India Sourcing: Leather goods 2018

 

In India Sourcing: Leather goods 2018, buyers can find:

Verified exporters – 12 suppliers offering jackets, footwear, bags, wallets, belts and premiums.

Products – Full-color images with specifications and prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

Export data – India-wide details and survey results from featured exporters

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewProduct featuresSupplier surveyPDF downloadSupplier list

India Sourcing: Leather goods 2018 Sector highlights

Industry overviewProduct featuresSupplier survey
  • India's exports of leather and leather goods during the period April-June 2018 reached $1.42 billion.

  • The leather industry in India benefits from the domestic availability of raw materials.

  • Many companies are either single proprietorships or family-owned enterprises.
  • Suppliers are developing new models that make use of lightweight yet durable materials.

  • At many companies, most production steps are done by hand.

  • Prices are based primarily on the product's design and the materials used.
  • Most leather goods suppliers intend to increase prices in the next six months.

  • Leather bag manufacturers prefer contemporary designs that are defined by neutral colors and minimalism.

  • Most makers will focus marketing efforts on North America.

India Sourcing: Leather goods 2018 Suppliers & products

India Sourcing: Leather goods

India Sourcing: Leather goods 2018

• Jackets • Footwear • Bags
• Wallets • Belts • Premiums

Our team has visited all India manufacturers featured here to verify their export capability. Each has a website on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.

Sections


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Bags & wallets   
India-leather-goodsIndia-leather-goodsIndia-leather-goodsIndia-leather-goods
India-leather-goodsIndia-leather-goodsIndia-leather-goodsIndia-leather-goods
India-leather-goodsIndia-leather-goodsIndia-leather-goods
Footwear   
India-leather-goodsIndia-leather-goodsIndia-leather-goodsIndia-leather-goods
Jackets   
India-leather-goodsIndia-leather-goodsIndia-leather-goodsIndia-leather-goods
Fashion accessories   
India-leather-goodsIndia-leather-goodsIndia-leather-goodsIndia-leather-goods

India Sourcing: Leather goods 2018 Industry overview

India Sourcing: Leather goods Industry Overview

India Sourcing: Leather goods 2018

• Jackets • Footwear • Bags
• Wallets • Belts • Premiums

This section discusses key issues affecting export manufacturers in India, offering insight into industry composition and important supply centers.

India's leather goods exportsCompetitive advantagesChallengesIndustry composition
  • Exports of leather and leather goods from India for financial year April-June 2018 reached $1.42 billion.

  • The United States is the leading market for India leather and leather products.

  • Leather footwear accounted for about 35 percent of the export value.
  • The leather industry in India benefits from the affordability of raw materials compared to other countries.

  • India enjoys relative low labor costs compared with several leather goods-producing countries.

  • The Council for Leather Exports aims to raise exports from $5.73 billion to $10 billion in 2024-2025.

  • Restrictions on cattle slaughter are limiting the supply of hide and increasing material costs.

  • The cost of buffalo and cowhide have risen by as much as 17 percent in the past 12 months.

  • Under the GST, the leather industry is levied a 5 to 28 percent tax on every level of the supply chain.

  • India’s leather goods industry includes makers of footwear, garments, gloves, handbags, suitcases, trunks, saddlery and harnesses.

  • Many companies in the leather and leather goods industry are either single proprietorships or family-owned operations.

  • Tamil Nadu, West Bengal and Uttar Pradesh are among the key production hubs for leather and leather goods.

India’s leather and leather goods exports for the period April-June 2018 reached $1.42 billion, according to a report posted on the website of the Council for Leather Exports (CLE), which cites the Directorate General of Commercial Intelligence and Statistics (DGCI & S). The figure, which includes non-leather footwear, is nearly $18.8 million lower compared with the $1.44 billion in exports recorded for the same period in 2017.

The US was the top importer of India leather and leather products based on the value of exports from April to June 2018 with a share of about 15 percent. Following close behind were Germany with 11 percent, the UK with 10 percent and Italy with 7 percent.

Footwear accounted for 48 percent of the value of exports from April to June 2018. Finished leather contributed 17 percent, garments 10 percent, and saddlery and harnesses 2 percent. The remainder came from leather goods and accessories.

Competitive advantages

The leather industry in India benefits from the domestic availability of raw materials.

