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Bangladesh’s export earnings increase by 51.18pc in April

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The government should target long term phasing out of non-electric vehicles. That will reduce gasoline import. Heck BD dosent even have a refinery as far as i know. Atleast pressure the Gulf arabs with EV-friendly policies to make them build a refinery in BD.

All trains, cars and moving vehicles should be electrified by 2040.

Garments is growing, thats good, but there is potential for so much more. As a guessstimate almost 50% of import products from China probably could be made locally in BD.
 
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I am sure that this includes services as well?
Last year's merchandise export was 39 billion dollar and total export was 45 billion. With 35 percent growth rate, merchandise export will become more than 52 billion, another 7-8 billion will come from service export with normal growth rate.
 
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Leather goods is able to achieve 30/40 billion export if we work hard. I simply fail to understand why leather hasn't been as successful as RMG given that it's a labor intensive industry. We have been hearing about potential of leather industry for long but the progress is suboptimal at best.
Because we have very few high end leather goods producers be it for shoes, coats, gloves or belts. we sell a lot of leather that others then process into something. Leather is also being replaced by manmade products.

But agree given that basic infastructure is there and so is the raw material why we are not more successful .... but saying that $1bn export is very good.... also what about leather goods produced for the home market.
 
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The government should target long term phasing out of non-electric vehicles. That will reduce gasoline import. Heck BD dosent even have a refinery as far as i know. Atleast pressure the Gulf arabs with EV-friendly policies to make them build a refinery in BD.
Saudi Aramco will build one
 
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Because we have very few high end leather goods producers be it for shoes, coats, gloves or belts. we sell a lot of leather that others then process into something. Leather is also being replaced by manmade products.

Bhai this is not entirely true.

APEX shoes used to produce and maybe still produces excellent shoe uppers for very upmarket shoe mfrs. in Italy.

I am sure there are others as well.

Bangladesh has had many high-end leather shoe producers for the last three decades. It's just that their orders as well as shipments (in small batches) are secret and move via air-freight, given their high value.

I have personally seen export market samples of high grade Bangladeshi shoes (Oxford, Bal Oxford, wingtip and plain-toe styles as well as some slip-on types). Even as a relative non-expert, they compare extremely well to top grade Italian product. Many of these factories produce stuff for the Italian and EU high street markets too.

But you are correct - synthetic footwear (i.e. sports shoes such as jogging and tennis shoe) manufacture in Bangladesh is growing at a much faster rate than leather footwear which surprisingly has better backward-linkage in Bangladesh with great quality leather available.

The thing is, people don't buy dress (leather shoes) anymore, the casual shoe and sports shoe market is growing much, much faster.
 
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The government should target long term phasing out of non-electric vehicles. That will reduce gasoline import. Heck BD dosent even have a refinery as far as i know. Atleast pressure the Gulf arabs with EV-friendly policies to make them build a refinery in BD.

All trains, cars and moving vehicles should be electrified by 2040.

Garments is growing, thats good, but there is potential for so much more. As a guessstimate almost 50% of import products from China probably could be made locally in BD.
Yes, BD should phase out cars. But, is to switch in favor of bicycles? BD imports all the private vehicles, most commonly Japanese 2nd hand five year old through.away ones.

Car makers are still researching on the EVs. So, what is your idea about importing EVs? Are they very cheap?

It surprised me to know that you have not heard of Eastern Refinery located in Patenga was built at least 60 years ago.

Better you read and memorize a few data on Bangladesh.
 
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The government should target long term phasing out of non-electric vehicles. That will reduce gasoline import. Heck BD dosent even have a refinery as far as i know. Atleast pressure the Gulf arabs with EV-friendly policies to make them build a refinery in BD.

All trains, cars and moving vehicles should be electrified by 2040.

Garments is growing, thats good, but there is potential for so much more. As a guessstimate almost 50% of import products from China probably could be made locally in BD.
But how will chauffeurs sell off petrol if we go full electric?
I think we should come up with discharge points connected to smart grid which would allow chauffers to sell electricity from EV's to the grid.
 
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Lightcastle Analytics said some 8 years ago that footwear will be next thrust sector for Bangladesh. Look at the data and figures for that time and another current one to compare.

Footwear Sector- Bangladesh’s Next Export Tiger

Although Bangladesh export basket is heavily skewed towards RMG export, several new sectors have cropped up over the last decade. Footwear is one such sector which has tremendous potential to significantly boost country’s export while diversifying the economy’s export basket.

