A Study on The Market Characteristics, Consumer

Purchasing, and Behaviour Towards Footwear With

Reference to Vellore Dist., Tamilnadu
P.Venkatesh1 , V.Selvakumar2 , M.Ramu3 , M.Manikandan4 ,
C.R.Senthilnathan5 and Krishnamoorthi M6

1, 2 &5AssociateProfessor, Department of Management Studies, Sri Sairam Engineering College,

Chennai, India
3& 4Assistant Professor, Department of Management Studies, Sri Sairam Engineering College,

Chennai, India.
6Faculty of Commerce and Management, Kristu Jayanti College, Bengaluru, India.

Abstract. The market for footwear is one that has huge prospects but is still a
relatively undeveloped industry. The use of innovative techniques for segmenta-
tion and positioning can assist manufacturers and retailers in understanding the
finer nuances of customers not only in the home market but also in the interna-
tional market. According to the recently conducted research, it has been shown
that over half of the total market is comprised of sales of men's footwear in the
organized retail sector. Even in the men's market, only around 50–55 percent of
transactions take place in the organized market, as can be seen from the evidence
presented above. The oddity is much more prevalent in the women's sector, where
80–90% of purchases are made in the unorganized part of the market. This in-
dustry does not have any form of organized retailing that has a presence on a
national level. The paradox arises because manufacturers and merchants have a
fundamental misunderstanding of the subtle preferences of their consumers, re-
gardless of whether those customers are male or female. There has been a shift
in the traditional profile of the Indian customer. Despite the fact that footwear is
often seen as a product that may enrich one's lifestyle, both producers and mer-
chants have failed to grasp this concept. In spite of this, the industry continues to
adhere to the conventional patterns of segmentation, which are comprised of the
components utilized in the footwear's manufacture, the ways in which people use
footwear, and demographics.

Keywords: Market, Customers, Footwear, Behaviour, Loyalty, etc,

© The Author(s) 2024

M. Rani Nimmagadda et al. (eds.), Proceedings of the 3rd International Conference on Reinventing Business
Practices, Start-ups and Sustainability (ICRBSS 2023), Advances in Economics, Business and Management
Research 277,
https://doi.org/10.2991/978-94-6463-374-0_18
198 P. Venkatesh et al.

1 INTRODUCTION

According to the research from ASSOCHAM, the resiliency of the Indian footwear
industry has experienced phenomenal development numerous times; it is anticipated
that India's demand for footwear will increase at a CAGR of 11.4 by the year 2022.
Sportswear fashion, a growing desire for roots and developer footwear, an increasing
flood of one-offs, and an expanding number of organized players in the request all con-
tribute to the growth of the request. The primary factor that contributes to persistence
is the rising demand for athletic and casual footwear. Consumers are becoming increas-
ingly worried about the most recent fashion trends, and as a result, they are more willing
to make financial investments in rooted and developer footwear. This has resulted in an
increase in the demand for rooted and developer footwear. The needs of Indian con-
sumers are expanding while also undergoing rapid transformation in terms of their na-
ture and makeup. According to S. L. Rao (2000), the possibility of lifestyle items has
significantly risen as a result of the revolution that is taking place in the distribution
system as a result of the introduction of supermarkets, shopping malls, chain shops, and
other similar establishments into metros, minor metros, and villages. This product has
experienced a significant amount of change in terms of its personality as a direct result
of the shifting lifestyle patterns that are prevalent among individuals, particularly
among young people. According to Bijapurkar (2001), there has been a significant shift
in Indian consumers' buying behaviors over the past two decades, despite the fact that
Indians have not traditionally been willing to spend money on specifics such as foot-
wear. It all started with the implementation of the New Economic Policy in 1991, which
allowed global corporations to gain access to the market. Urbanization, favorable de-
mographic trends, a growth in income conditions and cases of multiple income, the
expansion of media, and the need to look good have all resulted as a direct result of
this. As a consequence of this, customers are becoming increasingly worried about the
many kinds of items that are manufactured and marketed in different parts of the world.
According to Bijoor (2001), India's population is no longer a problem for marketers but
rather an advantage, particularly with regard to consumer expectations. India's youthful
working population and its expansion are the largest positive elements both now and in
the future. They today account for 30 percent of the entire population. A schism has
emerged in the information technology industry, which has resulted in the emergence
of a growing young force that is capable of commanding big recruitments from both
Indian and international chains. When they purchase together, these young customers
build a brand that is easily identifiable. Because they are a generation with earning
capacity, as opposed to all of the young who came before them, there is a considerable
difference in their choices. The current generation of young people was born during a
period of rapid technological and media progress, which provides them with unre-
stricted access to markets all over the world. This age group is expanding, and the
United Nations estimates that it will reach 241 million by the year 2030. It should come
as no surprise that the general public and major international corporations are paying
attention to the purchasing patterns of this generation. It is anticipated that a growing
number of internationally famous players will stake a claim to cover this requirement
gap as women are becoming increasingly brand aware as opposed to product conscious
in the past. Footwear is now seen not as a commodity but more as an image (Trója,
2000), a station in life, and a means of expression. If directors could sketch consumers
 A Study on The Market Characteristics, Consumer Purchasing, and Behaviour 199

