Leather Footwear Industry of Bangladesh

ANALYSIS ON THE LEATHER FOOTWEAR INDUSTRY OF BANGLADESH

Chapter: 01 Introduction This term paper is prepared with an intention to meet partial requirement of the course "Business Environment". As the course is about business environment, we have analyzed the environment of a particular industry of Bangladesh. We have chosen “Leather Footwear Industry” for this purpose. We performed an analysis based on “Porter’s Five Forces Model” and tried to evaluate its justification with the acquired knowledge from the course.

1.1 Objective of the Study: The objective of this term paper is to get familiarize with the real market situation and compare it with the acquired knowledge. The main objective of this term paper is to have an assessment about the Leather Footwear Industry of Bangladesh. In addition, the term paper seeks to achieve the following objectives: 1. To have a brief idea about the Leather Footwear Industry of Bangladesh. 2. To identify the forces that is influencing the Leather Footwear Industry. 1.2 Methodology of the Study: Basically, we have collected the secondary data about the Leather Footwear Industry of Bangladesh form the internet. We have collected different data, articles and journals to support our analysis. 1.3 Scope of the Study: This term paper is prepared through searching to different blogs, articles and journals. It is a great opportunity to have an in depth knowledge about the Leather Footwear Industry of Bangladesh.

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ANALYSIS ON THE LEATHER FOOTWEAR INDUSTRY OF BANGLADESH

1.4 Limitations of the Study: Some restraints that we have faced at the time of preparing the report are given below: 1. The insufficiency of information is the main constraint of the study. 2. Inexperience, time limitations and political hazards also created some obstacles. 3. Immense pressure from other courses also made our situation difficult.

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ANALYSIS ON THE LEATHER FOOTWEAR INDUSTRY OF BANGLADESH

Chapter: 02 Industry Overview 2.1

Leather Industry in Bangladesh:

Leather is the basis of one of the oldest industries in Bangladesh and plays a significant role in the national economy with a good reputation worldwide. This is an agro-based by-product industry with locally available indigenous raw materials having a potential for export development and sustained growth over the coming years. Bangladesh leather is widely known around the world for its high quality of fine gain, uniform fiber structure, smooth feel and natural texture. Real progress in terms of product development with respect to crust and finished leather began in the 1990s following the ban of export of wet-blue leathers from Bangladesh. 2.2

Tanning in Bangladesh:

A number of tanneries took the opportunity in 1990s for the production of crust and finished leather. There are reportedly around 220 tanneries in Bangladesh but only 113 tanneries are in effective operation, out of those 20 units are reported to be fairly large (7 units very large), around 45 units are considered of medium size and around 48 units are considered small groups as detailed on the following table. Number of

Typical Annual

Total Installed

Total Actual

Share of

Tanneries

Production

Capacity/Annum

Production/Annum

Actual

Capacity/Tannery

for all Tanneries

for all Tanneries

Production

7

>5 million sq.ft

40 million sq.ft

30 million sq.ft

17

13

2-5 million sq.ft

60 million sq.ft

52 million sq.ft

29

45