Online sales of footwear and leather products grow
Sri Lanka’s US$550 million footwear and leather manufacturing and export sector is leveraging web penetration and the rise of e-commerce to promote sales and find new markets understanding customer behaviour in the latest wave of COVID-19, several leather product industry leaders said.
This sector of one of the oldest crafts has been gradually adapting to online trade during this pandemic moving away from the traditional model of business transaction, a spokesman for the Sri Lanka Footwear and Leather Products Association said.
Young entrepreneurs in the leather product industry are harnessing e-commerce, making maximum use of Internet in a virtual space for marketing and selling products and services, he added.
With an aim to boost market visibility and retain tech-savvy customers, major footwear companies are expanding their market presence online.
Leading company P.G. Martin Industries Pvt Ltd has triggered the trend of online sales by launching its web store recently.
The objective is to reach customers online to boost sales and develop new markets for the products, Chairman of the company P.G.D. Nimalasiri told the Business Times.
Their new web store displays a vast range of products enabling customers to make purchases online with an attractive delivery policy and flexible payment options, he said.
He added that it also caters to corporate customers and other persons who would like to obtain services that include all types of bag repairs and restorations.
Director of P.G. Martin Industries Pvt Ltd Sandaru Nimalasiri said that footwear and leather enterprises are currently facing the issue of the breakdown of their supply chain due to lockdowns and curfew.
The web store for leather products is the novel concept introduced to this sector to overcome some of the difficulties faced by leather product manufacturers as it will motivate them to follow suit, he pointed out.
In addition, many are face working capital problem as they do not receive payments for goods supplied and other income sources have also declined, he disclosed.
Leather and footwear were not given adequate attention although it makes a significant contribution to the economy and provides livelihood opportunities to a large number of people. Further their supply channels are disrupted, said Nimal Samarakkody, an industry expert.
He urged the authorities to give necessary assistance for affected entrepreneurs at this stage as most of them have not been able to reap the benefits of the government relief packages due to lack of awareness and/or inability to meet the requirements of banks.
The entrepreneurs are fighting a lone battle to get out of their financial crisis, he said adding that the challenge of the government will be to implement measures to sustain businesses and minimise job losses.
At present the footwear and leather industry and its supporting industries, including the marketing chain employs around 300,000 people directly and indirectly. This sector comprises 10 large companies, 30 medium scale companies and around 3000 small scale footwear manufacturers.