Leather Goods in Bangladesh

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Introduction of Leather Goods in Bangladesh:

Leather Goods in Bangladesh has earned the bright future for the leather industry. Our significant quality of the leather is in the second position after French. Our leather industry has already reached to 1 billion dollar industry. And it also adds a great contribution to our GDP. So, our government has taken leather industry very seriously. And they also want to expand our production capacity as well. In 2021 they declared to earn 5 billion dollars. And this aim will only fulfill when Bangladesh Leather Goods Exporter will group together and work together properly. In below, some scenarios are explained to understand the Bangladesh Leather Goods Exporter.

The leather is an ancient product. As we know that it is a unique commodity that relates grassroots villages with high societies. And it also combines traditional practices with emerging technologies. For many developing countries leather is a source of economy. And the leather manufacturers constitute an indispensable and dependable source for export trade. From them, they earn foreign exchange. And it boosts their GDP as well.  For Bangladesh, leather is a high priority industrial sector. As a result, footwear exports is an extreme focus area.

Leather Goods in Bangladesh photo

Bangladesh has just a few decades since Independence, made significant gains from the leather trade.  As it is progressing from the status of an exporter of 90% plus raw hides and skins to that of an exporter. and also predominantly leather product manufacturer. However, there is little systematic research into this sector. This new report is trying to address the research gap by seeking to understand circumstant. Like the current status, problems, and prospect of leather industry in Bangladesh. Let’s find out the economic manipulation of Bangladesh Leather Goods Exporter.

Economic Manipulation of Leather Goods in Bangladesh:

Overall our Leather and Leather Products contribute more than Tk. 3200 crore. And this is equivalent of foreign currency annually to the Bangladesh Economy. Furthermore, it is also a 100% agro-based export-oriented industry. There are almost 206 tanneries in our country. And the annual production capacity of processing about 400 million square feet wet blue. Then 300 million square feet crust leather. And finally, 140.39 million square feet finished leather. Bangladesh exports about 200 million square feet of hides and skins in the form of leather and leather products, the bulk of which is crust leather.

Leather Goods in Bangladesh flow chart photo

According to LSBPC (Leather Sector Business Promotion Council), they find a precious report on the leather industry. And here is the report describe exactly how they do. The value addition in producing finished leather is about 50% higher than that of crust leather, and the same is about 225% higher in the case of leather products. The present employment in the tannery including of Bangladesh is about 15,000 (including managerial and production staff), in footwear sub-sector 51,400 (15,000 in mechanized sub-sector and 36,400 in small and cottage level non-mechanized sub-sector) and in leathergoods sub-sector 10,200 (1200 in mechanized units and 9,000 in non-mechanized units).

Current Product Line up of  Leather Goods in Bangladesh:

At present, 220 tanneries, 2500 footwear fabricating units and 90 substantial firms are associating with the calfskin and cowhide products segment. As a result, this segment is contributing 4% to the nation’s aggregate fare profit by sending out things to more than 50 nations. There is a wide variety of leather goods produced in Bangladesh. The main groups are below:

  1. Small leather goods/Fancy leather goods
  2. Medium leather goods
  3. Heavy leather goods

##Small Leather Goods:

Small leather goods or personal leather goods include a wide range product in this category. Usually, these products carry in pocket or handbags. They include purses, wallets, key case, passport case, note case, card case, cigarette case and cigar case, matchbox case and so others. These goods require the thickness of 0.5mm to 1mm. Especially, cow softy, goat glaze, sheep napa, calfskin etc use for making these goods.

##Medium Leather Goods:

Medium Leather Goods includes handbags, shopping bags, shoulder bags, document cases, attache cases and so on. These bags are made from calf, goat, sheep and exotic skins and hides finished with a range of colors. And their thickness is about 0.8 mm to 1.2 mm. Mostly preferable with Cow softy, dry milled, cow napa, sheep napa, goat and buff softy leather are widely used in making of medium leather goods.

##Heavy Leather Goods:

Heavy Leather Goods are making generally from cow and buffalo hides. Cause they are strong and durable. The hides have distinct surface grain patterns and size ranges from 20 to 30 sq. ft is full hide. And the preferable thickness is 1 to 1.5 mm. Especially,  box sides, Katti Leather, Split Leather, Cow Upper, Upholstery, Buff Softy, etc are using to make heavy leather goods.

In the Conclusion of Leather Goods in Bangladesh:

Moreover, there is colossal potential for future development (local and additionally trade) and the objective is to achieve USD 5 billion yearly fares by next couple of years. It is the second most elevated supporter of national fares after attire. There has been a relentless advancement of the calfskin area which has achieved 11.93% development in the main portion of the current financial year (2016-17). And this part surpassed the fare focus by 9.64%, bringing $628 million from trades against the objective of $572 million amid July-December period. As Bangladesh earned $560 million from cowhide and calfskin items sends out in a similar time of FY 2015-16. So, The early focus for the current fiscal year set at $1.22 billion which is relied upon to surpass by June 2017. And Bangladesh traded cowhide and calfskin products worth $1.13 billion and $1.16 billion individually in FY 2014-15 and FY 2015-16.

As we discuss the progress and situations of our leather goods exporters, we see a great hope is waiting for us. But overall previous experience says a lot about it. Like we have advantages and disadvantages for our leather industry. Our current problem is shifting to Savar. Cause we see that we need almost 15 years to move here from Hazaribagh. And still, we are moving. But this needs to settle for permanently. Otherwise, our production capacity will fall badly. Another problem is adopting new technology is a serious issue for our leather industry. We are still working with old tools but it is now 2k18. So, we need to update our selves with new technology and increase our production capacity for earning 5 billion dollars goal.

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