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. 22
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. 23
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.
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