Introduction:

The needs of humans are constantly evolving and so are their expectations from
products. One such product category which has been facing the brunt of
Consumers requirement of greater portability is the footwear category. Our focus
was to develop a product that could satisfy the above stated need of our
customers i.e. a shoe/sandal that could provide them with greater portability and
flexibility. The type of customer or the market demand that may persist wasnt
available initially and hence, we proceeded towards defining this aspect by
relying on secondary data resources and conducting a primary research based on
a questionnaire that we administered across various respondents. The focus of
the questionnaire was to understand what all attributes would be appreciated by
an average customer who is seeking a product that could satisfy the above said
requirements. This also had helped us in addressing various other issues of
concern which well discuss as we proceed through the report.
Product category:
Product category for our research purpose is the shoe products with
interchangeable soles (each sole providing functional or aspirational value to the
wearer). The product wont be limited to only purpose but would serve across
various usage requirements.
Footwear market scenario
Footwear industry is growing at a steady pace since past few years. Analysis of
the report includes various type of footwear including athletic and non-athletic
used by individuals of all age groups and gender. Rising demand for fancy,
trendy yet comfortable footwear among all age group is a key factor driving the
global footwear industry. The global footwear market is segmented by type of
footwear, end users of footwear, various platforms for sale of footwear, material
used and their sales across various geographies. Asian countries such as China
and India are the major exporters of leather footwear across developed countries
(UK and US). The report explains material used for manufacturing footwear,
which includes leather and non-leather; and analyzes the market for both types
of footwear.
Leather footwear are premium products occupying significant market share in
the global footwear market. Additionally, rising health concerns is influencing
individuals to perform indoor and outdoor physical activities. This trend has
generated high demand for athletic footwear, in turn increasing the demand for

footwear. Over the past decade, market for global footwear, has witnessed a
steady growth and is anticipated to continue at the same pace in years to come.
Estimation of global market is based on revenue generated by sale of footwear
across different geographic regions.
Market players are also focusing on expanding their sales channels through
different web portals across various regions. Online platforms for purchase of
footwear is gaining steady popularity among teenagers and youths, thereby
occupying a significant share among all distribution channels. Presently,
manufacturers are focusing on developing and innovating new product, in an
effort to maintain their market position. Leading companies operating in the
market such as Adidas, Timberland, Nike and ECCO among others are constantly
devising new solutions and focusing on providing better services while upgrading
the designs of their existing footwear models.
In April 2015, PUMA launched a lightweight football boot featuring Japanese
dragon Graphics for soccer lover. The launch helped the company to increase
more customer for football shoes manufactured by the company. Additionally,
companies are using various platforms such as Olympic Games, F1 car racing
events and are collaborating with international sports platforms in a bid to
promote themselves worldwide. In July 2014, Adidas collaborated with
Manchester United to promote its brand among football teams. This partnership
provided necessary platform for Adidas to reinforce their brand image on
international sports platform, thereby making considerable additions to their
brand.
The key player profiled in this report are Nike Inc., Adidas AG, PUMA, GEOX S.p.A,
SKECHERS USA, Inc., Under Armour, INC., Wolverine World Wide, Inc.,
Timberland, Crocs Retail, Inc., and ECCO Sko A/S.
In 2014, Asia Pacific generated highest revenue in the global footwear market.
China is the largest manufacturer, consumer and exporter of footwear in the
Asia-Pacific region. Asian countries such as China and India are the major
producers of footwear worldwide. These countries largely export their footwear
products to United States and United Kingdom. China has secured a supreme
position in the worlds footwear market. Non-athletic footwear has witnessed
increased demand among individuals owing to changing lifestyles in this region.
Need and Opportunity
The lifestyles of people are changing and because of better awareness and
increase in wallet spending is moving towards making an individuals life richer
and healthier. Though market growth is being led by non-athletic shoes, the
demand for athletic shoes is also increasing showcasing that people are
concentrating towards health. The travel industry has also seen growth and the
job markets have also seen increased hiring in the entry level posts in knowledge
based industries like consulting companies. From the above inferences it is
implied that many people have to travel a lot and they wish to keep up with their
regimen also. Hence, this would call for a footwear product that could serve

multiple purposes like being an athletic shoe at one time and with a switch,
become a party wear shoe.
Some people would also want to have a one solution shoe which would help
them to save more rather than spending on multiple shoes for serving different
purposes.
Opportunity:
There exists no such major player in the market who is concentrating towards a
one solution to various needs. The demand would be effectively analysed as we
move through the entire research but there is definitely no supply which is
concentrating towards fulfilling the above niche which has the potential of
becoming a mass market product.

