Footwear Manufacturing

Unmatched pair of brown and blue sneakers

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Footwear Manufacturing
Footwear Manufacturing
For Domestic And Export Market Through Local Footwear Material Sourcing
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Consumer Goods
Apparel and Textiles
Business Model Description

Investment in a business to customer (B2C) model for setting up footwear stores and outlets. Business to business (B2B) models for scaling up or establishing manufacturing units for the domestic and export markets using locally sourced products. Examples of companies active in this space are:

Atoms, a Pakistani e-commerce brand for footwear, raised USD 8.1 million in 2019. The company plans to use the funding to invest in further development of its shoes and to expand its retail and marketing presence. The company has been selling directly to consumers in the US via its website — which at one point had a waiting list of nearly 40,000 people. (9)

The footwear unit supplies brands including Inditex SA’s Zara, Levi Strauss & Co.’s Dockers and Reckitt Benckiser Group Plc’s Scholl. The business has an annual revenue of about USD 44 million and exports to European countries such as Germany, France and Italy. It has the capacity to produce 3.6 million pairs of shoes annually. (11)

Expected Impact

The IOA proposes a model that produces footwear using sustainable practices that address the negative outcomes of the footwear industry and provides a safe and gainful work environment for the workforce and businesses.

How is this information gathered?
Updated: 4 May, 2023 Date of Production: 19 Apr, 2023
Pakistan
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Responsible Consumption and Production (SDG 12) Gender Equality (SDG 5)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) Life Below Water (SDG 14) Clean water and sanitation (SDG 6)

