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How to Start a Shoe Making Business
Shoes or more commonly Footwears are now a daily necessity of a person’s life. You need shoes and footwear while walking out of your house, or while attending any party, any occasion, or while going for your job, children who are going to their schools, teenagers going to their college, and so on. This alone explains the scope of marketing your shoes on a larger scale. Instead of Footwears, by just manufacturing shoes, you would come across various types and designs as an option to go for.
An Industry’s potential depends on the stats that it provides us. If we talk about Shoes or the Footwear industry, a global report claims that the Footwear industry has generated a value of 208 Billion dollars in the year 2014. The report also says that the revenue of the Footwear industry is expected to reach around 260 Billion dollars by the year 2023. In Footwear, the major contribution of the revenue belongs to the sector of Shoes, and hence we can calculate the potential it holds.
The Growth rate of the Footwear Industry on a global scale goes with a CAGR of 2.5% from 2014 to the year 2023. If we take into account the volume of the Global Footwear market it goes around 10 billion units in the year 2014, and once again taking the same above example, with a CAGR of 2.3% the same volume is expected to reach around 12.11 billion units in the year 2023. This number is derived by also considering the population level at that point of time in the future.
With attractive designs and a wide range of variety of shoes available in the market, it makes the customer prompt the idea of buying the product. Shoes are a type of product that is available easily at various places and regions, thereby never facing an issue of scarcity in the market. With various types such as Sneakers, sports shoes, office shoes, etc, you can easily select a segment or even multiple segments and make your business profitable.
License Required for Shoes Making Business
A. GST Registration
B. Firm Registration
C. Trade License
D. Current Account
E. IEC Code
F. Trade Mark
G. Udyog Aadhar MSME Registration
H. ISO 9001
Raw Materials Required for Shoe making Business.
Raw materials form the core of your products; it decides the quality of the product that would be derived at the end of all the processes. Having the right quality and type of Raw Materials is very essential for every business. Raw materials required for making Shoes are as follows.
A. Natural Leather
E. Hand Tools
H. Handling tools
I. Rubber Fall
J. Shoe laces
K. Latex, Polish
L. Thermoplastic Rubber
M. Polyvinyl Chloride
Equipment Required for Shoe Making Business
Apart from Raw Materials, the right equipment is also important for getting a cost-effective and quality product. The Equipment required for Shoe-making business is as follows.
A. Sole Attaching Press
B. Cutting Board
D. Packaging Materials
E. Skiving Machinery
F. Sole Activator
G. Zigzag Machine
H. Miscellaneous Equipment
I. Finish Machine
K. Generator – 50KVA
L. GP 4 Machine
Investment required For Shoe Making Business
Investment is one of the important factors that businesses consider before diving into any business. Gathering funds, convincing investors becomes tricky when the required amount is larger than expected. An estimate of the investment required for Shoe-making business is as follows.
|Small Scale||5 to 10 lakhs|
|Medium Scale (Multiple)||12 to 25 lakhs|
Expected Profits that can be Made from Shoe Making business
An average amount of Profit that can be earned by individuals dealing with Shoe Making business would go between 50,000 to 1.4 lakhs, this estimate is for businesses that are dealing on a smaller-scale. However, if your business deals with multiple types of Shoe design, then the estimated profit value may vary depending upon the sales that you make.
Manpower Required for Shoe Making Business
Manpower is required by any business, be it a small or a large-scale business. In terms of the Manufacturing business, you need a lot of workers to run the machinery (if any) and carry the process smoothly. Depending on the multiple designs that you manufacture for shoes, the amount of manpower that would be required will vary.
A. For a business that plans to carry its operation on a small-scale, you should hire at least 2 skilled workers and maybe one unskilled worker. You can also hire a manager or a supervisor who would look after multiple design production if any.
B. For a medium or a large-scale business, you would require more than 3 skilled workers and a manager or a supervisor. Here, once again, if the business is engaged in more than one type of design of shoes, then the number of workers required may increase in numbers.
A. Gift shops: A gift shop has a wide range of items and products in their stores that are chosen by customers for gifting their dear ones. Shoes are one of the best-selling items that are preferred by customers as a gift. If you deal in the production of fancy and party-wear shoes, you should approach gift shops.
B. Stores in Malls: There are some small or major stores in malls, that store many different brands of shoes that have a distinguished and unique design to showcase. You can have a huge demand from these stores if your product sells well and if the price that you carry forward is affordable by the customers over other well-known brands.
C: Shoe Stores: Lastly, another one of your major targets should be the local or the regional Shoe stores. Here, you would not have to worry about your brand value, these stores would willingly accept shoes that still have a growing operation or is new in the market. All that matters is the design of the product for the shopkeepers to decide about stocking your product in their stores.