As the Government has begun approving foreign shoe factories after nearly 18 months, international labels like Nike, Tommy Hilfiger, Calvin Klein, Armani Exchange, Superdry, and Woodland may soon resume importing high-end footwear to India, according to industry experts.
According to the CEOs of three major brands, the Government eventually took action for two main reasons: a decline in sales of premium range products because of supply problems and US President Donald Trump’s criticism of India’s import restrictions on US goods.
In July 2023, India implemented new quality control orders (QCOs) for leather shoes. In August of the previous year, QCOs were adopted for other footwear, including sports shoes, sandals, clogs, and slippers. These mandate that shoemakers only purchase goods from factories, both domestically and abroad, that have earned the Bureau of Indian Standards’ (BIS) certification. Executives claimed that there was a shortage of stock in the premium market as a result of the Government’s desire to reduce imports and establish domestic production, which prevented the certification process for foreign manufacturers from taking off.
Since each facility conducts quality audits, the procedure will take two to three months, according to officials.
Chinese-owned factories in foreign markets as well as those located in China are still not subject to the approval process. Industry leaders stated that BIS is prepared to certify factories in Bangladesh, Vietnam, Thailand, Malaysia, and other countries.
Industry leaders stated that Nike Inc., a US-based company that depends on imports for its operations in India, has unsuccessfully requested BIS approval of its international suppliers from the Indian Government on several occasions. In conclusion, it brought up the matter with the US administration before the meeting between Prime Minister Narendra Modi and Trump earlier this month.
Amidst the nation’s efforts to boost consumption, the sector also made a strong case, pointing to a decline in sales at the upper end of the market despite strong demand. Managers contended that current capacity is insufficient to meet domestic demand and that India is not yet capable of producing high-end, complicated shoes that call for expensive equipment and expertise.