Leather products and footwear sector export dips drastically

Amidst ongoing Covid 19 coronavirus pandemic, Bangladesh leather products and footwear export sector -the second highest export earner of Bangladesh - as a whole registered a decline of 77.94 per cent export revenue on a year-on-year in April.

Leathergoods And Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) analyzed statistics obtained from Export Promotion Bureau (EPB) and prepared the report.

Overall export earnings from leather products and leather footwear shows downtrend in 4 months (Jan-April) of 2020 recording consecutive decrease of 6.59 per cent, 21.72 per cent and 79.30 per cent in February, March, and April respectively.

When compared to the previous year, over the period of 4 months (Jan-April), overall export earnings from leather products and leather footwear was 248.25 million US dollars in 2019 whereas in 2020 it exported 200.43 million US dollars with 19.26 per cent fall.

Significant fall happened in leather footwear when it exported 165.38 million US dollars in 2019 whereas in 2020 it exported 128.82 million US dollars with 22.10 per cent fall. During the same period in leather products, in 2020, it exported 71.69 million US dollars whereas in 2019, its export was 82.87 million US dollars registering a 15.59 per cent decline.

Comparing April alone, overall export earnings from leather products and leather footwear in April 2020 dipped by 79.70 per cent over April 2019. Leather products fell by 82.47 per cent whereas leather footwear fell by 77.94 per cent.

This unprecedented export fall is due to most retailers, chain stores and shops remain closed in major export markets of the sector such as in EU countries: Germany, Italy, France, and etc.; the US and Japan. In these markets, demand for footwear and leather goods has almost dwindled to zero. Reportedly, sales for this year's spring season are as much as 70 per cent lower than last year.

According to a recent World Footwear Business Condition Survey, footwear consumption is to be predicted to decline 22.5 per cent in 2020.

"In such critical circumstances, LFMEAB member factories are facing huge economic impact because of declining business and current orders situation amid the coronavirus crisis. Alarmingly, businesses are unlikely to revert back to usual level for at least another year if setback continues," Md. Saiful Islam, president of LFMEAB, said in a statement.