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multibillion dollar US footwear market as American importers,
hard-pressed by the worse recession, are turning to price-
competitive sources, industry people said. Shoe shipments from
Bangladesh to the USA increased by 112 per cent in January-June this
year, helping local shoemakers offset the slide in their sales in
recession-hit Europe. During the period, Bangladesh shipped 192,509
pairs of leather shoes to US market, up from 90, 991 pairs of a
year-ago period, a Bangladesh Footwear and Leather Goods Exporters
Association official said quoting US commerce department data. The
figures cheered the leather industry up, as exporters in recent months
found US retailers like Macys or Bostonian and giant wholesaler like
Genesco on the list of American buyers. 'Bangladesh might have been
spotted by US importers as rescission made them more price conscious
than ever,' said Syed Nasim Manzur, managing director of Apex Adelchi
Footwear. The joint venture with the leading Italian shoemaker
that entered American market four years back made up $5 million or 12
per cent of its 2008 export turnover from USA and expected 20 per
cent in 2009. 'Relocations of manufacturing facilities in
Bangladesh by some Taiwanese and Chinese shoe manufacturers may also
have inspired US importers to rate Bangladesh high,' said Nasim.
Sikder Mesbahuddin Ahmed, operation director of the South Korea-based
Youngone Corporation's Bangladesh's business, said, ' Number of
queries to his company from US buyers has multiplied in recent months
compared to those a year ago.' A major supplier of outerwear and
sportswear to North Face and Nike, Youngone is the largest foreign
investor in Bangladesh garment export sector and shoe exports share
only one-sixth of its annual export turnover. The company, which
concentrates its production facilities in EPZs, hopes to raise its
shoe sales from $50 million last year to $300 million from 30 million
pairs annually as it plans to inaugurate the first phase of its mega
shoe factory in Chittagong EPZ by the end of this year. The USA
is the world's single largest footwear market with imports in 2008
amounting to $19. 07 billion, including $11.34 billion worth of
leather shoes. China occupied two-thirds of the market, while
other major suppliers include Vietnam, Italy, Indonesia, Thailand,
Brazil and India. US official data showed shoe imports from China,
Italy, Brazil and Thailand were on the decline, while the
Philippines, Bangladesh, and Cambodia were having growths in recent
months. At present US importers are mostly sourcing men's dress
shoes and casual shoes from Bangladesh. Shipments of luggage,
briefcases, travel and sports bags and personal leather goods to USA
also doubled over the year, exporters' association officials said.
In 2008-09 fiscal that ended in June, Bangladesh exported footwear
worth $187 million, up 10 per cent year on year and leather bags and
purses exports amounted to $17 million, up by 65 per cent.
Industry people estimate that less than 10 per cent of Bangladesh
shoe exports earnings came from USA in the last fiscal. Europe and
Japan, however, remained major destinations of Bangladesh's leather
products. The USA is the single largest market for Bangladesh's
garments with exports totaled $3. 5 billion in 2008. Nasim Manzur
said, 'I foresee USA becomes the major destination for Bangladeshi
shoemakers very soon and shoes can book a billion dollar sales
there.' Bangladesh's shoes get duty-free access to Europe, but are
subject to seven per cent duty in US ports. 'If zero duty is
offered, $10 billion sales in dress and shoe to USA are nothing
impossible,' said Anwar Ul Alam Chowdhury Parvez, the immediate past
president of the Bangladesh Garment Manufacturers and Exporters
Association. He stressed that Bangladesh needs to lobby hard for
getting duty-free access to US market for dresses and shoes to create
several million more jobs.