Product Innovation Charter

Background:
PEST analysis:
Political:
Out of the many initiatives put forth, the one that stands out promisingly is the
Make in India campaign launched in September 2014. The primary aim of Make
in India is to turn India into a manufacturing powerhouse by inviting global
manufacturers to invest in India and increase the countrys Gross Domestic
Product (GDP).
This will help in manufacturing our product in India while keeping the cost of
production low.
Since the opening of Foreign Direct Investment (FDI) in retail, the footwear
market has seen the entry of several international players. On the other hand,
domestic players have expanded their presence throughout the country. Several
players have also made India their sourcing and manufacturing hub for global
operations.
We can collaborate with them for our operations which will increase our
knowledge and efficiency.
Economic:

India is the largest global producer of footwear after China, accounting to approx
13% of world footwear production, which is close to 16 billion pairs. This means
that the average consumption globally is about 2-3 pairs/person. India produces
approximate 2,000 Million pairs annually in different categories of Footwear. India
exports about 115 million pairs, thus nearly 95% of its produce meets its own
domestic demand.
With an estimated global population of 7-8 billion, India constitutes a share of
approx 15%, which means 1.2 to 1.3 billion feet needs to be covered from heat,
cold, injuries, protection etc. Footwear sector is a very significant segment of
Leather and Non Leather products in India.
Consolidating mid-term status by 2020, the potential target for Indian Footwear
Industry will equalize consumption pattern of 3-4 pairs. With six/seven years to
go, we need to scale our production from current level of 2 billion pairs to nearly
5 billion pairs at a CAGR rate of 30-40%.
Given this backdrop of homogeneous potential it would not be an exaggeration
to say that Footwear Sector is today, on engine of incremental growth.
Social:
With rapid change in lifestyle, income growth at bottom of the wealth pyramid,
Footwear industry is expected to grow leaps and bounds.
Indian consumers have become more fashion and brand conscious and due to
fast changing fashion trends young professionals tend to update their footwear
collection every two to three months and maintain a separate budget of their
salary only for shoe shopping. The per capita consumption of shoes in India
(number of footwear worn by an individual) is currently about 2.5 shoes per year.
Technological:
Innovations like soft sensor networks, Footwear internet of things, Alternative
leathers, 3D printed flexible fabrics will drive the footwear industry.
What is the business about?
As seen in the above analysis, people have a per capita consumption of close to
3 shoes which are as of now different pairs.
The pain point of the consumers is to carry these three pairs of shoes for
different occasions.
Our business plans to solve this problem of the consumers.
What strategy has been developed?
A new product has been thought of which will solve this problem by being a
multi upper interchangeable shoe.
Seeing the strong need the strategy is to differentiate our product in the
footwear industry which is very fragmented.

GUIDELINES
Degree of Innovativeness and Timing
What we propose can be a smart adaptation in India, of the interchangeable
shoes introduced by companies like One Sole, Zip Shoes UK etc. .Rather than
just providing detachable covers which can be used for different occasions, with
some innovation, the whole structure of the shoe can be modified to give an
entirely different look. As of now, the existing players have a range of products in
Womens footwear, we plan to extend this concept to the Mens footwear,
without compromising on the quality After realizing the potential for such a
product among the metrosexual men, first launch is preferred to differentiate the
product and garner the market share because of possible emulations by other
major shoe manufacturers in the country. The pricing has not been decided upon
yet but the product could sell for a premium based on its expected utility.
Focus:
Considering all the factors mentioned above, our focus initially should be to cater to
these needs of the potential market, that is, people (especially men) who travel
frequently. Eliminating the space crunch problem would be the pitching point of the
company.
Initially the focus should only be to cater men and a particular set of women who travel
a lot for business purposes and also are health conscious and work out regularly.
Our focus should also be to make profits, market share/dominance and seek recognition
as a company offering diverse, good quality and multiple variants of footwear products.
The use of our product would eliminate or reduce the need of the potential customers to
buy new footwear. This fact along with the superior quality products and services should
be leveraged to create value for the company as well as the customers.
With the estimated increase in the production of footwear (growing at a CAGR of 30 to
40 per cent) owing to the increase in consumption pattern, that is, 3 to 4 pairs, the
requirements and demand would also be high and increasing over the years for our
products especially the covers. Thus, focus should also be to come up with means to
match up the production with the increasing demands.
Goals Objectives:
Initially, the objective would be keeping it basic and simple. The short term objective
would be to achieve as much market share as possible. This can be achieved by having
just one sole and a fewer number of variants of covers that can be added and worn with
that particular sole. Once a significant amount of market share is captured, further
variations and modifications can be done to the product based on the responses and
feedback of the early users.
In the long run, variations can also be made to have different permutations and
combinations of the covers as well as the soles.

