Eva Leather bd

5.0(3) · Leather goods manufacturer

Fatullah
Open ⋅ Closes 10PM · 01913-267170

Website

Directions

Eva Footwear
No reviews · Shoe store
Dhaka · In পলওয়েল কারনেশন
Open ⋅ Closes 7:30PM · 01751-275548
In-store shopping

Eva Footwear And Leather bd is a tannery and manufacturer of best quality Cow, goat &
Buffalo’s finished leather, crust leather, wet blue split leather at a competitive price in
Bangladesh .

Eva Footwear And Leather bd is the most abundant and common leather source. It offers
maximum value for texture, appearance, durability, and comfort.

This leather is easy to care for, the least expensive due to its availability and is dirt and water-
resistant. Bovine leather is one of the heaviest leather, making it very tough wearing and durable
featuring a pebble grain appearance.

Although it can be a bit stiff Eva Footwear And Leather bd is used for virtually every leather
product including handbags and can be natural or dyed in an array of fashion colors.

Directions

M/S Ruhitpur Shoe Store

5.0(1) · Shoe store
Dhaka
Open ⋅ Closes 10PM · 01919-717106

Directions

ALIEN FOOTWEAR
No reviews · Shoe factory
Savar Union
Alien is committed to earning the highest level of respect of our customers, by adding value to
our products and to enhance the customer experience by assuring a memorable and state of the
art shopping atmosphere.
See less

Open ⋅ Closes 6PM · 01748-772666

Directions

The Shoes Bangladesh Ltd.

No reviews · Shoe factory
Dhaka
Open 24 hours · 01711-953061

Website

Directions

Lace footwear bd
5.0(5) · Shoe factory
Bhairab
Open ⋅ Closes 5PM · 01727-508432

Directions

ShooMaker
No reviews · Shoe factory
11/B 03/30 Dhaka
01674-284953

Website

Directions

Eva Shoes
5.0(2) · Shoe store
Sylhet
Open ⋅ Closes 11:30PM · 01716-870183
In-store shopping

Directions
The Highway Footwear
No reviews · Shoe factory
Dhaka
Open ⋅ Closes 10PM · 01735-149707

Website

Directions

Nuovo Shoes (BD) Ltd.

3.7(3) · Shoe factory
Dhaka
Open now

Website

Directions

One click shopping

No reviews · Shoe factory
Dhaka
01925-634802

Directions

Smart Footwear Industries

No reviews · Shoe factory
Dhaka
Open 24 hours · 01811-001528

Directions

PERFECT Footwear Ltd.

4.8(6) · Shoe factory
Dhaka
Open ⋅ Closes 5PM · 01755-578538

Website

Directions
Try On Shoe Material BD Ltd.
3.6(8) · Shoe factory
28C3+F5J
Open now

"Eva abd rubber outsole production factory... Environment is good."

Directions

Unique Footwear Industries

5.0(1) · Shoe factory
Dhaka
Open 24 hours · 02-7343600

Directions

Royal Footwear Limited

4.3(28) · Shoe factory
Tongi
Open ⋅ Closes 5PM

"Best footwear company"

Directions

Smart Shoes Limited

4.3(12) · Shoe factory
V84G+MRG
01815-642087

"And the quality of their shoe is really high quality."

Smart Shoes Limited started journey as an export oriented Footwear Manufacturing Industries in
the end of year 2018.

Smart Shoes Limited factory situated in a nice environmental location in Kheyaghat, Birulia,
Savar Dhaka,which is the nearest footwear factory from Dhaka International Airport.

Smart Shoes Limited started their operations with young, energetic and qualified Team, who has
the ability to deliver impeccable quality and punctual shipment within a framework through a
professional, reliable and sincere business atmosphere.
Smart Shoes Limited setup with specialized machineries to meet the needs of global market and
fulfill Customers quality requirements.
  Total Employee of SMART : 700 Persons
 Total Assembly Finishing Line: 02
 Total DIP : 01
 Total PU Pouring : 01
 Total TPR outsole : 01
 Total capacity per day : 6,000 Prs

Website

Directions

Posh Footwear & Craft Ltd

4.9(13) · Manufacturer
Shreepur
01966-777555

"Beautiful & Green shoe factory!"

Website

Directions

Deheel Footwear
5.0(10) · Shoe factory
Zirabo

"Deheel making good shoe manufacturer in Bangladesh."

Directions

Italy Footwear Limited

5.0(7) · Shoe factory
Dhaka
Open ⋅ Closes 5PM

"Best quality Shoe manufacturer in Bangladesh"

Website

Directions
Can't find what you are looking for?
Add a missing place

The objectives of this report is to analysis Problems and Prospects of Footwear Industry in

Bangladesh. Here main discussion are Financial Feasibility Analysis and analysis the overall
international trade statistics for last 5 years. Finally analysis the barriers and challenges of
Footwear sector and suggest strategies to overcome the Barriers and Challenges.

Introduction

Footwear is a traditional export item of Bangladesh. Footwear produced from high quality
leather in the country enjoys a good reputation worldwide for their quality. The country,
however, has a growing success in this sector. The business experts believe that export earnings
from the sector could be substantially increased if we use advanced technology to produce high
quality footwear. This, however, depends on adoption of appropriate policies on the part of the
government and business community to develop the sector. The products must be improved to
satisfy the quality requirements demanded by the consumers of the international market
especially of the developed world. The low wage rate and poor enforcement of environmental
laws and rules have given the country’s footwear sector a comparative advantage in the world
market. Moreover, the country enjoys duty exemption under the GSP (Generalized System of
Preference) from the most of the importing countries of the developed world. Bangladesh also
enjoys a reduction of Tariff and other non-Tariff barriers from WTO (World Trade
Organization). While this provide an opportunity for a country like Bangladesh to boost up its
export.

Objectives:

The objectives of this study are as follows:

 To know about the environment of selected products sectors- Footwear.

