Challenges of shoe making and footwear industry Pakistan

 Challenges of shoe making and problems faced by the Handmade Footwear Sector in Pakistan

Introduction

The Handmade Footwear industry is one of the leading sectors contributing to the development of the country. It not only creates self-employment for many people on the other hand, but it is also providing quality footwear to consumers on the other hand. In today’s world machinery is replacing the human hand, and evolving very steadily. At the same time wiping out the handmade products from the market at a very fast pace. India and China also produce alternative products to our local handmade industry, with the lowest prices.

Per Capita Income

In developing countries where there are fewer economic opportunities, the masses are unemployed, and also dependent upon one or two earning persons in the family. Thus, decreasing the per capita income of the country. Lack of opportunities persuades people to take different kinds of legal or illegal steps to fulfill their needs. People need employment opportunities from the state to fulfill their financial needs. It is the responsibility of the state to create such a progressive environment where there are multiple employment opportunities for the people. So that they can choose a legal profession and fair means of earning. Self-employment is only possible when the environment of the country is suitable and people can work easily. As mentioned earlier the handmade industry is also a source of self-employment, people generate their income.

Skilled People in Pakistan

Pakistan is rich in skilled people who are busy making handmade products without the use of any machinery. For example Ladies’ embroidery, Handmade Clothes, Carpets, Kaleen, Handmade Shawls, Leather Jackets, Leather Belts, Sindhi Ajreks, Saraiki Ajerks, Handmade Shoes, Sports accessories (Footballs, Cricket Bats and Balls Etc), Handmade Sandals, Kheri Chappal, Norozi Chappal, Peshawari Chappal, Multani Khusa, Leather Bags, Clutches, Needlework of South Punjab and Balochistan, Musical Instruments, Cutlery, woodwork, calligraphy, etc.

Unfortunately, Pakistan is still on the list of developing countries. Lacking in many physical resources and crippled with immature political leadership and governance for a long time. Many of the sectors which can boost the economy were neglected, which resulted in demolishing of these sectors.

Footwear industry Pakistan

The hand-made footwear industry is also one of the important sectors of the economy of Pakistan. It is contributing a significant share to the economic development of Pakistan. It includes shoes, sandals, chappal, Kheri, norozi, Peshawari chappal, Balochi chapel, Makrani chappal, Multani Khusa, ladies khusa, and many more. The footwear industry has an unlimited variety for men, women, and kids. 

Not only variety but there is a renowned and the best export level quality in the handmade footwear products from Pakistan. Not only do the locals of Pakistan like to use this footwear on different occasions and events but many foreigners are also fond of these products. These products are of the best quality and at economical prices. People with low incomes can easily afford these products. On the other hand, substitutes from China and other countries with similar product quality levels are too expensive to buy for low-income households in Pakistan. Unfortunately, this industry is moving towards its end soon because of many reasons.

Problems and Challenges Faced By the shoe making and Handmade Footwear Sector in Pakistan

Challenges and Issues of Shoemaking

The shoe-making and footwear industry of Pakistan is facing various challenges to survive in local as well as international markets such as:

Lack of advanced technology

Being a developing country, there is a shortage of the latest and advanced technology in Pakistan. To meet the needs of the market and cater to the demand of local as well as international customers, advanced technology is needed. 

Shortage of manpower

There is a shortage of skilled manpower to cope with the requirements of the world market. The need is growing to prepare a skilled labor force having the capacity to produce leather footwear and other products on scientific lines. To match the needs of the international market skilled manpower is complimentary.

High Cost of Production

Raw material prices are increasing day by day. The cost of production is very high compared to competitors like India and China. There is a high cost of various inputs, especially utilities, leather, and other accessories. Higher taxes make Pakistan’s products uncompetitive in the market and no subsidy is adding to the hurdles.

Competition:

There is big competition in the industry between different manufacturers and retailers. This kind of competition is not productive because it does not support the industry to become a professional industry. Small manufacturers and retailers d-market the products of the other manufacturers. The unhealthy competition among SMEs is also one of the biggest challenges of shoemaking.

Association of Pakistan Footwear Manufacturers: 

There is no proper footwear manufacturers Association that could work the promotion of the industry and speed up the growth of the sector. There should be a proper association that can work to convert the challenges of shoe-making into opportunities and pave the way for progress and development.

Lack of Finance:

The challenges of shoe-making also include financial issues. The local manufacturers are poor or with low income. They cannot afford the huge financial investment. This sector needs giant investors to bring this industry up. On the other hand, there is no financial support from the government. The government is not providing any kind of support and ignoring its growth continuously.

Distribution Channel:

There is no organized distribution channel for these products. It is also another big challenge  Most of the products are sold in the manufacturing area or the workshop.  

Marketing and Advertising:

Marketing and advertising channels for small and medium-scale producers are not affordable. Secondly, the manufacturers are not in the capacity to bear these costs in addition to the manufacturing cost.

