Overview and Background of Footwear Sector
The choice of footwear of Nepalese consumers is increasing with the changing fashion, awareness on health and increasing economic status. At the same time the domestic production capacity is also increasing with the scaling-up effort and number of producers. Although the producers estimates over 5,00,00,000 pairs of Nepalese footwear production yearly,due to lack of production and per capita consumption survey, the value chain analysis report of Nepalese footwear determined the domestic market coverage by domestic products in 2014/2015 is 42% against the production estimate of 2014 i.e. 3,00,00,000 pairs(while compared with import and export data of the same year 2014/2015)
This sector is providing employment to 60,000 employees (30% women). Every year Nepalese youth get skill development training either by producers or by GON agencies in forms of on the job training or through formal training course.
FMAN envisions that by 2020 the annual Nepalese footwear production will increase up to 45 million to cover domestic market by 80% and export annual volume over 12 million pairs with diverse destinations and increasing number of exporting companies which is able to make narrowing trade deficit of footwear up to 60% in terms of volume and 240% in terms of value. At the same time FMAN expects to increase employment opportunity up to 120,000 employees and decrease dependency on Indian work force from existing 30% to 10%.
To fulfill above visions and progress objective and also to strengthen the footwear sector in Nepal, with the support of the Nepal-German Trade Promotion Programme, FMAN prepared a joint national action plan on May 2016in close consultation with both public and private sector.
However, the FMAN is less capacitated and its member companies are less experienced in international footwear market access strategy, less exposed and have little knowledge about international marketing. In this line, FMAN is submitting this proposal with the objective to implement the joint national action plan with the focus on forward linkage in line with NTIS 2016 so that the quality of the service provided by the FMAN is better..
About FMAN
In 2000 the footwear and leather goods manufacturers felt a need to be organized to protect their benefits and ensure common benefit through policy influence in favor of manufacturers. Now a days more than 100 large and medium scale producers of footwear and some leather goods producers being organized under umbrella of Footwear Manufacturers Association of Nepal (FMAN). Of the total production of Nepal more than 70% footwear is produced by these 100 above companies.
The major objective of FMAN is to work for the common benefit of the producers and country as well. The specific objectives are
- Support to the producers for easy management of raw material, increase domestic production and market management of finished products
- Make country self-dependent in footwear sector
- Export promotion of domestic footwear
- Advocacy for the betterment of the footwear producers
- Provide advisory services to the footwear producers
- Knowledge management within the producers
- Encourage the footwear producers for the quality production
- Support to the producers to make footwear production business as respected job
- To draw attraction for the investment in the sector
- Keeping coordination and maintain cordial relation between producers
- Increase employment opportunity in the sector
- Support for skill development
- Support for wastage management
- Participate in national and international seminars and expos for the improvement of quality and increase export