 To know about the overall international trade statistics for last 5 years.
 To know about the problems and prospects of Footwear Industry.
 To know about the barriers and challenges of Footwear sector.
 Suggesting strategies to overcome the Barriers and Challenges.

Methodology:

This study is based on both primary and secondary data/information. Primary Data for this study
was gathered by primary data collection method through personal administered questionnaire
and telephonic discussion from some industries and secondary data/information was collected
from published articles, magazines, different books, internet etc. After assisting a respondent in
completing a survey, the data collector would then approach the next available person and
resume the screening process. The response rate was very high due to the fact that, the
researchers’ pursued all respondents personally and motivate respondents to participate the
survey.

Introduction to the Research Proposal

Footwear Industry in Bangladesh: A Short history

The Footwear Industry in Bangladesh is at its early stage of development. There was no
mechanized Footwear Industry in the country until early 1900’s and the footwear manufacturing
was limited to cottage and family level small factories. The first mechanized industry, Bata Shoe
Co. (Bangladesh) Ltd., a multinational enterprise. Followed by Eastern Progressive Shot
industries and Bengal Leather which used to produce mainly for domestic supply. Indeed, the
shoe industry started featuring in Bangladesh in 1990 with the introduction of encouraging
government policy measures of granting fiscal and financial incentives for production of leather
footwear in the country for export. There has been a rapid growth in footwear production
capacity. Both complete leather shoes and sports shoes manufacturing for export during last
decade. There are now about 42 Mechanized and over 4500 non-mechanized small and cottage
level units in Bangladesh producing various types of footwear for both domestic market and
export. Most of the mechanized units are export oriented.

Footwear Sector, as a sub sector of Leather Sector gets also priority from Government but this
sector as well was ignored by the Government for many years. Now in the era of globalization,
nobody can find an alternative of product diversification (export diversification). For this reason
government is now started looking after Footwear Sector rather than Jute and Tea.

Export position of Footwear during 2009-2010:

According to the Export Promotion Bureau Footwear was 8th Position which given in the
following table and the chart:

Table:

Serial no. Commodities Percentage

01 Woven Garments 37.11
02 Knitwear 40.11
03 Frozen Food 2.73
04 Jute Goods 4.87
05 Leather 1.40
06 Agro Products 1.50
07 Engg. Products 1.92
08 Footwear 1.26
09 Others 9.21
Major companies involved presently in manufacturing footwear in Bangladesh:

A new era started in this sector during 1979-90. Some product units especially footwear have
been established and exporting of shoes and shoes uppers. A group viz. Apex came forward as
pioneer to produce export quality footwear and penetrating in the international market. Now
according to Leather goods & Footwear Manufacturers & Exporters Association of Bangladesh
there have the following listed footwear companies:

Table:

Serial No. Name of the company

M/s. Apex Adelchi Footwear Ltd

01 Celebration Point, Plot # 3,5

Road # 113A, Gulshan-2, Dhaka

M/s. Jennys Shoes Ltd.

02 Jennys House, House # 6, Road # 68/A

Gulshan-2, Dhaka
M/s. Legacy Footwear Ltd.

03 64, Bijoynagar,

Kakrail, Dhaka
M/s. Landmark Footwear Ltd.

04 64, Bijoy Nagar (3rd Floor)

Kakrail, Dhaka
M/s. Surma Leather & Footwear Ind. Ltd.

05 Corner Court, 29 Toynbee Circular Road

Motijheel C/A, Dhaka

M/s. Bay Footwear Ltd.

06 Wasa Bhaban (3rd Floor)

Kazi Nazrul Islam Avenue, Dhaka

07 M/s. Tropical Shoes Ind. Ltd.

A. R. Tower (3rd Floor)

 24, Kamal Ataturk Avenue, Banani
M/s. H.N. Shoes Ltd

08 House # 69, Road # 8/A, Dhanmondi R/A, Dhaka

Name of the company

M/s. Leatherex Footwear Ind. Ltd

09 House # 34/A, Road # 10/A

Dhanmondi R/A. Dhaka

M/s. Advance Industrial Management Co. Ltd.
10
Baipal, Savar
M/s. Savar Industries (Pvt.) Ltd.
11
DEPZ
12 M/s. Malim (BD) Co. Ltd.
13 M/s. Five-R-Footwear Ltd.
14 M/s. Vannara Corporation Ltd.
15 M/s. Shampan Shoes Ltd.
16 M/s. Rimex Footwear Ltd.
17 M/s. Adelchi Footwear Bangladesh Ltd.
18 M/s. F.B. Footwear Ltd.
19 M/s. Bata Shoe Co. (BD) Ltd.
20 M/s. Akij Footwear Ltd.
21 M/s. Lalmai Footwear Ltd.

Financial Feasibility Analysis and Findings

Market size of Footwear in the World:

Present scenery of world Footwear production is given bellow:

Quantity
Region Percentage share
( Million Pairs)
WESTERN
777 4.58%
EUROPE
EASTERN EUROPE 371 2.18%
MIDDLE EAST 589 3.47%
AFRICA 647 3.81%
ASIA PACIFIC 13453 79.26%
NORTH AMERICA 331 1.95%
LATIN AMERICA 805 4.74%
WORLD 16972 100.00%

 Source: BLSC

Country-wise market size of Footwear items in the world: The status of Bangladesh

Exported Exported Exported Exported Exported

value in value in value in value in value in
Parameter
2007,US $ 2008, US $ 2009, US $ 2010, US $ 2011,US $
thousand thousand thousand thousand thousand
World Footwear
83,909,121 92,860,466 82,564,928 99,247,716 116,594,945
export
Bangladesh
137,487 186,462 216,959 267,954 381,402
footwear export
Percentage 0.16% 0.20% 0.26% 0.27% 0.33 %

Sources: ITC calculations based on UN COMTRADE statistics.

