages social media, influencer partnerships, and creative campaigns to build brand awareness and loyalty.
• Protect your brand by registering trademarks for your name, logo, and any unique designs to safeguard your intellectual property.

How to come up with a name for your Shoe business?

First, it is important to choose a name that reflects the style and quality of your shoes. You may want to consider a name that reflects the unique qualities of the shoes you produce. It can also help to research other businesses in the shoe industry to get ideas. Additionally, consider incorporating words that connote strength and reliability. Finally, make sure the name is catchy and memorable, as a great name can help your business stand out from the competition.

Formalizing your business registration is a crucial step in establishing a solid foundation for your shoe business. It legitimizes your venture, protecting your brand and enabling you to operate within legal confines. Here's how to navigate this process:

• Choose a Business Structure: Decide on a legal structure for your business, such as a sole proprietorship, partnership, LLC, or corporation. Each has different implications for taxes, liability, and paperwork.
• Register Your Business Name: Check for name availability and register your business name with the appropriate state authorities, ensuring it's unique and complies with state regulations.
• Obtain an Employer Identification Number (EIN): Apply for an EIN through the IRS. This number is essential for tax purposes and to open a business bank account.
• Register for State and Local Taxes: Register with your state to obtain a tax identification number, workers' compensation, unemployment, and disability insurance.
• Obtain Necessary Permits and Licenses: Check with your local government to see what permits or licenses are required to operate a shoe business in your area.

Resources to help get you started:

Explore crucial materials designed for shoe entrepreneurs to gain insights on market trends, operational excellence, and strategic growth plans:

• Footwear News: Offers the latest news on market trends, new technologies, and business strategies in the shoe industry. https://footwearnews.com/
• World Footwear Yearbook: Provides statistics and analysis on the global shoe market, including production, exports, and consumption trends. https://www.worldfootwear.com/
• Sole Supplier Newsletter: Delivers updates on sneaker releases, market trends, and insights directly to your inbox. https://thesolesupplier.co.uk/
• Shoe Master Magazine: A Japanese publication that includes design inspirations, brand features, and industry news for footwear entrepreneurs and designers. http://www.shoemaster.jp/
• Small Business Association (SBA) Guide for Fashion Industry Entrepreneurs: Offers guidance on planning, launching, managing, and growing a small business in the fashion sector, including footwear. https://www.sba.gov/business-guide

Launching a shoe business requires compliance with various regulations. To ensure your new venture operates legally, acquiring the right licenses and permits is crucial. Here's a guide to help you through the process:

• Business License: Register your shoe business with the local or state government to obtain a general business license.
• Seller's Permit: If you're selling shoes directly to consumers, you might need a seller's permit or sales tax license.
• Trademark: Protect your brand and designs by applying for a trademark with the United States Patent and Trademark Office.
• Import/Export Licenses: If you're planning to import or export shoes, check for any necessary international trade licenses.
• Occupational License: Depending on your location, you may be required to obtain an occupational license for retail businesses.
• Zoning Permits: Ensure your business location is zoned for retail, and secure a zoning permit if necessary.
• Health and Safety Compliance: If you have a physical store, you may need to comply with local health and safety regulations and obtain relevant permits.

What licenses and permits are needed to run a shoe business?

The exact licenses and permits needed to run a shoe business vary depending on the location of the business. Generally, businesses require a business license, sales tax permit, and any applicable industry-specific permits or licenses. Depending on the size and scope of the business, additional permits and licenses may be required. For example, for businesses selling alcohol-based products, a liquor license may also be required. Additionally, zoning compliance may be necessary for retail businesses.

Opening a business bank account and securing funding are crucial steps in establishing the financial foundation of your shoe business. These steps ensure that your business finances are separate from personal ones, and that you have the necessary capital to commence operations. Follow these guidelines to set up your banking and funding:

• Choose the right bank: Research banks to find the one that offers the best benefits for small businesses, such as low fees, high transaction limits, and good customer service.
• Prepare the necessary documents: Gather all required documents such as your business license, EIN, incorporation papers, and personal identification to open your business bank account.
• Understand your funding needs: Calculate the initial costs of starting your shoe business to determine how much funding you will need.
• Explore funding options: Consider various sources such as small business loans, investors, crowdfunding, grants, or personal savings to finance your business.
• Develop a strong business plan: Create a detailed business plan to present to potential lenders or investors, showing your business’s potential for success and how you plan to use the funds.
• Build your credit: Maintain a good credit score to improve your chances of securing loans with favorable interest rates.

Setting the right price for shoe services is crucial in ensuring your business remains competitive while securing a profit. Consider factors such as material costs, labor, market rates, and the perceived value of your services to customers when determining your pricing strategy. Here are some guidelines to help you set appropriate prices:

• Analyze the cost of materials and add a markup to cover overheads and desired profit margins.
• Research competitors' pricing to ensure your rates are in line with the market while differentiating based on service quality or unique offerings.
• Consider time-based pricing for labor-intensive services to fairly compensate for the effort involved.
• Offer tiered pricing options for different levels of service, such as basic repairs, customizations, or premium materials.
• Implement dynamic pricing for rush orders or seasonal demands to maximize revenue during peak periods.
• Provide discounts for bulk orders or loyalty programs to encourage repeat business and build customer relationships.
• Regularly review and adjust prices based on cost fluctuations, customer feedback, and financial goals.

What does it cost to start a Shoe business?

Initiating a shoe business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $107000 for launching such an business. Please note, not all of these costs may be necessary to start up your shoe business.

Starting a shoe business requires careful planning when it comes to acquiring the right equipment and supplies. This step is crucial as it ensures that you have everything needed to produce high-quality footwear and operate smoothly. Here's a list of essential items to consider:

• Shoe Lasts: These are the molds that give shoes their shape. Ensure you have various sizes and styles to accommodate different shoe designs.
• Sewing Machines: Invest in industrial sewing machines that can handle various materials like leather, canvas, and synthetics.
• Leather and Fabric: Source high-quality materials that will be the main component of your shoes. Consider durability, comfort, and aesthetics.
• Soles and Heels: Purchase soles and heels that are durable and provide comfort. Rubber, leather, and synthetic materials are common choices.
• Adhesives and Dyes: Strong adhesives are necessary for lasting shoe construction. Dyes and finishes will also be required for aesthetic purposes.
• Cutting Tools: Sharp cutting tools like knives and scissors are essential for shaping materials.
• Shoe Finishing Equipment: Buffers, polishers, and stitching machines help in giving the final touches to your shoes.
• Packaging Supplies: Boxes, tissue paper, and bags branded with your logo will present your product professionally.