Digital Marketing – Social Media Marketing

The global market is evolving and making the world a global village. Digital marketing is playing a key role to promote small and medium-scale industries. Bypassing the intermediaries and brokers can bring a big portion of profits to the sellers. But unfortunately, in Pakistan, the small-scale producer is illiterate or has not had enough knowledge of digital marketing or social media marketing. Resultantly, in losing the opportunity cost of gaining higher profits.

Leather industries in Pakistan and their impact on footwear manufacturers:

Leather tanning is very polluted as compared to other industries. Numerous measures are suggested to take care of the environmental hazard It causes but these are not implemented due to a lack of funds. At every unit of output, the level of toxicity is high due to the heavy hides-leather converting process. The challenges of shoemaking are not only limited to the above-mentioned facts

Chromium III Salts issue:

The tanning process uses Chromium III salts extensively. Due to a lack of knowledge and information, the tanning industry uses Chromium IV instead of Chromium III. For the best quality leather, the raw leather should be tanned with Chromium III, not with Chromium IV.

Flood impact:

Due to heavy flooding in the country, the leather industry faced a lot of troubles. The farmers and other stakeholders couldn’t rear livestock. Livestock that was destroyed by the flooding affected the hide acquisition and it showed a decline from 15 to 20 percent approximately. 

Leather Export Associations In Pakistan:

There is no special institution to look after the leather sector overall, except SMEDA. The Small and Medium Enterprise Development Association focuses on the development of all kinds of industries and developing more industries. There is no special focus on the leather and footwear industry. Meanwhile, its hands are also tied by a lack of funds.

The active Leather Export Association in Pakistan are:

ASAIF.

Asian Sports and allied industries federation

AESILT.

Anjuman Ex-Students of I.L.T., Gujranwala, 

FPCCI.

Federation Pakistan Chambers of Commerce and Industry

LIDO.

Leather Industry Development Organization Ministry of Industries and Production(Industries WING)

Conclusion

The challenges of shoe-making are not limited to the above-described issues, it is a versatile industry, and every day new challenges appear. These challenges are to be coped with accordingly.  Government can play a vital role to depreciate the effects of the crippling challenges of shoemaking. Adequate financing, promotion of healthy competition, and creation of opportunities can bring better results.

Article By KHeRi

KHeRi is one of the leading as well as Pakistan’s No. 1 brands of handmade footwear. Peshawari Chappal, Kheri Chappal, Norozi Chappal, Peshawari Chappal, and Balochi Chappal making with the best quality is their specialty. Kheri Footwear is located in Quetta, busy in making the Kheri chappal, norozi Kheri, and Balochi Kheri chappal. Quetta is the hub of making original norozi chappal in Pakistan. Besides, Quetta, Kheri, and norozi are also manufactured in Dera Ghazi Khan, Karachi, Hyderabad, Sukkur, Multan, Peshawar, and many other places in Punjab. Norozi Dera Ghazi Khan is also famous for its finishing and unique style. 

Balochi Chappals are also the prime products of Kheri Quetta,  Kheri chappal new design, Balochi Chappal pictures, and Balochi chappal design are available on the website of kheri chappal (https://kherifootwear.com).  Balochi chappals in Karachi are also very famous in Pakistan and are manufactured in Hub (Balochistan). Quetta Balochi chappal prices in Pakistan vary from place to place because of the difference in quality and raw material used. Handmade Balochi chappal ladies are also used in Pakistan. Traditional Balochi chappals in Lahore are manufactured in Quetta. Norozi Chappal Online is available nowadays. Quetta Norozi chappal pics are also available online. Norozi Chappal Quetta is considered original and of the best quality kheri. Kheri is also known as norozi Chappal, norozi KHeRi,  norozi sandal, norozi shoes, and Peshawari chappals Pakistan. Norozi Chappal DG Khan prices are different from norozi Chappal Quetta because of the same reason mentioned earlier. Original Norozi chappal single sole, Norozi chappal double sole, and norozi chappal leather sole are also available from different manufacturers. Premium Norozi chappal making is a difficult process and it is very different from making Peshawari chappal. Awesome Norozi Kheri chappal and norozi shoes Quetta prices are different because Kheri chappal/footwear is making Norozi Premium quality. The famous Norozi chappal Faisalabad is also sold by KHeRi footwear. Norozi Chappal Blue, norozi chappal black, nozoi chappal brown, norozi chappal white are made on order.

• Timely and efficient delivery of products.
• No stock rotation leads to outdated stock.
• A higher percentage of Customer Initiated Returns (CIR)
• The increased cost of Reverse Logistics.
• Managing Multiple Warehouses and Stores.
• Easy transition to present Taxation policies.

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Hardships faced by the handmade footwear Sector in Pakistan article by KHeRi Footwear