Countrywide Footwear export in the world:

  Exported Exported Exported Exported

Exported value
value in value in value in value in
in 2007
Exporters 2008 2009 2010 2011
World 83,909,121 92,860,466 82,564,928 99,247,716 116,594,945
China 25,350,737 29,720,438 28,016,268 35,633,851 41,722,333
Italy 11,011,374 11,456,558 9,212,744 9,852,113 11,598,552
Viet Nam 4,076,199 4,872,365 4,151,908 7,527,764 8,586,520
Hong Kong, China 5,962,447 5,980,830 4,757,046 5,576,873 5,655,701
Germany 3,557,912 4,076,616 3,656,028 3,950,566 4,967,401
Belgium 3,396,171 3,703,291 3,486,261 3,742,158 4,181,935
Netherlands 2,683,544 2,817,447 2,779,541 3,032,298 3,464,975
Indonesia 1,637,955 1,885,473 1,736,114 2,501,850 3,301,943
Spain 2,583,274 2,888,447 2,615,654 2,557,084 3,126,565
France 1,984,034 2,142,325 1,906,979 2,081,723 2,549,347
India 1,412,039 1,581,201 1,481,177 1,642,895 2,534,046
Portugal 1,801,224 1,975,019 1,744,409 1,780,183 2,150,294
Romania 1,782,507 1,749,188 1,359,777 1,475,815 1,818,402
Brazil 2,038,057 2,025,176 1,477,085 1,631,516 1,498,768
United Kingdom 1,074,641 1,150,740 1,106,698 1,309,521 1,481,360
Slovakia 667,664 904,741 807,428 929,149 1,300,978
United States of
887,422 1,038,396 945,299 1,103,837 1,287,506
America
Panama 798,380 890,023 823,811 936,305 1,131,408
Austria 775,724 859,595 747,102 778,562 978,260
Thailand 976,421 960,745 793,655 821,262 926,326
Denmark 603,973 632,525 544,010 659,016 754,415
Tunisia 575,817 608,039 512,264 566,385 753,515
Cambodia 78,973 87,949 108,470 177,108 744,943
Poland 409,767 464,521 399,565 513,743 621,459
Czech Republic 386,043 418,851 421,799 474,757 618,064
Morocco 338,732 363,660 357,292 351,856 533,487
Hungary 396,508 421,650 398,627 419,701 528,189
Mexico 341,212 318,247 306,028 384,902 468,784
Republic of Korea 462,637 483,065 375,107 435,862 463,472
Turkey 316,740 344,890 289,569 395,739 441,300
Bangladesh 137,487 186,462 216,959 267,954 381,402
Chinese Taipei 328,883 319,113 254,919 302,754 330,507
Bosnia and
242,354 272,656 243,945 274,507 323,767
Herzegovina
Dominican
215,745 209,040 148,233 198,701 319,842
Republic
Bulgaria 247,473 244,209 205,247 252,582 307,919
Albania 226,799 227,721 210,616 243,250 300,195
Sweden 231,171 243,540 207,784 235,997 295,649
Singapore 208,957 226,235 184,728 248,997 295,534
Switzerland 190,739 264,677 255,678 223,048 286,911
Serbia 204,741 241,351 192,912 209,689 269,975
Canada 230,346 249,971 211,244 230,812 243,820
Malaysia 178,321 199,473 206,922 221,502 204,018
Ukraine 143,479 170,823 138,872 169,323 202,516
Croatia 201,164 211,080 190,354 193,967 199,406
Finland 127,049 137,887 112,619 134,428 166,110
Slovenia 137,647 150,783 137,391 137,375 153,733
Estonia 98,644 86,818 58,470 72,253 139,504
Chile 10,815 98,340 94,959 109,732 138,521
Belarus 113,726 131,131 110,814 130,865 130,568
Pakistan 113,216 133,177 117,259 92,694 112,259
Myanmar 52,968 101,351
Europe Othr. Nes 101,843 147,746 208,480 117,984 91,076
Greece 66,830 102,648 97,684 89,539 90,420
Luxembourg 13,777 18,877 67,634 96,474 89,850
The former
Yugoslav Republic 83,287 79,148 82,159
of Macedonia
Ireland 43,514 41,346 35,836 67,302 78,161
Japan 65,765 79,689 57,499 67,038 70,572
Colombia 161,302 220,686 111,708 44,407 52,195
Australia 36,570 41,422 34,252 38,268 51,757
Republic of
39,926 47,555 26,070 30,375 49,452
Moldova
Israel 43,723 0 42,354 49,870 49,214
Lithuania 29,378 37,066 30,923 30,800 43,519
Ecuador 32,248 33,498 33,653 34,938 42,980
Kenya 45,654 38,990 34,831 41,201 41,754
Côte d’Ivoire 23,454 29,039 37,200 41,348 41,662
El Salvador 29,476 31,586 30,902 36,285 41,638
Guatemala 30,954 35,537 31,994 37,888 40,917
Nicaragua 1,643 1,671 1,932 2,514 35,457
South Africa 19,997 22,328 24,507 30,160 34,228
Argentina 33,486 33,885 27,132 30,190 33,783
New Zealand 43,544 39,848 36,777 41,419 32,388
United Arab
253,170 234,982 72,755 77,120 32,374
Emirates
Russian Federation 31,779 30,079 28,325 30,659 32,169
Syrian Arab
214,522 191,438 94,547 106,926 29,087
Republic
Latvia 17,348 20,606 22,529 15,339 26,411
Free Zones 23,826 36,770 21,052 16,557 22,865
Peru 14,249 17,331 15,220 16,911 21,673
Norway 26,315 28,234 23,136 18,228 21,548
Egypt 8,171 17,159 17,394 18,465
Rwanda 648 1,019 1,499 17,942
Sri Lanka 24,116 21,650 17,206 19,502 16,710
Paraguay 164 1,063 8,994 17,496 16,697
Jordan 4,820 4,225 3,110 3,722 14,247
Cyprus 3,773 5,059 5,149 8,424 13,455