Global Footwear Industry is at an upward trajectory
Given rising global demand for footwear which is expected to reach USD 211 Billion by end of 2018. (Source: Transparency market research), Bangladesh has the potential to tap into the growing market by offering quality output.
Graph 1
Bangladesh’s Footwear Export is growing
Bangladesh’s footwear export has doubled during 2010-13 and continues to rise further as illustrated below. Bangladesh is involved in export of components at various stages of footwear value chain ranging from raw materials to work-in-progress such as soles and finished goods like shoes.
graph 2
Eyeing the Global Leather Market
graph 3

The sector has been growing over the last 5 years with exports increasing by 46% in 2011 followed by healthy 25% growth in 2013. Recently, total export has exceeded USD 1 billion mark for the leather sector which has been due to rising global demand and renewed interest amongst local entrepreneurs for manufacturing footwear. Some international investors have forayed in the sector setting up factories in local Export processing Zones (EPZs).
Minimum Wage Footwear
As illustrated above, Bangladesh has the potential to accommodate relocating footwear units from China, due to Bangladesh’s inherent input cost advantages. However, Bangladeshi labor needs to undergo the learning curve to improve their efficiency and productivity.

Bangladesh has a distinct advantage in footwear production as it is involved in all stages of the value chain from raw leather to the final product. The annual export of these components is expected to reach a value of USD 5 Billion within the next decade.

Leather Sourcing will be a Competitive Advantage

Bangladesh produces superior quality leather from local livestock, which is subsequently processed by tanneries concentrated around the capital city. These inputs are then transformed into final products including footwear whose exports stood at USD 419 Million as of 2013. (Source: EPB)

The annual production of leather hovers around 250 Million square feet each year with supply peaking during the religious festivals of Eid. In 2013 the supply of rawhide stood around 7 Million pieces with the tanneries struggling to keep up with the supply.

Bangladesh has Robust Backward Linkages

In Bangladesh, incoming raw hides are sorted and processed in tanneries that are concentrated in the outskirts of the capital in Hazaribagh. These entities have come under criticism for being environmentally unfriendly prompting the government to build a 200 acre Leather Industrial Park in Savar including utilities at a cost of USD 60 Million. The park will include state of art Effluent Treatment Plants (ETPs) as well to treat the waste generated while processing the leather in the tanneries. 50% of the construction has already been completed. Additionally, leather industry is considered blue-chip by Bangladesh Bank (BB) and recently the central bank has given leather industry a boost with relaxing policies for shifting to Savar so that footwear sector can flourish.

The Asian Market to drive Demand

The domestic market in Bangladesh has potential for growth as well. This is due to rising per capita income which has recently passed the USD 1,000 mark. In addition, the economic conditions of the countries in this region is changing rapidly with increasing economic growth translating to higher per capita income and in turn, more purchasing power. This is going to pull the demand for products such as footwear upward as they move from being a necessity to a more brand and status oriented product.

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Footwear Industry in Bangladesh​

POST BY
RMG Bangladesh
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Jan 28, 2017

The Footwear Industry in Bangladesh has started since the colonial era, although its modernization took place only in the late 1980s. During the British period, there was no footwear manufacturing firm producing on a mass scale in East Bengal. However, a traditional cottage type footwear industry with limited production facilities existed in a skeleton form in the district towns during that time. Various types of footwear were imported, mainly from Calcutta. After the partition of Bengal in 1947, foot wears were imported from West Pakistan.

When Bata Shoe Company established its manufacturing plant at Tongi in 1962, it was the first manufacturing plant to produce shoes on a large scale in East Pakistan. In 1967, Eastern Progressive Shoe Industries (EPSI) established its production plant. It began exporting footwear to USSR, Czechoslovakia and England. Both Bata and EPSI held major shares in the local footwear market. The footwear industry suffered a major setback during the war of liberation but was rehabilitated after independence. New footwear manufacturing units have recently been established. Among them are Apex Footwear, Excelsior Shoes, and Paragon Leather and Footwear Industries.

Japan and Germany are now the biggest markets for Bangladeshi footwear but US buyers are increasingly showing interest in sourcing from Bangladesh. Bangladesh could have a billion dollar footwear export sector by 2013, claim local shoe manufacturers on the basis of both the current growth in shipments and the increased production capacity in factories under construction. If their assessment is correct, in a three-year period the level of exports can increase five-fold from the $205 million worth of shoes that were exported in the last fiscal year that ended in June 2010.

