Sri Lankan leather products exporters should focus on the fashion market
View(s):Sri Lankan manufacturers and exporters of footwear and leather goods should focus on more fashionable products like sports and athletics footwear as the profit margin in these categories are high and overcome rising raw material costs.
This was stated by Rishad Bathiudeen, Minister of Commerce and Industry when he addressed the inauguration of the 9th Footwear and Leather Goods Fair 2017 held for three days at the BMICH last week.
He said that as the middle-income segment is increasing so is their desire for luxury items and thus they would tend to purchase fashionable footwear, rather than casual footwear and leather goods.
Footwear and leather goods exports in 2016 increased by 28 per cent to US$140 million from 2015 with 84 per cent of these exports coming from footwear. The global footwear and leather goods market is expected to reach $600 billion and leather goods $247 billion by 2020 and in this context Sri Lanka exports are capable of getting a fair share of that market, he said.
The Minister said that the government is providing all the support needed to increase the export market inclusive of a training centre at a cost of Rs. 60 million and a ‘Footwear and Leather Goods City’ in the eastern province at a cost of Rs. 150 million.
Ranjith Hettiarachchy, Chairman, Fair Organising Committee, said that they were able to take the footwear industry to the village level as a cottage industry with the assistance of IDB with necessary training offered to them and also SMEs have captured fashionable handmade items. Out-sourcing and lean production have become an important part in the sector, he added.
He pointed out that as industrialists they have to improve the competitiveness by reducing cost, increase productivity, enhance quality and keep in line with the world fashion trends. Further, he indicated that consistent government policy is an imperative to achieve the objectives.
He said that they have requested the Consumer Affairs Authority to introduce a labelling system for footwear by having the MRP label to prevent under invoicing and inflated retail prices which would help the consumer get a fair deal. -(QP)