Macao, China 48,801 16,808 9,157 0 12,940
Philippines 30,581 31,000 22,080 8,332 12,135
Lao People’s
Democratic 8,858 6,789 11,430 9,438 11,574
Republic
Ethiopia 8,200 9,670 6,611 7,962 8,637
Honduras 5,631 5,154 4,006 5,591 5,771
Uganda 3,902 2,997 17,502 6,030 4,839
Cape Verde 4,598 3,657 4,186 4,730
Malta 4,989 4,523 2,747 3,835 4,368
Kyrgyzstan 1,544 3,737 2,760 2,021 3,256
Guinea 8 0 9 73 3,121
Uzbekistan 142 203 1,666 1,466 2,846
Bolivia 3,399 2,584 1,979 2,170 2,789
Iran (Islamic
126,731 2,470
Republic of)
Nigeria 59,705 55,178 85,799 340,865 2,242
Democratic
People’s Republic 337 342 159 196 2,218
of Korea
United Republic of
4,683 2,560 4,561 4,707 2,108
Tanzania
Lebanon 17,842 18,480 16,081 20,393 2,105
Senegal 2,879 4,076 3,517 3,595 1,981
Zimbabwe 3,790 1,458 1,061 2,162 1,944
Sierra Leone 387 157 277 1,279 1,912
Zambia 1,860 2,345 2,384 1,655 1,843
Mongolia 118 941 570 1,179 1,799
Uruguay 3,826 3,373 3,182 3,080 1,743
Cameroon 409 288 74 85 1,731
Botswana 2,190 2,126 2,493 2,326 1,435
Dominica 0 1 0 1 1,365
Armenia 1,315 1,012 794 1,333 1,364
Costa Rica 544 868 625 1,006 1,327
British Virgin
1,268 1,283 741 1,880 1,114
Islands
Bahrain 82 164 438 350 984
Netherland Antilles 77 40 2,788 2,191 944
Jamaica 426 463 170 275 927
Nepal 6,656 8,383 909
Ghana 1,784 77 79 197 765
Montenegro 431 831 667 456 620
Togo 1,078 926 423 150 574
United States
Minor Outlying 627 851 1,137 657 569
Islands
Gambia 0 11 699 96 566
Andorra 365 251 853 879 564
Saudi Arabia 9,180 0 0 6,561 547
Fiji 1,929 1,374 872 923 542
Palestine 24,658 27,237 25,805 25,712 509
Mauritius 652 477 544 434 498
Azerbaijan 189 64 154 24 440
Aruba 315 26 416
Micronesia
(Federated States 1 3 45 2 371
of)
Libya 20 279 22 15 336
Oman 19,365 19,435 17,571 14,627 330
Qatar 952 870 104 227 323
Venezuela 5,184 747 548 312
Benin 28 16 11 12 297
America not
4 3 4 235 261
elsewhere specified
Belize 1 0 0 0 248
Georgia 765 1,098 1,112 159 233
Mozambique 38 47 20 84 219
Namibia 1,568 2,347 161 185 218
Samoa 4 4 18 101 186
New Caledonia 97 133 189 185 179
Kuwait 2,791 3,243 117 192 173
Kazakhstan 1,112 1,840 3,544 171 167
Iceland 151 191 107 106 163
Seychelles 0 3 7 145
Tajikistan 19 141 397 1,886 140
European Union
137
Nes
Cocos (Keeling)
55 80 31 411 134
Islands
St. Pierre and
131
Miquelon
Cook Islands 32 5 115
Comoros 34 7 56 18 113
Angola 119 46 16 10 88
Cuba 407 167 139 47 83
British Indian
2 93 28 46 81
Ocean Territories
Madagascar 181 79 51 38 74
Burkina Faso 2 41 29 0 55
Algeria 101 269 169 13 45
Trinidad and
112 74 148 68 42
Tobago
Christmas Islands 3 516 12 40
Timor-Leste 9 2 39
Northern Mariana
3 53 73 106 39
Islands
Saint Kitts and
1 1 1 25 37
Nevis
Eritrea 1 113 28 20 37
Bhutan 0 0 0 0 37
Gabon 31 29 6 31 36
Suriname 91 36
Swaziland 104 56 293 41 35
Turks and Caicos
180 30 9 452 35
Islands
Djibouti 29 53 34
French Polynesia 4 6 32 28 30
Iraq 47 5 169 15 28
Yemen 2,051 633 1,048 49 27
Saint Lucia 23 2 5 22 23
Niger 1,198 1,733 984 555 22
Somalia 52 89 218 21 22
Antigua and
39 71 386 661 22
Barbuda
Congo 4 22 9 7 22
Brunei Darussalam 199 107 141 43 21
Tokelau 42 15 26 33 21
Barbados 58 4,171 3,856 3,816 19
Anguilla 6 3 12 2 17
Tonga 0 0 0 15
Greenland 12 8 10 5 15
Mali 57 149 310 15
Haiti 339 174 271 82 14
French South
Antarctic 1 283 192 32 14
Territories
Bahamas 2 23 7 7 12
Afghanistan 0 0 0 12
Papua New Guinea 2 10 6 15 12
Pitcairn 134 94 87 35 10
Equatorial Guinea 63 7 25 25 9
Vanuatu 0 5 90 9
Mauritania 0 0 8
Malawi 266 86 196 252 8
Bermuda 23 5 13 14 7
Chad 132 87 18 57 6
Kiribati 5
Guinea-Bissau 49 1 5
Sao Tome and
0 0 0 22 4
Principe
Wallis and Futuna
5 3 1 4
Islands
Guyana 233 167 146 134 4
Democratic
Republic of the 306 46 67 66 4
Congo
Saint Helena 14 12 61 3
Turkmenistan 3 40 2
Faroe Islands 1 1 5 5 2
Cayman Islands 6 50 9 2
Solomon Islands 20 19 54 2
Grenada 0 3 35 1
Liberia 17 38 166 1 1
Nauru 14 14 6 10 1
Saint Vincent and
3 1 1 18 1
the Grenadines
Africa not
8 12 20 239 1
elsewhere specified
Central African
8 1 1 0 0
Republic
Burundi 6 1 2 48 0
Falkland Islands
1 39
(Malvinas)
Mayotte 0 2 0
Montserrat 0 5 0
Oceania Nes 25
Lesotho 5 17 24 64
LAIA not
21
elsewhere specified
Gibraltar 14 9 48 5
Niue 13 33
Norfolk Island 8
Marshall Islands 49 19
Palau 1
Tuvalu 2 1 1
Western Sahara 2 2
Sudan 0 0 129
Ship stores and
10 1
bunkers
Countrywide Footwear exports statistics of Bangladesh, 2011-2012 (July-May), Value US$

