Leather and Footwear in India
The Shift to Non-Leather Footwear
Why global demand has shifted from leather to non-leather shoes like sneakers made of synthetics, and why India needs to catch up in this segment.
Most shoes sold worldwide today are non-leather.
The shift
- Sneakers, sports shoes and casual shoes use synthetics, textiles and rubber.
- Non-leather footwear makes up the large majority of global footwear by volume.
India’s position
- India’s export strength has been in leather footwear.
- It lagged in non-leather footwear, where China and Vietnam dominate.
Why India lagged
- Input costs: synthetic materials often imported and costly.
- Scale: fewer large factories.
- Skills in modern manufacturing.
Change
- Taiwanese makers like Pou Chen and Feng Tay, suppliers to Nike and Adidas, have invested in Tamil Nadu.
- Tamil Nadu’s footwear policy aims to attract non-leather investment.
Consumer trend
Athleisure and comfort drive demand for non-leather shoes in India too.
Opportunity
Non-leather footwear is labour-intensive and could create many jobs.
The sneaker factory
A Taiwanese supplier opens a large sneaker factory in Tamil Nadu, employing thousands of workers to make shoes for global sports brands.
Thinking most shoes are made of leather
Non-leather shoes dominate global volumes.
Key takeaways
- Non-leather shoes dominate global footwear.
- India's strength was leather; it lagged in non-leather.
- Input costs and scale held India back.
- Taiwanese suppliers are investing in Tamil Nadu.
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