What are Footwear Stocks?
Footwear stocks are collections of shares belonging to the companies that design, manufacture, and sell footwear products, including shoes (casual and former), boots, sandals, and sports footwear.
Footwear stocks form part of the consumer goods industry and offer multiple investment opportunities in diverse fields, including fashion and lifestyle. India holds the second position in the world both as a manufacturer (10.7%) and consumer (11.7%) of footwear products.
The footwear industry started as a highly unregulated sector but transformed into a well-organised sector over the years. It contributes up to 2% to the economy’s Gross Domestic Product (GDP). The key players in the footwear sector include niche manufacturers to global brands, producing items per fashion trends, technological innovations, and shifting consumer preferences.
Why You Should Invest in Footwear Stocks?
You should invest in footwear stocks as they tend to perform well, given the high demand for the products diversified into categories. Footwear products are essentials that everyone needs.
From casual to formal shoes and high-end fashionable sandals to athletic footwear, the country produces around 2065 million pairs, making it accessible to consumers. This production number includes 909 million pairs of leather footwear, 100 million pairs of leather shoe uppers, and 1056 million pairs of non-leather footwear.
Along with the consistent demand for footwear products, the increasing disposable income is also a factor that boosts the stock performance of the sector significantly.
Moreover, the country exports around 115 million pairs of footwear products, which indicates the rest 95% of the manufactured footwear is used to meet domestic demands. The way in which the sector serves the national and international needs also makes the stocks belonging to it trustworthy.
What is the Future of Footwear Stocks?
The future of footwear stocks is promising enough due to the rising demand for footwear products. Being an essential requirement of every individual on earth, footwear products offer stability both in terms of demand and supply.
Reforms like de-licensing and de-reservation have opened new ways of expansion using modern machinery and facilities. Moreover, the India government has allowed 100% Foreign Direct Investment (FDI) in the sector, thereby grabbing the eyeballs of the global players as well.
These prospects are what indicate a bright future for the footwear sector, which in turn attracts more and more investors, reflecting their confidence in the stocks, and guaranteeing profits.
When investors conduct thorough research on the companies whose stocks they are considering, they can explore various aspects before making any investment decision.
What Factors Affect Footwear Stock Prices?
The factors that affect footwear stock prices are market trends, strategies, supply chain issues, and technological advancements.
Market trends: Investors must study the global market trends to understand their impact on footwear stocks. For example, premiumisation, i.e., the inclination of buyers towards buying premium brands, is what has affected the stock prices of the sector to a great extent.
Around 54% of footwear buyers show a preference for branded items, while about 27% choose non-branded products. The rest 10% (approx.) are found to b brand neutral.
Company strategies: Footwear companies must show seriousness when it comes to establishing themselves as a trusted brand. They must employ strategies to ensure they are adaptive and they move per the changing trends and preferences.
For example, eco-friendly products are what most buyers look for. If a company offers sustainable footwear products, they are more valued and attractive to investors.
Supply chain issues: When the supply chain is negatively affected and the delivery of products is delayed, it damages the reputation of the footwear brand. This, in turn, affects the stock prices negatively.
Technological advancements: The use of technological tools and equipment for efficient footwear manufacturing is important. Plus, investors must check if a footwear company has its products available for online sales as ecommerce, today, is the most widely used platform for buying and selling goods. Online mode of sale in the sector is expected to grow at a CAGR of 19.45% by 2032.
Raw materials costs, consumer preferences, market competition, and company financials are also a few factors that investors must consider before investing in these sector stocks.
What are the Advantages of Investing in Footwear Stocks?
The advantages of investing in footwear stocks are strong demand, growth potential, defensive investment, and government support.
Strong demand: Footwear products are in demand throughout the year. Approximately 55% of footwear buyers prefer leather shoes, and 45% opt for non-leather shoe options.
The demand for these products is not only strong but stable, be it from one category or another. This consistency is what makes it a good investment option for investors.
Growth potential: With the increasing purchasing power of the middle class and the convenience of buying through ecommerce websites, the growth potential of the footwear industry has increased to a significant extent.
In 2025, the sector generated $29.2 billion as revenue, and this figure is expected to see a considerable increase at a CAGR of 3.04% through 2029.
Defensive investment: These investment options are considered defensive as they offer diverse investment options. In the event of an economic downturn or one category doing better than another, the sector revenue or demand remains balanced, thereby ensuring the stock performance is not negatively affected, making it a loss affair for investors. If all the product lines are doing better, it’s a profit from all sides for investors.
Government support: In the Union Budget 2025-26, the government announced emphasising skill development in the footwear sector to train labor and help them upskill to eliminate the gaps and improve product design.
Innovation, brand loyalty, global expansion, and dividend yields for investors are some additional benefits of investing in these sector stocks.
What are the Risks of Investing in Footwear Stocks?
The risks of investing in footwear stocks are market volatility, regulatory changes, market competition, and raw materials cost.
Market volatility: While economic development has a positive effect on the market as people tend to spend on the products they desire to buy, the case is the opposite in the event of an economic slowdown.
For example, during the COVID-19 pandemic, the sales of footwear as well as clothing dropped by 67.4%, which affected the footwear revenue figures adversely.
Regulatory changes: The authorities may introduce trade policies, taxation rules, and labor practices that might affect the operations and profitability of the sector, impacting the overall footwear market.
Market competition: With both national and international brands aiming to have a market share in the same space, the stock prices of the companies might be negatively affected.
Raw materials cost: The change in the cost of the raw materials used to design and produce a footwear product can lead to a change in the cost of the final finished goods, causing fluctuations in the market and impacting the sector stock performances.
Some other risks that investors might be subject to when investing in footwear stocks include fluctuation in the currency exchange rate, unavailability of skilled labor, and changes in consumer tastes and preferences.
When Footwear Stock Prices Go Up?
Footwear stock prices go up when the sector exhibits significant growth potential through growing revenue figures, usually by a positive piece of news doing rounds about the sector.
In the Union Budget 2025-26, the government announced the Focus Product Scheme to be introduced for the footwear and leather industry that will help in designing, component manufacturing, and production of non-leather footwear, creating jobs for approximately 22 lakh people and generating turnover worth ₹4 lakh crore.
When Footwear Stock Prices Go Down?
Footwear stock prices go down in the events of weak sales, lower profit margins, negative market or investor sentiment, changes in regulatory policies, and changing consumer preferences, etc.
In September 2024, the footwear sector witnessed many significant players like Bata India, Relaxo Footwear, Campus Achiever, and Metroc Brands struggle in the market. The drop in the stock prices came following the analysts' revelation of not-so-good quarterly results in June, along with other reasons like reduced consumer spending, fewer weddings, fewer elections, etc.
