Leather Brand: India, Pakistan, Bangladesh for mutual collaborations

[CaPtAiN_pLaNeT]

Leather Brand: India, Pakistan, Bangladesh for mutual collaborations

http://www.unbconnect.com/component/news/task-show/id-87263

Reported by: UNBConnect
Reported on: September 06, 2012 11:21 AM
Reported in: National

Dhaka, Sept 6 (UNB) - It takes three to tango, if you go by the view of leading tanners from South India, Pakistan and Bangladesh. They were in the city to work out ways for mutual cooperation, the idea being increasing their export volume in leather and leather products.

Muhammad Naseem Shafi, CEO of Shafi Group, Karachi, Syed Nasim Manzur, Managing Director of Apex Adelchi Footwear from Bangladesh, and M. Rafeeque Ahmed, Chairman, Council of Leather Exports (CLE), met for the first time to discuss strategies to combat the raw material shortage, price crunch due to recession in European markets and creating a regional brand image, reports The Hindu.

Talking to The Hindu , Mr. Shafi said, “We are not here to compete with each other head-on in all areas, but to make use of market information and add value to our products to stay in the global competition. We have to think ahead and keep the leather sector going.”

With a turnover of $80 million, the Shafi group employs 2,500 people. Its units are based in Karachi, Lahore and in China. The company finds it difficult to source raw material in its region due to short supply, while the imported ones are turning out to be costlier.

“Still we are trying to increase our business by importing material. We are also focusing on new markets such as West Asia, Africa, Latin America and Iceland. As supply for the European market has fallen from 55 per cent to 45 per cent, we will focus on increasing business in China from 30 to 45 per cent,” he said.

Mr. Manzur, a Bangladeshi exporter, said: “The leather sector in South Asia is underperforming to its true potential and that’s why we are here seeking to collaborate with each other. Though the global scenario is challenging, we are holding to our growth through value addition.”

Mr. Rafeeque Ahmed urged the leather industry in the region to explore ways and means to enhance its share in the global market by adopting measures such as market and product diversification strategies, reducing transaction costs, improving design efficiency and moving up the value chain.

In his inaugural address at the two-day event on ‘Strengthening their competitiveness of South Asia in leather and leather products’, organised by United Nations Conference on Trade and Development, Rajeev Kher, Additional Secretary, Ministry of Commerce said, “It is unfortunate that no sector in the South Asian region is adequately integrated in its production network and the situation in leather is no different.”

It was unnerving that even the leather industry with historic roots does not have an organisational perspective of the industry within the region. A framework for regional organisation that will foster integration was need of the hour, he said.

South Asia is not only a production centre but also a major market that can sustain the industry. India, Pakistan and Bangladesh are significant markets and others are also growing.

Though the focus can be on exports, the domestic markets in the region can also be tapped.

The industry should co-operate to build a South Asian brand in the leather sector, Mr. Kher said.

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[eastwatch]

The main topic here is common branding of leathers available in the three countries. By such a standardisation it will be possible for both the producers and clients to identify a certain grade of leather and the leather products. It is a good move by the three countries. Western importers today make all the profits out of our leathers wheras we depend upon their mercy.

I have been in western countries for many years. Highly finished pure leather shoes and other goods are too expensive in these countries. Usually, people wear less expensive shoes made of synthetic fibers in these countries. In order to provide shoes to our own population BD, India and Pakistan should better produce goods made of synthetics, and let the pure leather goods to be exported.

However, only an united effort by the three producing countries it will be possible to corner the international leather goods market. Poor countries need foreign currency to import other non-luxury items. But, they must get the real prices for their goods. I hope, the current meeting is a milestone for a long way to the future cornering of international market.

 

[danger007]

still i love Premium leather belts and shoes.....