Export & Import Ppt
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Transcript of Export & Import Ppt
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EXPORT & IMPORT
LEATHER EXPORT
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WHAT
IS
LEATHER
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Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin, primarily cattle hide. It can be produced through different manufacturing processes, ranging from cottage industry to heavy industry.
TYPES
In General there are 4 leathers in solid form.
Full-grain Top-grain Corrected-grain Split
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There are two other types of leather commonly used in specialty products, such as briefcases, wallets, and luggage:
Bonded leather
By cast leather
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CNB EXPORTS
Artificial Leather
Nappa Leather
Goat Leather
Aniline Leather
Buffalo & Cow Leather
PVC Leather
Finished Leather...
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The leather industry occupies a place of prominence in the Indian economy in view of its massive potential for employment, growth and
exports.
INDIAN Leather Export Industry
The exports of leather and leather products gained momentum during the past two decades.
1965-66
1966-99 69558 millions
320 millions
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The leather industry has undergone a dramatic transformation
Policy initiatives taken by the Government of India since 1973 and 1991
The industry is poised for further growth to achieve greater share in the global trade.
Apart from a significant foreign exchange earner, leather industry has tremendous
potential for employment generation.
Tanning & Finishing - 1, 25,000
Chappals & Sandals - 4, 50,000
Leather Goods&Garments-1, 50,000
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Structure of the industry
Hides Skins
The leather industry is spread in different segments, namely, tanning & finishing, footwear & footwear components, leather garments, leather goods including
saddler & harness, etc.
64 million pieces
166 million pieces
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The major production centers for leather and leather products are located at Chennai, Ambur, Ranipet,
Vaniyambadi, Trichi, Dindigul in Tamil Nadu, Calcutta in West Bengal, Kanpur in Uttar Pradesh, Jalandhar in Punjab,
Bangalore in Karnataka, Delhi and Hyderabad in Andhra Pradesh.
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Export Potential
The leather industry, one of the major foreign exchange earners of the country recorded significant growth since the beginning of the decade
Category 1998-99 Finished Leather 265.2
Leather Footwear 290.2
Footwear Components 243.7
Leather Garments 368.6
Leather Goods 429.0
Saddler and Harness 33.4
Total 1630.1
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1993-94 1994-95 1995-96 1996-97 1997-98 1998-990
20000
40000
60000
80000
100000
120000
140000
81520.38
101143
117223.4
110343.2
61570.61
69557.8
Rs. M
illio
nEXPORT OF LEATHER AND LEATHER PRODUCTS
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Country 1998-99 Share in total exports in 1998-99
Germany 15462 22.23 %
USA 10826 15.56 %
Italy 8317 11.96 %
UK 9744 14.00 %
France 3240 4.6 %
Spain 3103 4.46 %
COUNTRIES EXPORTING LEATHER FROM INDIA
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Russia 1009 1.445 %
Portugal 1240 1.78 %
Australia 1465 2.10 %
Denmark 808 1.16 %
Netherlands 2127 3.06 %
Hong Kong 258 3.25 %
Others 9958 14.32 %
Total 69558 100 %
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CNB
EXPORTS
Our company had established a great market at domestic & national level.
Now company founds that we should move on over to the international market.
The company is aiming for Germany & European (EU) to export the mass amount of leather and leather goods as demand
for leather is high is Germany and so than in other countries.
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Marketing of leather and leather products in Germany & the EU
The leather sector offers a good potential which Indian entrepreneurs can exploit in Germany and other EU markets
characterized by
ever growing competitiveness in terms of
price and quality, on one handand
the environmental considerations, on the other.
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Features of Indian leather export market.