List of Software, Tools and Supplies Needed to Start a Shoe Business:

• Inventory Management Software
• Point of Sale System
• Accounting Software
• Website Builder
• Product Design Software
• Shoe Making Supplies
• Advertising and Promotion Tools
• Shipping Supplies and Equipment
• Legal Documents

When starting a shoe business, it's vital to protect your investment and mitigate risks through proper insurance coverage. Different types of insurance cater to various aspects of your business, from property damage to liability claims. Here are some essential insurance policies you should consider:

• General Liability Insurance: This coverage protects against claims of bodily injury or property damage that can occur in your store or as a result of using your products.
• Product Liability Insurance: If the shoes you sell cause harm, this insurance can cover legal fees and damages, providing essential protection for your business.
• Commercial Property Insurance: This safeguards your inventory, equipment, and physical location from events like fires, theft, or natural disasters.
• Business Interruption Insurance: If an unforeseen event causes your business operations to halt, this policy can help cover lost income and expenses.
• Workers' Compensation Insurance: If you have employees, this is a mandatory policy in most regions, covering medical costs and lost wages if they get injured on the job.
• Cyber Liability Insurance: If you operate online sales, this insurance protects against data breaches and other cyber threats.

Now that your shoe services are ready to be presented to the world, it's crucial to craft an effective marketing strategy that captures your brand's unique appeal and reaches your target audience. Here are several key steps to kick-start your marketing efforts:

• Identify Your Audience: Understand who your ideal customers are and tailor your marketing messages to resonate with them.
• Build an Online Presence: Create a professional website and engage with customers on social media platforms where your audience is most active.
• SEO: Optimize your online content for search engines to increase visibility and attract organic traffic.
• Email Marketing: Collect email addresses and send out newsletters with new arrivals, special offers, and shoe care tips.
• Collaborations and Partnerships: Team up with fashion influencers and other businesses to reach a wider audience.
• Local Advertising: Consider local print, radio, or outdoor advertising to target community-specific clientele.
• Customer Reviews: Encourage satisfied customers to leave positive reviews online, enhancing your reputation and trustworthiness.
• Referral Programs: Implement a referral program to incentivize word-of-mouth marketing.

Now that your shoe business is up and running, it's time to consider expanding your reach and product line. Growth is an essential aspect of any business, and with careful planning and strategic actions, you can take your shoe business to new heights. Here are some steps to guide you in expanding your shoe business:

• Explore New Markets: Research and identify new geographical areas or demographics that may be interested in your products, such as international markets or different age groups.
• Enhance Your Online Presence: Invest in a high-quality website, optimize for search engines, and utilize social media platforms to attract and engage with a broader audience.
• Introduce New Styles: Keep your product line fresh by regularly introducing new styles, colors, and materials that align with current trends and customer feedback.
• Collaborate with Designers: Partner with fashion designers or influencers to create unique collections and increase brand visibility.
• Attend Trade Shows: Participate in shoe industry trade shows and events to network with retailers, distributors, and potential customers.
• Optimize Supply Chain: Streamline your supply chain for efficiency and cost-effectiveness to better manage increased demand and ensure customer satisfaction.

How to Start a Shoe Business

Starting a shoe business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful shoe business.

Importantly, a critical step in starting a shoe business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Shoe Business :

• Choose the Name for Your Shoe Business
• Develop Your Shoe Business Plan
• Choose the Legal Structure for Your Shoe Business
• Secure Startup Funding for Your Shoe Business (If Needed)
• Secure a Location for Your Business
• Register Your Shoe Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Shoe Business
• Buy or Lease the Right Shoe Business Equipment
• Develop Your Shoe Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Shoe Business
• Open for Business

1. Choose the Name for Your Shoe Business

The first step to starting a shoe business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your shoe business.

2. Develop Your Shoe Business Plan

One of the most important steps in starting a shoe business is to develop your business plan. The purpose of a business plan is to ensure that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise money for your business.

Your shoe business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your shoe business.
• Company Overview – this section tells the reader about the history of your shoe business and what type of shoe business you operate. For example, are you a shoe retailer, shoe manufacturer, shoe importer, or shoe distributor? 
• Industry Analysis – here you will document key information about the shoe industry. Conduct market research and document how big the industry is and what industry trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract new customers to your shoe business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the business plan’s financial plan answers questions including the following:
• What startup costs will you incur?
• How will your shoe business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

A sample business plan can help you get started easily.

Finish Your Business Plan Today!

3. choose the legal structure for your shoe business.

Next you need to choose a legal structure for your shoe business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the shoe store owner and the business are the same legal person. The business owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a shoe business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a shoe business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a shoe business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your shoe business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Shoe Business (If Needed)

In developing your shoe business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a shoe business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a shoe business that they believe has high potential for growth.

5. Secure a Location for Your Business

To find a location for your shoe store business, you’ll want to research the best places to set up shop. You can look at demographic data to see where your target customers live, and you can also look at things like traffic patterns and store availability. You’ll also want to consider your budget and what size of space you need. Once you’ve narrowed down your options, it’s important to do a site visit and make sure the location is right for your business.

6. Register Your Shoe Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your shoe business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your shoe business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

There are a few licenses and permits you will need to start a shoe business. To begin, you will need a business license from your local government. You may also need a sales tax permit depending on the state in which you will do business. Depending on the type of shoes you plan to sell, you may also need a manufacturing license or a trademark. Check with your state’s licensing board to find out what is required.

10. Get Business Insurance for Your Shoe Business

There are a multiple types of insurance that are necessary to operate a shoe business.

Some business insurance policies you should consider for your shoe business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Shoe Business Equipment

In order to start a shoe business, you will need some basic equipment. This includes a shoe rack, shelves, boxes, and labels. If you plan to operate a manufacturing show business, you’ll need to invest in special machinery to make the shoes. High-quality machinery is necessary to make specific styles of shoes and produce them in bulk, which means heavy machinery like the 20 ton press machine or a computerized carving machine for laser cutting. You will also need cutting tools, glue to assemble the shoes, quality control equipment to check for mistakes during assembly, and a way to heat-press your shoe labels onto the shoe. A computer with a printer is also needed to design your labels, as well as a phone or internet connection to order your materials from suppliers.

12. Develop Your Shoe Business Marketing Materials

Marketing materials will be required to attract and retain customers to your own shoe line.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your shoe business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your shoe brand.
• Website : Likewise, a professional shoe business website provides potential customers with information about the products you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media platforms will help customers and others find and interact with your shoe business.

