Bangladesh’s footwear industry is flourishing, capturing exploitable opportunity
By Ahmed Noushad
Bangladesh has been involved in this industry since the colonial era, although noticeable modernisation took place during the late 1980s with traditional cottage type footwear units set to produce in limited production. First large scale manufacturing plant was established by Bata Shoe Company in 1967 which also possessed export potentials to the erstwhile USSR and England. Since this founding, Bata emerged ahead, innovating not only in its design and production, but also in creating business models. In this light Mr. Sin Kee Lee, retail manager of Bata Shoe Company (Bangladesh) ltd shares with ICE Business Times, ‘Since our founding, Bata has been at the forefront of innovation; not only in the production and design of new styles, but in the creation of business models that permit a quick response to the ever-changing wants and needs of our customers. As a result, Bata enjoys a long history as a leading manufacturer and retailer of quality footwear, and proudly serves some one million customers each day’.
Mr. Sin Kee Lee notes that before Bata set foot on Bangladesh, the factory had its shoe production going on in the Western province of the undivided Bengal. But understanding the need of presence here in Bangladesh, Bata decided to set up a factory at Tongi, and gradually prospered in to tannery and a leather production factory at Dhamrai in 1987. ‘With more than 30,000 employees, 5,000 international retail stores, and a presence in over 70 countries, Bata is positioned to deliver an unparalleled combination of selection, quality, and service to customers around the globe’, Mr Sin Kee Lee says in support of their entrepreneurial strength.
Since the mordenisation, besides Bata, many new footwear-manufacturing industries have emerged given the easy availability of raw materials. Notable among them are Apex Footwear, Bay Emporium, Legacy Footwear, and Paragon Leather and Footwear Industries, and many more are yet to set foot in the market. ‘Among the organised footwear market– obviously Bata is the biggest and other companies such as Apex, Bay, Jennys, Fortuna and Lotto in Sports Category are among the big players operating in this sector’, shares Mr Sin Kee Lee. ‘Bangladesh around the world is known for two things, first because of garments, but second because of footwears. If you ask me about retailing, first of course there is Bata, then there is us, then other companies, like Bay’s, Jennys, and a few others who are trying to establish themselves‘, says Mr. Rajan Pillai, COO of Apex.
Apex being the only local footwear company of Bangladesh, has rather a lot to add to the current growth. Mr Rajan says that Apex plays a huge role to ensure that the items produced meet the expected quality and demand of the customers. When asked about the technological side of the industry, Mr. Rajan adds that this is an important aspect of the footwear industry. To be updated and upgraded is essential to meet international standards, ‘Now that we are catering to European clients, they have certain regulations and protocols and requirements, or say safety issues and compliances before they accept to do business with us. To maintain and keep up with them, we have to have our factories updated and upgraded’.
Emerging and sill growing, this industry has a long way to go. The country is in a very nascent stage full of scopes and potentials that are yet to be exploited. ‘I won’t say as a company, but as a country the industry itself is at a very nascent stage, but the scope to grow is enormous. If you want me to say where the market is right now in a scale of 1 – 10, I would say it is a 1 or 2 from the bottom. And by bottom, I want to say that the industry is at a very nascent stage, and not that it is struggling’. He points that this exploitation should be backed with patience, ‘Retail is all about patience, if you don’t have it, you don’t get it. You cultivate today, and the fruits start bearing after years, never tomorrow. This is a market that is based on patience, planning and execution’.
With these brands growing and taking fame, several counterfeit factories have also emerged compromising the efforts and outcomes of the industry. Bata fears that these factories not only cheat with the government but also the customers by making them to believe that they are buying quality shoes, but in fact, they are paying for inferior products which are made from inferior material. To add to the satisfactions of the customers Brands in Bangladesh are incorporating international brands along with them. ‘To satisfy the increasing demand of the customers, Bata has introduced concept shops and expand its business around the country. We have collections targeting a wide range of customers. Our exclusive designs along with international brands are carefully selected and updated in response to our consumer demand. We have different concept stores’ says Bata‘s retail manager Mr. Sin Kee Lee. This might even help Bata to further strengthen their ties with customers both local and foreign. In this regard, Apex has a different opinion when it comes to challenges, ‘I am not looking forward to marketing my brand unless and until I am well set. I get calls from Nepal, China, US, Canada, and they ask me why don’ I open stores there. I want to go international, Apex wants to go international, but I need to be sure that I have done my home-works right, my backend is right, and that I have a strong foothold. All this is because once I take a step there, I can’t take it back. Be it in logistics, quality, supply chain, staffs, training, and ensure all my home-work’s done’, Mr. Rajan shares. According to him, planning may not always solve a company’s goal, they need to have a vision as to where they would want to see themselves. ‘You cannot plan without a vision,’ he says pointing at Apex’s strong vision.
The reputation of Bangladesh’s footwear is so profound that Bata has constructed one of their largest outlets here in Bangladesh, ‘Our Bata showroom at Basundhara City is the largest Bata Shoe store in Asia & second largest Bata outlet in the whole Bata Shoe Organisation’, says Mr. Sin Kee Lee. Apex’s retail manager stresses on patience to achieve the fruits of investing in this industry, ‘I have been in the sector for more than 17 years, I started as a salesman, and I know how things work in each level.’ He also welcomes young investors in this industry, ‘if you want to come in to this market, you are welcome, there is a lot of potential. If you do it properly and plan it well, it will prosper’.