Multitude of products

Bangladesh has a host of potential products that can earn substantially large amounts of foreign exchange, if only the necessary patronage from the overseas buyers is given for the sake of expanding the country’s export base and thereby reach a sustainable status for the country’s export trade.

Recently, a new opportunity has opened up to further diversify the range of Bangladesh’s export base by including footwear and other leather goods in the list of exports particularly to the European Union (EU) market.

However, the country has already been exporting finished leather and different kinds of leather products to the overseas markets. These products also enjoyed considerable demand because of their high quality. The main reason for this was the natural advantage of leather that Bangladesh produces. Despite the high quality of local animal hides both in raw and finished form, Bangladesh was still trailing behind Vietnam and China in the export of footwear and other leather products in the European and other markets.
Manufacturing Hub

Bangladesh is set to emerge as the next manufacturing hub for the global footwear industry. The cheap labor is prompting top manufacturers to relocate their factories in the country. The good news is that a number of foreign investors as well as buyers have already shown interest in Bangladesh’s leather and footwear sector.

Recently, the president of the Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLGFEA) informed all concerned that three large investors in the footwear sector from Taiwan would set up footwear factories in the Dhaka and Chittagong Exporting zones. The buyers from EU, as well as other very highly developed industrial nations like Japan have reportedly been showing importance in Bangladeshi leather products. All these developments look promising for the local footwear industry.

The Export Processing Zones at present have 18 shoe and leather goods factories but there are at least seven large factories under construction, mostly owned by big manufacturers in the shoe world. The factories under construction include Korean company Young one’s footwear complex which is said to be the largest in Asia. The company started construction of its mega shoe complex in Chittagong six months back. The first part of the complex will go into production by the middle of next year, and the company’s executives said they would be able to manufacture about 30 million pairs of shoes by 2013.

In addition, Taiwanese shoe manufacturer Pau Chen, which employs about 4,00,000 workers in its factories in China and 50,000 in Vietnam, is also building a large manufacturing facility in Chittagong. Australian manufacturer Bonbon Shoe, a supplier to Hugo Boss, and Xen Chen and Genford of Taiwan., are also building footwear factories in Bangladesh. Apex-Adeichi also has a new factory that will soon start production. With an annual turnover of about $100 million, the Bangladesh-Italy joint venture is now the largest exporter of footwear. However, with a new joint venture factory, Blue Ocean Footwear, due to go into production by February 2011, Apex will get involved with a turnover of nearly $200 million of footwear export by 2013.

Growth rate

The local footwear industry is experiencing an annual growth rate of 21 percent,
according to a spokesman from another apex organization, Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LGFMEAB). However, to continue the trend, the present level of growth has not only to be attained; it also has to be taken to a still higher level, if Bangladesh is to match the success of its immediate competitor, Vietnam.

According to a newly released statistics from the Export Promotion Bureau of Bangladesh, footwear exports from the country grew from US$61 million in the period of July-November 2007 to $85 million in the same period of 2008, recording a growth of 39 percent.

In the first four months of the 2010 fiscal year there has been $98 million worth of exports, a 65 per cent increase from the same period last year. Taking this rate of growth into account, shoe industry executives estimate that the current fiscal year’s footwear export is likely to cross $300 million. Though in the next two years the existing factories are likely to export more shoes, it is the new capacity that will come on stream from early 2011 that is expected to cause the huge spurt in growth.

Growth in exports is due to the low production cost in Bangladesh compared to its neighboring countries: China, India and Vietnam, who also have a very well entrenched leather and footwear export industry. Orders which earlier used to be given to China or India are now being handed out to footwear manufacturers in Bangladesh because they are able to produce low-priced but quality shoes, which have now found its way in to key markets in EU and Japan.

This growth in footwear exports has come as a blessing in disguise at a time when leather exports have fallen by a massive 18 percent in the period under review. Experts attribute the growth in footwear exports, thanks to machineries imported from Italy that is trusted for its quality output. In recessionary trends, high-priced products tend to register a negative growth, as consumers tend to shy away from them in preference for value for money items. In this scenario, it is a golden opportunity for the leather and footwear sector to increase its global market share.

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Bangladesh: leather exports on the rise​

Dec 16, 2021 Bangladesh
Bangladesh: leather exports on the rise

In the first five months of the current fiscal year, the Bangladeshi leather industry reported exports growth across all segments, exceeding the set targets

In the first five months of the current fiscal year (July-November 2021*), Bangladeshi leather industry exports increased by 27.41%, totalling 456.85 million US dollars, on a comparable basis to the same period of last year. The exports level for the period was above the set target of 414.11 million US dollars (up by 10.32%). Leather footwear exports represented 61.11% of the total value generated.

