Bangladesh: footwear exports rise 48%
Bangladesh’s footwear exports marked a 48% rise in the first eight months of the current fiscal year, statistics from the country’s Export Promotion Bureau show.
The country fetched around $197 million from exports during July 2010 to February 2011, a sharp rise from $133 million in the same period a year ago.
During this period, leather exports increased by 34% and earned $176.5 million, while leathergoods marked a 152.6% rise.
Industry insiders said the growth is fuelled by a rise in the prices of raw materials across the world.
Saiful Islam, president of Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh, said the main reason behind the growth is a steady rise in demands for Bangladesh-made footwear items.
“The growth is driven by a rise in demand for our footwear, after orders were shifted from China to Bangladesh,” he said.
Bangladesh is well-equipped to produce low-cost, high-quality shoes, according to Mr Islam. “Also we can maintain a short lead time, as we have our own stocks of leather. These things pulled European orders mainly to India, Vietnam and Bangladesh.”
Bangladesh offers competitive prices, which have increased the demand globally, said Mr Islam, who is also managing director of Picard Bangladesh Ltd.
“The cost of making leather shoes is lower in Bangladesh than in China and India."
The country exports around six million pairs of leather footwear a year.
The increasing prices of raw materials in the international market have made the products a pricey and fuelled the total export, said Tipu Sultan, director of Bengal Leather Complex Ltd.
He also said the demand for Bangladeshi shoes increased manifold in the last two years.
New export destinations also helped, he added. Along with the traditional markets such as Italy, Germany and Japan, local exporters are now selling products to China and Hong Kong.
