Indian Leather SMEs on a Spanish Sojourn
Since the 1990s, the Indian leather industry has grown at a steady pace, bringing brisk business for small and mid-sized players. At present, India accounts for around 3% of the global market share in leather business. In a bid to maximise profitability and expand this market share, Indian leather exporters are scouting for new export destinations.
The Indian leather industry is largely export-oriented with European countries accounting for a sizeable market for Indian leather exports. Over a period of time, Indian leather exporters have identified Spain as a lucrative destination for increasing their sales volumes.
Spanish leather market matures
Spain ranks as the 6th largest leather exporting nation for India and is gradually becoming an important market for Indian leather goods. Significantly, during April-February 2008-09, Indian leather exports to Spain stood at around US$200.02 million.
According to market experts, Spain and Italy are the most promising locations for the leather sector. Demand for all kinds of leather products has increased in these two countries in the past few years. However, the Spanish market is still evolving and posing stiff competition to Italy, which has a highly industrialised leather segment.
Indian leather exporters can capitalise on the increasing demand for footwear, bags and various other leather products in Spain. Statistics reveal that while footwear dominates India's leather export basket for Spain, demand for finished leather and leather garments has also increased steadily.
Collaboration is the key
Another notable trend has been increasing collaboration between Indian and Spanish leather companies to foster mutual growth. To facilitate mutual cooperation between SMEs in the leather industry in the two countries, the Council for Leather Exports (CLE) has taken some important initiatives. The organisation has scheduled a road show in Spain towards the end of 2009. It has also received a formal proposal from IVC Spain to organise -to- (B2B) meetings between Indian and Spanish Leather Manufacturers.
Concerted efforts like these are expected to help the Indian leather segment increase its market share in the international markets and steer ahead of its biggest rival, China.
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About the Author:
David Parks is a well known author and has written articles on Toys Manufacturers, B2B Portal, Business Trade Leads, suppliers, Manufactures and many other subjects.