13. Purchase and Setup the Software Needed to Run Your Shoe Business

The software you need to run a shoe business depends on the type of shoe business you want to start. If you want to sell shoes online, you’ll need a shopping cart software and a website builder. Additionally, you can sell through sites like Amazon, Shopify, or Etsy. If you want to start a physical store, you’ll need point of sale (POS) software, customer relationship management (CRM) software, and an inventory management system.

14. Open for Business

You are now ready to open your shoe business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Shoe Business FAQs

Is it hard to start a shoe business.

No, it is easy to start a shoe business because there is a low barrier to entry. This means that it does not require a lot of money or technical expertise to get started. There is a large market for shoes, so there is potential for a lot of revenue.

How can I start a shoe business with no experience?

There are a few things you can do to start a shoe business with no experience. You can research the industry and learn as much as you can about shoes and the shoe business. You can also look for opportunities to network with people in the industry, and attend events and trade shows where shoe manufacturers and retailers gather.

What type of shoe business is most profitable?

There is no definitive answer to this question as it largely depends on the specific type of shoe business in question and the market conditions therein. However, in general, the most successful shoe stores are those that produce and sell high-end designer shoes. They are more profitable than those that sell lower-priced options. This is likely due to the fact that consumers are willing to pay more for better quality products.

How much does it cost to start a shoe business?

A shoe store’s startup costs can vary depending on the size and scope of the business. However, on average, it costs between $10,000 and $50,000 to get started. This includes the cost of materials, labor, and other related expenses.

What are the ongoing expenses for a shoe business?

There are a few key ongoing expenses for a shoe business. One of the most important is the cost of materials and labor. You'll also need to factor in things like rent, utilities, and marketing. It's important to have a solid business plan in place so you can anticipate these costs and stay within your budget.

How does a shoe business make money?

A shoe business can make money by selling shoes to consumers, and also by selling shoes to businesses. Consumers may buy shoes in a brick-and-mortar store, or through an online store . Businesses may buy shoes for their employees, or for resale.

Is owning a shoe business profitable?

Yes, owning a shoe business can be profitable. There are a few things to keep in mind when starting a shoe business, such as choosing the right location and ensuring you have a good supplier. However, with the right planning and execution, owning a shoe business can be a lucrative endeavor.

Why do shoe businesses fail?

Shoe businesses fail because they do not have a unique shoe selling proposition. They may try to compete on price, when there are already many other businesses doing the same. They may also have a faulty business model, such as not making enough of a profit on each shoe sold, or not being able to produce shoes quickly and cheaply enough to stay competitive. Additionally, many shoe stores do not understand the importance of marketing and sales, and do not put in the effort necessary to reach consumers.

Other Helpful Business Plan Articles & Templates

Shoes Business Profit Margin | Guide for Startups

Shoe businesses offer great money-making potential. However, the profitability depends on the kind of footwear they stock, their pricing plans and marketing strategies. Considering all variables, the estimated shoes business profit margin is 20% - 40% approximate .

Overview of Shoe Business in India

• Investment: Rs. 15 Lacs - Rs. 20 Lacs (minimum)
• Area Required: 300 sq ft. - 800 sq ft. (minimum)
• Human Resource: 3 - 5 People (initially)
• Shoes Business Profit Margin: 20% - 40%
• Estimated Sales: Rs.40,000 - Rs.60,000 per month

How to Determine the Profit Margin in Shoes Business?

The profit margin of a shoe business is typically measured as a percentage of total sales. 

However, they can vary greatly depending on:

• Type of Shoe Business
• Production Costs
• Marketing Costs
• Overhead Expenses

Profit Margin in Different Type of Shoe Business

Different types of shoe businesses have different cost structures and thus, different profit margins. 

For example, a  retail shoe store  has a profit margin of approximately  20% - 30% . 

Whereas, a  wholesale shoe distributor  has a profit margin of approximately  35%  due to the lower cost of goods sold. 

Likewise, an  online shoe store  has a profit margin of approximately  27% - 32% . 

Whereas, a  brick-and-mortar store  has a profit margin of  15% - 20%  due to a smaller customer base. 

Understanding your profit margin is also important for setting realistic goals for your business. 

It also helps you in making informed decisions about  pricing, inventory, and other aspects of running a successful shoe business .

Minimum Investment Required to Start a Shoe Business 

Starting a shoe business requires a significant amount of investment. The exact amount depends on the size and scope of the business.

But, in general, it is safe to say that you need at least Rs. 10 Lacs to get started. 

This investment will be used for renting a space, buying inventory, business registration, GST registration ,  hiring staff and marketing your product . 

You can use online platforms like Amazon or Flipkart to launch your store without any upfront costs. 

Additionally, you can also look for investors who are willing to fund your venture in exchange for equity in the company. You can find these investors on platforms like Kickstarter , SMERGERS, FuelADream , etc. 

Moreover, you can also consider the following funding sources:

• Business Loans
• Private Equity Loans
• Government Schemes for Startups
• Borrowing for Friends and Family
• Personal Savings

With careful planning and budgeting, it is possible to start a successful shoe business with minimal investment. 

Minimum Area Required to Start a Shoe Business 

Starting a shoe business requires a certain amount of space to store and display your products. 

The minimum area required to start a shoe business depends on the type of business you want to open, the number of products you plan to stock, and the target market you are aiming for.

For example, if you are looking to open a small boutique specializing in designer shoes , you may need around 200 square feet of space for display racks and storage shelves. 

On the other hand, if you are opening a larger store that will carry multiple brands and styles of shoes, then you may need up to 1,000 square feet or more.

No matter what kind of shoe business you plan on starting, it is important to make sure that your chosen space is large enough. So the customers can easily browse through your selection without feeling cramped or crowded.

Human Resource Required to Start a Shoe Business

Having the right team of people will help you manage the day-to-day operations and marketing of your business.

You must hire people who have some knowledge about the latest trends in shoes to ensure that your store offers products that customers will love. 

With their help, you can create an amazing shopping experience for your customers that will keep them coming back for more!

Here is a list of people you will need, along with the average salaries :

• 2-3 Store Helpers - Rs.6,000 - Rs.10,000 (Per Month Per Employee)
• Accountant - Rs. 20,000 - Rs. 25,000 (Per Month Per Employee)
• Store Manager - Rs. 18,000 - Rs.24,000 (Per Month Per Employee)
• Security Guard - Rs. 8,000 - Rs 10,000 (Per Month Per Employee)

This will help you prepare a minimum budget for the salaries per month.

You can hire an accountant and store manager by looking up job portals online like Naukri .

For store helpers and security guards, it is advisable to hire through your personal network.

3 Tips to Improve Your Shoes Business's Profit Margin

Achieving a higher profit margin requires a combination of tactics, from setting the right prices for your products to finding cost-effective ways to produce them.