based on the movements they use, it would help them arrange their items in a more
effective manner. As a result, the footwear industry has a significant number of oppor-
tunities that have not yet been exploited. Footwear manufacturers in recent times, as
well as the significant new role that retail is playing in organizing India's domestic de-
mand, are all set for new heights. This is driven in part by expanding consumer demand
from the brand new mid-market young segments as well as the country's IT-BPO sector.
Demand can often be effectively segmented using demographic criteria, with just a little
additional effort required for items that are made inside the country and for which there
is less competition. But in today's world, customers are faced with a dizzying array of
product options. Because of this, efficient market segmentation through the use of new
goods is required. The demand for these items is being met by a large number of public
and global companies, resulting in intense rivalry. As a result of increased globaliza-
tion, multinational corporations, governmental organizations, and unorganized actors
are engaged in a cutthroat race to increase their demand.

The worldwide demand for footwear was estimated to be $383 billion in 2019, and
it is expected to reach $541 billion by 2025, expanding at a compound annual growth
rate (CAGR) of 6.3 from 2020 to 2025. The demand for shoes throughout the world
can be broken down into three categories: athletic and sports shoes, casual shoes, and
dress and formal shoes. In 2019, the market share for requests for athletic and sports
shoes was the highest, followed by requests for casual and dress/formal shoes. Chang-
ing consumer tastes for design and style, increasing disposable income, and growing
desire for shoes that are feather light and comfortable are some of the primary reasons
that are driving the rise of global footwear demand. Vital participants Nike, Adidas,
Asics, Puma, Reebok, Sketchers, VF Corporation, Li Ning, and New Balance are some
of the key participants in the global footwear demand. Other vital players are Li Ning
and New Balance.

1.1 STATEMENT OF THE PROBLEM

Nearly half of the overall demand for footwear is met by the organized market's supply
of men's shoes. As a result, it is abundantly evident that only fifty-five to fifty-six per-
cent of the trades that will take place in the organized sector will really take place in
the masculine sector. In the case of the women's sector, where between 80 and 90 per-
cent of purchases are made in the unorganized sector, the anomaly is, in fact, rather
significant. There is no structured retail that can be found in this area, and it does not
have a public presence. The abnormality is a result of manufacturers and sellers being
unable to comprehend the nuanced preferences of their customers, regardless of
whether those customers are male or female.

1.2 OBJECTIVES OF THE STUDY

The following objectives have been derived from the problems that have been outlined
above:
200 P. Venkatesh et al.

