EIB 551 Summer 2020 PP Exporting of Bangladeshi Footwear Products

Our Topic 💡 Exporting of
Bangladeshi Footwear Products

Course mentor: Saiful Islam
Assistant Professor
Department of International Business
Faculty of Business Studies
University of Dhaka
Exporting of Bangladeshi Footwear Products
Participants:
Name: ID’s :
 Kanis Mahabub Anamika 801827051
 Md Faisal Rashid Khan 801826031
 Kazi Saifuddin Ahmed 801826040
 Md. Asif Barkat Ullah 801827050
 Sajib Chandra Roy 801928036
A brief overview of the Footwear sectors:
 Leather Industry was developed in Bangladesh on a large-scale

mainly in the 1970s
 Bangladesh leather industry makes leather-based products such as

garments, shoes, belts, bags, and jackets, suitcases, wallets, and
some fancy items.
 Leather footwear is the fastest growing segment of the leather

industry.
 We do have Non-Leather footwear opportunity also.

Importance of the industry to the national economy:
According to the Leather Goods and Footwear

Manufacturers’ and Exporters’ Association of Bangladesh
(LFMEAB), the domestic demand of leather footwear and
goods was worth about Tk 160 billion, but 40 percent of
the demands are met by importing goods from abroad.
Bangladesh meets the demand for about 10% of the

world’s total leather market. So, there is huge potential to
grow this business up!
Major export destination of the industry:

Procedures of exporting:
 Collect Order enquiries

 Development of the Products based on
Technical Package & arrange Sample
submission to Buyer
 Payment term agreement (LC/ TT, Open
Accounts, Documentary collections)
 Shipping mode agreement (EXW, FOB, CFR, CIF,
DDP etc.)
 Price negotiation & Order placement
 Proforma Invoice generation by Supplier
 Open L/C (Letter of Credit), Sales Contact etc.
 Raw materials procurement & Production

 Final Inspection & arrange shipment

 Documents for C&F agent (Commercial Invoice,
Packing List, COO, Inspection Certificate, HS
Code, Export permission, Utilization Permission
& Declaration etc.)
 Bank to bank documents forwarding (BL, BOE
etc.)
 Receipt of Payment.
Important required documents & Payment procedures in

the exporting Process:
 Invoice
 Packing List
 HS Code (Harmonized System)
 GSP (Generalize system of preference)
 Utilization Permission & Declaration
 Inspection Certificate
 Country of Origin or COO Certificate
 Bill of Lading / Air waybill
 Letter of Credit (LC) or Telegraphic Transfer (TT)
Distribution channels and patterns:
 Indirect: Exports through an independent

local middleman. i.e. Trading offices or agent
like Li & Fung, ZXY, PDS Multinationals etc.
 Direct: Sells directly to foreign distributors,

retailers, or trading companies. i.e Puma,
Adidas, Decathlon etc.
Major actors involved in the total process:
 Exporter (Supplier)
 Importer (Buyer)
 Lien Bank
 Clearing and Forwarding (C&F) Agent
 Nominated Freight forwarder
 Regional Chamber of Commerce & Industries
 Leather Goods and Footwear Manufacturers’ and
Exporters’ Association of Bangladesh (LFMEAB)
 Export Promotion Bureau
Recent export trend of the industry & Prospect of the industry:
 The availability of raw materials & Cheap Labour is the biggest

strength of the sector.
 As Bangladesh’s RMG is going ahead smoothly, so Footwear

industries of Bangladesh will get a plus point in it.
 When RMG has brought up many leading brands in Bangladesh

with their direct presence, they will be very happy to put their
own orders of Footwear products in the same country
Some opportunities are highlighted here:

 Huge untapped international market, as well as the
domestic market
 Increasing global demand for value-added, diversified
products
 The scope of developing backward linkage business
 China is losing competitiveness
 Government policies toward leather exporters; GSP, Cash
Incentive; etc.
 International Fashion and sourcing houses in Bangladesh
for RMG showing interest in leather footwear products
Current problems regarding exporting:
 The absence of integrated policy; no long-term policy,

Branding/promoting Bangladeshi products.
 Political instability, corruption
 Lack of backward linkage industry for
chemicals/accessories and substandard quality of the
products
 Potential buyer’s stringent stands for compliances,
and delay in building Common Effluent Treatment
Plant (CETP) at the leather village, Saver, Dhaka
Recommendations to move forward:
 The government should formulate appropriate rules and

regulations to support footwear sectors.
 To ensure sufficient and continuous power supply.
 They can start a joint venture business with other major

leather exporting country like India and Japan.
 By collaboration with EU and other developed leather

importing countries, they can import advanced technology.
Recommendations to move forward:
 The government needed to arrange some soft loans for the

industry to fight against the current financial crisis.
 The government should plan and build facilities to increase the

value addition through increases production of finished goods.
 According to the related professionals, more profit can be

gained by proper strategic planning, market monitoring, and
quick preservation of raw leather, transportation and proper
processing of leather.
Conclusion:
Current demand for the leather, leather product

and footwear in the world is nearly $215 billion
where Bangladesh exports only US$ 1.08 billion.
As a result, we have a huge possibility to grab the
market with our highest level of efficiency and
proper strategic planning. The government should
plan and provide facilities to increase the value
addition as the sector can move forward easily.

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Our Topic 💡 Exporting of

Bangladeshi Footwear Products

A brief overview of the Footwear sectors:

 Leather Industry was developed in Bangladesh on a large-scale

 Bangladesh leather industry makes leather-based products such as

 Leather footwear is the fastest growing segment of the leather

 We do have Non-Leather footwear opportunity also.

Importance of the industry to the national economy:

According to the Leather Goods and Footwear

Bangladesh meets the demand for about 10% of the

Major export destination of the industry:

 Collect Order enquiries

 Price negotiation & Order placement

 Proforma Invoice generation by Supplier

 Open L/C (Letter of Credit), Sales Contact etc.

 Raw materials procurement & Production

 Final Inspection & arrange shipment

Important required documents & Payment procedures in

Distribution channels and patterns:

 Indirect: Exports through an independent

 Direct: Sells directly to foreign distributors,

Major actors involved in the total process:

Recent export trend of the industry & Prospect of the industry:

 The availability of raw materials & Cheap Labour is the biggest

 As Bangladesh’s RMG is going ahead smoothly, so Footwear

 When RMG has brought up many leading brands in Bangladesh

Some opportunities are highlighted here:

Current problems regarding exporting:

 The absence of integrated policy; no long-term policy,

Recommendations to move forward:

 The government should formulate appropriate rules and

 To ensure sufficient and continuous power supply.

 They can start a joint venture business with other major

 By collaboration with EU and other developed leather

Recommendations to move forward:

 The government needed to arrange some soft loans for the

 The government should plan and build facilities to increase the

 According to the related professionals, more profit can be

Current demand for the leather, leather product

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