India also enjoys relatively low labor costs. The national floor-level minimum wage (NFLMW) in the country is about $2.43 per day, significantly lower compared with the $14 to $16 typically paid to workers in developed countries such as Italy.

Additionally, the government and industry groups have implemented initiatives to encourage the development of the leather goods sector and supporting industries.

India Leather goods exports

The CLE has established ties with groups such as the Footwear Distributors and Retailers of America. Officials believe the move will allow India suppliers to fully tap into the US market.

India’s Trade Promotion Organization holds annual trade shows, including the India International Leather Fair and the India International Footwear Fair, to market the country’s leather and leather goods to buyers from other counties.

The government has also launched various initiatives to help leather manufacturers across the country such as the Indian Footwear, Leather & Accessories Development Program, which is designed to generate 320,000 new jobs and expand the leather and footwear industry.

The Credit Guarantee Scheme aims to strengthen the credit delivery system and facilitate credit flow to small and midsize enterprises.

The Indian government has also lowered goods and services taxes (GST) on footwear from 18 percent to 5 percent for products priced up to $14. Previously, only footwear that were priced up to $7 were given a GST of 5 percent.

The state government of Panjab has also proposed to lower the power tariff for leather manufacturers by giving them a 100% exemption on electric duty.

The CLE announced a special package worth $404.7 million from fiscal 2017-2018 through to fiscal 2019-2020 to help generate employment in the leather and footwear industry. The council also aims to raise exports from the current $5.73 billion to $10 billion by financial year 2024-2025.

The Central Leather Research Institute in Chennai, Tamil Nadu, has also developed a new production technique known as Waterless Chrome Tanning Technology, which could lead to more environment-friendly production processes. Researchers are focused on building technologies that would help reduce pollution during the tanning process.

Challenges

India’s leather and leather goods industry faces several challenges, chief among which are policy related: the restrictions on cattle slaughter and the Goods and Services Tax (GST).

Restrictions on cattle slaughter: Most of India’s states impose restrictions or penalties on the slaughter of cows and other types of bovine. Such restrictions limit the supply of hides and pushes up the cost of these materials. This is compounded by the rising cost of chemicals used for tanning.

Former CLE Chairman M. Rafeeque Ahmed noted in a telephone interview that the government crackdown and the recent cattle-related violence in the country have severely reduced hide supplies in factories in Kanpur, Agra, and Noida in Uttar Pradesh. The cost of buffalo and cowhide have increased by as much as 17 percent this year, compared with figures recorded in September 2017, Ahmed said.

Makers anticipate the cost of hides and other inputs to continue to increase.

The impact of the GST: The GST continues to be a major concern for most manufacturers and exporters in India. Some are still unfamiliar with the processes related to GST or cannot afford hiring financial experts to file tax returns on their behalf.

With the implementation of the GST, the leather industry is subject to a 5 to 28 percent tax on every level of the supply chain. Many suppliers complained about discrepancies between taxes on raw materials and finished products. Some are struggling to switch to digital services, such as registering, paying taxes and filing returns online.

The GST system allows for refunds and tax credits that can be offset against future liabilities. However, the issuing of refunds has been delayed, leaving small firms with a limited amount of cash at hand.

Many suppliers believe these issues have caused production volumes and profit margins to decrease even further.

Industry composition

India’s leather goods industry includes makers of footwear, garments, gloves, handbags, suitcases, trunks, saddlery and harnesses. Most companies are either single proprietorships or family-owned operations, often with semi-automated facilities.

A small enterprise typically employs 25 to 30 employees and generates export sales of more than $500,000 each year. A midsize company usually has 200 to 300 workers and records up to $10 million in annual export sales. A large company can have a workforce of more than 1,000 employees and generate between $20 million and $50 million from overseas shipments.

Among the major production centers for leather and leather goods in India are the states of Tamil Nadu, West Bengal and Uttar Pradesh.

Supplier locations map

The highlighted areas on the map show the locations of the head offices and factories of the leather goods suppliers featured in this report.

India leather goods Industry Overview Locations Map

India Sourcing: Leather goods 2018 Product features

India Sourcing: Leather goods Suppliers and Products

India Sourcing: Leather goods 2018

• Jackets • Footwear • Bags
• Wallets • Belts • Premiums

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by India leather goods suppliers.