• To investigate the characteristics of the Indian Footwear market

• To study in brief the key players in the Indian Footwear industry
• To profile the men and women consumers into different clusters based on their ac-
tivities, interest, and opinions and study their profiles in detail
• To examine the differences that exist in the preferences towards the formal and cas-
ual footwear attributes acc.
• To investigate the differences that exist in the preferences towards the formal and
casual footwear attributes acc.

2 REVIEW OF LITERATURE

The lives of the people have been drastically altered over the past decade as a result of
the fast rising upper middle class income hierarchy of civic Indians [9]. In today's gen-
eration, brands have a tendency to play a vital and significantly influential function,
particularly for this order of people to match them with civic and social life. It has been
discovered that a sizeable portion of consumers in India are members of Generation Z.
Since members of this generation carry children in a manner that is quite unlike to that
of members of generations X and Y, it is imperative that their gestation be evaluated
independently according to gender. The current study aims to evaluate the rate of deal
creation in relation to footwear, in addition to determining whether or not there is a
difference between male and female Generation Z Indian consumers' preferences when
it comes to purchasing footwear. The information comes from 385 replies obtained
from a variety of corridors located all across the nation, and the difference in geste is
further dissected with the use of Levene's test of unity, an independent tt-test, and Co-
hen's d. The study provides an explanation of particular data, such as the fact that
women are more active than men in making short-term purchase decisions and those
women have a greater effect over tools than men and others.
It is commonly believed that the shoes are a source of producing an impression on
others. In the modern world, keeping a better impression on others is one of the most
important components and critical considerations for establishing a better first impres-
sion. Shoes are often thought to be a source of generating an impression on others. As
a result of the fact that all humans are social creatures, they are very worried about how
other people see them in social settings and want to make a positive impression on as
many people as possible. When it comes to the subject of a person's fitness, the experts
have mentioned that footwear is believed to be the most appealing and most crucial
aspect. Furthermore, the researchers have stated that the majority of running activities
can only be enhanced and done by wearing the greatest shoes. According to the findings
of the research and studies, it has been established that there is a wide variety of foot-
wear available on the market for customers, and these customers are able to select the
product of the highest quality that meets their needs with relative ease. The primary
study for this article is conducted on the basis of a comparative examination of the
consumer behavior of individuals in Punjab with regard to sports shoes and casual shoes
[9].
 A Study on The Market Characteristics, Consumer Purchasing, and Behaviour 201

In recent years, footwear has emerged as one of the most fashionable lifestyle goods.
It is not only a device designed to safeguard your feet. In some of the published re-
search, the products of the footwear industry have been associated with the character-
istics of people's personalities. The purpose of this study is to investigate the primary
aspects that have a role in the decision-making process for footwear purchases. Young
people made up the vast majority of those who responded. The information was ob-
tained by means of a survey. In order to narrow down the variables into only two fac-
tors, the multivariate approach of exploratory factor analysis was utilized. The findings
of the study will allow for more research to be conducted in the field of consumer be-
havior as well as the shifting opinions of customers [11].
The corporations need to make announcements about the things they create in order
to market such products and improve their position in terms of agreements and gains.
The purpose of this study is to determine the impact that the events of creation have
had on the copping geste. For the purpose of the investigation, fifty different samples
are collected. The information is gathered by means of a questionnaire, and its analysis
is performed using a straightforward chance method [4].
Bata India is the country's most well-known footwear brand and the country's largest
retailer of footwear. To investigate the preferences of customers, a survey entitled "Cus-
tomer Buying Behavior toward Branded Casual Shoes" was carried out. The purpose
of the study was to gather information. When compared to other nations that produce
footwear, India came in second place behind China. As the use of customer relationship
management becomes more widespread, businesses are beginning to place a greater
emphasis not just on the pleasure of their customers but also on the quality of their
connections with those consumers [13].

