The footwear industry of Bangladesh has created its own position in the foreign market by meeting the local demand

One of the largest manufacturing industries in Bangladesh is the footwear industry. Over the past decade, the industry has been growing steadily. Significant economic growth, increasing consumer purchasing power and increasing fashion consistency are the main reasons for the growth of this industry. In recent years, the sector has also been able to make some investments, which have helped increase production units and increase production capacity. At present, Bangladeshi shoe makers have created their position in the foreign market by meeting the local demand.

From 2009 to 2018, Bangladesh's economy grew at an average rate of 6.5 percent. Exports and remittances are the main drivers behind this growth. Over the years, the ready-made garments (RMG) sector has maintained a strong dominance over the country's total exports. To maintain high economic growth and prevent Dutch disease, diversification of key economic drivers is essential. Apart from RMG exports, which constitute about 85 percent of the country's export basket. Leather and footwear together account for 3.3 percent of the overall export basket.

Exploiting Bangladesh's abundant supply of raw materials and labor intensity, the country's leather sector is meeting domestic demand and actively participating in the global value chain. According to Rawhide Industry Insights, 50 percent of rawhide in Bangladesh is harvested during Eid-ul-Azha. In 2019, ahead of Eid-ul-Azha, the government of Bangladesh fixed the price of cowhide at Tk 45-50 per square foot within Dhaka region and Tk 35-40 for other regions of the country. Besides, the price of raw goat skin was fixed at 18 to 20 taka. The year 2019 was not in favor of the industry due to price shocks caused by decline in global demand, delay in construction of industrial park for Savare Tannery, expansion of Leather Working Group, despite fair pricing by the government. LWG) certification, and the lack of financing available to tannery owners resulted in the wastage of about 100,000 pieces of rawhide.

However, one of the main reasons behind not being as agile as its neighboring countries is the lack of Leather Working Group (LWG) certification. On this note, in 2019, the Government of Bangladesh mentioned the continuation of incentives during the Bangladesh Leather Footwear and Leather Goods International Sourcing Show (BLISS). The leather industry of Bangladesh developed in the 1970s and now, according to the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), footwear is one of the major products of the industry. Considering the huge opportunity to earn foreign exchange and to expand the country's market, the Seventh Five Year Plan of Bangladesh Government has projected export earnings of at least US$ 5 billion from the leather sector consisting of leather, leather products and leather footwear.

-SZK