Local leather footwear manufacturers see a better prospect ahead, after an increase in exports by 39 percent in the July-November period of the current fiscal year, which pins a hope of overcoming losses from declining leather exports in the recent months.
During the period export earnings from locally made footwear stood at around $85 million, which is a rise from $61 million in the same period of the last fiscal year, according to Export Promotion Bureau (EPB) statistics.
“The cost of production of quality leather shoes is lower in Bangladesh than in China and India, and this is the main reason for getting more orders from European countries that increases the demand of local shoes in the international market,” said Tipu Sultan, former chairman of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association.
China, India and Vietnam were the largest leather shoe exporters in the world, but in recent years these countries are failing to make and sell quality low-cost leather shoes on WTO anti-dumping rules.
Sultan said now Bangladesh is getting more orders from Germany, Italy, France, Japan and Canada that earlier used to go to India and China.
“Another big reason behind this growth is that the technology we are using now is from Italy, which creates trust about the quality of the products among the buyers,” he added.
The growth came at the time when the country is struggling with its falling leather export, which is one of the biggest foreign exchange earners. Exports of finished leather and leather goods declined by around 18 percent in the July-November period of the current fiscal year.
The demand for fashionable and costly leather shoes is declining in international market on recession, bringing an opportunity for the country to make shoes that are ordinary but essential.
Sultan said Bangladesh mainly exports crushed and finished leathers, whose demand and sales dropped in international markets on the back of recession.
Crushed leather is the main raw material of the locally made footwear.
Sultan said manufacturers can produce diversified leather products to minimise the losses that might come from a fall in finished leather exports.
The country started exporting leather footwear in 1994 in a small scale to neighboring countries including India and Nepal that increased in recent years.
Currently the total market size of locally made leather footwear stands at around Tk 1,700 crore of which at least 45 percent is exported. The country exports around six million pairs of leather footwear per year.
Bangladesh mainly exports men's footwear, ladies sandals and shoes and sport shoes to European countries, China, Canada, Saudi Arabia, Dubai, Iraq, Jordan, India and Nepal.
Bata, the leading shoe company, exports the largest amount of locally produced leather shoes.
Ruhul Amin, merchandising manager of Bata, said they export shoes to Gulf countries and Nepal.
“We export footwear mainly to Saudi Arabia, Dubai, Jordan, Turkey, Egypt, Iraq and Nepal,” he said.
“We mainly export men's and ladies shoes and a small amount of children's shoes,” he said, adding that the company exports around 5-7 lakh pairs of shoes per year.
He also said Bata is planning to make its export size bigger by the end of this year.
Apart from the branded shoes, the country also exports non-branded shoes.
Currently there are around 120 companies involved in exporting footwear mainly in small amounts.
ASM Hamidur Rahman Chowdhury, managing director of Titas Footwear Bangladesh, said they have been exporting fashionable leather sandals and slippers for women from 1998.
“We started exporting in a very small amount at that time, but gradually the demand increased among the clients of Japan, Canada and the Maldives,” he said.
The company received a big export order from Italy last month and set to deliver by July, he added.
However the main problems the industry faces are lack of skilled people and quality designs, said the industry insiders.
“The demand for leather jackets, furniture and shoes is still steady in international markets, but we have a few skilled people,” said Sultan.
He said the government should take initiatives to develop expertise and train people in the sector.
Sultan also urged the government to take steps to reduce the rising cost of leather processing, which makes Bangladeshi leather more expensive.
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