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Sector Sources
  • 1. Ansari, P. L. 2023. “Pakistan’s Textile Industry is in Crisis – and Women are Bearing the Brunt of its Decline.” The Guardian. https://www.theguardian.com/global-development/2023/feb/01/pakistan-textile-industry-crisis-women. Accessed 14 April 2023. 2. UNDP (United Nations Development Programme). “Pakistan: Flood Damages and Economic Losses over USD 30 billion and Reconstruction Needs over billion and Reconstruction Needs over USD 16 billion.” UNDP press releases. https://www.undp.org/pakistan/press-releases/pdna-pakistan-floods. Accessed 14 April 2023. 3. Ministry of Commerce. 2021. Textile and Apparel Policy 2020-2025. https://www.commerce.gov.pk/wp-content/uploads/2022/02/Textiles-and-Apparel-Policy-2020-25.pdf. Accessed 29 March 2023. 4. Iqbal, S. 2022. “Pakistan’s Current Account Deficit Swells to $17.4 billion.” Dawn News. https://www.dawn.com/news/1701921. Accessed 29 March 2023. 5. World Footwear. 2022. “Pakistan Footwear Exports Increase in Value.” https://www.worldfootwear.com/news/pakistan-footwear-exports-increase-in-value/7458.html. Accessed 29 March 2023. 6. BOI (Board of Investment). 2020. “Sector Profile Textiles.” https://invest.gov.pk/textile#gallery-1. Accessed 29 March 2023. 7. PBC (Pakistan Business Council). 2021. Enhancing the Competitiveness of Pakistan’s Footwear Industry. https://pakfootwear.org/wear/wp-content/uploads/2017/01/Footwear-Sector-Report-by-PBC.pdf Accessed 29 March 2023. 8. Statista. 2020. “Employment in the Footwear, Luggage and Handbags Industry in Pakistan in FY 2015, by Gender.” https://www.statista.com/statistics/798122/footwear-luggage-and-handbags-industry-employment-by-gender-pakistan/. Accessed 14 April 2023. 9. Profit Pakistan Today. 2019. “Pakistani Start-up Atoms Secures $8.1m Financing.” https://profit.pakistantoday.com.pk/2019/08/30/pakistani-start-up-atoms-secures-8-1m-financing/. Accessed 14 April 2023.
IOA Sources
  • 10. PBC (Pakistan Business Council). 2020. “Enhancing the Competitiveness of Pakistan’s Leather Garment Industry.” https://www.pbc.org.pk/research/enhancing-the-competitiveness-of-pakistans-leather-garment-industry/. Accessed 29 March 2023. 11. Ahmed, K. 2021. “Pakistan’s Largest Shoe Exporter Raises $14.23 million to Invest in Chinese Tire Company.” Arab News. https://www.arabnews.pk/node/1839976/pakistan. Accessed 29 March 2023. 12. PFMA (Pakistan Footwear Manufacturers Association). 2022. “Footwear Statistics.” https://pakfootwear.org/footwear-statistics/. Accessed 29 March 2023. 13. Green of Change. 2023. “Inconvenient Truth: Fashion Is One of the Most Polluting Industries of the World.” https://www.greenofchange.com/textile-pollution#:~:text=The%20main%20environmental%20problems%20caused.pollution%20and%20solid%20waste%20pollution. Accessed 29 March 2023. 14. SMEDA (Small and Medium Enterprises Development Authority). 2016. Pre-Feasibility Study: Footwear Retail Outlet. https://www.commerce.gov.pk/wp-content/uploads/pdf/footwear_retail_outlet-sep-2016.pdf Accessed 29 March 2023. 15. SMEDA (Small and Medium Enterprises Development Authority). 2021. “Leather and Footwear.” https://smeda.org/index.php/business-facilitation/smeda-downloads/pre-feasibility-studies/category/138-leather-footwear Accessed 29 March 2023. 16. Associated Press of Pakistan. 2022. “Chinese Investors Offered Incentives in Pakistani Footwear Industry.” https://www.app.com.pk/global/chinese-investors-offered-incentives-in-pakistani-footwear-industry/. Accessed 29 March 2023. 17. CPEC Authority Office. 2022. China Pakistan Economic Corridor Investment Opportunities for Pakistan. https://www.cpec.gov.pk/brain/public/uploads/documents/CPEC_Brochure_Final_English.pdf. Accessed 29 March 2023. 18. Zero Waste Sonoma. 2021. “Sustainable Footwear Tips and Information.” https://zerowastesonoma.gov/news/sustainable-footwear-tips-and-information#:~:text=Sustainable%20footwear%20is%20becoming%20a.to%202027%E2%80%9D%20 (Source). Accessed 29 March 2023. 19. Sustainable Development Solutions Network. 2022. “Performance of Pakistan.” Sustainable Development Report 2022. https://dashboards.sdgindex.org/profiles/pakistan. Accessed 28 March 2023. 20. Cheema, A. R. 2021. “Pakistan SDGs Status Report.” National Initiative for Sustainable Development Goals. https://www.sdgpakistan.pk/uploads/pub/Pak_SDGs_Status_Report_2021.pdf. Accessed 29 March 2023. 21. Federal SGDs Support Unit. 2022. “Pakistan’s Voluntary National Review.” National Initiative for Sustainable Development Goals. https://www.sdgpakistan.pk/uploads/pub/VNR_2022_Pakistan_Report.pdf. Accessed 29 March 2023. 22. SBP (State Bank of Pakistan). 2015. Research Report on ‘Leather Products’ Segment. https://www.sbp.org.pk/departments/ihfd/Sub-Segment%20Booklets/Leather%20Products.pdf Accessed 29 March 2023. 23. ILO (International Labour Organization). 2022. “Info Stories the Gender Gap in Employment: What's Holding Women Back?.” https://www.ilo.org/infostories/en-GB/Stories/Employment/barriers-women#global-gap Accessed 29 March 2023. 24. ILO (International Labour Organization). 2022. The State of the Apparel and Footwear Industry: Employment. Automation and Their Gender Dimensions. https://www.ilo.org/wcmsp5/groups/public/---ed_emp/documents/publication/wcms_835423.pdf Accessed 29 March 2023. 25. Ministry of Commerce. 2021. Strategic Trade Policy Framework (STPF) 2020-2025. https://tdap.gov.pk/wp-content/uploads/2022/01/STPF-2020-25-1.pdf. Accessed 29 March 2023. 26. (World Wide Fund for Nature). 2022. “WWF and SEPA’s Joint Efforts Bring Textile and Leather Industries on Path to Sustainability.” https://www.wwfpak.org/?375675/WWF-and-SEPAs-joint-efforts-bring-textile-and-leather-industries-on-path-to-sustainability. Accessed 14 April 2023. 27. PRMI (Pakistan Regulatory Modernization Initiative ). 2022. “E-register of Business Regulations.” https://prmipunjab.com/e-register-of-business-regulations/ Accessed 29 March 2023. 28. Pakistan Environmental Protection Agency. 2023. “Rules. Regulations and Neqs.” https://environment.gov.pk/Detail/MDUzMDI1OGItYWYzZC00NzQ0LTlhZWItZjYzY2RkOTkyZGVh Accessed 29 March 2023. 29. SBP (State Bank of Pakistan). 2017. Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises. https://www.sbp.org.pk/smefd/circulars/2017/C11-Annex.pdf Accessed 29 March 2023. 30. BOI (Board of Investment). 2021. “Incentives in Special Economic Zones.” Special Economic Zones Incentive Package. https://invest.gov.pk/sez#gallery-1 Accessed 29 March 2023. 31. SMEDA (Small and Medium Enterprises Development Authority). 2016. Pre-Feasibility Study: Men Footwear. https://www.commerce.gov.pk/wp-content/uploads/pdf/Men-Footwear.pdf Accessed 29 March 2023.