Footwear 301,697,878.70
UNITED ARAB EMIRATES 1,246,832.09
ARGENTINA 204,310.29
AUSTRIA 4,545,137.15
AUSTRALIA 174,517.22
BOSNIA AND HERZEGOVINA 229,923.72
 BELGIUM 7,045,606.64
 BAHRAIN 165.10
SAINT BARTHÉLEMY 11,847,452.19
BOLIVIA, PLURINATIONAL
9,509.12
STATE OF
BRAZIL 530,270.52
CANADA 3,362,478.94
SWITZERLAND 4,223,808.17
CHILE 590,189.78
CHINA 1,336,425.00
COLOMBIA 158,615.48
CYPRUS 235,958.70
CZECH REPUBLIC 1,398,484.42
GERMANY 36,650,942.82
DENMARK 69,912.54
ESTONIA 254,047.06
SPAIN 35,023,716.01
FINLAND 911,622.64
FIJI 99,528.27
FRANCE 24,223,782.18
UNITED KINGDOM 3,798,357.16
GEORGIA 45,910.57
GREECE 559,461.02
HONG KONG 5,655,743.58
CROATIA 93,099.47
HUNGARY 60,999.16
INDONESIA 380.17
IRELAND 179,613.35
INDIA 79,658.33
IRAQ 2,880.09
ITALY 24,634,420.26
JAPAN 65,047,840.77
KOREA, REPUBLIC OF 8,909,522.68
KUWAIT 56,537.96
LEBANON 2,289.99
SRI LANKA 119,375.70
LITHUANIA 61,915.07
LIBYAN ARAB JAMAHIRIYA 23,319.00
MYANMAR 57,584.53
MALTA 61,810.38
MAURITIUS 2,612.69
MALDIVES 323.04
MEXICO 1,553,536.96
MALAYSIA 131,161.18
NETHERLANDS 17,371,943.33
NORWAY 387,107.62
PANAMA 349,786.90
PERU 1,124,898.35
PAPUA NEW GUINEA 5,295.52
PHILIPPINES 17,739.32
PAKISTAN 49,247.60
POLAND 4,135.13
PORTUGAL 131,995.88
PARAGUAY 471,157.71
QATAR 500.37
ROMANIA 362,177.20
RUSSIAN FEDERATION 1,956,427.62
SAUDI ARABIA 895,400.95
SWEDEN 2,026,357.19
SINGAPORE 101,008.02
SLOVENIA 1,342,276.47
SLOVAKIA 513,583.33
SENEGAL 212,271.55
EL SALVADOR 21,929.28
SWAZILAND 54,102.27
THAILAND 27,650.03
TUNISIA 60,602.14
TURKEY 290,853.05
TAIWAN, PROVINCE OF CHINA 712,849.97
Not Defined 4,319,214.50
UNITED STATES 22,197,875.78
URUGUAY 7,541.15
VENEZUELA, BOLIVARIAN
60,489.35
REPUBLIC OF
VIET NAM 1,665.95
!!! Not Defined 114,409.68
SOUTH AFRICA 845,691.90
ZAMBIA 148,104.45

Sources: Export Promotion Bureau (Bangladesh)

South Asian Footwear Export in 2011(in US Dollar Thousand)

In the footwear export, Bangladesh is the 31st position in the world but second in the South Asia.
The chart given in the below:

Footwear export of Bangladesh

From international trade statistics we have find that Footwear export increased of year 2011 than
the year 2010 is 42.33%. So, we can say that it is raising sector of our country’s growing
economy. The Footwear sector plays a significant role in the economy of Bangladesh in terms of
its contribution to export and domestic market.

Local Footwear market size of Bangladesh and share of imported and locally
manufactured items

Footwear Marketing in Bangladesh

Marketing is the vital aspects for the Bangladeshi footwear. Production of footwear in
Bangladesh being primarily for export purpose. All the efforts being made by the manufacturers
are presented in the foregoing analysis. Of course, there are few units which rely on domestic
market. They are also contacted and their views have been complied. As regards to domestic
marketing of footwear, it is being done by nearly one fourth of total Footwear. However, it does
not mean that these units solely rely on domestic market. Good number of units in Dhaka
undertakes domestic sales. Such local sales units are very less in other Divisions. The domestic
supply orders for the units are largely through direct contacts as well as from the corporate
business groups for complimentary.

Category of marketing of Footwear:

Of the prominent categories, In Bangladesh context, there are various kinds of footwear are
available in here like-

 Leather shoes.
 Synthetic shoes.
 Leather sandals.
 Synthetic sandals.
 Sports shoes.
 Canvas & PVC shoes.
 Slippers and Chappals.
 Army boots.
 Ladies boots.
 Jute sandals/chappals.

