Leading manufacturers of leather goods are turning to value addition to their products as the demand for high-end items is increasing significantly in recent times with foreigners turning their eyes to Bangladesh, industry- insiders said.
A large number of new international buyers from the developed countries are now knocking to the local leather industry for high-value product sourcing, they said.
For better quality and competitive price range the local leather goods are getting popularity in overseas markets, namely, in Italy, New Zealand, Poland, the UK, Belgium, France, Germany, the USA, Canada and Spain. Some other new destinations are also in sight.
According to the Board of Investment (BoI) data, following the increase in demand for high-value products a total of 32 leather industrial units registered investment worth Tk 358 billion in a single year, 2013.
Due to competitive edge on the global market and fulfilling the demands of international customers, the local manufacturers are now concentrating more on developing new designs suiting the tastes of the buyers.
"A number of global buyers, including from traditional and non-traditional markets, have been turning to here from China and other countries for local leather goods, especially high-value products," Deputy General Manager (DGM) of Dhaka Hide and Skin Ltd Mohammad Rezaul Karim told the FE about the development.
He said in recent times new or re-investment in the leather industry is increasing significantly as the country's top leather goods manufacturers are going for expansion of their production capacity following the growing international demand.
High-value leather goods, mainly exclusive designs, are increasingly attracting the overseas fashion-lovers, he added.
According to data available with the Export Promotion Bureau (EPB), in the July-May period of the current financial year, leather-product exports posted a 59 per cent growth over the corresponding time of last year.
Local exporters said trunks, suitcases, handbags, shopping bags, belts, musical instrument cases, travel bags, rucksacks, map-cases, cutlery cases and other conventional and non-conventional items are in top demand to the international customers.
Mohammad Shahin, the former president of Bangladesh Tannery Association (BTA), said for the fiscal year 2013-14 the government target was $210 million worth of export of leather goods. But the local producers were expecting to cross $290 million mark due to value addition to leather goods.
"A robust demand for all of local leather goods, including high-value products, is being witnessed on the global market," he said.
The industry leader noted that the country has a huge raw-material base which provides extra opportunities for the development of the leather goods sector.
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