1. Export Oriented Footwear Industry of Bangladesh Presented by Laboni Aktar Tarana; Roll: 14 Md. Touhidur Rahman; Roll: 39 IBA, MBA 52D

2. Leather Industry Exports (in million USD)

3. Growth of Footwear Exports of Bangladesh (USD million)

4. PESTLE Analysis of Leather and Footwear Export Industry Political unrest Poor enforcement of environmental laws and rules Political Factors Cheap labor Poor infrastructure Unavailability and high cost of power supply Economic Factors Large population Change in buying patterns Social Factors Technological development Information and communications Technological Factors Tax policies Duty free facilities Safety regulations Compliance issues Legal Factors Environmental regulation and protection Renewable resources Environmental Factors

5. Porter’s five forces Model of Export Footwear Industry Competitive Rivalry (High) Bargaining Power of Suppliers (Low) Threats of New Entrants (Low) Bergaining Power of Customers (High) Threats of Substitutes (High)  110 export-oriented factories  Foreign brands  Available raw materials  Imports from China, India, etc.  Unorganized suppliers  Multiple options  Discretionary purchases  Required high investment  Poor infrastructure  Various substitute products  Low cost substitutes  Price variations

6. Business Canvas Model of Export Footwear Industry Key Partners Suppliers (Farmers) Distributors Retailers Foreign buyers Customers Key Activities Infrastructure building Training labor force Manufacturing Marketing & Sales Product R&D Consumer Education Branding Value Propositions Comfortability Durability Stylish appearance Trends Competent price Good for health Status symbol Customer Relationships Bulk buyers Loyalty Reliability Customer Segments Foreign Countries Bangladeshi Customers Mid to High Quality-conscious Buyers Fashion-conscious Buyers Key Resources Product Brand Team Partner & Retail Network Channels Shipping Transportation Social Media Websites Cellphones Cost Structure Product Inputs (raw materials) Workers’ wages Equipment & Facilities Regulatory & Compliance Power supply Revenue Streams Product Sales Shoes and accessories Leather products Other synthetic/natural products

7. Strengths and Weaknesses of Export Footwear Industry Strengths Governments declared “Thrust sector” & highest priority to Footwear & Leather Goods Almost 90% materials are locally available High quality and reputation of natural leather Availability of labour and low labour cost Comparative price advantage in international market Favourable geographical location Weaknesses Selective and limited Access to Finance Lack of Skilled Workforces Lack of access to latest technology and machinery facilities Poor/or no R&D, laboratory facilities Poor compliance practice Poor infrastructure, power supply High rate of interest on term loan

8. Opportunities and Threats of Export Footwear Industry Opportunities Increasing International and Local demands for value added leather products Low wage workers convertible to skilled ones No duty on shoes, leather products made and exported from Bangladesh Local and Foreign Direct Investment opportunity in value added leather products sector China is losing competitiveness Government policies - GSP, Cash Incentive; etc. Already big players invested in BD signalling many more to follow Threats Absence of integrated long term policy No dedicated skill development institute Political instability, corruption Increasing import of low priced synthetic products Illegal export of raw hides/skins Smuggling Potential buyers stringent stands for compliances, and delay in building Common Effluent Treatment Plant (CETP) Emergence of alternative sources like Myanmar

9. Triple Triangle Framework/ Three Domain Framework (1/4)

10. Triple Triangle Framework/ Three Domain Framework (2/4) Capital Substantial amount of capital required in near future Culture Increasing global competition Global Strategy - “Think Global, Act Global” Maintaining international qualities Capabilities The second best leathers in the world Low cost labor VRIN model – Valuable, Rare, Inimitable and Non-substitutable

11. Triple Triangle Framework/ Three Domain Framework (3/4) Customer Foreign customers Customers from USA, Japan, Canada, etc. Competitor Competition is high Collaborator Quality of raw materials, equipment and machineries Delivery process

12. Triple Triangle Framework/ Three Domain Framework (4/4) Technology and Innovation Machines from Italy and Germany Government and Society Interrupted power supply & poor infrastructure Technological upgradation and insufficient R&D initiatives and facilities High rate of interest on term loans and working capital, limited access to finance Leather smuggling to India International Factors Increasing demand in international markets Expected shift from China and India Competition from countries like Myanmar

13. Thank You

14. Questions?