Import and Exports PPT Points

The document discusses trends in the global footwear industry and Pakistan's footwear industry. Some key points: - Global footwear production has increased by 21.2% since 2010, with an average annual growth of 2.2%. Asia dominates production and exports. - Pakistan's footwear exports grew 45.9% from 2010 to 2019, though its share of global exports remains small at less than 1%. - Pakistan faces challenges enhancing competitiveness including labor constraints, lack of ancillary industries, and issues in the leather industry. Upgrades to skills, technology, and preservation practices are needed.

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Muhammad Waqas Maniar

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Import and Exports PPT Points

Uploaded by

Muhammad Waqas Maniar

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Download as DOCX, PDF, TXT or read online on Scribd

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Exports & Imports

Trends in the Global Footwear Industry

 Global footwear production has increased by 21.2 percent since 2010 at an average yearly
growth rate of 2.2% to establish a new production record of 24.3 billion pairs in 2019
 China is the world’s largest footwear manufacturer and the biggest footwear exporter in the
global market, followed by India, Vietnam and Indonesia.
 Asia is the largest footwear-consuming continent, with a 54.0 percent share in consumption
against its 60.0 percent share in the world’s population.
 The value of global footwear exports increased in 2019 to reach $153.3 billion – a growth of 5.6
percent over 2018. This growth was mainly driven by Asian countries, which increased exports
by 3.3 percent. The average export price worldwide was almost $10.0 in 2019.
 More than 15 billion pairs were exported in 2019, mainly by Asian manufacturers leading to Asia
having a share of 83.9 percent in world exports.
 , China has been seeing a steady decline in its exports of footwear, losing 7 percentage points
since 2010 due to high labor costs, more stringent government policies and attractive policies
introduced by other competitors such as Cambodia, Vietnam and Bangladesh.
 Global production increasing at a rate 2.2% annually.
 China being the largest manufacturer and exporter followed by India , Vietnam and Indonesia
 Asia being the largest consuming continent having 54% share in consumption
 Average export price of pair of shoes was at $10 in 2019.
 15 Billion Pair of shoes were exported in 2019-2020 with Asia having percentage of 83.9%
 China losing its market and competitive advantage over the years

Modern machinery is being imported to automate the production process and increase
efficiency

Pakistan’s Footwear Industry

 In 2010, Pakistan exported $92.6 million worth of footwear, whereas it exported $135.3 million
in 2019 – a growth of 45.9 percent. However, this figure is still very small when compared to
Pakistan’s total exports of $23.8 billion.
 The shoe manufacturing industry in Pakistan is predominantly located in and around the city of
Lahore, where almost 80 percent of the documented sector of the footwear industry is located.
 Footwear contributes less than one percent to Pakistan’s global exports. Despite the low
contribution to the international footwear market, Pakistan is the seventh largest producer of
footwear, manufacturing more than 2.0 percent of all footwear produced worldwide.
 It is also the seventh largest consumer of footwear, accounting for 2.2 percent of global
consumption.
 Pakistan’s footwear exports mainly comprise of leather footwear which represents 84.2 percent
of Pakistan’s footwear exports.
 Pakistan’s footwear exports have grown 3.7 percent annually since 2015, marginally higher than
the world average of 3.5 percent. However, this growth is well short of the growth rates of its
regional competitors such as Cambodia (18.7 percent), Bangladesh (14.0 percent) and Vietnam
(11.6 percent).
 Pakistan is a beneficiary of the EU GSP+ program since 2014, a program that allows Pakistan to
export footwear articles duty-free to the EU. Despite the zero-tariff benefit, Pakistan’s footwear
export share fell from 73.2 percent in 2014 to just over 68.0 percent in 2019.

Industry View on Enhancing the Export Competitiveness of Pakistan’s Footwear Industry

Labor productivity constraints

o Labor quality is not up to the standards required for producing high-end footwear.
o Due to a lack of training institutes and skill-development, factory workers produce basic
lowquality shoes, which fetch a low price in the international market.
o Apart from skilled workers, there is also shortage of skilled human resource for important
support functions like designing, merchandising and product development.
o There is a severe shortage of frontline supervisors, middle and upper-level managers and is a
major handicap in investments and expansion in the footwear industry.

Ancillary / Support Industry is Mostly Absent

O Production inputs such as molds and lasts are imported by footwear manufacturers. Due to the non-
availability of inputs pertinent to footwear production, exporters lose out on potential orders to
competing countries such as India and Bangladesh.
O Pakistan’s downstream supplier/vendor support is inadequate. The footwear industry has neither big
suppliers nor a wide range and variety of accessory makers to support them.

O Moreover, the lack of innovation has limited the availability of significant accessories/ components
used to style fashionable footwear articles

O Since value addition requires technological up gradation, there is a need to make considerable
investment in upgrading Pakistan’s footwear assembly process to compete internationally.

O Better machines and know-how of advanced production techniques will ensure consistent quality,
which cannot be expected from existing resources.

Issues with the Leather Industry

 Pakistan is one of the biggest markets of raw hides and skins in Asia, and over 30 to 40 percent
of total production is generated on the occasion of Eid-ul-Azha. The leather industry has
suffered more during recent years due to the lack of uninterrupted electricity and gas supply
and hot and humid weather.
 Moreover, due to a lack of knowledge of preserving raw skins and hides, and unprofessional
butchers damaging skins and hides by adding extra cuts, more than 10-20 percent of the total
collection of hides and skins are damaged. This decline has also caused Pakistan’s leather export
figures to fall by approximately 22 percent (2015-19).

A large number of businesses in Japan are concentrated in Tokyo and Near Tokyo, therefore women
belonging to other areas have less opportunity to showcase and present themselves