Create An Effective Pricing Strategy 

As a shoe business, it is important to have an effective pricing strategy in order to maximize your profit margin. 

With the right pricing strategy, you can ensure that you are making the most out of every sale.

Therefore, understand the market, consider customer needs and preferences, and determine the costs of production before setting a price.

Average Shoe Prices in India

You can use the above data to decide the prices of your shoes. If you want to go for the brand prices, you must apply for trademark registration online . 

Leverage Digital Marketing

By leveraging digital marketing, businesses can reach a larger audience and target potential customers more effectively.

For shoe businesses, digital marketing can be used to create a successful online presence and increase brand awareness.

You must create a separate business account on social media platforms like Instagram, Facebook and WhatsApp.

On these pages, you can post product pictures and discount offers to attract potential customers.

Optimize your Inventory

Having the right inventory can make or break your shoe business's success. 

Optimizing your inventory is key to maximizing profits and improving your business's bottom line. 

It involves analyzing what products you have in stock, when to restock, and how much of a product to keep on hand. 

By understanding the ins and outs of inventory optimization, you can make sure that your shoe business is always stocked with the right items at the right time to maximize profits and minimize losses.

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How To Start A Footwear Business Online?

About the footwear sector, India is the second-largest producer of footwear in the world, only behind China, which by far remains the king of the industry; coupled with this, leather is also another of its great strengths, which represents them nationally and internationally, that is why it is together with plastic the preferred material when producing footwear.

The entire sector that stands up for the production and marketing of footwear is divided into two large groups: the perfectly organised macro-companies, with work teams and acceptable economic capital, and the artisan sector that is slightly less organised and dedicated to more rudimentary tasks, many sometimes from their own homes or small workshops. This conglomerate of large, medium or small factories is distributed in Kanpur, Delhi, Ambur, Agra, Calcutta, Pune, Mumbai and Calicut.

Create a name for your online footwear business. Register your business name or do business as an application through your city or county administration office. Get a license from a supplier through the government office itself, as you will have to pay sales tax in other customer states.

Determine your target customer. For example, selling ​​women's footwear is since women tend to buy and own more footwear than men. Determine a variety of footwear that you want to sell.

Call various wholesalers and manufacturers. Find out which ones offer shipping services, as this will keep your inventory levels low. Choose the wholesaler or manufacturer that offers you the lowest cost per unit for footwear.

Create a website for your online footwear shop, or hire a web designer. Ask your supplier for photos of footwear for your website—order footwear samples for which there are no images. Take photos with a digital camera, then post them on your website.

Create a URL or name for your website. Use the company name as your URL. Check domain availability sites to make sure your address is available. Buy the domain name.

Order from your footwear supplier when people order. Pay the supplier the wholesale footwear's cost, and mail footwear to customers in boxes with a shipping label.

What is the expected sale market for your footwear?

The difficult thing is not to make the footwear, but to find clients for your designs. You will need to determine this BEFORE you order from the factory. The big footwear brands have orders in hand before producing the new models.

Before starting a footwear business, you will need to know where the designs are going and where they will come from. Determining this may depend on the style of the footwear or your marketing plan .

Who is your target customer?

Find out who is the end-user of your footwear. Business executives? Rockers with tattoos? Young students? Knowing your future customers will allow you to establish the price, appearance, and materials for your new model. Decide what kind of footwear you want to make, casual, high-performance sports, focused on fashion, or a totally new idea.

1. Research, and continue researching on the footwear market

Try paying a visit to your retailers to investigate the variety of footwear your future competitors sell and the price they charge for each product. Study the design, use the logos, the materials they use, and any features you can see.

Finding a footwear buying agent or footwear factory can be difficult. Search the internet; many companies can help you get started. Visit the main footwear fairs; there is always an area set up with factories looking for new customers.

2. Business Nuances

You have to consider that it is seasonal. Whether the winter collection batch was sold or not, you need to buy footwear appropriate for this time of year when summer comes.

The buyer should buy new footwear models and choose them according to the feet's size. And if you only have one or two sizes of footwear in stock, then the customer can head out and buy from your competitors.

3. Business Plan

When developing a footwear store business plan, you need to clearly define what the "public" for consumers will target. If they are people with a low-income level, then it does not make sense to follow the latest fashion collections "shoes scrupulously." They can become elementary illiquid.

Instead, wealthy customers should not be offered, budget models. Also, consider what age group your footwear will wear. Maybe you'll focus on adult footwear, maybe on children. In general, the choice is yours!

For these purposes, you will have to spend quite seriously. In the document above, you need to reflect your potential income to calculate how long it will take you to return your investment.

Also read: Shoe Manufacturers in India

4. Documentation

For your business to be legal, you must obtain the appropriate documents from government agencies.

Besides, you must have all the necessary certificates in hand to confirm that the footwear sold is of high quality. Don't forget to get your outdoor advertising passport and conclude a contract for waste disposal.

5. Equipment

It should be noted that the equipment for a footwear shop can be very diverse. It all depends on the thickness of the wallet and the width of the flight of the creative imagination.

Think carefully about the room's design. Decorate the shop windows as brightly as possible, take care of the right lighting, and air temperature in your boutique.

Visiting your point of sale, the customer should be loaded with exclusively positive emotions. If you manage to achieve this, you should know that the volume of turnover will increase significantly. Don't know how to arrange the interior of the store properly? Use the services of professionals.

6. Pricing Policy

When you open a footwear store, you should decide the price segment. Who will be your main customer? What is their income? The most popular stores in peripheral cities are the stores in economic format, which target "average" and "below average" income levels. The choice of footwear suppliers depends on the price group in which you will work.

It will not be superfluous to organise all kinds of promotions, contests with gift certificates and other loyalty programs. You can create club cards with discounts on the cumulative system - 5%, 7% and 10%, depending on the number of purchases. This will increase the flow of regular customers and your profit accordingly.

How to sell footwear online?

The biggest problem people face when buying footwear online is not being able to view the product. The presence of high-quality photos can help solve the problem. At the very least, a side-to-side shot of both the front and back boots and the upper and sole are required. If there are any deficiencies, be sure to report them. Photos must be taken from different angles.

What information should be included in the product description?

If you sell footwear from the factory, please include the original size, international equivalents and the manufacturer. If the original size is unknown, please indicate the length of the inner insole. Describe as accurately as possible the colour, type (evening, casual, sports, etc.) and style (oxford, shoes, etc.) of the desired footwear. List the materials from which the product is made and, if possible, describe the production method.

Running a successful footwear business line would need an entrepreneur who has innovative concepts to bring it to market. Customers love innovation, but they also love convenience. When bringing innovations, don't sacrifice your customer's comfort.

