By February 14, 2015 0 Comments Read More →

Industry Insight: The biz of leather is in vogue

The leather love is overruling the fashion world making the pockets of leather manufacturers plump. Not only in India, but leather Industry is on the fly all over the globe occupying a place of prominence and has massive potential for growth and employment.

If your area of interest is the business of leather goods, then read what you need to take care of while entering in the Industry.

The Sector Watch at a glance-

Highlights of Leather Product Segments:

  • Tanning Sector
  • Leather Footwear
  • Leather Garments
  • Leather Goods & Accessories


The Positives

  • 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 upgradation

The Negatives

  • 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

The Opportunities

  • Rising potential in the domestic market
  • Growing fashion consciousness globally
  • Distributorship of Leather Products
  • Use of e-commerce in direct marketing

The Threats

  • Major part of the industry is unorganised
  • Stricter international standards
  • High competition from East European countries and other Asian countries
  • Lack of communication facilities and skills

As per Manufacturing Survey held by FICCI last year, following points came into the picture:

  • Leather is another segment of manufacturing that has shown improvement over the last few months.
  • 80% respondents in leather sector reported either same or higher output in the January- March 2014
  • Majority of the firms in leather sector reported that they are planning to expand their workforce in next three months. Some have reported that they are looking at increasing workforce by around 14%.
  • Firms in leather sector are significantly constrained by high prices of raw materials and deficiency of raw materials, shortage of working capital finance, labour related issues, uncertainty of economic environment and availability of skilled manpower. Another factor acting as impediment for leather sector is inadequate power.

Expert Piece of Advice
Things are crystal clear. Demand will be uplifting in the coming years resulting in unmatched growth. If done strategically, the business can bring high strides.


P.S: To take Expert Advice related to business expansion matter, feel free to call on: +91-11-46710506

Posted in: Industry Updates

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