Micro level manufacturers there are around 1200 micro

 Micro-level manufacturers:
There are around 1,200 micro-level manufacturers all over the country which
manufacture 500 to 6000 pairs of footwear annually. This level includes
manufacturers of natural fiber- and felt- based shoes.
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Areas of Competitive Advantage in Global Market
From our interaction with Mr. Amir Bikram J.B Rana , the owner of Kiran Shoes Pvt.
Ltd. , who is recognized with the Goldstar brand in Nepal, we identified the following
competitive advantages of Nepalese footwear:
 Handmade products:
Consumers in European countries and the USA are highly interested in handmade
items. The natural fiber- or- felt based footwear are products unique to Nepal. There
are no competitions for such products anywhere in the world. At the same time, other
raw material- based footwear is also handmade. If proper marketing can be done,
Nepalese handmade footwear may gain easy access to the global market.
 Pure leather products:
Nepal has the capacity to prepare 100% leather- based footwear, which are
very cheap and eco- friendly. Since the demand for the pure leather products is high in
the foreign market, and Nepalese leather products are cheap and the best choices in
terms of price and quality, this could be a competitive advantage for our industry.
In the short session with Mr. Rana, he focused mainly on ensuring the
sustainability of production and supply so as to achieve the potential that the Nepalese
footwear industry has in the global market. For the sustainability, the following were
the measures suggested by Mr. Rana.
Sustainability of Production and Supply (export)
In general, products should be competitive in terms of price and quality. This calls for
the following considerations:
 Support for participation in international trade fairs for international market
promotion.
 Development of footwear zones and CFCs.
 Incentive in export.
 Skill development of Nepalese youth.
 Implementation of collective trademark for Nepalese footwear.
 Facilitation for acquiring an NS trademark.
 Modernization of footwear industries at international level.
 Promotion of cooperation and collaboration between industries and small
manufacturers.
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Process of export of Nepalese Footwear
The Footwear manufacturers follow the export process prescribed by the government of
Nepal
Export process
i. Registration of the firm and tax registration: Any firm (sole proprietor, partnership,
private or public limited company) that wants to export footwear from Nepal must be
a registered one from the government authorities. The firm only gets registered after it
submits all the necessary documents in the Office of the Company Registrar such as a
letter of recommendation from its Ward Office, the letter of recommendation from
chamber of commerce, Memorandum of Association, Articles of Association and
other important documents. The firm needs to get tax registration certificate for the
payment of income tax and VAT along with Permanent Account Number
(PAN).Without these documents it is impossible for a footwear company to conduct
export transaction.