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Leather footwear exports hit 5-year high in Jul-Oct
JAGARAN CHAKMA
Bangladesh is sending more leather footwear to foreign markets like the United States, Japan and the European Union as the country’s footwear exports during the July-October period of the current fiscal year surged to a five-year high.
Despite economic slowdowns in some markets, local exporters say they are receiving increased orders from foreign buyers thanks to Bangladesh’s competitive labour costs, which makes “Made in Bangladesh” shoes more affordable.
Besides, some orders are shifting to Bangladesh from China due to rising production costs in the latter.
During the July-October period, Bangladeshi shoemakers, the second-largest foreign exchange earner after the readymade garment sector, fetched $228.47 million in export earnings.
This is a 9 percent increase from the $182.11 million earned during the same period the previous year, according to the Export Promotion Bureau (EPB).
In the pandemic-hit fiscal year 2020-21, Bangladesh’s footwear shipments during the July-October period stood at $168.53 million.
“After a prolonged period of suffering since the pandemic, the leather footwear sector has started to regain its pre-pandemic export trend as new orders are coming from the USA and Japan,” said Nasir Khan, chairman and managing director of Jennys Shoes, a local manufacturer and exporter.
“We are hopeful that the rising trend in leather footwear exports will continue if the interim government cooperates and removes export issues like unnecessary licensing and certification each year,” Khan said.
He added that if the government cooperates with the footwear manufacturers and relaxes bureaucratic involvement in bonded facilities, the sector can reach $5 billion in annual shipments.
“It’s just a matter of time.”
According to Khan, the local footwear sector is capable of 50 percent value-addition. So, it offers important scope for export diversification.
Besides, buyers are gradually returning to Bangladesh as their economies have started to recover, he added.
Prottoy Parvej, manager (commercial) of Akij Footwear Limited, said some orders are shifting to Bangladesh from China due to rising production costs there.
For this reason, some orders have increased as Bangladesh is able to provide leather footwear at a more competitive price than China and India, he said.
The order book is expected to grow in the next year as renowned buyers from the Eurozone, North America and Japan are contacting Bangladeshi leather footwear manufacturers, Parvej added.
According to him, foreign buyers who previously imported from China are now shifting to Bangladesh to take advantage of competitive pricing.
The Akij Footwear manager said exporters do not require cash incentives but hassle-free customs processing for both exports and the import of necessary raw materials.
Md Omar Faruque, company secretary of Apex Footwear Limited, a leading leather footwear exporter, said they received more orders from the USA and Japan this year and this trend is likely to continue.
Large US buyers have begun inquiring about the capacity, compliance and quality of Bangladeshi products, he added.
“So, we are hopeful about increasing footwear exports as there are possibilities of a rebounding Eurozone economy soon,” he said.
However, he said that political stability is very important to materialise the surge in foreign orders.
“Buyers are risk-averse and prioritise stable political environments to ensure timely deliveries,” said Faruque.
There are around 60 local companies, including Apex Adelchi Footwear, Jennys Shoes and Bay Footwear, that export footwear and leather goods mainly to Japan, Europe and the US.
According to Statista, the footwear market in Bangladesh is projected to reach $3.33 billion by 2024. From 2024, the market is expected to grow annually by 5.66 percent up to 2028.