Thus, in the five months to November 2021, leather footwear exports generated 279.20 million US dollars, which reflects growth of 23.08%, as compared to similar period of the prior year. The performance of the leather footwear segment also exceeded the set target (249.03 million US dollars) for the period by 12.12%.

Finished leather exports totalled 56.48 million US dollars, up by 28.77% from similar period in the previous fiscal year, and over the target set for the period by 7.75%. It were sent abroad leather goods in the value of 121.16 million US dollars, up by 37.89%, as compared to the same period of last fiscal year, and 7.54% over the established target set for the period of 112.6 million US dollars.

Revenue generated by other footwear exports amounted to 175.4 million US dollars, reflecting growth of 17.11%, on a comparable basis to similar period of the prior fiscal year. The export level for the period was above the target set of 160.66 million US dollars.

Bangladeshi Footwear Industry​

According to the World Footwear 2021 Yearbook (AVAILABLE HERE), in 2020, Bangladesh was the 8th largest footwear producer (423 million pairs) and 9th largest consumer market (366 million pairs). Most of its production supplies the domestic market, having only exported 72 million pairs exported in 2020 (which made the country the 16th largest exporter of footwear). Exports of Bangladesh have been growing consistently and sharply for years but dropped in 2020 for the first time in a decade.

*Bangladesh’s financial year runs from July to June


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Apex Footwear's export operation introduced a unique model of having two distinct locations for its R&D centers.

The Italian hub of design acts as the innovation lab. All the new creation comes to life in this facility due to its location proximity to the global markets and unique market test facility.

Bangladesh R&D center on the other hand works as the sync between Italian design center and the massive production operation. Every design confirmed in Italy is scrutinized and engineered to perfection before going into production.

Besides, R&D in Bangladesh also has a massive production capacity to produce ample number of samples every season. Both the R&D centers can put up around 1500 SKUs altogether in a single season.

A sampling of the formal leather dress footwear exported by Apex to Italy and to the EU

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APEX primarily rose to fame from its Italian design implementation. Over the years it has been built-in into APEX shoes so well that this has become the no1 USP of APEX Export shoes. Hence, to keep the DNA intact, the lasts and molds are always developed in Italy. The design category focus initially started with Men’s formal. However, with the global change in trends Apex has shifted towards more casual wear and sports lifestyle and more into Ladies than Men’s.

FIT__STYLING.2e16d0ba.fill-1920x1080-c100.jpg


Apex in its two Product Development locations use the best in business tech (including CAD/CAM laser cutting machines) to facilitate its global standard R&D centers.

Shoe-master
Comelz 2D/3D
CAD


state_of_the_art.2e16d0ba.fill-1920x1080-c100.jpg


Operations_125_leather_cutt.2e16d0ba.fill-1920x1080-c100.jpg
 
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Sports shoe items being made in Bangladesh nowadays. Competitive Int'l standard athletic export footwear items being made in normal mid-grade factories in Dhamrai and Savar, not even in export zones....

Smart shoes
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Apex footwear:​

Basically, the journey of this company started more than two decades ago. Initially, they start with leather business & later curving its’ way into shoemaking. Soon they become the largest shoemaker in the subcontinent. Currently, they hold a 15% share of leather footwear export in Bangladesh from $1.1 billion leather export. Though shoemaking being a highly labor-intensive job, their company 5500 workers mostly women to make stylish leather shoes. Our shoe design inspiration comes from the latest international footwear trend. Being a footwear giant, it’s our responsibility to be a role model in developing people and helping the environment. However, our core values are set with the belief of valuing people through continuous development & making a path for higher achievements. And their capacity of production is 20,000 Pairs of shoes per day.

Factory of Apex Footwear Ltd
Factory of Apex Footwear Ltd

Shoeniverse Footwear Limited​

(SFL) is the first & till now the only LEED Certified (GOLD) footwear factory in Bangladesh, located in a pleasant location in Mymensingh of Dhaka division. One of the top leather & synthetic footwear manufacturer & exporter in Bangladesh. They have 800 workers in their factory and capable of producing 5,000 pair per day.



