Footwear market gearing up for bumper sales

Bangladesh’s footwear industry is preparing for a big boost in sales ahead of the Eid-ul-Fitr, as nearly half of the sector’s annual sales take place during this festive season.

Footwear sales have been recovering from the Covid-19 rut at a steady pace – both in home and abroad. Export Promotion Bureau (EPB) data shows that the exports of footwear rose by nearly 26 per cent in the July-February period of FY22, when compared year-on-year.

Industry insiders said nearly 30 per cent to 40 per cent of Bangladesh’s footwear sales take place during the Eid celebrations. Shoe companies and retailers are optimistic that the industry will fully recover from the pandemic’s impacts this season.

Customers of all ages and from all corners of the society are already flocking to different footwear outlets in the capital’s Gulistan, Elephant Road, New Market, Mouchak, Gulshan, and Badda to pick out their favourite design.

Outlets of Bata, Gallery Apex, Bay Emporium, Janice, Orion, Lotto, and the majority of other brand and non-brand retailers updated their inventory around a week ago to cater to the needs of visiting customers.

Industry insiders say the retail sales of footwear have already gone up by around 10 per cent within just a week, and more stock will arrive in shops across the country from mid-Ramadan.

Speaking with The Business Post, Manager of Bata’s Elephant Road outlet Hafiz Khan said, “This outlet usually sold footwear worth Tk 12 crore – Tk 13 crore annually during the pre-pandemic period, before 2020. We made 30 per cent of the annual sales ahead of Eid-ul-Fitr.

“The sales had plummeted in the last two years due to the impacts of the Covid-19 pandemic. But our sales have doubled this year compared to the same period last year. Footwear sales continue to go up as Eid draws near.”

Hafiz expects the footwear sales this Eid to exceed the pre-pandemic figures by 20 per cent.

Md Muzammel Huq, the outlet manager of Apex in the Paltan area, said, “Many customers want to end their shopping early Ramadan. They are visiting our outlet to pick a favourite design that fits their budget.

“Our Eid collection leather shoes have already arrived in the market. We are optimistic about making at least 50 per cent of our annual sales during this Eid season.”

‘Market response very good’

Abdul Momen Bhuiyan, senior vice president of Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB), said, “Right until 2019, during the pre-pandemic period, Bangladesh had a footwear market of Tk 17,000 crore.

“Though shoe sales continue throughout the whole year, the majority of the annual sales take place during Eids. Around 25 per cent to 30 per cent of our sales take place in Eid-al-Fitr alone.”

Bhuiyan, also the CEO of Apex, added, “Our footwear exports are going up as well. The industry has no big issues at the production and export levels, but there are some problems centring raw material imports. We are optimistic that Bangladesh’s footwear exports will keep rising.”

LFMEAB’s Director and Managing Director of BAY footwear Ltd Ziaur Rahman said, “The local market’s response to our products is currently very good and sales are going up day by day. We are preparing to corner the Eid market.”

In the eight months until February 2022, leather footwear exports generated $475.04 million, up by 25.89 per cent compared to the same period previous year. The export performance of leather footwear exceeded the set target of $414 million for the period by 14.73 per cent.

According to the World Footwear 2021 Yearbook, 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.

Bangladesh’s footwear exports have been growing consistently for years, but dropped in 2020 for the first time in a decade.