However, it was observed during the field survey, that more than hundred types of items are
being made from leather for export purpose, with ever expanding uses. This category of industry
is highly vulnerable for non-leather substitutes and supplements. Functionally leather and non-
leather items perform the same job. Leather items are preferred for their natural feel, elegance
and of course long life. The local sales affected, need not necessarily be always to the
Bangladeshi customers. It is observed that foreign tourists’ effect purchases from Bangladeshi

Stores during their visit to Bangladesh. The situation in Dhaka is slightly different. Domestic
marketing is remarkable high in the case of other Divisions units

The demand side of market

A difficult market in terms of fierce competition, sophistication of styles and fashions, trends in
disposable income no less than the consideration of climate/season, environment and ecology
play a critical role in generating the extent and pattern of demand. The demand is influenced by
this different consideration; as cold weather leads to an increasing demand and consumption,
new environmental concerns do also have a bearing; for example, have become important
features in the mind of the consumers. Fashion trend is closely related with the market demand.
Demand side of the market mainly depends on

 Weather and season

 Culture and heritage
 Adaptation of fashion
 Cost of the product
 Availability in the market side
 Market trend and general tendency
 Fashion trend etc.
Domestic market of Bangladesh

Bangladesh with its 80% population in village has no niche domestic market for high priced
products made of leather due to low purchasing power of mass population and weak economic
structure. Generally the target prospect for footwear is for middle echelons to upper echelons
people in local market.

Footwear is the best selling item compared in local market. Neither the culture, nor economics or
the climate, promotes the usage of footwear in large quantities in the country. Causes of the
backwardness of leather goods sector development for local market

 Economical ability of the local people

 Lack of cost effective project.
 Costly raw materials in comparison to synthetic material.
 Tendency of buying foreign product
 Tendency of the industry as being export oriented.
 Lack of market research
 Lack of season based survey for demand
 Local fashion trends integration inability
 Lack of customer based marketing

Local market survey for footwear

Total people involvement: 20000-22000 (Approx)

Total Production: 5-5.5 million (including all) pairs.

Total Production in Bangladeshi currency: 12.5 million (taka)

To know the market trend I have done a survey in different market place including the shopping
centre to foot path among the men and women. Primarily I have selected 20 men and 20 women
to get the information about local Market demand which are given below:

Classification of Bangladeshi customer according to their ability

 Upper Class Customer

 Middle Class Customer
 General Category

Table: Customer Based survey of leather goods in Bangladesh

Value range in
Types of customer Types of products Origin of products
taka
Upper Class Shoe Gents Foreign Above 1500
Standard — Local & Foreign 500-2000
General category — Local Below 300
Upper Class Ladies
Ladies sandal Foreign Above 800
sandal
400-1200
Standard — Local & Foreign
 
General category — Local 100-400

 Source: Field survey

Production of footwear items in Bangladesh: A feasibility analysis

Environmental feasibility:

Export oriented footwear industries could be termed as highly value added sub-sector in the
Leather Field. Bangladesh has fine quality cattle hides and top quality goat skins along with
valuable buffalo leather and has one of the cheapest labors in the world. We only need to
overcome of the weakness of the industry and can make footwear industry as most prospective
sector.

Lowest labor cost:

Bangladesh is a small country in respect of area but it is the 10th largest country in the world in
respect of population. Thousands of people in this sector have been skilled and semi skilled.

Cost competitiveness of products is the essence of international market that in turn depends upon
the supply of raw materials manufacturing know how and conversion cost. The footwear industry
in particular is highly labor intensive and the production cost is greatly depending on labor wage.

The established producers of these newly industrialized countries being affected recently by high
rise in labor wages and export limitation in Europe have been looking for expanding or
relocating their production base to low cost china, Indonesia, Thailand, India, Pakistan,
Bangladesh and Vietnam.

The labor cost in advanced countries accounts for 40-45% of the total production cost whereas, it
is less than 5% in developing countries, which is still the lowest in Bangladesh.

Table:

Serial no. Country US $/Hour

1 Japan 24.00
2 Italy 14.00
3 South Korea/Taiwan 6.00
4 Brazil 1.50
5 Mexico 0.80
6 Indonesia 0.45
7 China/Vietnam 0.30
8 Bangladesh 0.20

Source: Werner International Survey, 1993.

A Comparative Study of wages in Bangladeshi Footwear Industry:

Name of the
Total Salary BDT. 805,400.00
factory
Manpower 207
Salary/Person BDT. 3890.821256
Days 30
AIMCO Per day salary 129.6940419
Footwear Ltd. hours 8
Per hours salary BDT. 16.21175523
Price of dollar BDT. 80
Wages US $ 0.20264694
Total Salary BDT. 1205,400.00
Manpower 280
Salary/Person BDT. 4305
Days 30
RIMEX
Per day salary 143.5
Footwear Ltd.
hours 8
Per hours salary BDT. 17.97
Price of dollar BDT. 80
Wages US $ 0.2242
Total Salary BDT. 1050300.00
Manpower 250
Salary/Person BDT. 4201.2
Days 30
H. N. shoes Ltd. Per day salary 140.04
hours 8
Per hours salary BDT. 17.505
Price of dollar BDT. 80
Wages US $ 0.2188

 Calculation of average wages:

US$ (0.20264694 + 0.2242 + 0.2188)

Average wages =   ————————————————-

3
= US$ 0.2152

Better quality of product:

For export issue quality product is uncompromised factor to compete the world market.
Maintaining international standard for any product is playing vital role for existence of the
product. Bangladesh has enough ability to produce international standard product. Bangladeshi
people have both technical and theoretical ability to produce international standard product

GSP facility:

Bangladesh enjoys duty exemption under the GSP – generalized System of preference from most
the importing countries of the develop world.

Government Incentive:

Leather goods especially footwear and bags are already enjoying a 15 percent cash incentive for
export and 2.5 percentage points increase in cash assistance will raise it to 17.5 percent.

