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Sunday, May 25, 2025

The Revolution of the Shoe Industry in Bangladesh: From Cottage Craft to Global Contender

Over the last two decades, Bangladesh has undergone a quiet yet powerful transformation in its footwear industry. What was once a modest sector rooted in small-scale, often family-run businesses, has now emerged as a dynamic and competitive force in the global shoe market. The revolution of the shoe industry in Bangladesh is a testament to the country's evolving industrial capabilities, strategic export focus, and growing domestic demand.

Early Beginnings: Humble Roots

Historically, shoemaking in Bangladesh was a cottage industry, relying on manual labor, traditional tools and local markets. Artisans focused on leather shoes, sandals, and basic footwear to serve local consumers. Production was limited in scale, and the industry remained largely informal and unorganized until the early 2000s.

A Turning Point: Investment and Policy Support

The real shift began when the government and private sector recognized the potential of the footwear industry as an export earner. With the success of the Ready-Made Garments (RMG) sector providing a blueprint, Bangladesh began to develop its shoe manufacturing infrastructure.

Several factors contributed to the growth:

Government incentives such as tax holidays, export subsidies, and special economic zones.

Foreign Direct Investment (FDI) from countries like China, Korea, and Taiwan, who were looking for cost-effective manufacturing alternatives.

Skills training programs that equipped local workers with industrial shoemaking knowledge.


Leather Advantage: A Natural Resource

Bangladesh has a strong leather industry, which naturally complemented the growth of leather footwear production. The availability of raw materials helped the shoe industry reduce costs and gain a competitive edge in global markets.

However, environmental and compliance challenges in tanneries- especially those in Hazaribagh became a bottleneck. The relocation of tanneries to the Savar Leather Industrial Park was a crucial move, albeit slow and complex, toward sustainable growth.

Rise of Export-Oriented Factories

The export of Bangladeshi footwear has soared in recent years. Factories now produce high-quality shoes for major global brands such as H&M, Decathlon, and Bata. According to the Export Promotion Bureau (EPB), footwear exports reached over $1 billion annually, making it one of the top 10 export-earning sectors.

Notably, non-leather footwear (such as synthetic and sports shoes) has seen faster growth due to rising global demand and less regulatory pressure compared to leather products.

Domestic Market Boom

While exports lead the headlines, Bangladesh’s domestic shoe market has also seen explosive growth. Rising disposable incomes, urbanization, and a growing middle class have fueled demand for branded, stylish, and durable footwear. Local brands like Apex, Bay, Lotto (franchise), and Bata have expanded aggressively, offering both affordability and variety.

Challenges on the Road Ahead

Despite its progress, the industry faces several challenges:

Environmental compliance, particularly in the leather segment.

Technology gaps in high-end and specialized footwear manufacturing.

Skilled workforce shortages in design, R&D, and automation.

Global competition from giants like China, Vietnam, and India.

The Future: Innovation and Diversification

To maintain momentum, Bangladesh must invest in:

Green manufacturing practices to meet international sustainability standards.

Product diversification, such as athletic, orthopedic, and eco-friendly shoes.

Branding and marketing to establish Bangladeshi brands globally.

With the right strategies, Bangladesh has the potential to become a global hub for quality footwear, much like it did with garments.

The shoe industry revolution in Bangladesh is not just about factories and exports—it's about jobs, innovation and national potential. As the country strides confidently into the future, its footwear sector is poised to leave deep footprints on the global stage.