THE INDIAN Government has backed a multi-pronged attack on the Australian textile, clothing and footwear market, aimed at securing a greater share of our lucrative leather trade.
Apex export promotion group The India Council for Leather Exports has organised a series of expo-type initiatives across the country aimed at showcasing the products offered by Indian manufacturers.
Council for Leather Exports executive director Ali Ahmed Khan said the group has also set aside additional funding to facilitate a series of “buyer- seller meets”, the first of which began yesterday and continues today (August 27 and 28). Key products offered by the group include apparel, accessories and bags.
As part of the marketing initiative, the group will also take part in the Australian Shoe Fair, the Sydney instalment of the Bags and Accessories Fair in February 2010 as well as bringing leather manufacturers to the Australian International Sourcing Fair, to be held in March next year.
Khan said he hoped after seeing the quality of the Indian-made leather goods Australian buyers would be encouraged to attend the international leather fairs held in India each year, namely those staged in Delhi in October, Chennai in January and Kolkata in February.
According to figures supplied by the India Consul General’s Office, Australian TCF firms currently spend around $1.5 billion on leather imports annually. Of this, China takes the lion’s share, accounting for 58.6 per cent of all spending on leather imports, while Italy comes second with 8.6 per cent.
Just $63 million – or 3.8 per cent – of all leather sourced by Australian firms comes from India.
The remainder of the spend is split evenly between Vietnam, Hong Kong, Brazil, Indonesia and New Zealand. “India produces high to medium range products with good quality and designs,” Khan said.
“The products from China are mainly in the lower end of the range, hence India has a distinct appeal to the Australian market.”
While he would not disclose how much the government-backed group was prepared to spend on the marketing blitz, he denied the group intended to focus its campaign on specific Australian retail groups.
“The council’s program is primarily to target all Australian importers and wholesalers who import leather products and footwear to Australia. Retailers are not a primary focus for us, as small quantity orders may not be commercially viable for exports from India.”