India's Footwear Industry Embarks on Design-Led Transformation with Italian Collaboration
India's footwear export sector currently sells a pair of leather shoes to the global market for an average price of $15. Interestingly, China, despite its massive manufacturing scale, exports footwear at roughly the same average price point. In stark contrast, Italy commands a premium, with an average export price of nearly four times more per pair than India. This significant price disparity highlights a critical challenge for Indian manufacturers.
Bridging the Design Gap to Unlock Premium Value
While India has excelled as a reliable contract manufacturer, the absence of strong design capabilities has been the missing lever needed to ascend the global value chain. Transitioning from pure contract manufacturing to design-led production represents a strategic opportunity to unlock premium pricing and forge stronger, more collaborative partnerships with international brands. It is precisely this gap that Kothari Industrial Corporation Ltd (KICL), a prominent manufacturer of non-leather footwear, is targeting through a landmark partnership.
The company has joined forces with Accademia IUAD, an esteemed Italian fashion and design institute officially recognized by Italy's Ministry of Education. Together, they are collaborating to establish a new, design-focused university in Tamil Nadu. The ambitious goal is to cultivate globally competitive talent specifically for the footwear, fashion, and related accessory sectors.
Establishing a Design University in Tamil Nadu
The proposed university will launch with footwear design as its foundational and cornerstone discipline. The academic portfolio will expand to include comprehensive programs in leather goods design, accessories design, fashion management, and fashion communication. Tamil Nadu has been selected as the principal campus location, leveraging its existing industrial base. Future expansion is already planned for other Indian regions, including the northeast.
This educational initiative will operate as a 51:49 joint venture. KICL will hold the majority stake, while Accademia IUAD will contribute its proven academic frameworks, specialized curricula, and international best practices. These are deeply rooted in Italy's renowned, practice-led design education model, which seamlessly blends theory with hands-on industry experience.
A Pivotal Moment for Strategic Industry Advancement
This collaboration arrives at a crucial juncture for India's footwear industry. Emerging trade agreements, such as the recently concluded India-EU free trade pact and a proposed bilateral trade agreement with the United States, are anticipated to significantly improve market access for Indian exporters. This creates a ripe environment for value-added exports.
"India can no longer rely solely on competitive labour costs as its primary advantage," emphasized N Mohan, CEO of Footwear at KICL. "In the past, we operated primarily as contract manufacturers—brands provided designs, and we executed production. Today, the paradigm has shifted. Global brands now expect their suppliers to deeply understand market trends, actively develop collections, and contribute intellectual value. Design capability is the single most significant differentiator in this new landscape."
Learning from the Italian Design Excellence Model
Italy serves as a powerful case study in design-driven value creation. "Italy stands as one of the world's foremost exporters of premium footwear, boasting an average export price of approximately $68 per pair," stated Giuseppina Auricchio, Managing Academic Director at Accademia IUAD. "This substantial price premium is not merely a function of manufacturing costs. It is fundamentally driven by superior design, creativity, and the unique ability to create aspirational products. Design enhances desirability and bestows a distinct identity upon products in competitive global markets."
She further explained that Italian design education is characterized by a strong, intentional integration between academic learning and real-world industry exposure—a model that IUAD intends to faithfully replicate within the Indian context.
Strategic Alignment with Tamil Nadu's Industrial Ecosystem
For India, the timing of this initiative is particularly strategic. Tamil Nadu is already a major national hub for both leather and non-leather footwear production and is successfully attracting increased investments from global manufacturers. "The state offers robust industrial infrastructure, a skilled workforce, and a deep, supportive ecosystem of suppliers," said J Rafiq Ahmed, Executive CMD of KICL. "This new design institution will play a vital role in bridging the long-standing gap between creative talent and advanced production capabilities, fostering a more integrated and innovative industry."
By embedding world-class design education directly into its manufacturing heartland, India's footwear sector is taking a decisive step toward transforming its global identity—from a cost-effective producer to a creative, value-adding partner in the international fashion and footwear arena.
