Profitable Strategies for Starting Your Own Slipper Manufacturing Venture
In this era, With in context to the influential foreign lifestyle patterns in terms of apparel, food, bags, laptops, phones, shoes etc the demand from the Indian consumer market has been up and rising but to our shock that has not bought a decline in the products offered by the domestic market.
Especially, when it comes to the casual footwear need of every typical Indian population who still searching for traces of comfort in the artisanal work which is exceptionally found only in India.
India is the second largest producer of footwear in the world after China, accounting for 13% of the production annually. It manufactures around 2065 million pairs of categories of footwear.
- 909m-Leather footwear
- 100m-Leather shoe uppers
- 1096m-Non leather footwear
The major production center’s of footwear in India are in Chennai, Tamilnadu , Agra, Pune, Faridabad, Calcutta etc with about 1.10 million engaged in foot manufacturing industry.
And this is where you decide to own your own Slipper Manufacturing Business and meet the walking needs of people and make a business out of it.
Market potential and uses
The market for slippers in India is large because of the widespread demographics of the India population in terms of Gender, employment status, material required, colours, sizes, utility etc.
The potential of this market has been rising despite of the demand for globally trending footwear markets involving Adidas, Nike, Tommy, puma, Reebok etc that is because of the customisation which the home-manufactured slipper companies provide in terms of comfort and keeping in mind the Indian geographical and nature of occupation, ignored by those global sharks.
- Hurraichi chappals and sandals
- Ballerina shoes
- Flip flops
- Used as a daily foot wear at home
- Used for the purpose of commuting
- Used during travelling
- Used at the place of work : constructional sites etc
- MSME/SSI registration
- GST registration
- Factory licence
- NOC under state pollution control board
- Fixed capital investment ₹ 2 lakhs – ₹ 5 lakhs
- Working capital investment ₹ 150000
- Net profit per year ₹ 5-7 lakhs per Annum.
- Return on investment 44%.
The slipper making business has almost the entire Indian consumer market as its target market but those yielding them majority of the sales are as follows:
Households: They make use of slippers prioritising comfort, durability and affordability of it to be worn at home for basic errand running purposes.
Hotels and resorts: They provide complimentary slippers to the consumers keeping in mind their comfort in a new room, make them available by the pool side, in spas etc to ensure the customers feel a sense of belonging.
Airline industry: Many aviation industries also make use of the Indian manufactured slippers in their business classes and first classes areas to ensure customers are looked after by meeting their every need.
Working class : The working class makes use of slippers as their daily wear for this use of easy commute and affordability by curbing their spending.
Healthcare spaces: Like hospitals require slippers to be worn by patients and demand in bulk and frequently to avoid any sort of infectious diseases.
Children: Slippers of various colours are also worn by children, infants etc.
Tourists: The slippers manufactured in India are of an attraction to the tourists to adapt to the roads and walking conditions of India as well as because of the variety the slippers comes with.
The area required to set up a slipper making business would be around 500 sq ft- 1000 sq ft.
- Upper leather skiving machine
- Strap cutting machine
- Industrial swing machine
- Bottom sole cutting machine
- Rolling machine
- Weighing scales
- 1- Production manager
- 1- accountant
- 2-skilled worker
- 5-unskilled workers
Moreover training to these workers in terms of equipment usage, machinery handling, safety and precautions must also be provided with.
Business model and growth
The business model of a slipper making business can be defined using 4 variants :
Value proposition: The unique selling point (USP) and the value which a slipper making business is likely to bring to you is:
- It’s affordability, quality and durability the three qualities every Indian consumer looks for , offering a wide target market.
- The demand being consistent because of the essence and importance of footwear in day-to-day life of the Indian consumers.
- Working class
- Hospitality industry
- Healthcare spaces
Marketing strategy : The marketing strategy to be implemented by your slipper making business would be:
- Advertisements on TV and billboards under your brand name and logo highlighting the price and quality to attract the consumers.
- Celebrity endorsers and sales promotional measures of festive discounts, buy one get one offers etc.
Growth on Slipper Manufacturing Business
The slipper making business has the potential and has witnessed the following growth prospects:
- The domestic slipper industry is valued at $ 3200 million, projected growth rate at 11-12%.
- The organized retail is at 25% and growing fast at 35-40%.
- The slipper retail industry is growing at a rate of 9% in the total consumer market.
The profit margin the slipper making business is likely to yield is at 11%.
Why don’t you put on those slippers and take a stroll in your lawn while we help you make a decision regarding this business:
- Firstly, the demand for slippers in India comes from comfort and durability which comes along the errands and nature of work in this country. So, it remains consistent despite the competition from global brands.
- Secondly, the slipper making business comes with low investment in terms of capital, machinery and manpower catering to a larger consumer market.
- Lastly, target market for this business would be the entire Indian consumer market because its its USP, affordability, quality and durability.
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