Why Footwear Prices May Rise Starting August 1

Starting August 1, new quality standards are set to increase the cost of footwear. From next month shoes, sandals, and slippers sold in the market will have to comply with updated quality guidelines of the Bureau of Indian Standards (BIS).

The Quality Control Order (QCO) coming into effect on August 1, 2024, mandates that footwear manufacturers adhere to new standards.

Revised BIS Norms Effective from August 1, 2024

Focus on the Footwear Industry

The most prominent changes in BIS norms from August 1, 2024, are related to the footwear industry. These new regulations aim to enhance the quality and safety of footwear products available in the market.

Footwear components, from inner lining to outer material, will undergo rigorous testing for chemical composition, durability, and flexibility.

Key Changes:

• Stricter quality standards: Footwear manufacturers must now adhere to the IS 6721 and IS 10702 guidelines, which impose stringent requirements on raw materials, construction, and overall durability.
• Impact on prices: Due to the increased costs associated with meeting these new standards, it’s expected that the price of footwear may rise. However, it is to be watched after the rules are enforced.
• Grace period for existing stock: Sellers can continue to sell old stock but must register the details of this inventory on the BIS website.
• 46 items affected: In total, 46 footwear items will be subject to the revised BIS norms.

Exemption: The BIS rule does not apply to manufacturers with annual turnover below Rs 50 crore.

Potential Implications:

• Improved product quality: Consumers can expect better-quality footwear with enhanced durability and safety features.
• Price adjustments: Consumers may need to adjust their footwear budgets to accommodate the potential price increases.
• Market consolidation: The new norms could lead to a consolidation of the footwear market as smaller players may find it challenging to comply with the stricter regulations.

What is BIS?

BIS stands for Bureau of Indian Standards. It is the national standards body of India.

BIS norms are typically developed through a consensus-based process involving various stakeholders, including manufacturers, consumers, experts, and government representatives. This collaborative approach ensures that the standards are practical, relevant, and acceptable to all parties involved.

Core Areas of BIS Norms:

• Product Safety: Ensuring that products pose minimal risk to consumers.
• Quality: Defining the minimum acceptable quality parameters for goods and services.
• Performance: Specifying the expected performance characteristics of products.
• Compatibility: Ensuring that products can be used interchangeably or integrated seamlessly.
• Environmental Impact: Addressing the environmental implications of product manufacturing and usage.
• Consumer Protection: Safeguarding the rights and interests of consumers.