Market research on Export of Indian Leather Products & Footwear.

Leather footwear Export Data

Leather Footwear Exports


Export of leather footwear & leather products from India, is very lucrative business. I regularly receive inquiry from people who want to Start Export Business from India & Companies who want to diversify in New product for export. In this blog you will get to know global export market of leather products, Export market research for leather footwear as well as List of Countries for exporting footwear and exporting leather products from India. Major market for footwear export, Which are countries importing maximum footwear and so on.

I have thus made a detailed analysis of export market from India. Working as Export Consultant in India and guiding industries to develop export business from India. I have done detail export market research on various products like Export potential for machinery exports, Hardware export from India, Ceramic tile exports, potential for Indian Handicraft export business, Global water pumps importer from India, Irrigation equipment export data, Agriculture equipment exports, Casting Exports from india and so on. You can ask me in comment section for the detail analysis. 

Market research on Export  of Indian Leather product & footwear:

India is country of 1.3 billion people, 2nd largest populous country in the world. So it comes to no surprise that it is also 2nd largest market for footwear in world. During my research as Export consultant for leather footwear export from India, I could know that India is also 2nd largest producer  of leather footwear in world. Out of Total Global Leather footwear production 13% is produced by India. India manufactured 2290 Million pair of leather footwear in 2018, still Imported footwear volume has been growing consistently. 

Non Leather Footwear market is $35billion with over 1.28 billion pair of which 58% is male footwear.

From total Footwear Imports by India, 65% of imports of footwear is from China and it has increased by 295% in last 5 years. Government of India has thus imposed additional custom duty to support Indian leather industry.

Leather export data :

Leather export from India which include footwear export data, Leather garment export data is as follows :

Total Leather exports from India stood at USD 2.27 Billion ($ 277Cr) during April -Aug 2019.

During April-August 2019, the Major Markets for Indian Leather Product 
  • Export of Leather products to USA         (16.73%)
  • Export of Leather products to Germany  (12.31%)
  • Export of Leather products to UK           (11.41%)
  • Export of Leather products to Italy          (7.88%)
  • Export of Leather products to France       (5.54%)
During April-August 2019 Major Market for India Leather Product in value :
  • Leather footwear Components export      $115.19 Million
  • Leather garment exports                           $190.07 Million
  • Finished Leather exports                          $237.69 Million
  • Leather footwear                                       $937.13 Million
  • Leather goods                                            $594.37 Million
Out of Leather exports from India, Footwear export from India dominate with total Rs. 76786 Million in year 2020. Below table give you complete Leather export data for 2019 & 2020.

Leather export Data
This data is authentic and directly from Council of Leather exports - Government of India organisation for Promotion of Leather export from India. If you are not aware about his, I have special blog on How to benefit from Export Promotion council. This is very informative and you can get lot of idea how you can get FREE MARKET DATA from the government portal.

Country Importing Leather & Leather Products from India.

You will now get details of which countries import maximum Leather Footwear from India and Best country for Export of Leather product from India. so Read till end.

Indian leather industry generate employment to 1.1 million people. There are more than 15,000+ footwear manufacturers in India. The footwear industry in India is largely unorganized sector. Now with incentive for leather industry from Government of India, many modern Leather processing machines are being installed for mass production of leather footwear and leather garments.

Indian leather footwear export is worldwide. Value wise Export of Leather footwear to USA was 18.9% while Export of Leather footwear to UK was 11%. However, major volume of Export of footwear from India is to UAE, Leather Slippers is to Oman and Leather footwear export to Saudi Arabia. 

As per my export market research, Export of leather footwear to USA, Export of leather footwear to UK and developing countries are for High Value, Export of premium footwear and Export of Leather hide and Finished Leather raw material. 

I have observed that in terms of US dollar, Indian exports is very low as compared to China. The reason for low value of export business from India is due to Export of Low value footwear from India. (Not cheap but low value). Like Large quantity of Chappal / Slippers exports from India to Middle east has contributed to high Volume (Quantity is big) but value of Export business from India is low. 

India's imports footwear from China has also increased. India also imports parts of footwear like Import of Rubber sole from China, if made in India it could be good Import substitute and reduce the cost of production. Being Export Consultant I have studied and discussed in brief on How to Start Export business for footwear, Increase export of leather footwear from India.

If you have still not decided any specific product or want to know from begining you can read this How to Start Export Business from India, How to select product, How to do Market research for any product.

Almost 95% of footwear made in India are consumed in India. In addition, India also import Branded footwear, Cheap quality footwear as well as Import of Rubber sole, Import of Rubber slipper from China. The reason being cheaper price and attractive design.

Before we understand How to start export business for footwear from India or How to export leather product from India, we need to find solution to 3 problem to overcome for successful export from India.

3 Tips to successfully export leather products from India. 

1. Design & Development

Indian footwear industry is largely unorganized. Incentive for leather industry from government of India are provided for Design & Development, machine, export promotion of the products.




Lack of knowledge, large gap between supply and demand, cheaper imports demotivate Footwear manufacturers of India for investing in modern machine, R&D in footwear.

2.Branding

Compare to the size of market, only handfull of brand could become famous in India. Most of the brand are known only in Regional level - state or some centre. Manufacture do not understand the power of branding. Due to this they do not invest in brand, advertizing & Brand registration. 
  • Branding gives a Recall Value. ( Your customer / Importer will come back to you looking for brand)
  • Customer loyalty.
  • Reduce dependency on retailer / Importer. 
  • Your brand will create its value. 
  • Branded product will give 5 to 10% higher price than jobwork / OEM.

3. Automation & Quality consistency :

Being small has never been a crime. Small is beautiful. However, only Quality will quality for growth. Even today, Hand made Leather footwear in Europe fetch highest value. Somehow, importer of footwear from India are still not confident of Quality and reliability of Indian footwear. So Indian footwear and Made in India Leather products do not get good price in market.

As Export consultant from India, I once had discussion with an Old import company of footwear from Europe. He explained to me as follows :

Footwear is normally lowest priced accessory that a man or women wears. The price of footwear is much less than the cloths he or she wears. Only footwear that is expensive than the cloths is in Sports, where shoe could be much costly than the sports wear.

Now, what ever is the budget of customer, he can not afford if the footwear heel break or sole has problem in middle of his travel. He Joked " You can manage with broken Zip but not Broken shoe, so my friend, Shoe quality is very important. First the person will buy reliable footwear and then he will look for design and fashion."

Brand India has received high regards worldwide. However, to my opinion Indian footwear manufacture are unable to en=cash due to lack of understanding of global market. India being protected market, footwear manufactures from India enjoy higher profit margin in India and thus when export demand investment in high quality footwear, investment in design they have to settle for lower profit business and thus get demotivated.


Benefit of footwear export from India

  • Special higher incentive for footwear export from government of India (All leather products)
  • Secure payment & Advance payment against long credit term in India market.
  • Low interest finance for export order under Packing credit, Post shipment credit etc.
  • EPCG : You can import modern machine for footwear production with out import duty.
  • Balance in business and consistency in order flow. 
  • Big quantity order for same design, so you can invest in automatic machine, reduce cost by mass production.
India is largest produce of Leather in the world, but it export leather hide to China and other countries. India has raw material and market is ready, only focus in right direction and export advice like advice form International business development consultant or export consultant can give better understanding. Vivaan consultancy services is one such consultant who are helping industry to grow export in various fields and can guide on  Export potential for machinery exports, Hardware export from India, Ceramic tile exports, potential for Indian Handicraft export business, Global water pumps importer from India, Irrigation equipment export data, Agriculture equipment exports, Casting Exports.













 



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