PROFESSOR: SNEHA KALRO

EXPORTING LEATHER PRODUCTS TO GERMANY

SR. COUNTRY NO
Germany USA Italy Spain Uk France

OUANTITY(IN PIECE)
1377428 1565807 973888 1117471 713954 531957

%SHARE(VALUE VICE)
19.35 17.70 15.39 14.97 8.09 5.91

Netherlands
Sweden Canada Denmark

257110
169183 117794 162414

2.34
1.96 1.79 1.69

Portugal
Greece Belgium

99341
86390 98851

1.38
1.32 1.10

Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin, primarily cattle hide. It can be produced through different manufacturing processes, ranging from cottage industry to heavy industry.
The leather manufacturers met challenge with a renewed vigor and started capturing markets like Germany ,U.S , Italy, U.K., and France.

HISTORY

The primitive man, even more than 7000 years ago, made and used leather goods. dried fresh skins in the sun, softened them by pounding in animal fats and brains, and preserved them by salting and smoking. Just as leather today is a byproduct, our ancient ancestors hunted animals primarily for food, but once they had eaten the meat, they would clean the skin by scraping off the flesh and then sling it over their shoulders as a crude form of a coat

Egyptians and Hebrews developed around 400 BC, the process of vegetable tanning that involved simple drying and curing techniques Under the Arabs during the middle Ages, the art of leather making became quite sophisticated. Morocco and cordovan leathers were in great demand. The ancient puppet theatre in the southern India used primarily leather dolls . The tradition continues even today. USES AND IMPORTANCE OF LEATHER INCREASED : EXAMPLE >>> it was discovered that water would keep fresh and cool in a leather bag. It was also found suitable for such other items as tents, beds, rugs, carpet, armor and harnesses. The Egyptians made leather sandals, belts, bags, shields, harness, cushions and chair seats from tanned skins. Many of these items are in fact still made from leather today. the Greeks and Romans used leather to make many different styles of sandals, boots and shoes.

Germany is the largest national economy in Europe the fourth-largest by nominal GDP in the world fifth by GDP (PPP) in 2008 Germany is the world's second largest exporter with $1.120 trillion, 750 billion exported in 2009 the single largest buyer of Indian leather items

 The

world's second largest import and export market A difficult buyers' market with hyper competition and high expectations A dynamic multi-faceted market A market influenced by the rising average age of the population and low birth rate A market with environment awareness and eco-friendly production

 The

German market for luggage and (leather) accessories was worth 1,953 million in 2006. The market to grow by 2.6% in 2007, and then by 3.2% and 5.2% in the subsequent two years. This market growth are driven by many factors.

German luggage and (leather) accessories consumption by product, % value

 Environmental

concerns (know-how) Bags for men have shown a great increase For women, designer bags are less popular. The latest trends are for individually styled bags design or brand says something about the status or lifestyle of the owner Increasing demand for briefcases

 The

leather sector offers a good potential ever growing competitiveness in terms of price and quality environmental considerations advantage of raw material and labour resources

India has 10% of worlds total animal population so strong raw material base. Central Leather Institutes produces qualified leather technocrat. Growing market. Purchasing power increases world wide. Increased consciousness about usage of leather products specifically among women (matching chappal, matching belt, matching clothes and hand bag, etc) Support of the government duty draw back increased from 11% to 16%. Indian leather industry has provided employment to 2.5 million people. Annual export value poised to touch about 2 billion US dollars. Amongst top 8 export earners for India. Has enormous potential for future growth.

Lack of warehousing support from the government No quality specifications, poor quality accessories. Competition from low price markets like Pakistan, Ethiopia, Indonesia and Kenya.

Unorganized sectors. No brand name. Huge labour force resulting in high labour charges Unawareness of international standards by many players. International price fluctuation

Use of e-commerce in direct marketing Germany is a very large market can provide a range of opportunities for exporters from developing countries. Use of information technology and decision support software to help eliminate the length of the production cycle for different products More demand for cross over bags, fashionable handbags, light and compact luggage and computer cases. The growing market for fashionable handbags provides opportunities for exporters if they can produce at the prices demanded.

Major part of the industry is unorganized If you are notable to supply quickly and change production at the short-term whim of the fashion market, we could find yourself exposed to the dangers of overtrading. Lack of communication facilities and skills High competition from East European countries and other Asian countries Stricter international standards Difficulty in obtaining bank loans resulting in high cost of private borrowing Limited scope for mobilizing funds through private placements and public issues (many businesses are family-owned)

Leather Belts Leather Wallets Leather Portfolios Leather Key Chains Handbags / Business Cases Travel Bags

It should be distinctive and easily remembered. It should not offend any particular section of the society. It should depict the features of the product.

Occupies a place of prominence in the Indian Economy The Indian Leather Industry has captured world attention by way of its unique performance in the international arena Variety and large number of leather products are available and sold in India Leather wear in India is basically for export though a very small quantity is available in the local market mainly in the north. Most of the garments sold are designed as per international standards and the buyers are mainly foreigners. Main leather garment centres for manufacture are Bombay, Kanpur, and Madras. The Indian Export Trade Corporation (IETC)-one of the leading manufacturers of very high fashion leather garments for mens and womens wear

Employs nearly 2.5 million persons. A large part (nearly 60-65%) of the production is in the Small/Cottage Sector. Annual export value is about to touch about 2 billion US dollars. Amongst top 8 export earners for India. Endowed with 10% of the world raw material and export constitutes about 2% of the world trade. Has enormous potential for future growth.

 Germany

is located in the centre of Europe. Germany is one of the world's most active trading countries with a significant surplus. The German banking system and the German financial are stable and well developed. The capital market in Germany has grown in importance over recent years.

Exhibit at one of the main luggage and accessories fairs Make a direct approach to wholesalers or major retailers. A Aggressive price driven approach will not be effective Many buyers are not always loyal

International Leather Goods Fair The Leather and More Fair The GDS Fair in Dusseldorf

 Advertising

in trade magazines trade publication for the leather-Leder & Haute Sternefeld- issue a leatherwear report Magazine- STEP TM Fashion Trend magazine

Your Business is Open to the World 24/7, 365 Days a Year It's Your Online Brochure / Catalog That Can Be Changed at Anytime Improved Customer Service Sell Your Products

German Leather Industry Association Leather Goods and Luggage Association The Association of Leather Goods Retailers The Association of Textile Retailers The Leather Training, Testing and Research Centre

This guide to doing business in Germany is intended to highlight some important key areas that one may encounter in Germany such as Organization ,Aversion to Risk, Communication.
Working in Germany-Fixed Term Employment, Social Security, Taxable Income