The footwear business can bring a stable income and grow only through constant costs and purchase prices. You also need to learn how to increase sales - without it, your savings won't help. Your store should focus on increasing sales as well as increasing business efficiency. In this case, success will be in your hands.

1) How to Start the Footwear Business in India? 2) Want to Start a Footwear Store? Here's your step-by-step guide 3) How to start a Branded Clothing Store Business in India? Your A-to-Z Guide 4) Online Business Ideas You Can Start Quickly 5) Best Shoe Brands in India

Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more! Download OkCredit now & get rid of your bookkeeping hassles. OkCredit is 100% Made in India.

Q. What is the basic production plan of a footwear factory?

Ans. Footwear production comprises different phases, finishes, discontinuous flow, with stops and starts. The important thing is that it is developed with bottlenecks, little variability, efficient inventory management, and waste reduction: productivity.

Q. What is the difference between a reseller and a distributor business?

Ans. A distributor buys products for resale from a manufacturer and sells them to an end consumer or simultaneously manages multiple resellers. In a resale business, there is no inventory of merchandise to be resold. A reseller acts as an intermediary between the manufacturer and the customer. The resellers usually do not have such a close relationship with the manufacturer between a distributor and a reseller.

Q. What kind of online footwear shop should you have?

Ans. You can create an online store with stock and own a warehouse, production and distribution of own products and sale of third party products on commission. In this case, you are an intermediary. An agreement is signed with a brand or company from which you sell their products in exchange for a commission.

Read the best of business ideas, tips for small businesses, the latest update on technology & more by OkCredit.

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• Tofler explains

Neeman’s Shoes – Success Story, History, Founders, Business Model & More

With the advent of industrialization, humanity has witnessed significant advancements in production, job opportunities, and urbanization. However, this progress has come at a cost. Industrialization has led to the contamination of our air, water, and soil through the release of dust, smoke, fumes, and toxic gases. The use of plastic and other non-biodegradable materials has further contributed to irreversible environmental degradation. Fortunately, people are now recognizing the importance of conserving the environment, leading to the emergence of innovative eco-friendly startups in India.

Neeman’s: Leading the Way in Sustainable Footwear

Neeman’s , a Hyderabad-based startup founded in 2017, is transforming the footwear industry with its commitment to sustainability. As India’s first shoe brand to utilize natural, renewable, and sustainable fibers, including merino wool, Neeman’s envisions manufacturing shoes that are not only stylish and comfortable but also environmentally friendly.

Inspired by the renowned American brand Allbirds, which is known for its sustainable shoes and clothing, Neeman’s collaborates with leading manufacturing units and suppliers worldwide to bring perfectly-crafted, natural fiber shoes to the Indian market. Their shoes are crafted using materials such as merino wool, organic cotton, recycled PET bottles, wood, fruit pulp, bamboo, and even tires, ensuring a minimal ecological footprint.

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Neeman’s Product Range

Neeman’s offers three main types of shoes: Wool Classic Sneakers, Wool Joggers, and Wool Loafers. Each pair is thoughtfully designed to provide both style and comfort, while also adhering to the brand’s sustainable ethos.

Unique Selling Points of Neeman’s

Neeman’s stands out in the footwear industry due to its numerous unique selling points:

Stylish and Comfortable: Neeman’s shoes are designed to offer both style and comfort, making them suitable for various occasions.

Use of Natural and Renewable Materials: The brand utilizes natural and renewable fibers, such as merino wool and organic cotton, along with castor bean oil and recycled rubber, to manufacture its shoes.

Versatile for All Seasons: Neeman’s merino wool shoes can be worn throughout the year, providing comfort in both extreme summers and winters.

Flexibility and Lightweight: Neeman’s shoes are flexible and lightweight, conforming to the foot and ensuring lasting comfort throughout the day.

Timeless Designs: The brand’s timeless designs seamlessly transition from work to play, allowing customers to wear them for any occasion, whether casual or dressy.

Odor-Resistant and Machine-Washable: Neeman’s shoes are odor-resistant and can be worn without socks. They are also machine-washable, making them convenient to clean if necessary.

Collaboration with Expert Manufacturers: Neeman’s works with top design companies, manufacturing units, and spinning mills to create their ultra-soft merino wool fabric, ensuring the highest quality for their exclusive shoes.

The Indian Footwear Industry and Neeman’s Impact

India holds the distinction of being the second-largest footwear producer globally, with approximately 9% of the total annual production. In terms of consumption, India ranks third, with a consumption rate of around 2.1 billion pairs per year. The premium footwear market in India represents 8 to 10% of the overall footwear market, amounting to $7-8 billion.

Neeman’s Founders and Their Journey

Neeman’s was founded by Taranjeet Singh Chhabra and Amar Preet Singh in 2017. The idea for the company arose from Taranjeet’s personal experience and frustration while traveling with multiple pairs of shoes. This inconvenience inspired him to create a versatile shoe that could be used for various purposes throughout the day. With little background knowledge in footwear and design, Taranjeet embarked on a journey, visiting shoe manufacturing hubs worldwide to learn about the industry.

During his exploration, Taranjeet observed that most shoes were made using synthetic and chemical-heavy fibers that had detrimental effects on the environment. This realization led him to explore natural sources, and merino wool from Australia emerged as the top choice due to its exceptional qualities. Merino wool is softer compared to traditional wool and can be comfortably worn year-round. Additionally, this fiber is natural and renewable, as sheep produce a new fleece each year.

After two years of dedicated work, Neeman’s was officially launched in October 2016. The brand’s mission is to create classic, stylish shoes made from natural merino wool and other eco-friendly materials.

Neeman’s Business Model and Expansion

Neeman’s initially launched its products directly to consumers through its website, simplifying the buying process and making it accessible to customers across India. To enhance discoverability, the brand expanded its distribution channels and made its shoes available on popular e-commerce platforms such as Amazon and Flipkart. Furthermore, Neeman’s has begun exploring offline markets, introducing its products in retail chains like Shoppers Stop and Lifestyle.

The pricing for Neeman’s shoes ranges between INR 5,500 and INR 5,850. To ensure customer satisfaction, the brand offers a 7-day risk-free trial, allowing customers to experience the comfort of their shoes at their doorstep. If any issues arise, Neeman’s promptly delivers a new pair within a few days.

Neeman’s: Paving the Way for Sustainable Footwear Choices

Neeman’s remarkable journey exemplifies the potential for startups to drive positive change in the footwear industry. By prioritizing sustainability and incorporating eco-friendly materials into their designs, Neeman’s is reshaping the way people perceive and choose footwear. With their commitment to style, comfort, and environmental consciousness, Neeman’s is inspiring a new generation of conscious consumers and contributing to the collective effort of conserving our planet for future generations.

