The country's leading footwear manufacturers, mainly the exporters, have now set their sights on grabbing the multi-billion-taka local market, alongside their usual exports, insiders said.
They said the present strategy of retail marketing in the country would help the exporters sustain in business in the long run in case of any setback in their export activities.
Around 25 leading footwear and leather goods exporters including BANBIZ (Pvt) Ltd, Ha-Meem Footwear Ltd, Akij Footwear Ltd, B W International Footwear Ltd and Palmi Shoes Ltd now look forward to doing business in the local market, keeping their export activities intact.
Besides, considering the immense prospect of business at home, the companies are also vigorously expanding their operation across the country.
According to the market players, the companies could not capture more than 20 per cent of local market worth Tk 35 billion to Tk 40 billion until now.
"International markets are gradually becoming tougher to the local exporters. Strong presence in the local market will save them from any kind of setback in their overseas markets," Managing Director of BANBIZ (Pvt) Ltd Mahmudul Haque told the FE.
"Besides, being an emerging country, the Bangladesh economy has been witnessing an encouraging growth performance. The purchasing capacity of its people is also increasing. So why should we ignore opportunities in the local market?" he asked.
A K Majumder, Managing Director of Ha-Meem Footwear Ltd that has long been exporting footwear to Japan, Europe and some other traditional and non-traditional markets, said many of his buyers are now showing shakiness while importing footwear from Bangladesh, so he decided to extend his business in domestic market for sustainability.
"We have observed that buyers are gradually trying to shift their attention to Cambodia, Myanmar, Vietnam and some other low-cost countries. So a strong footing in local market would help a company sustain in the long run," he added.
"Besides, the buying capacity and taste of Bangladeshi customers are also increasing gradually enticing entrepreneurs to expand the market," Majumder informed the FE.
However, president of Leathergoods & Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) Syed Nasim Manzur said the export market is becoming very difficult for the local exporters. So they are looking to the local market alongside their exports.
"Safety, quality and compliance issues are gradually becoming more and more challenging to the local exporters. But doing business in local market is easier for which they are diversifying their goods," he added.
Mr Manzur, also Managing Director of Apex Adelchi Footwear Limited (AAFL), a leading footwear exporter, said his company has planned to double its market share within next three years.
At present the company is selling its goods through its 171 outlets and 400 dealers and distributors across the country.
Expressing his helplessness over the high import duties on footwear components the LFMEAB president said if the government reduces the duties, then local companies would be able to compete with China and Myanmar's rivals and thus would also save a large amount of foreign currencies of the country every year.
Local companies now pay up to 61 per cent VAT (value added tax) and taxes against import of footwear components.
"Myanmar's sandals have flooded the domestic market simply because of higher import duties on import of the components. If the government does not reduce duty, then the companies may lose their competitiveness both in local and international markets," he added.
He, however, urged the government to bring down import duties to 10 per cent to make local entrepreneurs competitive at home and abroad.
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