What we could also do is keep a base cover with the sole that covers the entire feet and
then on top of that a second cover with designs can be added. Later on, double soles
can also be added, one the base sole and the other depending on the particular
requirement.
The sole should be compatible with the basic needs and requirements of the customers,
for example casual wear, running shoes, party wear or sportswear and the size of the
heels may also have to be taken account of in some cases. This thing can be achieved
by exactly knowing what the customer really wants and expects from the product. Thus,
the objective should be to have proper market research to aid in formulating further
marketing strategies.
These goals will be achieved by coming up with different, innovative ideas for the
covers and the soles thereby producing newer and better items that are superior in
terms of appearance and quality. The company is willing to invest funds, as necessary,
to achieve these goals and objectives.

Morphological Analysis:
Shoe upper
Leather
Canvas
Satin
Genuine Horse
Hair
Denim

Shoe sole
Rubber
outersole
Italian leather
outersole
-

Attributes
Color
As required
-

Occasions
Casual use

Size
As required

Party wear

Formal use
Sports use

Multi-purpose

As seen from the above table, the following combination provides an opportunity
for developing a new product:
All possible shoe upper + All possible shoe sole + Color as required + Multipurpose occasions + Shoe size as required

Issues addressed through the new product:

Problem of carrying bulky shoes which consume greater volume in the

luggage
Same set of shoes can be used for multiple occasions with quick
replacement of sole and the upper cover

Problems that may arise in creating the new product:

The bonding/ joining of the sole may be an issue. Here, the process has to
aid fast replacement of sole and upper cover
Varying the sole height to suit the occasion
Ensuring the same comfort level as the regular shoes

To understand the significance of the value creation with this new design and its
implication on cost and benefits, we perform value analysis.
Value analysis:
Value of any product can be defined as the maximizing the function of a product
with respect to its cost.
Value = (Performance + Capability) / Cost = (Function / Cost)
Therefore the value can be increased either by increasing the functions or by
decreasing the cost. However, in the proposed new product we are focusing on
improving the function while making sure that the associated cost is not
increased proportionally.
Basic function of the product:
The basic function of the new product is its suitability for multi-purpose use with
the aid of replaceable sole and upper cover.

Secondary function:
All the functions that aid in achieving the basic function are secondary functions.

Snap locks
Removable,
multiple shoe
soles

Velcro
Adhesive

How the
soles are
attached
together

Multi-purpose,
easy to carry
shoes
Removable upper
cover

Zip
Snap locks
Quick lock

Basic
Value analysis steps:

Secondary

How the
sole and
upper cover
attached
together

Secondary

1. Preparation
Analysis of multiple sole, multiple cover shoe which can reduce the volume
consumption in luggage, help in quick change of shoe to suit different occasions.
2. Information
Typical customer segment for this new product would be travelers who prefer to have
less luggage.
3. Analysis
Functional analysis of bonding multiple soles into one and also joining of sole to upper
cover. Based on our brainstorming session, we found that the detachable sole and
upper cover must offer comfort, quick change and reduce cost
4. Innovation
The various options to attach the soles and to attach the sole to the upper cover are
described in the above table
5. Evaluation
The analysis and brainstorming session revealed that using snap locks for attaching
soles with each other and using zip for joining the upper cover to the sole is most
suitable
6. Implementation
Based on the value analysis, we find that the benefits outweigh any increase in cost.
This clearly is a value creating idea for a product development
BRAINSTORMING THE IDEAS:
The group has sat together to conceptualize various possible new product innovation and
we have debated the needs and necessity of these products and the market opportunity.
After coming up with numerous ideas, the team has reached to a consensus of having a
new product of Customizable Shoes as this is a totally new concept and it would
revolutionize the multi- billion dollar footwear industry.

