India’s footwear retail sector is undergoing a significant transformation, fuelled by rapid urbanisation, rising disposable incomes, and an increasing focus on health and fitness. Footwear, once purely seen as a functional category, has evolved into an expression of lifestyle, identity, and personal values. The future of footwear retail will depend on the strategic integration of both digital and physical channels, combined with a commitment to sustainability and technological innovation.
Online vs Offline: The Phygital Reality
Indian consumers today demand seamless shopping experiences that blend both digital and physical touchpoints. As brands recognise the need for a unified approach, Direct-to-Consumer (DTC) strategies are gaining traction, leveraging major online platforms such as Flipkart and Myntra. Simultaneously, brands are enhancing their physical presence through Exclusive Brand Outlets (EBOs) and Multi-Brand Outlets (MBOs), which serve not only as retail locations but also as experiential zones for consumers to explore new technologies, try products, and connect with fitness-focused communities.
India’s footwear retail market, valued at USD 23.8 billion in 2023, is projected to exceed USD 35 billion by 2030. E-commerce accounts for 26.1% of the market, and its growth trajectory is accelerated by online-first brands, tech-savvy consumers, and the convenience of digital shopping. However, offline retail continues to play a vital and evolving role in the industry.
Offline retail can be divided into two key segments:
- Brick & Mortar (16%): High-street stores and malls that provide premium, in-person shopping experiences.
- Traditional Retail (58%): Small, independent stores that are struggling due to outdated infrastructure, limited reinvestment, and lack of technological integration.
As both channels continue to coexist, their roles are becoming increasingly complementary rather than competitive. Offline stores focus on offering a personalised, premium experience, while online platforms excel in convenience, wider selection, and competitive pricing—particularly for last-season inventory. This dual approach enables brands to capture a broad spectrum of consumers, offering models like “try in-store, buy online” or “buy/return anywhere” to integrate the strengths of both channels.
However, challenges persist, particularly in footwear retail. Unlike apparel—where fabric and fit are easier to standardise—footwear comfort and performance are significantly impacted by proprietary technologies used by different brands. This variation results in higher return rates for online footwear purchases, with returns exceeding 35% on average. These high return rates contribute to logistical inefficiencies and product wastage. Nevertheless, the industry is evolving as customers become more familiar with brands, using physical stores to try on products and online channels to make purchases for known brands and sizes.
The Much-Feared “Retail Apocalypse” Never Arrived
Despite predictions of a “retail apocalypse,” where online shopping would completely overtake brick-and-mortar stores, this outcome has not materialised. The coexistence of both digital and physical retail channels has become a defining feature of the modern retail landscape. Instead of one channel displacing the other, businesses have learned to harness the strengths of both, creating a more dynamic and resilient retail environment. The much-feared collapse of traditional retail has been averted as both online and offline channels have found their niches, offering consumers more options, greater convenience, and a wider range of experiences.
Sustainable Footwear Products in India
India, despite comprising 17.8% of the global population, currently holds only 3.2% of the global sustainable footwear market. However, this is rapidly changing, with the market projected to grow from $168 million in 2022 to $289 million by 2030 (BusinessWire). While Gen Z and Millennials drive demand for eco-conscious products globally, in India, 80% of the population has a strong preference for vegan and eco-friendly goods.
Until recently, the lack of scalable R&D and locally-produced sustainable options limited consumer choices. However, this is changing as both Indian and global brands make sustainability a central component of their business strategies.
Today, sustainability in Indian footwear is no longer just a trend—it is a movement. From materials and packaging to logistics and product design, every aspect of the footwear lifecycle is being optimised to reduce environmental impact. This movement is set to expand as consumer demand for eco-friendly products increases.
Sustainable Practices in Footwear Manufacturing – From Niche to Necessity
With global fashion contributing ~10% of carbon emissions (UNEP, 2021), footwear brands face mounting pressure to adopt eco-friendly practices.
Key Sustainable Practices Reshaping the Industry:
- Material Innovation
- Vegan and Alternative Leathers: Alternative materials like Piñatex (made from pineapple fibers) and apple leather are gaining traction. Many MNCs in India are expanding their use of plant-based leathers in shoes produced locally.
- Recycled Synthetics: Recycled low-impact synthetic materials such as EVA and TPU significantly reduce carbon footprint. XTEP’s 360-Eco line has 80% lower carbon footprint.
- Energy and Water Efficiency
- Energy Efficiency: Brands are transitioning to more energy-efficient sources such as solar and wind power to reduce the carbon footprint of manufacturing processes.
- Water Conservation: Companies are increasingly adopting waterless dyeing technology, which reduces water consumption and wastewater generation significantly. Havells India, in partnership with the Footwear Design and Development Institute (FDDI), has introduced waterless dyeing processes to reduce water wastage in footwear manufacturing.
- Regulatory and Industry Standards
- India’s New Footwear BIS Norms aim to improve waste management, ensure traceability of materials, and enhance production efficiency.
- The EU’s Digital Product Passport: By 2025, the EU will introduce the Digital Product Passport for footwear, which will provide detailed information on the lifecycle of products.
- Circular Design Principles
- Durability & Repairability: Brands are adopting modular designs that allow for easier repairs and longer product lifecycles, such as replaceable soles in some models.
- Recycling Programs: XTEP’s “Pre-Loved” initiative encourages customers to return used shoes for recycling or repurposing to be reused for manufacturing.
Major manufacturers in India are already embracing sustainable practices, and many others are likely to follow suit as consumer demand for eco-friendly products continues to rise.
Conclusion: A Balanced, Sustainable Future
India is the fastest-growing footwear market in the Asia-Pacific region, and the future success of the industry will depend on a balanced integration of online convenience, offline experiences, and sustainability. Brands that can adapt to these evolving consumer expectations will thrive by:
- Omnichannel Synergy: Seamlessly blending online efficiency with offline engagement.
- Tech-Driven Personalisation: Reducing returns through AI fit tools and hybrid shopping.
- Sustainability as a Core Strategy: Investing in circular design, material innovation, and transparent supply chains.
The future of footwear retail lies not in the domination of one channel over the other but in a delicate dance between the two while committing to planetary and economic resilience.