Factory of Shoeniverse Footwear Ltd
Factory of Shoeniverse Footwear Ltd


Edison Footwear Ltd:​

Mainly this company is a sister concern of Edison Group which establish back in 2009 in Bangladesh. Though the group is providing services to many sectors among them footwear is one of them. Edison Footwear Ltd. is popular for leather and non-leather shoes. If we specifically say then it will be sports shoe. So far for a sports shoe, this company has a vast knowledge and experience. Currently, they can produce 10,000 pairs per day.

Duel Contrast Sports Shoe by Edison Footwear Ltd
Duel Contrast Sports Shoe by Edison Footwear Ltd

Maf Shoes Ltd​

Originally, 100% export oriented quality athletic shoe, sandal, slipper, & flip-flop manufacturing factory with the ability to deliver impeccable quality and punctual shipment within a framework through a professional, reliable and sincere business atmosphere. They manufacture a wide range of footwear for all age group and is equipped with vertical production units. They are the only shoe factory who produces various footwear related finish products and semi-finished products in the same factory premises. Their monthly production capacity is 2,50,000 pair.

Casual Sports Shoe by MAF Shoes Ltd.
Casual Sports Shoe by MAF Shoes Ltd.

TK Footwear Limited:​

They are the sister Concern of countries most successful Business Conglomerates T.K. Group of Industries of Bangladesh. Mainly, the footwear sector established in the year 2013 having all required machinery. 100% export-oriented Footwear manufacturing and exporting company in Chittagong, Bangladesh. So far they work with Hush Puppies, Kimijima Bis, Golden Foot, Espresso, Milla Sports, Dueailes, E.T. Foot, Donamiss for Japan Market. Their production capacity is 10,000 plus per day.

Floor View of T.K Footwear
Floor View of T.K Footwear

Excelsior Shoes Ltd:​

This company has earned a distinctive role in meeting overseas customer’s import requirements. This division is engaged in the export of quality products to different world markets. Mostly, the company believes that the quality of products and delivery time are the key factors for successful export business and therefore. And this division has competent human resources to support the factories for maintaining the quality of products and ensuring timely delivery. And total production capacity: 7000-8000 pairs/8 hours shift.

Sports Shoes are made by ETCL BD
Sports Shoes are made by ETCL BD


Final Words:​

In the end, it will be your decision from where you wanna provide you order for the finished leather. But if you want top-quality, in time delivery then RAVEN is the place where you can place your order. Our top technicians are well capable of completing any kinds of finishing and development with accuracy. RAVEN is one of the tops Sports Shoe Manufacturer in Bangladesh. More than 5 years of experience in the leather finishing for jackets, bags, gloves, pants, skirts, chest guards and other leather goods manufacturing, and selling. We also provide a leather patch warranty as well. Another cool thing is they have both ready-made and custom made facility.
 
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Because we have very few high end leather goods producers be it for shoes, coats, gloves or belts. we sell a lot of leather that others then process into something. Leather is also being replaced by manmade products.

But agree given that basic infastructure is there and so is the raw material why we are not more successful .... but saying that $1bn export is very good.... also what about leather goods produced for the home market.

We don't need to produce high end goods though. Big money is in low end goods, most people buy those. How many people can afford gucci ?
 
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We don't need to produce high end goods though. Big money is in low end goods, most people buy those. How many people can afford gucci ?

To export to EU and US you need certification from some kind of leather quality organisation regarding sustainable sourcing of leather etc.

Only 3 bd companies has this. This is the main issue, i think and not the quality of the products per say. BD is failing to get the minimal level of necessary certification to capture export market, however BD own market is being fully exploited by our manufacturers.

See link below for a fairly comprehensive overview of the industry.
https://businessinspection.com.bd/leather-industry-of-bangladesh/
 
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To export to EU and US you need certification from some kind of leather quality organisation regarding sustainable sourcing of leather etc.

Only 3 bd companies has this. This is the main issue, i think and not the quality of the products per say. BD is failing to get the minimal level of necessary certification to capture export market, however BD own market is being fully exploited by our manufacturers.

See link below for a fairly comprehensive overview of the industry.
https://businessinspection.com.bd/leather-industry-of-bangladesh/

I don't have complete information - however what you are mentioning may be connected to export compliance with EU directives.

A lot of shoe export companies already have completed or are in the process of completing this compliance.

The compliance is mainly effluent water treatment (ETP) facility related. A lot of the new tanneries in Savar Tannery complex use a common ETP facility to recycle water or process it sufficiently before releasing it in the local rivers.
 
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