As is known, August and January are among the calmest months for leather producers worldwide. Producers in many continents, especially in Europe, use these months as vacation periods; some completely shut down their factories, while others carry out planned maintenance on their factories and machinery.
During such a process, completed shipments, the fact that new orders have not yet been placed, and low customer feedback follow one another. Of course, the slowdown in the markets for some time, combined with the rising production costs specific to Turkey, has led the business world to enter a long period of deep contemplation, with their heads in their hands.
While all this is happening, the increase in activity in some markets may not be easily noticeable. One of the markets where the Turkish leather industry has not been sufficiently active is the South Asian market. Both its distant geography and the condescending view of Turkish leather producers towards the countries within it have contributed to the fact that the value of these markets has not yet been understood.
In this article, we will be examining the Indian market, one of the countries in South Asia, together.
- ITPO (India International Leather Fair)
- North and South India
- Moving forward with agents in India
ITPO (INDIA INTERNATIONAL LEATHER FAIR )
This fair, held in the city of Chennai at the beginning of February for many years, will be a preferred exhibition for manufacturers who have never stepped into the Indian market and do not yet have a supporting network.
The Chennai Leather Fair is an exhibition held in a large exhibition area, where almost all Indian leather manufacturers participate. As a result, it serves as both a meeting point for Indian apparel and a platform to see innovations in the relevant market.
Turkish companies have not yet made a significant presence in the Indian market. In this market, where many leather apparel manufacturers produce half a million jackets each, Turkish leather has not yet reached the level it should be at.
Chennai Leather Fair is not among the high cost fairs like Paris, New York and Hong Kong. It is a fair where medium scale leather manufacturers can benefit and get quick results.
In terms of these advantages, ITPO finds itself among the target fairs that leather manufacturers who want to establish themselves in the Indian market can attend.
Why do Indian garment manufacturers
need Turkish leather?
Even though every garment manufacturer in India is capable of producing their own leather for primary production, they are still compelled to use imported leather. The main reasons for this are as follows:
- Direct demand from global brands ;
Many brands require the leather products they use to meet specific quality standards, testing criteria, and to be produced through environmentally friendly methods. It is important to note that these brands are constantly in the public eye and could face serious criticism regarding health and environmental issues. For this reason, they want to be certain about the products used in their manufacturing processes and choose their leather suppliers carefully. Leading the way in this practice are French and Italian brands
- The demand for audits
by chain brands ;
Medium-sized brands with a high number of stores quickly establish their own fashion trends. In doing so, they often seek to use a variety of leather qualities and materials. To achieve this, they need to swiftly source different materials and leather types they come across globally and deliver them to the garment manufacturers with whom they have long-term contracts.
These publicly traded multinational corporations must audit their leather suppliers, either directly or through third-party firms, to avoid being exposed to news about potential environmental and health issues following production.
For these two reasons—”Audits and Varied Leather Qualities”—there is a demand for Turkish leather.
- Requirements for high-quality
production ;
Indian leather garment manufacturers have three main markets:
Europe
America
The United Kingdom
Especially for garment manufacturers producing for European brands, the quality of the materials they use needs to be high. Indian manufacturers may not be able to achieve the necessary quality with the leather products they source locally. In such cases, they need to use imported products.
- Inadequacy of the Know-How
process ;
Some leather production methods and techniques for producing colored leather are not yet known or satisfactorily implemented by Indian manufacturers. They have not yet gained experience or demonstrated the necessary expertise in these areas. In such cases, Indian leather producers are compelled to use imported leather.
Materials such as:
Lamb suede (not goat)
Nubuck
Fur
Stretch
Transfer techniques
These are specific materials that Indian manufacturers are still newly experiencing, and their commercial production is very limited. Therefore, there is a current need for imported leather
NORTH AND SOUTH INDIA
The country, with a terrestrial area close to 3 million square kilometers, has different climates, cultures, language structures, and, of course, different leather markets in the north and south.
In the north, leather garment manufacturing starts from Delhi and extends down to Chennai in the south. The highly competitive environment keeps these manufacturers vibrant and positions them to capture significant shares from chain brands.
Leather producers who have made certain strides in export can visit leather garment manufacturers in both the north and south and make presentations. These customer visits will be the first steps in forming commercial ties between the manufacturers and your company.
It is important to remember that these manufacturers, serving chain brands, operate at the same pace as the global fashion world. They are not to be underestimated as markets or customers. If service quality, speed, and accurate product shipment are not adequately maintained, these manufacturers will quickly develop negative perceptions of your company.
AGENTS IN INDIA
We will examine agents for two different product groups.
In the semi-finished goods group, Indian manufacturers may need your services, whereas in the finished leather goods group, you may need Indian manufacturers. In this context:
Agents in the Semi-Finished
Goods Supply Process
For leather suppliers involved in semi-finished goods procurement, working with agents can become essential. The Indian market primarily imports semi-finished leather products such as Wet Blue and Pickled. In this market, an experienced agent who can manage transactions, payments, shipments, shipping, containers, salting, and other processes will not only make your operations more secure but also accelerate them.
Semi-finished goods procurement can be burdensome for many leather manufacturers. An experienced agent can simplify the process by overcoming some of the restrictions and managing third-party firm organizations. Therefore, it can be considered essential to work with agents.
Agents in the Finished Leather Supply Process
In the case of finished leather products, it may be more advantageous not to work with agents. Direct communication with your buyers allows you to understand their exact requirements firsthand, which can help you gain experience more quickly.
Additionally, the commission that agents typically charge, which can range from 3-5%, may represent a significant amount in the finished leather sector. Chain brands are highly aware of production costs for Indian manufacturers, and in large-volume productions, a 3-5% commission can constitute a substantial sum.
By working directly, you can expedite the process and establish your own network in the market, which will benefit your business in the long run.
In our next articles, we will expand the Indian market and also talk about other markets in South Asia.