Financial feasibility:

Availability of raw materials:

It is one of the best opportunities for Bangladesh to export footwear. The raw Hide and skin is
collected from dead animals. At the time of Eid-ul-Azha a lot of raw materials are being
produced by offering “Kurbani”s a part of Ibadah of the Muslin citizen.  Everyday a huge
number of cows, buffalos and goats are used to meet the demand of meat of the people. Primary
process by mixing salt to curing the raw material is completed at the vendor level. Expertise has
been developed in the root level to preserve the leather and leather goods. Leather is the main
material of footwear

Availability of leather (total number)

Number of
Total number
leather Leather
Origin (million piece)
(million piece) (million Sq.ft)
 
 
Cow/buffalo/cattle 24.31 5.31 116.00
Goat/Sheep 32.70 19.70 64.00

Source: Bureau of statistics, ITC, FAO

 

Projection of Production, Export earning and Employment generation by the year 2015 AD

Export
Total Availabl
No
e
of Earnin
Productio Domesti Employen Productio
Sector g Total
n c for t n
Uni
t (m
uses export
US$)
Tannery
250 300 msft 45 128 3200 256 24500 28000
 
Footwea
450 47 msft — 47 3500 235 91600 94000
r
12200
Total 700 347 msft 45 275 6700 491 116100
0

Source: BSCIC-2005

Cost- effectiveness and profitability:

Comparative study for costing of a business shoe between Bangladesh and China

Costing for business shoes in Bangladesh (AIMCO Footwear):

COST/PRS
COMPONENTS AMONUNT Description PRICE UNIT
(BDT.)
Cow Polish
Upper 1 2.35 sft 200 470
Leather
Upper2
Upper3
Lining 1 2.60 sft Cow 90 234
Lining 2
Lining 3
Toe cap 0.56 sft 60 33.6
Heel grip 0.67 sft 40 26.80
Back counter 0.70 sft 40 28
Welt .30 sft 90 27
Zipper
Ribit
Eyelet 12 pcs 1 12
Ring
Buckle 1 2 pcs 10 20
Buckle2
Insole .87 sft 15 13
Texon .57 sft 10 5.7
Bata shank 2 pcs 2 4
Footbed Cover
Nrb hand
Outsole 200 200
made
Outsole Top
Heel TPR
Heel Top
Midsole
Socks .87 60 52.20
Socks EVA .80 10 8
Lace 2 pcs 5 10
Balcro
Mocca Thread
Insole stitch
Insole+ Outsole
color
AUXILARY
TOTAL MATERIAL COST 1144.3
PROVISION FOR REJECTION
OVERHEADS 180
TOTAL COST 1324.30
MARGIN (15%) 198.645
FINAL TOTAL COST IN TAKA 1522.945
FINAL COST IN US$ @ BDT. 80.00 19.03
OFFER PRICE IN US$ 19.00
PRICE CONFIRMED BY BUYER 19.00

Costing for business shoes in China:

COMPONENTS AMONUNT UNIT PRICE UNIT COST/PRS

Cow
Upper 1 2.35 sft Polish 250 587.50
Leather
Upper2
Upper3
Lining 1 2.60 sft Cow 100 260
Lining 2
Lining 3
Toe cap 0.56 sft 60 33.6
Heel grip 0.67 sft 40 26.80
Back counter 0.70 sft 40 28
Welt .30 sft 90 27
Zipper
Ribit
Eyelet 12 pcs 1 12
Ring
Buckle 1 2 pcs 10 20
Buckle2
Insole .87 sft 15 13
Texon .57 sft 10 5.7
Bata shank 2 pcs 2 4
Footbed Cover
Nrb hand
Outsole 200 200
made
Outsole Top
Heel TPR
Heel Top
Midsole
Socks .87 60 52.20
Socks EVA .80 10 8
Lace 2 pcs 5 10
Balcro
Mocca Thread
Insole stitch
Insole+ Outsole
color
Elastic
Shank
Label
AUXILARY
TOTAL MATERIAL COST 1287.8
PROVISION FOR REJECTION
OVERHEADS 300
TOTAL COST 1587.80
MARGIN  (15%) 238.17
FINAL TOTAL COST IN TAKA 1825.97
FINAL COST IN US$ 22.82
OFFER PRICE IN US$ 22.50
PRICE CONFIRMED BY BUYER 22.50

China is currently failing to produce high quality shoes at competitive prices due to the WTO
anti-dumping rules. So, orders from Germany, Italy, France, Japan and Canada are shifting to
Bangladesh.

Data interpretation:

From the above two countries costing we find that there is change the price in upper leather and
lining and also have the change in factory overhead.

Hence we get the cost effectiveness like the below:

US $ (22.50 – 19.00)

Hence, the cost effectiveness = ————————————

US $ 19.00

= 18.42%

Here, we keep the margin fixed. But it may be changed.

Barriers and Challenges

Like RMG or Jute industries, Footwear is not so long history of reputation in world market for
Bangladesh perspective. This is due to lack of technology, skilled manpower, good processing
plants, and communication. Following barriers and challenges are to faces footwear industries to
grownup:

 Technologies
  Skilled manpower
 Global market reputation
 Branding
 Political instability
 Power and utilities

Technologies:  Technology is the first and foremost important thing to build world standard
footwear processing plant. Now a day there is a number of technologies to process the footwear
like Auto CAD, Automatic machines etc.. So we should adopt the new technologies to build our
processing plants. We could communicate with European and North American countries for
modern technologies.

 Skilled Manpower: Skilled manpower is other important parameters for manufacturing of

footwear. Educated, hardworking, creative and innovative minded young generations are the
good sources of skilled manpower. They should trained first about the footwear technologies. In
our country, there is only one leather technology college. To compete globally we should build
more leather technologies related institutes in our country to make our people skilled in leather
technology.

