Footwear industry in India carries their business with products made on any brand name and sold as originals. The use of certain brand names like Hush Puppies, Clarke and many other branded names, certainly is the misuse. The makes of the likes of leather footwear by giving branded names being sold on less prices to the retailers. Thus, it’s calculated to be the most high margin of profit in each pair of footwear and the retailers enjoy on par.

Branded Footwear Names Used

Footwear in India supposed to be cheaper but these retailers sell the branded shoes on very high prices. These so called branded footwear made by low budget leather industries, operates from Ambur, India. Footwear business people from different parts of India tie up their business with Ambur factories. It’s shocking to know that a leather shoe pair sold to the retailer at a cost of Rs 450 per pair has the price tag of Rs 3500. That means it will be resold to their customers at a price of Rs 3000 or more, where their buying price is below Rs 500 per pair.

Operation of Leather Business

This leather footwear business goes on with credit basis. Once half payment is done for about 500 pairs by the middlemen then they get the full stock of 500 pairs. Once they receive these 500 leather shoes, they sell it to the retailers for a paltry Rs 450 per pair. The retailer then sells the stuff, which never be original to their customers for about Rs 3000 or more. The balance half payment will be asked by the whole seller from the middlemen, once that is cleared, the middlemen can order for more footwear.

There’s a huge profit for the retailers and the customers always are on the receiving end. However, the quality of leather footwear manufactured in small factories is not bad. The supplied leather footwear to the retailers on low rates makes the small leather factories run their business from behind.

High Margin of Error for Footwear Retailers

It’s reasonable that when a product purchased on whole sale for a lower price then the retailers should hang on here. They can sell at a price of about 30 per cent more instead they’re making huge money. Let’s say Rs 400 is the buying price then they sell that Rs 400 priced footwear on a 10 time higher rate. This horrible practice needs to be stopped and customers should not buy any footwear, which is priced more than it’s supposed to be.

Khalid M Raza