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The market for branded shoes is getting bigger in Bangladesh

The market for branded shoes is getting bigger in Bangladesh

The shoe market in Bangladesh is growing due to the fact that the main raw material of shoes is its own, increasing the purchasing power of the buyer, changing the taste etc. The people of the country are leaning towards branded shoes as awareness has been created about the quality of shoes. That is why the sales of branded shoes are increasing at an average rate of 12-15 percent every year. So new companies are entering the business. However, the bulk of the shoes sold throughout the year are not yet branded.

According to traders, the shoe market in the country is quite large. There is a lot of competition as there are many organizations. Even then there are more opportunities to grow the brand’s shoe business. Institutions are also investing. However, it is becoming difficult to increase the number of outlets due to high shop rents in Dhaka and outside Dhaka. This is the main challenge facing the brand’s shoe business today.

The shoe market in the country is around Tk 17-18 thousand crore a year. Of this, 30 percent of the market is occupied by brand shoes. The rest is occupied by non-brand, regional brands and imported shoes. Earlier, the shoe business was festive, but now it is more or less all year round. Even then, 25-30 percent of the year’s sales are during Eid-ul-Fitr.

According to a report, Bata is at the top of the brand’s shoe business. This global shoe brand started its journey in Bangladesh in 1962. At present they have two factories in Dhaka. One in Tongi, the other in Dhamrai. These two factories have the capacity to make 1 lakh 60 thousand pairs of shoes daily. They have 248 outlets across the country. There are more than one and a half thousand dealer shops.

Although Bata shoes are produced in two factories in Tongi and Dhamrai, shoes of different brands including Nike and Adidas are imported from outside the country. In all, about 40 percent of the shoes are imported from abroad. Although there are sales outlets all over the country, Dhaka city alone accounts for 60-65% of the total sales of Bata.

Apex is the second largest brand of branded shoes in the country. Launched in 1990, Apex Footwear’s tannery unit was awarded the Leather Working Group’s (LWG) Best Quality or Gold Factory status in 2015. Big brands do not buy products without LWG certification. Apex sells products to about 135 shoe brands around the world. Apex founded the brand in 1997 to sell shoes in the local market. They occupy 7-8 percent of the brand’s shoe market. At present, they have about 800 outlets, franchisees and wholesale outlets across the country.

Outside of Bata and Apex, Lotto, Bay, Orion, Leatherx, Janis, Fortuna, Giles, Steppe have been doing business for a long time. New brands have come in the market in the last two-three years as there is good potential. Notable among them are Walker of RFL Group and Vibrant of US Bangla Group.

Walker, which started its business in 2017, currently has 50 outlets. Walker Footwear Factory at Danga Industrial Park, Narsingdi. The monthly production capacity of that factory is 12 lakh pairs of shoes. Currently, 500 people work for the Walker brand.

In rural areas of Bangladesh, no one walks barefoot anymore. That is why the use of shoes is increasing, the shoe market is increasing. However, in addition to the national brand, there are many non-brands and regional brands, so there is fierce competition in the shoe market.

-Editor

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