Buyers can also learn more about the materials used and the common price ranges of certain designs.

Materials & designsManufacturing & QCPricing
  • Leather manufacturers in India use full-grain, top-grain, corrected-grain and split leather.

  • Suppliers are developing new models that make use of lightweight yet durable materials.

  • Designers produce pieces that reflect the art and culture of the Asian subcontinent.

  • At many companies, most production steps are still done by hand.

  • Most processes are done in-house.

  • A midsize company can maintain two- or three-member QC teams, while a large company can enlist a team of 10.
  • Prices of leather products are based mainly on the product's design and the materials used.

  • Other factors that influence pricing include fluctuations in logistics costs and currency exchange rates.

  • Most suppliers will raise prices in the next six months, but many will keep increases within 5 percent.

Materials & designs

Cattle hide, buffalo hide and goatskin are the materials typically used in leather goods from India. Based on the quality of the hide, makers use full-grain, top-grain, corrected-grain and split leather.

Designers from India are well-known for combining traditional techniques with modern styles to produce timeless pieces that reflect the art and culture of the Asian subcontinent.

Fashion accessories in contemporary designs are still a popular choice for suppliers. An example of this are bags that combine bright colors with traditional Indian patterns. However, a growing number of sellers are trying out classic designs that highlight the natural color and texture of leather. Some manufacturers are also coming up with new models that make use of lightweight yet durable materials.

Manufacturing & QC

At many companies, production remains labor-intensive with stitching, punching and other steps still done manually. Most processes are done in-house.

The size of the QC team varies according to the size of the company. A midsize company usually maintains two- or three-member teams, while a large company can enlist a team of 10.

QC teams are responsible for monitoring every step of the production process, from designing models to building and finalizing the products. These personnel regularly conduct visual inspections of the size, color and detailing of models to ensure that each item meets client specifications. They also determine whether manufacturing facilities follow industry standards on machinery and handling of environmental waste.

Pricing

Quotes for leather goods are based mainly on the product’s design and the materials used. Other factors that influence pricing include fluctuations in logistics costs and currency exchange rates.

Our survey indicates that most suppliers will raise prices in the next six months, although many will keep increases within 5 percent.

Price guide

Price guide: Leather backpacks
$15 to $20
Synthetic leather and genuine buffalo hide and goatskin, canvas; canvas, nylon lining; from 28 to 39cm in height; brass closures and buckles; with embroidery
$20 to $100
Genuine goatskin or horsehide, cotton canvas; cotton canvas, polyester lining; 28cm to 58cm; with embroidery

Click image to enlarge.

India Leather goods product features Typical features of a clock

Price guide: Men’s formal shoes
$5 to $15
Lace-up or slip-ons; PU or PVC leather uppers; black, brown, blue or white
More than $15
Lace-up or slip-ons; genuine cowhide, goatskin or sheepskin; blue, black, brown or white

India sourcing leather goods product features Typical features of a shirt

Price guide: Jackets
$15 to $40
PVC leather; zipper closure; brown or black
$45 to $100
Calfskin or lambskin; polyester lining; button or zipper closure; embroidered; various colors

India leather goods typical features of a leather journal

Price guide: Belts
Less than $3
Women’s or men’s belt; canvas, PU and buffalo hide; alloy buckle
$3 to $6
Men’s belt; buffalo hide; alloy buckle; with studs
More than $6
Men’s belt; cowhide, buffalo hide or goatskin; steel buckle

India leather goods typical features of a leather journal

India Sourcing: Leather goods 2018 Supplier survey

India Sourcing: Leather goods 2018

India Sourcing: Leather goods 2018

• Jackets • Footwear • Bags
• Wallets • Belts • Premiums

To give buyers first-hand information from active leather goods exporters in India, we’ve surveyed the manufacturers featured on this site.

Export pricesExport sales & marketsProduct trendsChallenges
  • The majority of surveyed suppliers are anticipating increases in export prices in the coming months.

  • Most of the companies projecting increases see adjustments being kept within 5 percent.

  • Some sellers will keep their prices at current levels to stay competitive.



  • Most suppliers expect export sales to increase at double-digit levels in the next 12 months.

  • Fifty percent of the featured companies see North America, particularly the US, as the main source of export revenue.

  • One-fourth of the surveyed suppliers will focus marketing efforts on the Middle East.

