CLE ( Council for Leather Exports) Representatives along with Few Members Participants had Conversation with Textile Value Chain Media during International Sourcing Fair, Australia in November 2019.
Overview of Participation from CLE
In year 2019, 31 companies are participating this fair from India. Australia is a continent and the market is really different. Our majority sales are 70 to 75 percent in European, African and American market. We see potential in Australia. Our exports are increasing 6 billion overall exports from India.70% of our exports are to Europe, be it Germany, Spain. We have been participating internationally to explore the market.
More activities of association, please view our website : http://leatherindia.org/industry-at-a-glance/
Response from Exhibition
Our 3 year experience has been good and positive. Customers are approaching to us and interested to do business with India. Japan gives the best prices for the products in the whole world. The buyers who have came wants small quantities and not in bulk. If the price is good then the work is done. The buyers are small retailers and few wholesalers.
Market for leather
Australia market gives price but no quantities, This market is not a for manufacturers. As getting just 50 pieces order is not viable for factory owners, owners expects around 250 pieces per color per piece. Manufacturers are exploring market of Australia as it is alternative market. Indians get small work but it improve their balance sheet amount as turnover. Generally don’t get many orders from one client, but cumulative orders from market is good. Every market is different, If they sell in New Zealand then it’ll be lesser than Australia.
Europe gives good orders , as they have culture of using leather products, Even Students buy leather products. Europe doesn’t have any other alternate market. The Europeans have gone to USA to do business, but USA is adopting PU culture.
PU market is in demand right now in Australia, Europe and USA. Leather is included in the list of luxury product. Minimum any pure leather bag sold at $50 to $100 price points. The consumer’s mindset is changing and the market is fast. If the prices are more than no one is going to buy it.
Vegan V/S Leather
Leather is a byproduct and the main product is meat from animals. It is better to use something which is better than plastic. Leather will be forever, Just like gold. They new generation may not buy it but some do who have money and like the products. The Leather is not a quick or fast fashion. Leather is a lifelong product and does not harm the environment.
Vegan is a culture to not harm animals, it does not apply to fashion statements. The micro plastic harms the environment and it harmful to animals and fishes who accidentally eats it. The vegans use plastic which is not biodegradable. Leather is better than plastic.
China is not in leather, it deals in non- leather products. The synthetic leather is exported from China. In the gulf countries also, just 5% of leather is exported, the other is non leather products. This is because non leather products are more affordable than leather products. The domestic footwear that is worn is mostly synthetic leather. We supply 65% to Agra but they sell footwear at prices of Rs. 300- Rs. 400. That is synthetic leather because original leather costs more than Rs. 1000.
Manufacturing Cluster In India
Agra is the footwear cluster and they are known for leather footwear. Even in Tamil Nadu, Kanpur, Agra, and Jalandhar.
Raw Material Import
Leather is imported from Italy, Brazil. Brazil is a cold country and so the animals have thick skin so the quality of leather is good. We also had it from Pakistan but now it is banned. Everything is nominated today. The packing is of a different company, box is of a different company. The forwarder is different and the company that tests the leather is different. Everyone has a name in it.
Germany also plays a big role. It launches a new chemical every year. All the laboratories are affiliated with Germany. Our leather might pass the test in India but it fails the test in Germany. Exporter/ importer have to take burden for both country tests. There are very few brands from India that make and sell their own branded products to International Market. Brand with name Vanilla Bloom, who’s products are completely made in India and sold Internationally with Premium Price.