Footwear export figures rock in July-Nov 2008

13 Feb '09

2 min read

According to recently released statistics of the Export Promotion Bureau of Bangladesh, footwear exports from the country grew from US $61 million in the period July-November 2007 to $85 million in the same period of 2008, in the process recording a growth of 39 percent.

The main reason for this awesome growth in exports is due to the low cost of production in Bangladesh, compared to its neighbouring countries; China, India and Vietnam, who also have a very well entrenched leather and footwear export industry in their respective countries.

Orders which earlier used to be given to China or India are now being handed out to the footwear manufacturers of Bangladesh, primarily due to expertise of the sector in Bangladesh to produce quality low priced shoes, which have now found its way in to key markets of EU and Japan.

This growth in footwear exports has come as a blessing in disguise, at a time when, leather exports have fallen by a massive 18 percent in the period under review. Experts attribute the growth in footwear exports, thanks to machinery imported from Italy, trusted for its quality output.

In recessionary trends, high priced products tend to register a negative growth, as consumers tend to shy away from them in preference for value for money items. In this scenario, it is a golden opportunity for the leather and footwear sector to increase its global market share.

Fibre2fashion spoke to Mr Rezaul Karim Ansari, Chairman, Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association to understand the main reasons behind the outstanding export growth figures in those five months from the Bangladesh footwear industry.

We started off by asking him as to how he foresees next fiscal year, and what expectations he has from the government to which Mr Rahman replied by saying, “If the recession continues, export of leather & footwear will also decrease”.

He was very categorical when he added by saying, “To overcome the situation, our government has to take measures in terms of giving incentives to the producers”. “At a time when footwear exports have zoomed, leather shipments have fallen sharply”, he explained.

Fibre2fashion News Desk - India

More Textiles News - Bangladesh...