3 Research Methodology

The researchers gathered the necessary data by employing both primary and secondary
sources of information. The research study made use of stratified random and conven-
ient sampling methodology. In this method, each zone in the Vellore district was
deemed to be a stratum, and the samples were picked using the convenient sampling
technique from each strata. Vellore district is home to all of the patients who are treated
at the private hospitals in the area. The questionnaire was given to the respondents in a
personal setting once they had been contacted. The data were collected from sample
size of 658 participants.

To determine how trustworthy it is, a pilot research with seventy-eight respondents

was carried out. Checking the nascence (Cronbach) values was part of the process of
creating the final questionnaire for the research. The names of respondents were drawn
from a variety of zones within the Vellore sector of Tamilnadu. Cronbach's nascence
was used for the statistical analysis of the trust ability for the pilot study, and the value
that was determined to be appropriate was 0.795. In the currently ongoing exploration
investigation, the slice pattern that is utilized is one that is stratified and accessible. In
which quarter of Vellore is the stratification done? The strata that were present in each
202 P. Venkatesh et al.

of the zones that make up the Vellore quarter were taken into consideration, and sam-
ples were selected from each strata employing an accessible slice method. The popula-
tion consists of patients from all of the private sanitariums that are located in the Vellore
quarter. The respondents were given the questionnaire and engaged in tête-à-tête com-
munication with the researchers. Data analysis for the present study was made by using
the various parametric and non-parametric statistical tests namely, descriptive analysis,
ANOVA, Chi-square, f-test, correlation and Regression analysis using IBM software
SPSS v-16.

Table 1. Factor loading values of various dimensions and its attributes

Dimen- Factor Dimen-

sions/ Fac- Item Loading sion Load-
tors ing
Price I prefer fordable price 0.89
I would prefer to bargain than
0.87 0.87
having a fixed price
I prefer offers and discounts 0.85
Quality I prefer warranty 0.90
It should be branded 0.89
It should not make any 0.80
0.75
squeaky noise
It should be durable 0.70
Fashion Footwear should match the
0.82
color of my dress
It should be fashionable and
0.81 0.79
elegant
It should enhance my posture
0.77
while I walk
Comfort It should be comfortable 0.91
& Safety It should not cause any aller-
0.75 0.81
gies
Non-slippage 0.81
Service Ambience of the store is im-
0.80
Quality portant for me
Store at convenient location 0.76 0.78
The sales man should be very
0.76
courteous
Price, Quality, Fashion, Comfort and Safety, and Overall Service Quality Were Iden-
tified As Being Important Factors In This Study. Price is one of the factors that contrib-
utes to the total factor loading of 0.87, and its value can range anywhere from 0.85 to
 A Study on The Market Characteristics, Consumer Purchasing, and Behaviour 203

0.89. The total loading for the factor quality is 0.80, and its possible values are in the
range of 0.70 to 0.90. Overall, the loading associated with the fashion component is
0.79, and its possible values range from 0.77 to 0.82. The overall factor loading for the
comfort and safety factor is 0.81, and its possible values are in the range of 0.75 to 0.91.
The overall factor loading for the consideration of service quality is 0.78, and its pos-
sible values range from 0.76 to 0.80. The total factor loading across all 16 characteris-
tics is calculated to be 0.79.

4 DATA ANALYSIS

The data that were obtained and analyzed with the use of relevant statistical methods in
order to derive reliable conclusions that were founded on the aims of the study. In the
analysis, descriptive tables and probabilities play important roles. In addition to that,
the following particular tools are utilized. Chi-square analysis is utilized in order to
assess the effect of certain elements on the respondents' awareness of the various kinds
of health care services and the prices that are handed out by the mentioned institutions.
A factor analysis is carried out to investigate the influence that various factors have on
the level of patient satisfaction. An average rank analysis is performed so that research-
ers may investigate the elements that influence the patients' decisions on which hospi-
tals to visit for treatment. A gap analysis is carried out in order to measure the quality
of health care services provided by the listed hospitals; a t-test has been utilized in order
to examine the importance of the gap between the anticipated and the perceived quality
features at the 5% position of significance.

