Low-cost Chinese shoes that have already flooded the market pose a threat to domestic investment in the footwear sector, said industry people.

Domestic investment in the sector remains under threat from cheap foreign shoes and apathy from Bangladesh Tariff Commission in formulating tough safeguard measures, they added.

The low-priced Chinese shoes and sandals are available not only at shopping malls across Dhaka, but also on city streets in areas like Farmgate, Gulistan, Jatrabari, Purana Paltan, Motijheel and Dilkusha.

Of 39 major footwear makers in Bangladesh, 19 are in operation now. The rest are not performing well because of declining local and international orders.

The total number of local footwear makers is close to 200.

A pair of Chinese sandals sells at Tk 750-Tk 950 at the shopping malls in Dhaka, while the same quality local product has a price tag of Tk 1,600-Tk 1,800, said a vendor.

Bata Shoe Company (Bangladesh) Ltd Export Manager Mojibur Rahman said growth in sales of local footwear is declining because of a glut of low-cost Chinese peers.

"It's sometimes difficult even for leather technologists to identify whether Chinese footwear is made of leather or synthetics," Rahman said.

The local vendors sell synthetic Chinese footwear, saying that those are made of leather, he said, alleging that the sellers do not pay 100 percent duty to import such low-cost products.

Leathergoods & Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) President Saiful Islam suggested the government increase duty on footwear imports to safeguard the local makers. Currently, the import duty on footwear is 35 percent.

The Chinese footwear manufacturers

hoodwink customers into buying the shoes claiming those are made of leather, Islam said. "In our country, consumer rights protection laws are weak, and so the customers are cheated easily."

Abu Taher, an importer and shopowner at Polwel Shopping Centre in Dhaka, said the low-cost Chinese shoes are made of artificial synthetic fibre although those looklike made of leather.

"You can't even imagine buying an original Puma, Adidas or Nike brand at Tk750-Tk950. But all such brands are available at these prices as the shoes are made of artificial fibre," he added.

He said the demand for such Chinese shoes is higher compared with other local and original brands — for lower costs.

Bangladesh Tariff Commission Chairman Dr Mujibur Rahman said no individual, business house or association has lodged complaints with the commission until now although everybody knows aboutit.

"We are now investigating at least 13 duty related cases (of different sectors)," the chairman said, adding that the footwear industry will also come under the radar soon, and the tariff commission will recommend protective measures.

Bangladesh produces over 220 million square feet of rawhide a year, of which 80 percent come during the religious festival ofEid-ul-Azha.

Local tanners have the capacity to process more than 300 million square feet of rawhide a year, but they get only 200 million square feet.

Bangladesh is one of the lowest shoe using countries — per capita usage is at 0.8 pair a year.

Industry insiders said only 10 percent people use leather shoes, but the number is increasing every year. The local footwear market size is of more thanTk 1,600 crore.

The footwear industry is growing at 32 percent a year, while the leather industry at 20 percent and leather goods at 25 percent.

reefat@thedailystar.net