Neeman’s Funding & Investors

Other significant shareholders include Stride Ventures with a 14.29% stake and other angel investors who collectively hold the remaining shares. The funding received by Neeman’s has allowed the company to fuel its growth, expand its product offerings, and further establish its position in the sustainable footwear market.

The financial support from these investors demonstrates their confidence in Neeman’s vision and the potential for sustainable fashion in India. With their expertise and resources, the investors contribute not only capital but also strategic guidance to help Neeman’s scale its operations and reach a wider audience.

Neeman’s ongoing funding efforts highlight the continued interest and support from investors who recognize the value of eco-friendly and socially responsible businesses. The funds raised enable Neeman’s to continue innovating and leading the way in sustainable footwear, making a positive impact on both the industry and the environment.

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Yeezy shoe sales lead Adidas to plan to donate $150 million to anti-hate groups

FILE - A sign advertises Yeezy shoes made by Adidas at Kickclusive, a sneaker resale store, in Paramus, N.J., on Oct. 25, 2022. Adidas said Wednesday March 13, 2024 that it’s donated or is planning to give away more than $150 million to groups fighting antisemitism and other forms of hate from the sales of Yeezy shoes last year after it severed ties with Ye, the rapper formerly known as Kanye West. (AP Photo/Seth Wenig, File)

FILE - Kanye West, known as Ye, watches the first half of an NBA basketball game between the Washington Wizards and the Los Angeles Lakers, on March 11, 2022, in Los Angeles. Adidas said Wednesday March 13, 2024 that it’s donated or is planning to give away more than $150 million to groups fighting antisemitism and other forms of hate from the sales of Yeezy shoes last year after it severed ties with Ye, the rapper formerly known as Kanye West. (AP Photo/Ashley Landis, File)

FILE - A sign advertises Yeezy shoes made by Adidas at Kickclusive, a sneaker resale store, in Paramus, N.J., Oct. 25, 2022. Shoe and sports clothing maker Adidas said Monday, Feb. 26, 2024, it had started a third sale of the Yeezy sneakers it was left with after severing ties with Ye, the rapper formerly known as Kanye West.(AP Photo/Seth Wenig, File)

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LONDON (AP) — Adidas said Wednesday that it’s donated or is planning to give away more than $150 million to groups fighting antisemitism and other forms of hate from the sales of Yeezy shoes last year after it severed ties with Ye , the rapper formerly known as Kanye West.

The German sportswear brand had 1.2 billion euros ($1.3 billion) worth of popular Yeezy sneakers piled up in warehouses after it broke off its partnership with Ye in October 2022 over his antisemitic and other offensive comments on social media and in interviews.

Adidas decided to sell some of the remaining shoes in batches, with two releases last year and another that launched late last month , and donate a portion of the proceeds to anti-hate groups.

The company has made donations to the Anti-Defamation League and the Philonise & Keeta Floyd Institute for Social Change, run by social justice advocate Philonise Floyd, the brother of George Floyd.

Net sales of what’s left of Adidas’ former banner line of sneakers brought in about 750 million euros last year, compared with over 1.2 billion euros in 2022, the company reported.

Of the 300 million-euro profit it earned from the sales of Yeezy shoes last year, the company said it had given away or planned to donate over 140 million euros (about $152 million).

Adidas said deciding to sell a big chunk of its Yeezy inventory and improved operations helped it pull out operating profit of 268 million euros last year, a nearly 60% plunge from the previous year. It blamed a high tax rate for ending the year with a net loss of 58 million euros, a massive turnaround from net income of 254 million euros in 2022.

“Although by far not good enough, 2023 ended better than what I had expected at the beginning of the year,” said CEO Bjørn Gulden, who took over the top job last year.

Looking forward, Adidas expects to make about 250 million euros in sales of the remaining Yeezy shoes this year.

But the Herzogenaurach, Germany-based company points to North America as a persistent problem spot, expecting revenue to decline in the mid-single digits this year and grow everywhere else. It said that North America was “particularly affected by the negative Yeezy impact” and that revenue there dropped 16% last year.

Adidas expects to almost double operating profit to about 500 million euros this year despite “macroeconomic challenges and geopolitical tensions.” It plans to further scale up popular shoe lines like Samba that are seeing “extraordinary demand,” launch new ones and get a boost from major sports events like the Paris Olympics this summer.

Adidas shares were up slightly in late morning trading.

Modi’s India plans its own democracy index, after global rankings downgrade

The index is being finalised ahead of elections, with the Modi government worried about global criticism hurting sovereign ratings.

Prime Minister Narendra Modi’s government has approached a major Indian think tank to develop a homegrown democracy ratings index that could help it counter recent downgrades in rankings issued by international groups that New Delhi fears could affect the country’s credit rating.

The Observer Research Foundation (ORF), which works closely with the Indian government on multiple initiatives, is preparing the ratings framework, according to two people closely involved in the discussions on the project. The index is expected to hew more closely to New Delhi’s narrative than Western-based rankings that Modi’s team has criticised.

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“A review meeting was held by NITI Aayog in January, and it was decided that ORF will be releasing Democracy Rankings in a few weeks,” a top government official said, requesting anonymity.

The new rankings system could be released soon, the official said. How soon, though, is unclear – including whether the index might be unveiled before India’s upcoming national elections, announced last Saturday. India will vote in seven phases starting April 19, with votes counted on June 4. Modi is a strong favourite to return to power for a third term.

“The Democracy Index being prepared by ORF went through a peer review process and expert analysis on the methodology a few weeks ago … it is likely to be released soon,” a second source familiar with the development said.

ORF, which co-hosts the Raisina Dialogue – India’s equivalent of the Munich Security Conference and the Shangri-La Dialogue, other major geopolitics, and geo-economics conclaves – with the country’s Ministry of External Affairs, did not respond to queries from Al Jazeera. The Raisina Dialogue was held this year between February 21 and February 23.

The NITI Aayog, the government’s own public policy think tank that has been shepherding internal discussions within the Modi government on global rankings, said it was not preparing the index – but did not confirm nor deny whether it was involved in helping an external think tank prepare one.

“NITI is not developing any Democracy Index,” a spokesperson for the body told Al Jazeera. “The government of India monitors select global indices [by various global entities] to drive reforms and growth in the country.”

Yet emails and the minutes of meetings held between government agencies over the past three years, accessed and reviewed by Al Jazeera, point to a growing urgency within the Modi administration on challenging setbacks to India’s democracy credentials, including through a report prepared by India.

