The Indian government’s decision to mandate foreign luxury shoemakers and popular athleisure brands like Nike and Adidas to stamp their shoes with the ISI mark, effective from August, has stirred significant discussion and concern within the footwear industry. This move, outlined by two officials, signifies a shift in regulations that these international brands will be required to adhere to, potentially impacting their operations and market presence in India.
Presently, foreign shoemakers, including renowned French luxury brands such as Louis Vuitton, Dior, and Christian Louboutin, enjoy the privilege of exporting their shoes to India without the requirement of the ISI mark. However, this exemption is set to expire in August, when the products will be brought under a Quality Control Order (QCO) issued by the Bureau of Indian Standards (BIS), necessitating the embossing of the rectangular ISI mark on the shoes.
According to the norms set by the Bureau of Indian Standard (BIS), no firm can engage in the manufacturing, import, distribution, sale, or exhibition of products covered under the QCO without the ISI standard mark. This regulation poses a significant challenge for foreign shoemakers, as compliance with these standards may disrupt their established processes and branding strategies.
Representatives of French shoemakers have expressed their opposition to the idea of embossing the ISI mark on their shoes, citing concerns about potential logistical and operational implications. Additionally, Indian officials have hinted at the possibility of requiring foreign shoemakers to source components from India and establish manufacturing facilities within the country, further complicating the situation for these international brands.
The Indian government’s rationale behind these stringent quality control measures lies in its efforts to enhance the overall quality of goods available in the market, thereby curbing the influx of substandard products and bolstering India’s reputation in global manufacturing and supply chains. With plans to expand the scope of QCOs to include over 2,000 products in the coming years, the government is signaling its commitment to promoting higher quality standards across various industries.
However, this regulatory shift has raised concerns among foreign shoemakers regarding potential disruptions to their supply chains and distribution networks. Luxury footwear brands fear that the imposition of stringent testing and certification requirements by Indian regulatory authorities may pose logistical challenges and increase operational costs for their businesses.
On the other hand, the domestic footwear industry has welcomed the move, viewing it as an opportunity to level the playing field and ensure compliance with established quality standards. Sanjay Gupta, president of the Indian Footwear Components Manufacturers Association (IFCOMA), expressed optimism about the new regulations, stating that they provide domestic manufacturers with sufficient time to align their operations with BIS norms.
As the August deadline approaches, stakeholders in the footwear industry, both domestic and international, will need to navigate the complexities of regulatory compliance while maintaining their competitive edge in the Indian market. The implementation of the ISI mark requirement marks a significant regulatory shift that will undoubtedly reshape the landscape of the footwear industry in India.