Prospects & Limitations of International Trade of Leather Goods from Bangladesh

Topics: International trade, Leather, Export Pages: 16 (3538 words) Published: April 8, 2011


Submitted to:

Mrs. Nowsheen Rahman
Course Conductor
Principles of Marketing
EMBA, Faculty of Business Studies
University of Dhaka

Submitted by:

Md. Shaheenul Islam (15029)
Mohammad Nawshad Choudhury (15059)
Ali Tareque Chowdhury (15035)
Md. Mostafizur Rahman (16008)
Amirul Islam (15042)


|Topics |Page No. | |Executive Summary |3 | |History of Leather Industries of Bangladesh |3 | |Objectives of the Study |4 | |Methodology of the Study |4 | |Current Status of Leather Industry in Bangladesh |4 | |Opportunities & Issue Analysis |7 | |Marketing Strategy |8 | |Financial Projection |12 | |Conclusion & Recommendation |13 | |Bibliography |15 |


Bangladesh leather industry developed on a large-scale basis from 1970’s. Most of the industries are export oriented and about 95% of leather products in the form of crust leather, finished leather, leather garments, and footwear are marketed abroad. The major market of Bangladeshi leather and leather goods are Germany, Italy, France, Netherlands, Spain, Russia, Brazil, Japan, China, Singapore, and Taiwan. Value addition in these exports averages 85% local and 5% foreign. About 100 modern tannery units are now in operation in the industry. Most of the industries are located in the Hazaribagh area of Dhaka city. In 2005, the sector earned about 1981 core Taka. The country’s share in the world leather market is 4%. The export of finished products such as shoes, slippers, leather jackets, hand gloves, bags, purses, wallets, and belts also earn an ample amount of foreign exchange. Bangladesh intends to increase its range of leather products to penetrate new market segments. The objective of this paper is to analyze the prospect and limitations of leather and leather goods of Bangladesh in the international market.


From time immemorial, the arts and crafts of Bangladesh are closely linked to our culture and heritage. Leather and leather goods have always been a part of that heritage.

Leather industry came into existence in this region in the colonial era. It is said that in the year 1940, a person named R P Saha has set the first leather industry of Bangladesh near Narayangonj area. It was later shifte4d to Hazaribag area of Dhaka, which has now become the prime zone of leather industry in Bangladesh.

The industry started taking a modernized shape on a large-scale basis in the early 70’s. At present there are about 170 tannery units in Bangladesh and they use locally available raw hides and skins. About 150 tannery units are located at Hazaribag of Dhaka in only 50 acres of land popularly known as tannery estate.

About 95% of leather and leather products are marketed abroad, mostly in the form of crushed leather, finished leather, leather garments and footwear. Bangladesh is now capable of producing 180 million square feet of leather per year. The quality of rawhide and skin is relatively good, as barbed wire fencing that damage the skins of animals is not used in...
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