‘Flawed democracy’ or ‘self-appointed custodians’?

This exercise began right after international indices such as US-based non-profit Freedom House downgraded India’s status from a free democracy to a “partially free democracy” in 2021. The V-Dem Institute, based in Sweden, classified India as an “electoral autocracy”. The Economist Intelligence Unit ranked India 53rd in its 2020 Democracy Index, labelling it a “flawed democracy”, citing factors such as the Citizenship Amendment Act (CAA) , National Register of Citizens (NRC) and the revocation of special status in Indian-administered Kashmir.

The CAA, whose implementation was announced last week on the eve of elections – four years after it was passed by parliament – introduces what critics say is India’s first religion-based citizenship test. In effect, asylum seekers from neighbouring nations who were not Muslims can get an expedited path to Indian nationality. The NRC initiative, according to its opponents, threatens the expulsion of millions of people whose families have lived in eastern and northeastern India for generations, but who – like many Indians – do not have formal birth documents. In 2019, India ended a special constitutional provision that gave Jammu and Kashmir a semi-autonomous status.

India’s ranking in the Economist Intelligence Unit’s (EIU) Democracy Index had fallen sharply between 2016 and 2020, though it has improved marginally since then: up to 41 (tied with Poland) in 2023, from 46 in 2022. However, it remains classified as a “flawed democracy”.

The Indian government has dismissed these international rankings, stating that India did not “need sermons”. Indian Foreign Affairs Minister S Jaishankar in March 2021 accused the institutions behind these rankings of “hypocrisy” and called them “self-appointed custodians of the world who find it very difficult to stomach that somebody in India is not looking for their approval”.

‘What can we do about it?’

Yet, despite public bravado, behind the scenes, the Indian government has been worried.

In 2021, top officials from central Indian government ministries and departments such as home affairs, external affairs and the legislative departments, among others, were instructed by Cabinet Secretary Rajiv Gauba to monitor India’s performance in democracy indices and identify areas where the country’s standing had declined.

The Indian government began monitoring its performance in 30 global indices, with different ministries tasked with tracking individual ratings. For instance, the legislative department under the Ministry of Law and Justice was assigned the EIU’s Democracy Index to watch. The NITI Aayog was asked to create a dashboard for monitoring data across all the indices.

In a review meeting for monitoring of these indices taken by the cabinet secretary in July 2022, it was noted in the minutes of the meeting that the NITI Aayog’s then-CEO Amitabh Kant “proposed prioritising Global Indices carrying high reputational risk for monitoring by NITI Aayog”.

The minutes of the meeting also noted that Sanjeev Sanyal, member of the Economic Advisory Council to the Prime Minister “drew attention of the Committee to faulty methodologies, inadequate sample sizes, undue weightage to perception-based surveys, one size fits all global standards for benchmarking and biased approach of Publishing Agencies/data agencies”.

They also noted that as the Worldwide Governance Indicators “published by World Bank impacts sovereign rating, [Sanjeev Sanyal] advocated the need for flagging India’s concerns. He observed that we should demand accountability and transparency in these matters from the World Bank, as also other multilateral bodies which publish some of the Global Indices”.

The World Bank’s Worldwide Governance Indicators (WGI) report both aggregate and individual governance indicators for more than 200 countries and are key inputs used by ratings agencies in determining the sovereign ratings of nations. India’s own internal assessment has previously found that India’s scores were “much below” its peers on all counts. The government assessment acknowledged that India needed to do better and said there was a danger India may witness a drop in WGI scores “due to the latest negative commentary on India by think tanks, survey agencies and international media”.

This was even highlighted in June 2020, when Sanyal, then principal economic adviser in the Ministry of Finance, prepared a presentation titled “Subjective Factors that Impact India’s Sovereign Ratings: What Can We Do About It?” for internal circulation within the government. It said factors noted in the Freedom House report also led to the country receiving the largest score decline among the world’s 25 largest democracies in 2020. The Freedom House Report 2020 mentioned “alarming setbacks in the world’s largest democracy” and highlighted that “a series of actions by India’s Hindu nationalist government in 2019 violated democratic rights in India and Indian Kashmir”.

Concerns with global ratings

The Indian government is not alone in disputing the parameters that agencies use for sovereign ratings. Independent economists too have challenged these indices.

“We have known that the major component of a sovereign rating is the per capita income of a country,” said Rathin Roy, a senior fellow at the UK-based Overseas Development Institute. “That has been the main criticism of India and other major developing countries, like Brazil and Indonesia. And that’s a criticism I fully support.”

But Roy questioned the government’s emphasis on proving India’s democratic credentials and the link to the country’s sovereign rating.

“If you look at stuff like democracy and political stability, their weightage in the sovereign rating is fairly small,” he said. “It may be true that they form part of the qualitative assessment of rating agencies. And these agencies may be biased. But I think the interesting story here is, why is this government bothered about relatively small stuff like democracy in the ratings, as opposed to the major elephant in the room, which is per capita income?”

Just months after Sanyal’s June 2020 presentation, the Indian government began to take steps to develop its own index in a bid to rebut Western downgrades. “We may encourage one of the Indian independent think tanks to bring out its own annual world democracy report based on comprehensive parameters,” the Foreign Ministry wrote in an internal note in January 2021.

In its note, the ministry also suggested that Indian diplomatic missions across the world actively engage with organisations like V-Dem and Reporters Without Borders (RSF) to give them information that would help them put “India at the rightful place on the democracy and press-freedom index , in future reports”. India’s ranking in the World Press Freedom Index fell from 150th in 2022 to 161st this year out of 180 countries, according to the latest report released by global media watchdog RSF.

The Law Ministry turned to India’s High Commission in London to seek details from the EIU on its assessment of India. In an email exchange in July 2021 between the Law and Foreign Ministries, it was revealed that repeated attempts were made by the mission to contact EIU. “EIU did not welcome any engagement as it took several attempts over a period of time to finally connect,” the note said, and “politely but firmly declined the offer from the mission to supply data, research or similar inputs.”

‘Will damage India’s case’

But that didn’t deter the Indian government. Also in 2021, the Indian Foreign Ministry nudged Om Birla, the speaker of India’s lower house in Parliament, to brief heads of foreign missions in New Delhi on the robustness of Indian democracy. It prepared “speaking notes” for him.

“A large democratic world exists beyond the West, one that gives democracy and pluralism a more universal appeal. But for that to make itself felt in the current situation, the power of ideas and strength of beliefs need to be stronger than the prejudices of history. Whether such convergences can override entrenched frameworks is still an open question. India holds the key to the answer,” the notes read.