Chi-square test was used to analyse the association between factors of footwear pur-
chasing behaviour and the educational education of the respondents.
H0: There is no significant relationship between educational qualification and the
factors of footwear purchase behaviour in terms of the Price, Quality, Fashion, Comfort
& safety, and Service Quality.
Correlation was tested to see the strength of association among the factors of pur-
chase behaviour in purchasing footwear.

Null Hypothesis H0: There is a significant relationship exists among the various fac-
tors of purchase behaviour in purchasing footwear.
204 P. Venkatesh et al.

Table 2. Association between respondent education and product attributes

Chi-
Educational qualification of the Respondents
Square
Factors Total

Gradua
Illiterat

y level
Primar

te level
Others
HSC

level
(p value)
es
10 42 89
279 9.748 83 55
Price 40.6%(-
90.90% 51.20% 32.40% 35.30% 64.70% (.000*)
15)
1 11 79 81 7 179
Quality
9.10% 13.40% 28.80% 34.40% 8.20% 26.0%(+
15)
- 20 64 32 - 116
Fashion
% 24.30% 23.30% 13.60% - 16.80%
Comfort - 9 24 33 19 85
& Safety % 11.10% 8.70% 14.00% 22.40% 12.30%
Service - - 18 6 4 28
Quality % % 6.80% 2.70% 4.70% 4.30%
11 82 274 235 85 687
Total
100.00% 100.00% 100.00% 100.00% ###### 100.00%
 A Study on The Market Characteristics, Consumer Purchasing, and Behaviour 205

Correlations

Comfort

& Safety
Fashion
Quality

Quality
Service
Price
Dimensions

Pearson
** ** ** **
Correlati 1 .732 .348 .565 .521
on
Price
Sig. (2-
0 0 0 0
tailed)
N 687 687 687 687 687
Pearson
Correlati .732** 1 .412** .402** .518**
on
Quality
Sig. (2-
0 0 0 0
tailed)
N 687 687 687 687 687
Pearson
** ** ** **
Correlati .348 .412 1 .503 .514
on
Fashion
Sig. (2-
0 0 0 0
tailed)
N 687 687 687 687 687
Pearson
Correlati .565** .402** .503** 1 .521**
Comfort on
& Safety Sig. (2-
0 0 0 0
tailed)
N 687 687 687 687 687
Pearson
Correlati .521** .518** .514** .521** 1
Service on
Quality Sig. (2-
0 0 0 0
tailed)
N 687 687 687 687 687
206 P. Venkatesh et al.

**. Correlation is significant at the 0.01 level (2-tailed).

• The above table aggregates the correlation among various factors of respondents’
footwear purchasing behaviour. Correlation analysis is used to analyse the relation-
ship on the collected data. It is observed that factor ‘Price’ is having a positive cor-
relation with ‘quality’ with a correlation value of 0.732, is having a positive corre-
lation with ‘Fashion’ with a correlation value of .348, is having a positive correla-
tion with ‘Comfort & Safety’ with a correlation value of 0.565, is having a positive
correlation with ‘Service Quality’ with a correlation value of 0.521.
• The factor ‘Quality’ is having positive correlation with ‘Fashion’ with a correlation
value of 0.412, is having a positive correlation with ‘Comfort & Safety’ with a cor-
relation value of 0.402, is having a positive correlation with ‘Service Quality’ with
a correlation value of 0.518.
• The factor ‘Fashion’ is having positive correlation with ‘Comfort & Safety’ with a
correlation value of 0.503, is having a positive correlation with ‘Service Quality’
with a correlation value of 0.514. The factor ‘Comfort & Safety’ is having a positive
correlation with ‘Service Quality’ with a correlation value of 0.521.