The link for the brainstorming video is uploaded here:

https://youtu.be/2LhJCStKsI4

CONCEPT TESTING:

In this concept testing, we would like to answer the following questions:

1.
2.
3.
4.

Is there a need for customizable shoes in the market?

How big is the potential market?
What are your target audience?
Will the brand/product stand out?

.... and many more

PRODUCT DESIGN:
The first part of the concept testing is the designing of the product:
Here we try to conceptualize how the product will look like and how it will work. We are
proposing the following points for the customizable shoe design:
1. The product will come into parts like: A base shoe and custom skins and soles
2. The base shoe will be the inner layer (like a second skin) holding the size of your
feet
3. Skins will be the top covers of the shoes that the customers can order as per
their requirements
4. The skins will solve different purpose like formal wear, sports, gym, trekking,
casual wear etc
5. The consumer has to purchase a single base model and multiple skins and sole
as per his/her requirements and functionality.

6. To stick the skin/sole to the base model, various tools can be used like:
i. Strap/lace
ii. Zip
iii. Velcro
iv. Buttons
7. Thus various permutations and combinations of skins and sole can be possible
and the user can enjoy (show-off) a different shoe every time
8. Carrying multiple skins and sole are easy as they consume less space in the
luggage with respect to carrying multiple shoes in your luggage
You can order various skins and soles online and also use the DIY simulation to see how your
shoe will look with different soles and skins. Thus this online interactive feature of
customizing your footwear will also enable the users to buy more and more skins

PRICING and UPGRADES:

Few salient features about pricing and upgrades are:
1. The base model will be almost half the price of any branded shoe i.e. around
1000 rupees for all the sizes (We have arrived to this price figure after
brainstorming and in-depth interviews of customers as well as primary survey
questionnaire)
2. Cost of the skins and soles are very cheap with respect to buying a whole new
shoe completely

3. Thus with a cost almost half that of the branded shoe, you can have the effect of
3 shoes using just 1 base model

4. People cant differentiate between a standard footwear and between the

customizable shoes and various skins gives the effect of a whole different shoe
completely
5. You dont have to discard the whole shoe because of wear and tear, you just need
to replace the skin or the sole and the cost of replacing that is nothing as
compared to purchasing a new shoe every time
6. Keeping all these factors in mind, we propose to charge the base model at a
slight premium but giving heavy discounts on the skins and sole upgrades

SURVEY ANALYSIS
Link of the Google form: https://docs.google.com/a/iimidr.ac.in/forms/d/e/1FAIpQLSeMCZ25yyIoe7pDN1ixWLzn3q0zTSd1CC5DVZm-E-E2b5W9g/viewform

Few insights that we have got from the consumer survey are:

The insights that we get from this is that more than 2/3 rd of the customers surveyed have 3
or more shoes. This tells us about the market opportunity and the need of the
customizable shoe product as it is difficult to carry 3 or more shoes with you in your
luggage and it also cramps your footwear stand.

This analysis gives us the idea of why consumers purchase their footwear. Doing this, we can
get the ideas to the RnD team regarding the design of different soles and skins of the
shoes depending on the purpose

We infer that the top shoe choices among the consumers are:

Casual shoes
Canvas shoes
Leather shoes
This gives the idea about the consumption pattern of the consumers and the type and
material of the shoes that they prefer. Using this, we can derive the design of our new
product

Since it is evident that Fit/comfort is the most important parameter for any footwear, our
product will surely has potential to disrupt the market. This is because the base product
acts like the second skin and the fit and comfort is the maximum there. Also, this base
model is customized for every user so the fit is unique and solely made for you as an
individual

Options
available
were:

It is evident that consumers surveyed really like the idea of the customizable shoe, however
for the version 2.0, we can also incorporate the electronic tape measure feature for the
sports segment

These are the general demographic questions. Other insights that are based on the survey
are posted separately as they are more of qualitative answers