And on Tuesday, India’s Foreign Minister S Jaishankar referenced ancient Indian scriptures as proof of India’s long democratic traditions, in an address at the Summit of Democracy in South Korea. “India’s ancient civilisation, marked by profound philosophical traditions, and a deep respect for individual freedom, laid the groundwork for the democratic ideals that we cherish today,” he said.

Roy, the economist, said the government’s approach appeared to betray insecurity about “its own approach to democracy, press freedom and other things, which are negative irrespective of their subjective impact on ratings”.

An India-developed democracy rating could backfire on the country, he said. Other countries and organisations would not give it credibility if the index is perceived as being driven by the Indian government, he said.

“In fact, I would say that if the government started this sort of exercise, it would damage India’s case. It would be best to ignore the democracy and other subjective elements of sovereign ratings given their minor weight,” Roy said.

It is unclear what parameters an Indian-designed democracy ratings index might use. Al Jazeera sent detailed questionnaires to the Foreign Ministry, Law Ministry and ORF but has received no response. In response to an email seeking comments, Sanjeev Sanyal’s office declined to comment stating: “Shri Sanjeev Sanyal ji, Member EAC-PM has a hectic official schedule, hence request for comment is regretted.”

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Saudi Arabia Plans $40 Billion Push Into Artificial Intelligence

The Middle Eastern country is creating a gigantic fund to invest in A.I. technology, potentially becoming the largest player in the hot market.

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By Maureen Farrell and Rob Copeland

The government of Saudi Arabia plans to create a fund of about $40 billion to invest in artificial intelligence, according to three people briefed on the plans — the latest sign of the gold rush toward a technology that has already begun reshaping how people live and work.

In recent weeks, representatives of Saudi Arabia’s Public Investment Fund have discussed a potential partnership with Andreessen Horowitz, one of Silicon Valley’s top venture capital firms, and other financiers, said the people, who were not authorized to speak publicly. They cautioned that the plans could still change.

The planned tech fund would make Saudi Arabia the world’s largest investor in artificial intelligence. It would also showcase the oil-rich nation’s global business ambitions as well as its efforts to diversify its economy and establish itself as a more influential player in geopolitics. The Middle Eastern nation is pursuing those goals through its sovereign wealth fund, which has assets of more than $900 billion.

Officials from the Saudi fund have discussed the role Andreessen Horowitz — already an active investor in A.I. and whose co-founder Ben Horowitz is friends with the fund’s governor — could play and how such a fund would work, the people said. The $40 billion target would dwarf the typical amounts raised by U.S. venture capital firms and would be eclipsed only by SoftBank, the Japanese conglomerate that has long been the world’s largest investor in start-ups.

The Saudi tech fund, which is being put together with the help of Wall Street banks, will be the latest potential entrant into a field already awash in cash. The global frenzy around artificial intelligence has pushed up the valuations of private and public companies as bullish investors race to find or build the next Nvidia or OpenAI. The start-up Anthropic, for instance, raised more than $7 billion in one year alone — a flood of money virtually unheard-of in the venture capital world.

The cost of funding A.I. projects is steep. Sam Altman, the chief executive of OpenAI, has reportedly sought a huge sum from the United Arab Emirates government to boost manufacturing of chips needed to power A.I. technology.

Saudi representatives have mentioned to potential partners that the country is looking to back an array of tech start-ups tied to artificial intelligence, including chip makers and the expensive, expansive data centers that are increasingly necessary to power the next generation of computing, according to four people with knowledge of those efforts, who were not authorized to speak publicly. It has even considered starting its own A.I. companies.

Two of the people said that Saudi’s new investment push is likely to take off in the second half of 2024. A $40 billion fund could make both the Saudi Arabian government and Andreessen Horowitz key players in races to corner various businesses related to the field.

Mr. Horowitz and Yasir al-Rumayyan, the governor of the Public Investment Fund, have discussed the possibility of the Silicon Valley firm setting up an office in the country’s capital, Riyadh, one person with knowledge of the conversations said.

Other venture capitalists may participate in the kingdom’s tech fund, two people briefed on the plans said.

Partly because of its enormous financial clout and growing ambitions, those in international business circles closely monitor moves made by the Public Investment Fund, which was created in 1971.

In 2018, just as Saudi Arabia was becoming a major destination for investment firms and entrepreneurs seeking financial backing, the country’s agents killed the dissident Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate, which for a spell seemed to damage the nation’s reputation among international financiers.

In 2022, the Saudi government invested billions into a firm run by former President Donald J. Trump’s son-in-law Jared Kushner, among others, which was seen by many as a political move. One of its recent deals to merge its LIV Golf upstart with the PGA Tour raised the ire of golfers, but the pact is also controversial in part because of Saudi Arabia’s human rights record.

Saudi Arabia, which poured $3.5 billion into Uber in 2016, has largely struggled with technology investing. It handed $45 billion to SoftBank for the Japanese firm’s $100 billion Vision fund, which was channeled into dozens of enterprises including the now-bankrupt real estate firm WeWork and other failed start-ups, such as the robotic pizza-making company Zume.

Many in Silicon Valley and on Wall Street have welcomed the nation back into the fold. During this year’s Super Bowl, Mr. Horowitz hosted Mr. al-Rumayyan, according to two people briefed on their activities.

The two men also spent time together before and after the game, the people said, with Mr. Horowitz giving Mr. al-Rumayyan tours of Las Vegas, his adopted city, and introducing the investor to his friends in music and sports.

Maureen Farrell writes about Wall Street, focusing on private equity, hedge funds and billionaires and how they influence the world of investing. More about Maureen Farrell

Rob Copeland is a finance reporter, writing about Wall Street and the banking industry. More about Rob Copeland

Explore Our Coverage of Artificial Intelligence

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Gov. Bill Lee of Tennessee signed a bill  to prevent the use of A.I. to copy a performer’s voice. It is the first such measure in the United States.

French regulators said Google failed to notify news publishers  that it was using their articles to train its A.I. algorithms, part of a wider ruling against the company for its negotiating practices with media outlets.

Apple is in discussions with Google  about using Google’s generative A.I. model called Gemini for its next iPhone.

The Age of A.I.

The Caribbean island Anguilla made $32 million last year, more than 10 percent of its G.D.P., from companies registering web addresses that end in .ai .

When it comes to the A.I. that powers chatbots like ChatGPT, China lags behind the United States. But when it comes to producing the scientists behind a new generation of humanoid technologies, China is pulling ahead .

By interacting with data about genes and cells, A.I. models have made some surprising discoveries and are learning what it means to be alive. What could they teach us someday ?

Covariant, a robotics start-up, is using the technology behind chatbots  to build robots that learn skills much like ChatGPT does.

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