•The world's second largest import and export market
•A difficult buyers' market with hyper competition and high expectations
•A dynamic multi-faceted market with rapid technological development and innovations A market where a considerable amount of buying power is devoted to satisfying individual needs
•A market influenced by the rising average age of the population and low birth rate
•A market where environment awareness and eco-friendly production becomes more and more a pre-requisite for successful marketing of products
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Major
Leather
Export
Markets
SalesFRANCE
GERMANY
UK
USA
HONGKONG
ITALY
SPAIN
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8% 13%
15%
30%
31%
3%
Composition of Indian leather exports to Germany (1998-99)
Leather Leather Footwear Footwear Component
Leather Garments Leather Goods Saddlery and Harness
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Leather Leather Footwear
Footwear Compo-
nent
Leather Garments
Leather Goods
Saddlery and
Harness
0
20
40
60
80
100
120
28.25
48.8656.03
109.5 113.2
8.51
Export of leather and leather products to Germany (1998-99)
Mill
ion
US
$
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Market information through journals and
magazines
Quick Market Assessment
Trade Fairs
Agents
Marketing channels
Recipe for market intelligence
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Environmental aspects for leather products
Depletion of certain species.
Unsound products
Taboo
Against some casts
Give rise to BLACK MARKETING & ILLEGAL killing of animals.
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Strengths
High Growth
Ready availability of highly skilled and cheap manpower
Large raw material base
Policy initiatives taken by the Government
Capability to assimilate new technologies and handle large projects
Continuous emphasis on product development and design up gradation
Weaknesses
Lack of warehousing support from the government
International price fluctuation
Huge labour force resulting in high labour charges
Lack of strong presence in the global fashion market
Unawareness of international standards by many players
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Opportunities
Rising potential in the domestic market
Growing fashion consciousness globally
Use of information technology and decision support software to help eliminate the length of the production cycle for different products
Use of e-commerce in direct marketing
Threats
Major part of the industry is unorganised
Limited scope for mobilising funds through private placements and public issues (many businesses are family-owned)
Difficulty in obtaining bank loans resulting in high cost of private borrowing
Stricter international standards
High competition from East European countries and other Asian countries
Lack of communication facilities and skills
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OUR COMPANY ADOPTS THE FOLLOWING STRATEGY & STEPS AT INTERNATIONAL MARKET.
Make a commitment to exporting.
Plan, plan, plan.
Conduct research to find the right market.
Conduct research to find the right market.•Primary market research •Secondary market research
Devise marketing strategies for your target market.
Enter the market.•Direct exports•Indirect exporting
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Get your product or service to market.
Explore financing options.
Understand the legal and regulatory issues.
Put it into practice.
Team Canada Inc (TCI) helps you along the way.
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BARRIERS & DIS-ADVANTAGES OF LEATHER EXPORT
For Small-and-Medium Enterprises (SME) with
less than 250 employees, selling leather goods and services to foreign
markets seems to be more difficult than
serving the domestic market.
The lack of knowledge
Trade regulations
Cultural differences
Different languages and foreign-exchange situations
Financial management effort: To minimize the risk of exchange-rate fluctuation
Customer demand: International customers demand more services from their vendor like installation and start-up of equipment, maintenance or more delivery services.
Communication technologies improvement:
Management mistakes: The management might tap in some of the organizational pitfalls, like poor selection of overseas agents or distributors or chaotic global organization.
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Challenges
Exporting to foreign countries poses challenges not found in domestic sales. With domestic sales, manufacturers typically sell to wholesalers or direct to retailer or even direct to consumers.
When exporting, manufacturers may have to sell to importers who then in turn sell to wholesalers.
Extra layer(s) in the chain of distribution squeezes margins and manufacturers may need to offer lower prices to importers than to domestic wholesalers.
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Need of CORE MARKETING IN LEATHER EXPORT
Focuses your efforts on the right markets and opportunities – where you are most likely to win
Forces you to understand your prospects and competitors so you can differentiate and innovate
Creates a “go to market system” that optimizes lead generation and close rates
Develops an operational plan to execute the “go to market system”
Determines how marketing and sales activities will be tracked, measured and optimized
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THANKING YOU