Initial Statement of Footwear Export from Bangladesh:
Footwear Export from Bangladesh is a regular thing. We are exporting footwear for more than 60 years now. However, the whole footwear market is $162 billion worldwide. Currently, Bangladesh’s offering of footwear advertise is excessively small. So, the nation has the potential to raise the remote trade profit complex by using its substantial workforce. Mostly, specialists and industry insiders mentioning these factors.
Currently, we are trading $ 1 billion from the fare of footwear and cowhide items. Though we have a limitation on business policies and infrastructure. Another positive factor is low costing of workers. It is estimated by experts that this progressive sector can achieve more than what it is producing now.
Saiful Islam, president of Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), said Bangladesh is now promoting its footwear products through various means, including by organizing mega expositions. “Buyers and brands are slowly getting informed about the quality of Bangladeshi goods and types of footwear being produced here,” he said.
Government and private sector have to work together to keep up the upward trend in coming days, he said. Mohiuddin Ahmed Mahin, president of Bangladesh Finished Leather, Leather Goods, and Footwear Exporters Association, echoed same. He said, ” there are also challenges ahead as the international footwear market is highly competitive.”
World Market Demand vs. Possible Market domination of Bangladesh:
Basically, footwear showcase is a major market as far as volume. Almost 397 million or around 40 crore sets of shoes are being sold every year and it is developing by 10 percent consistently. As far as qualities, the size of the market Tk 162 billion. A few specialists said that the footwear part has the possibilities to get take over the clothing business. The possibility has developed by just about 8-10 times in the course of the most recent decade.
If we look back we see the remote trade income from footwear trade has expanded from $68 million in 2004 to $870 million in FY 2017-18. According to Export Promotion Bureau (EPB) data, in the 2018 fiscal year, Bangladesh earned $1.08 billion from footwear, down by 12% from $1.23 billion in FY17. Footwear exports totaled $651 million in the last nine months of the current FY 2018-19, which is around 10 percent higher than the same period last fiscal.
Industry insiders stated, at present, the area has high potential in the worldwide market, which is $246 billion in 2017 and is expected to reach $320 billion by 2021. Calfskin, artificial cowhide, and denim or other textures are the popular material for the footwear. On the off chance that our business people focus on assembling a wide range of footwear, the income from footwear could outperform the returns got from RMG items, they communicated the expectation.
The nation raises the business sector by 10-20 percent can get $40 billion to $50 billion a year from sends out. At that point it’s a matter of 10 years to meet the objective, specialists trusted. The rising work costs in China have made huge retailers look to the nations like Vietnam, the Philippines, India, and Bangladesh, And now we are getting benefits already. But our poor policy, slow infrastructure development, old school technology, no creativity course for workers, anti-environmental factories are decreasing foreign buyers highly.
InsidersThoughts and Global Market Influence for Footwear Export from Bangladesh:
Bangladesh has turned into an alluring goal for cowhide area because of accessible great quality crude covers up when the low work cost has turned into leverage for them, they additionally said including, a few global speculators have set up footwear fabricating industrial facilities in the neighborhood Export Processing Zones (EPZs). M Abu Taher, previous executive of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Affiliation said that the legislature allotted plots to 155 tannery proprietors at the mechanical home and some of them have migrated their units. On the off chance that we can use our 100 percent limit the modern home may support the part’s fare income up to $5 billion.
Right now, Bangladesh sends out footwear to 50 plus nations. Including the EU, China, Japan, Korea, Canada, and North America. The EU is the biggest fare goal of Bangladesh’s footwear industry. Furthermore, the larger part of cowhide (54 percent) is trading to the EU advertise. As indicated by the Euro screen, just 4 EU nations (Germany, France, United Kingdom, Italy) are the best 10 worldwide footwear markets.
Industry insiders stated, to pick up a more prominent offer of the segment, Bangladeshi business visionaries should target both built up top markets, for example, USA, China, and Japan and furthermore developing markets, for example, Mexico, which will flourish by 2018.
Experts Opinion:
Ruhul Amin stated, “India is turning into a danger to the neighborhood passage level market. A decent number of snuck shoes are entering Bangladesh. Which does not offer well for the nearby business. As these merchandises arrive through unlawful channels, they get more valuable benefits.
“Keeping in mind the end goal to ensure the neighborhood rising footwear fabricating industry. And enable it to become further, pirating of shoes ought to be managed,” he pushed.
In the setting of the worldwide market, I can state that China is as yet the market pioneer. The nation is sending out footwear worth $54 billion every year. The second position is Vietnam, and the third by Italy. About 40 percent of the worldwide footwear request is met by China-made footwear, while 12 percent by Vietnam.
“When we investigate the articles of the clothing industry. We see that 83 percent of the fare container is instant articles of clothing items. Alongside pieces of clothing, footwear is likewise a piece of the way of life items. Huge numbers of the purchasers are requesting to have top quality shoes from Bangladesh,” he included.
“We are now presenting to the worldwide market for articles of clothing. The purchasers who are purchasing from China, Vietnam, Cambodia and different nations, ought to likewise purchase great quality shoes from Bangladesh. Purchasing shoes from Bangladesh would be a favorable position for them. Since they would have the capacity to get their shoes inside a similar office costing,” he encourages said.
Nasir Khan, chairman and managing director of Jennys Shoes said, ” Bangladesh is capable of increasing its leather and footwear exports to $10 billion by 2025 if the authorities such as the National Board of Revenue and the port authority as well as banks extend cooperation to exporters.” He also said, “The geographical location of Bangladesh is also very favorable for export and import.”
Huge retailing associations like H&M have come to Bangladesh for sourcing and getting shoes. An extensive proportion of other basic buyers put assets into the items conveyed here in our country of source. Beginning at now, H&M is explicitly getting shoes from here while a critical number of them are acquiring shoes by suggestion through pariahs. Since Bangladesh’s shoe industry is still at its fundamental stage, various buyers are yet to start direct getting from Bangladesh.
Deichman of Germany, one of the overall goliaths, has obtained footwear made in Bangladesh. Along these lines, it is clear that the solicitation is bitten by bit climbing on an overall level. Since China has formally articulated this part as a lodging industry. Along these lines, the organization isn’t placing many ideas into this anymore. As such, the accompanying objective in Bangladesh and there is no other elective.
Final Words:
The footwear region is an obfuscated industry not under any condition like the pieces of attire region. The essential obstacle for this industry is the insufficiency of skilled work. The footwear producers connection has been endeavoring to update the breaking point. In addition, money related authorities are approaching. The shoe business is by and by running by energetic and educated skilled specialists and representatives. Interestingly, the new money related authorities who are directly bringing about these current conditions fragment are not laymen-rather they are educating and further creating.
Tremendous quantities of the compelling bits of apparel businessmen are setting up footwear adventures. Of course, they can begin the footwear business. What’s more, we trust that Footwear Export from Bangladesh will be the following objective to accomplish.
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