Fig. 1. CFA Model and Evaluation of the footwear purchasing model

Table 3. showing the values of SEM model fitness indices

 A Study on The Market Characteristics, Consumer Purchasing, and Behaviour 207

S. Model Fitness Index Value

No
1. Chi-square / Degrees of Free- 1.102
dom
2. Significance Value 0.207
3. Goodness of Fitness index (GFI) 0.912
4. Goodness of Fitness index 0.911
(AGFI)
5. Comparative Fit Index (CFI) 0.923
6. Root Mean Square Residuals 0.007
(RMR)
7. Root Mean Square Error of Ap- 0.013
proximation (RMSEA)
When Chi-square is divided by the total number of degrees of freedom, as illustrated
by the data in the table, the resulting value is 1.102. This value should never be allowed
to go over 5, as doing so will prevent models from being fitted correctly if they are too
large. Due to the very low number that was identified during this investigation, it may
be concluded that the model fit was adequate. Because the value of significance is larger
than 0.05, it is highly likely that the model accurately represents reality in general. The
GFI index value and the AGFI index value are both higher than 0.90, which is evidence
that an exact match does exist. There is a value of 0.912 for the GFI index, however
there is a value of 0.911 for the AGFI index. Both of these figures are more than 0.923.
It is known, however, that the RMR value is 0.007, and that a number that is less than
0.08 implies that a compatible match will be discovered. In addition to the information
that the RMR value is 0.007, it is also known that the CFI index is 0.942, which indi-
cates that there is a good match between the two variables. The Root Mean Square Error
of Approximation, sometimes known by its acronym RMSEA, has some sort of con-
nection to the residuals produced by the model. To demonstrate that the model is well-
suited to the data, the RMSEA should have a value of 0.011, which is the value that is
considered to be the norm. Since the RMSEA for this model is 0.012, which is lower
than the threshold of 0.060, we are able to draw the conclusion that the model provides
a good match. It has been decided that the global Structural Equation Model is accepta-
ble and that it encompasses the qualities that were researched in this particular research
study. This model has also been determined to incorporate all of the features that were
explored. Because of how well this model fits the data, it was possible to make this
finding.
208 P. Venkatesh et al.

5 Conclusion

According to the findings of the research, the market for footwear is one that has huge
prospects but is still a relatively undeveloped industry. The use of innovative techniques
for segmentation and positioning can assist manufacturers and retailers in understand-
ing the finer nuances of customers not only in the home market but also in the interna-
tional market. According to the recently conducted research, it has been shown that
over half of the total market is comprised of sales of men's footwear in the organized
retail sector. Even in the men's market, only around 50–55 percent of transactions take
place in the organized market, as can be seen from the evidence presented above. The
oddity is much more prevalent in the women's sector, where 80–90% of purchases are
made in the unorganized part of the market. This industry does not have any form of
organized retailing that has a presence on a national level. The paradox arises because
manufacturers and merchants have a fundamental misunderstanding of the subtle pref-
erences of their consumers, regardless of whether those customers are male or female.
There has been a shift in the traditional profile of the Indian customer. Despite the fact
that footwear is often seen as a product that may enrich one's lifestyle, both producers
and merchants have failed to grasp this concept. In spite of this, the industry continues
to adhere to the conventional patterns of segmentation, which are comprised of the
components utilized in the footwear's manufacture, the ways in which people use foot-
wear, and demographics.

6 RESEARCH IMPLICATIONS

The findings of the study will be beneficial to shops in reorganizing the product selec-
tions that they provide. Additionally, new merchants may find the research helpful
when formulating their approaches to the market after reading it. Due to the limited
amount of research that has been conducted in this sector, it also presents an opportunity
for more investigation. This study will assist the many multinational companies that are
interested in doing business in India in better understanding the characteristics of Indian
consumers as well as the elements that play a role in determining what products they
choose to buy. The research may be expanded to cover markets all over the world be-
cause there may be comparable shopping habits in a number of nations.

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