BD leather goods exports decline in H1 FY23

Excluding knitwear, the other seven major sectors, including leather, which had previously recorded at least half a billion dollars in annual export revenue in fiscal year (FY) 2021-22, experienced declines in the first half of the current fiscal year 2023-24, according to data released by the Export Promotion Bureau (EPB).

Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB), representing leather products and footwear manufacturers, generated approximately US $ 1 billion in export earnings in FY 2022-23,reports Apparel Resources.

However, makers of leather and leather goods, including footwear, have witnessed a decline in overseas sales during the current fiscal year, with export proceeds falling by 18 per cent year-on-year to US $ 523 million in the July-December period of FY24. At the conclusion of the FY 2021-22, Bangladesh witnessed eight sectors achieving export figures surpassing half a billion dollars. 
Exporters attribute this decline to diminished demand from major markets like Europe and the USA, where consumers have scaled back spending amid high inflation and post-Covid-19 inventory build-up.

The ongoing Russia-Ukraine war and geopolitical tensions have further contributed to weakened sales.

Despite these challenges, the outlook for a swift recovery appears grim. Md Nasir Khan, vice-president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB), expressed concerns, stating, "I do not see any possibility of a sharp rebound soon. Buyers are not placing orders but rather observing ahead of the general election. We are concerned."