Footwear sector witnesses robust growth

The country's footwear sector has witnessed a handsome growth in the last couple of years as both foreign and local entrepreneurs invested big amount of funds to avail more shares in the global market. According to the Board of Investment (BoI) statistics, some 16 foreign entrepreneurs signed deals with it to invest US$15.122 million in footwear units in Bangladesh. They are: Tres International Footwear Ltd., Mynote Private Ltd., Yuko Lather Goods Ltd., Yuko Leather Goods Ltd., Anwara Shimokawa Co Ltd and Matrighor Ltd are Japanese companies. BW International Footwear Ltd, Tyt Joint Company Ltd and Xingfa Leather Belt Company Ltd are from China. Blue Ocean Footwear Ltd is Taiwanese, BB Export Ltd is from Netherlands, Scarpe E Moda Ltd is of Italy and ISC Enterprise (BD) Ltd is an Indian company. Besides, 18 local companies have invested nearly Tk 3.03 billion in tannery and footwear sector in last two years, the BOI statistics revealed. Amico Footwear Ltd, Tamanna Corporation Ltd, Innani Leather and Footwear Ltd, Arth Footwear Ltd and Sharif Melamine Ind. Ltd are the among the new local investors. Considering the growing demand for local footwear items in the world market, Blue Ocean Footwear, a joint-venture company between Bangladesh and Taiwan has installed a plant which will start production from 27th of this month. Blue Ocean Footwear is a sister concern of Apex Group. The biggest Korean investor in Bangladesh Youngone is also installing the largest footwear production plant of Asia region at Chittagong Export Processing Zone (CEPZ). USA, Canada, Germany, Italy, France, Sweden, and Japan are the main importers of local footwear products. Besides, South Korea, Taiwan and some other countries are also importing footwear from the country nowadays. World's renowned importers like Macy's, Sears, JC Penney-USA, Deichmann-Germany, Bata-Italy, Bata-Check Slovakia, Aldo-Canada and ABC Mart-Japan are buying footwear from Bangladesh. "India is also a lucrative destination for shoe export for us but due to some non-tariff barrier (NTB) we can not export our products there," said Executive Director of Apex Adelchi Footwear Ltd Mr Abdul Momen Bhuiyan. "Due to the high wage, labour shortage and strong Chinese currency RMB, China is losing their competitiveness in the global market. Considering the situation, USA is preferring one more country beside China, which is an opportunity for increasing footwear export from Bangladesh", Mr Momen added. Besides, China is under continuous pressure from the USA to appreciate its currency, which is also favouring the sector, he observed. Currently China meets almost ninety per cent demand of the US shoe market. "Due to stability in world economy, the buying capacity of the people has also increased, which might be one of the reasons behind the increasing demand for shoes", industry sources said. Md Saiful Islam, president, Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh said that export trend in the footwear sector is satisfactory. He further added that if footwear sector can improve the environmental issues then the export volume may increase by manifold. We should set up ETP (Effluent Treatment Plant) in the tannery sector to comply with the foreign buyers' demand. The importers have been expressing deep concern about the environmental problems in the tannery sector for long. "All the efforts and investment in the sector will go in vain if the government fails to shift the tanneries to an environment friendly place soon" said the Executive Director of Apex Adelchi Footwear Ltd. Apex Adelchi Footwear Ltd, Jennys Footwear, Bangladesh Exp, HN Shoes, Bay Footwear, Youngone etc are the leading local companies who export footwear. Export of leather footwear increased by about 70 per cent during the first eight months of the current fiscal year, compared to the same period of last fiscal. Country's total export volume of leather footwear up to February of current fiscal 2010-2011 is $131.37 million while it was $146.47 million in 2009-2010 fiscal, $142.68 million in 2008-2009, $125.02 million in 2007-2008 and $98.39 million in 2006-2007 fiscal, EPB statistics said.