  • Upcoming designs will be in neutral colors and have minimal embellishments.

  • Manufacturers are switching to undyed or vegetable-tanned leather to make their products more eco-friendly.

  • Some companies are expanding their product range to attract more buyers.

  • Most sellers believe the price competition in domestic and international markets is their top concern.

  • Finding skilled workers is a concern for some companies given the labor-intensive nature of leather goods production.

  • The limited supply of hides due to restrictions on the slaughter of cattle is also a concern.

Export prices

Of the surveyed companies, 67 percent are expecting export prices to go up in the next six months. Most of those projecting increases, however, see adjustments being kept within 5 percent.

Many sellers have kept quotes stable for more than a year to encourage new and additional orders. Prices will be raised in coming months to cover the rising cost of labor and raw materials.

About one-third of the surveyed suppliers will keep prices at current levels amid the intense price competition in domestic and international markets.

India Leather goods Survey Export Prices

Export sales & markets

Most suppliers are optimistic that export sales will increase in the next 12 months. Of the featured companies, 55 percent are anticipating growth of over 10 percent.

To grow their businesses, many manufacturers are exploring new avenues to promote their products. They are also optimistic that government initiatives to boost the leather export industry will help them boost overseas sales.

Fifty percent of the interviewed companies see most of export growth coming from North America, particularly the US, since they already have a client base in the region. North America is also known as reliable market, with suppliers having received a steady of flow of orders from the US and Canada.

One-fourth of the surveyed companies see the Middle East as a promising market and will therefore be focusing marketing efforts on that area. The remaining suppliers are eyeing increased sales to European countries such as Belgium, Portugal, Denmark and the Netherlands.

India leather goods Supplier Survey Export Forecast

More than 80 percent of the suppliers surveyed will add more minimalist and contemporary designs to their selections. Upcoming designs will feature neutral colors and minimal embellishments.

Nine percent of the featured companies intend to make their products more environment-friendly by adopting undyed or vegetable-tanned leather, which does not use chromium salts. The remaining suppliers are expanding their product lines to tap into new segments and thereby reach more buyers.

Challenges

A major issue facing sellers is the intense price competition in domestic and international markets. India makers face tough competition from counterparts in countries such as Brazil, China and Russia. To stay ahead, local companies are developing unique designs and expanding their product range to attract buyers.

The rising cost of labor is a concern. Several manufacturers also have difficulty finding and retaining skilled workers since the labor-intensive, and sometimes hazardous, nature of jobs in the industry discourages many people. Workers who join the leather industry are often traditional craftsmen.

India leather goods Supplier Survey Key Findings

One-fourth of the suppliers surveyed are concerned about the cost and availability of raw materials necessary to make their products. Since most states in India restrict the slaughter of cattle, the supply of hides is limited and this pushes up production costs.

India Sourcing: Leather goods 2018 PDF download

India Sourcing: Leather goods 2018

India Sourcing: Leather goods 2018

• Bags & wallets • Footwear
• Jackets • Fashion accessories

Print Friendly, PDF & Email

Click on the download button to get a PDF copy of the full report, which contains the following:

Supplier & products

Sections


  • Products
  • India leather goods suppliers

Industry overview

Sections


  • Highlights
  • Competitive advantages
  • Challenges
  • Industry composition
  • India leather goods suppliers

Chart


  • Exports of leather goods
  • Supplier locations map

Product features

Sections


  • Highlights
  • Materials & designs
  • Manufacturing & QC
  • Pricing
  • Price guide
  • India leather goods suppliers

Supplier survey

Sections


  • Highlights
  • Export prices
  • Export markets & sales
  • Product trends
  • Challenges
  • India leather goods suppliers

Chart


  • Export prices
  • Export forecasts
  • Key findings

India Sourcing: Leather goods 2018 Supplier list

India leather goods suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured on
Supplier statusFootwearJacketsBagsWalletsOther fashion accessories
(belts, etc)
Aala Gloves
Listing
Ababeel InternationalListing
Aisha Leather ProductsListing
Alpha Leather Products
Listing
Bag HouseListing
Collagen TannersActive
Leather MarkListing
Nadeem Leatherware ExportsListing
Prag InternationalListing
Raj ExportersListing
Sastha Leather CraftsListing
ValmaxListing