Orion Footwear Ltd.
Orion Footwear Ltd.
The footwear sector (both leather and non leather) of the country has emerged as the most important among the lot in terms of value addition and was designated a priority sector by the Bangladesh government in 2009. The leather footwear has also been the fastest growing sector in the leather industry and one of the promising sectors in Bangladesh.
The modernization of the footwear industry in Bangladesh, which has grown since the colonial era, occurred during the late 1980s. Currently, the country resides more than 3000 footwear production units. The composition of the production units includes around 23 relatively large units having mechanized and semi-mechanized technology. The rest of the units are of small and medium production entities.
Bangladesh is among the top Asian producers of footwear, with production in 2011 of276 million pairs and a 1.3 percent world market share. According to the World Footwear 2012 Yearbook, Bangladesh produced 276 million pairs and consumed 268 million pairs of shoes in 2011 (APICCAPS 2012), making its per capita consumption 1.7 pairs. The report also ranked Bangladesh in the seventh position among the top ten footwear producers worldwide by quantity.
The footwear sector of Bangladesh earned revenues in excess of USD 335.51 million in 2011-12 with growth rate of 12.66% which is very encouraging and shows off the underlying potentiality of the sector.
Meeting with representatives of the footwear sub-sector highlighted an optimistic sentiment about business. They view their products as price and quality competitive. Footwear manufacturers in the country rate themselves as being able to respond quickly to buyer inquiries, possessing the ability to offer competitive prices, quality products, and prompt fulfillment of orders. Another positive feature emerging in the footwear sub-sector is the development of possible backward linkages.
Moreover, the entire leather industry is aiming to earn USD 16 billion within the next ten year and the leather footwear sector of Bangladesh would play the most important role in the pursuit. Market analysts and experts are betting on the country’s footwear sector to achieve this target.
The local market for footwear in Bangladesh is also huge and is treated as growing and virgin market for the marketer. With the pace of economic development, having all these positive factors, many Bangladeshi entrepreneurs are looking forward to grab this opportunity with both hands.