Buyer's China-plus sourcing strategy for high production costs there and trade redirection fuelled by tariffs and US- China trade spat prompt global buyers to increasingly diversify their footwear-and travel-goods buying sources to elsewhere, including Bangladesh.
A rising global demand for such commodities, especially non-leather footwear and luggage bags, manufacturers here are gearing up for expansion of their capacity to seize the opportunity for grab on a global market worth of US$600 to $700 billion.
One corporate, PRAN-RFL Group, which has already invested Tk 3.25 billion and Tk 2.0 billion in 2026 pipeline in these two segments, plans to expand the capital investment to Tk 8 billion in next two years.
At present, PRAN-RFL makes around 4.8 million pairs of shoes per month, and its full-fledged production is to reach 15 million pairs a month within next three years.
Talking to the FE correspondent during a factory visit in Rajshahi last week, Rahat Hossain Roni, Chief Operating Officer of RFL Footwear and Luggage, said the global demand for non-leather footwear is rising rapidly due to its comfort and usability.
"Increasing cost of production in China is prompting buyers to shift here in Bangladesh," he adds.
To scale up production by minimizing infrastructure costs, the burgeoning business group has already acquired an abandoned state-owned textile mill and a jute mill in Rajshahi to produce non-leather footwear, travel goods, mostly luggage bags, tent and umbrella.
It has initially started producing umbrella for the local market to gain expertise with the plan to export the item to some of its existing buyers.
Industry insiders say the global footwear market is currently valued at around US$400 billion to US$ 500 billion, so a vast vista is likely open to Bangladesh for its cost-effective, quality production base.
According to Export Promotion Bureau (EPB) data, Bangladesh exported footwear goods worth of US$1.19 billion, including both leather and non-leather items, in the last fiscal year of 2024-25.
Out of this export earnings, non-leather footwear accounted for US$522 million, marking over 25-percent growth compared to that of previous fiscal year, 2023-24.
Like footwear, PRAN-RFL is also increasing its investment in the luggage segment as the global market worth of US$270 billion for the items is growing at a rate of 9.0 per cent.
The company currently manufactures hard luggage, backpacks, trolleys, ladies' handbags and small leather goods, with an annual production capacity of around 5.6 million pieces.
Mr Roni says that demand for travel luggage and backpacks is increasing both in international and domestic markets, prompting the company to scale up its production and investment.
"Chinese companies have been shifting to Vietnam and Cambodia and now they are also coming to Bangladesh," he says, adding that to grab the rising demand PRAN-RFL has accelerated its factory expansion.
They currently operate eight footwear and luggage factories across Narsingdi, Rajshahi, Rangpur, and Pabna while six of these factories have been established during last 16 months.
The group earned Tk 1.77 billion in the last fiscal year, up from Tk 920 million in the previous fiscal year in an over 90-percent growth.
Kamruzzaman Kamal, Director (Marketing) of PRAN-RFL Group, says, "We are receiving strong purchase orders for footwear and luggage."
However, failure to ensure timely delivery could result in losing these opportunities, he says, adding that as a fast-track solution, they are leasing and reviving closed factories.
He highlights that utilizing idle government-owned jute mills and unused land across the country could significantly boost foreign-exchange earnings and create large-scale employment, given the labour-intensive nature of these industries.
Like the do-far dominating readymade garment sector, footwear and luggage are also labour-intensive industries, he points out and says this sector with increased investment is contributing to significant job creation.
The group, during last two years, created some 12,000 jobs in these sectors and aims to generate an additional 30,000 jobs over the next three years once the units come into full operation.
The acquired textile mill currently employs some 2,500 workers and can create additional 7,500 jobs in next two years.
Some 1,000 are working in the re-opened jute mill which expects to generate more 3,000 employments within this year.
Talking to the FE writer during the visit, Momotaj, a worker of the luggage factory and mother of two children, said the people of Rajshahi, mostly women, are happy as the textile mill that remained closed for last 22 years reopened and that they-women--who used to stay at home, are now earning.
Meghla Akter, another worker, says she and her sister-in-law are working in the tent-manufacturing unit.
Like them, Sumona Khatun ,who graduated in 2025 from Rajshahi University, has joined the design team of the footwear factory.
The groups officials have said despite strong growth prospects, the sectors face several challenges. They list the problems:
A large portion of raw materials still needs to be imported from China, creating supply uncertainties and cost pressures.
Lead times are 20 to 30 days longer compared to competitor countries.
They also cite shortage of locally produced inputs like fabrics, zippers and other accessories, which hinders the sector's further development.
Entrepreneurs demand supportive policies, including duty-free import of raw materials, simplified bonded- warehouse facilities, incentives for non-leather products, establishment of specialized industrial parks, and access to low-interest financing.
With adequate policy support, the footwear and luggage sectors have the potential to emerge as major export industries, similar to the RMG sector.
Provided with the required policy supports, government's target of earning $5 billion from footwear exports is possible, they hope.
Munni_fe@yhaoo.com