 Global market reputation: There are some countries in the world that have global market
reputation for footwear. Italy, France, Germany, USA, Japan and some other European countries
have the global reputation for their footwear. They achieved this global reputation for their
modern technology, processing plants and product related skilled man powers. So to get global
reputation, we should take proper private and govt. initiatives in the field of leather technology.

Branding: Branding is the most important aspect to get the global market reputation in footwear
sector. Nike, Rebook, Hushpuppy and some other is world famous reputation in footwear. So we
should take proper steps to develop world famous brand by ensuring attractive design, price and
quality.

Political instability: To ensure said factors, political stability is must. Without political stability
no one can ensure those factors to develop our footwear industries. Our current political situation
is not friendly for developing our footwear industries. So our national leaders should show the
good behave for better stability of our country to encourage for investing foreign invest in our
footwear sectors. Foreign investors are only investing when they found political stability in our
country.

Power and Utilities: Power and utilities are the first requirement to grow any industries. Like
other industries, footwear industry also needs the power and utilities facilities for processing,
manufacturing of footwear. So our govt. should take necessary steps to provide the power and
utilizes for footwear industry.

Possible impact of footwear items production in Bangladesh: a SWOT analysis:

STRENGTH

 Good potential of quality raw materials for maximum added value.

 Integrated production chain from raw materials to tanneries and footwear available.
 Law costs of production labor available (partly offset by low productivity due to lack of
skills).
 Established international trading practice
 Existence of a few successful companies as path leaders,
 Geographic position for the future markets.
 The footwear industry got stimulus from the Progress in finished leather production.
 Customers from countries applying GSPs have been attracted by Bangladesh.
 Bonded warehouse facilities are available.
 No import duty on capital machinery for export oriented industry.
 Export of Bangladesh Footwear merchandise to Japan is 100% duty-free.

WEAKNESSES
  Information for product line, product mix and export marketing is inadequate.

 Skilled designers and facilities for product design and development are unavailable.

 Backward linkages between leather products (footwear and leather goods) industry and
tanneries is still not a prevailing culture.

 No institutional support is available for the industry (such as FDDI in India).

 Trained or experienced workers to operate key machinery (lasting, sewing) are quite
insufficient.

 High rate of interest on term loan and working capital, and pattern for loans are distorting
prices.

 Footwear accessories (such as tapes, trims, buckles, linings, shoe-last etc.) are not locally
available.

 Lack of quality control systems; reliance on foreign certification with penalized lead-
time.

 Limited product development and market orientation.

 Over-reliance on visiting buyers.

 Complicated rules and regulations in customs department, which affect lead-time and
acquisition of inputs.

 Partnership Marketing program has been a greatly felt needs.

OPPORTUNITIES

 Gradual progress in the finishing process of leather.

 Local production of sandals and slippers is in high demand in Mid-East and Southern
Africa.

 Cash incentive (15% on FOB) for leather footwear has been introduced and likely to be at
a higher rate.

 No import duties on raw hides or wet-blue hides for export-oriented leather industries.

 Proximity to future markets (South-East Asia)

 UNCTAD has been working with advocacy to EU to permit more time for LDCS.

THREATS
  Almost no output of sole/insole leather developed in  local tanning industry.
 Leather footwear consumption is considerably replaced by casual footwear made of
synthetic materials.
 No organized industrial unit for sole production natural rubber based, TPR, NU or EVA.
 EU’s stringent condition on SPS, certification etc, etc (it needs time to be ready for
compliance.
 EU’s stringent condition on SPS, certification etc. (It needs time to be ready for
compliance)

Recommendations:

A lot of constraints and drawbacks lying behind the Footwear industrial and business sector. To
make the business unique and successful everybody should come forward to work united for the
betterment of the sector. The following could be the immediate and urgent:

Arrangement for quality raw materials: Bangladesh has an abundant supply of raw hides and
skins. It is the main raw materials for leather and footwear which earn foreign exchange.
Therefore quality improvement for raw hides and skins is to be ensured by taking proper
handling and caring measures of the raw stock.

Well trained workforce in management: The work force engaged in management should have
been given a modern method of management training. The total quality management TQM they
should have to be learn and implement in the related units, it is must for ISO certification.

Marketing toward global aspect: This sector is of 100% export oriented. We need to increase
our export. So, Market exploration is needed. With this aim a group of marketing people is
needed to give and intensive and competitive marketing management training. An orientation of
global marketing should have been emphasized. Promotional support for market expansion may
require from EPB and other agencies or through a coordinated, externally funded project.

 Technology and human resource development: Well trained and skill manpower could be the
only resource of a sector by which it reaches its optimum target. We know for technology and
human resource development, Bangladesh College of Leather Technology has undertaken a new
academic program under Dhaka University. This should be encouraged. And other agencies like
GTZ, BFLLFEA, and ITC have also trying to flourish training and prototype centers. This
should also be encouraged and make more participatory.

Footwear Board: A strong and independent Footwear Board should be formed immediately by
which the footwear policy is to be furnished for footwear sector as well as to act as parent public
body for the welfare of this sector.

Conclusion:

From my comparative study for cost-effectiveness of business shoe between two countries
Bangladesh and China, I find that cost-effectiveness 18.42% in Bangladesh than China.
And also from international trade statistics we have find that Footwear export of Bangladesh
increased of year 2011 than the year 2010 is 42.33%. This is happening due to availability of
high quality leather, lowest labor cost and low overhead compare to other develop countries in
the world.

So, we can say that it is raising sector of our country’s growing economy. The Footwear sector
plays a significant role in the economy of Bangladesh in terms of its contribution to export and
domestic market.

Finally it could be said that no efforts, no attempts would be enough for footwear sector to reach
the highway of international free trade economy until and unless the management, the marketing
and the technology of this sector as well as the public bodies make them positively work to walk
for.