Intrnational Business

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PROFESSOR:

SNEHA

KALRO


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EXPORTING LEATHERPRODUCTS TOGERMANY


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SR.NO

COUNTRY OUANTITY(IN PIECE) %SHARE(VALUE VICE)

Germany 1377428 19.35

USA 1565807 17.70

Italy 973888 15.39

Spain 1117471 14.97

U k 713954 8.09

France 531957 5.91

Netherlands 257110 2.34

Sweden 169183 1.96

Canada 117794 1.79

Denmark 162414 1.69Portugal 99341 1.38

Greece 86390 1.32

Belgium 98851 1.10


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Leatheris a durable and flexible material created via

the tanning ofputrescibleanimalrawhide andskin, primarily cattle hide. Itcan be produced through different manufacturing processes, rangingfrom 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, ourancient ancestors hunted animals primarily for food, but once theyhad 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
http://en.wikipedia.org/wiki/Tanninghttp://en.wikipedia.org/wiki/Putresciblehttp://en.wikipedia.org/wiki/Animalhttp://en.wikipedia.org/wiki/Rawhide_(textile)http://en.wikipedia.org/wiki/Skinhttp://en.wikipedia.org/wiki/Cattlehttp://en.wikipedia.org/wiki/Cottage_industryhttp://en.wikipedia.org/wiki/Heavy_industryhttp://en.wikipedia.org/wiki/Heavy_industryhttp://en.wikipedia.org/wiki/Cottage_industryhttp://en.wikipedia.org/wiki/Cottage_industryhttp://en.wikipedia.org/wiki/Cattlehttp://en.wikipedia.org/wiki/Skinhttp://en.wikipedia.org/wiki/Rawhide_(textile)http://en.wikipedia.org/wiki/Animalhttp://en.wikipedia.org/wiki/Putresciblehttp://en.wikipedia.org/wiki/Tanning


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Egyptians and Hebrews developed around 400 BC, the process of vegetabletanning that involved simple drying and curing techniques

Under the Arabs during the middle Ages, the art of leather making becamequite 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 coolin a leather bag. It was also found suitable for such other itemsas tents, beds, rugs, carpet, armor and harnesses.

The Egyptians made

leather sandals, belts, bags, shields, harness, cushions and chairseats from tanned skins. Many of these items are in fact still madefrom leather today.

the Greeks and Romans used leather to make many

different styles of sandals, boots and shoes.


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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'ssecondlargest exporter with$1.120 trillion,750 billion exported in 2009

the singlelargestbuyerof Indian leather items


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The world's secondlargest import and exportmarket

A difficult buyers'market with hypercompetition and high expectations

A dynamic multi-faceted market

A market influenced by the rising averageage of the population and low birthrate

A market with environment awareness andeco-friendly production


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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 thenby 3.2% and 5.2% in the subsequent two years.

This market growth are driven by many factors.


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German luggage and (leather) accessories

consumption by product,

% value


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Environmental concerns (know-how)

Bags formen have shown a great increase

Forwomen, designerbags are less popular.

The latest trends are for individually styledbags

design or brand says something about thestatus or lifestyle of the owner

Increasing demand forbriefcases


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The leather sector offers a goodpotential ever growing competitiveness in terms of price

and quality

environmental considerations

advantage of raw material andlabour resources


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India has 10%of worlds total animal population so strong rawmaterial base.

Central Leather Institutes produces qualified leather technocrat.

Growing market.

Purchasing powerincreases world wide.

Increasedconsciousness about usage of leather productsspecifically among women (matching chappal, matching belt,matching clothes and hand bag, etc)

Support of the government duty draw back increased from 11% to16%.

Indian leather industry has provided employment to 2.5 million

people. Annual export value poised to touch about 2 billion US dollars.

Amongst top 8exportearners for India.

Has enormous potential for future growth.


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Lack ofwarehousing support from the government

No quality specifications, poorqualityaccessories.

Competition from low price markets like Pakistan, Ethiopia,Indonesiaand Kenya.

Unorganized sectors. No brand name.

Hugelabourforce resulting in high labour charges

Unawareness of international standards by many players.

International price fluctuation


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Use ofe-commerce in direct

marketing Germany is a very largemarket -

can provide a range of opportunitiesfor exporters from developingcountries.

Use ofinformationtechnology anddecision support software to helpeliminate the length of theproduction cycle for differentproducts

More demand for cross over bags,

fashionable handbags, light andcompact luggage and computercases.

The growingmarket for fashionablehandbags provides opportunities forexporters if they can produce at the

prices demanded.


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Major part of the industry is unorganized

If you are notable to supply quickly and change

production at the short-term whim of the fashionmarket, we could find yourself exposed to thedangers of overtrading.

Lack ofcommunication facilities and skills

High competition from East European countries andother Asian countries

Stricter international standards

Difficulty in obtaining bank loans resulting in highcostof private borrowing

Limited scope for mobilizing funds through privateplacements and public issues (many businesses arefamily-owned)


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Leather Belts

Leather Wallets

Leather Portfolios

Leather Key ChainsHandbags / Business Cases

Travel Bags


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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.


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Occupies a place of prominence in the Indian Economy

The Indian Leather Industry has captured world attention by way of its uniqueperformance 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 isavailable in the local market mainly in the north.

Most of the garments sold are designed as per international standards andthe buyers are mainly foreigners.

Main leather garment centres for manufacture are Bombay, Kanpur, andMadras.

The Indian Export Trade Corporation (IETC)-one of the leading

manufacturers of very high fashion leather garments for mens and womens

wear


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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.


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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.


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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 beeffective

Many buyers are not always loyal


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International Leather Goods FairThe Leather and More Fair

The GDS Fair in Dusseldorf


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Advertising in trade magazines trade publication for the leather-Leder &

Haute

Sternefeld- issue a leatherwear report

Magazine- STEP

TM Fashion Trend magazine


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Your Business is Open tothe World 24/7, 365 Days aYear

It's Your Online Brochure /Catalog That Can Be

Changed at Anytime Improved Customer Service

Sell Your Products

German Leather IndustryAssociation

Leather Goods andLuggage Association

The Association of LeatherGoods Retailers

The Association of TextileRetailers

The Leather Training,Testing and ResearchCentre


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This guide to doing business in Germany is

intended to highlight some important key

areas that one may encounter in Germany

such as Organization ,AversiontoRisk,Communication.

Working in Germany-Fixed TermEmployment, Social Security, Taxable Income


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Intrnational Business