Leather manufacturing is one of the top industries in India. It uses the largest number of proficient and semi-proficient workers and is also the biggest earner of foreign exchange. It is used in different industries such as upholstery, garments, harnesses, saddles, footwear, etc., and the market is only booming every year for more leather goods. In this article, we will look at how to start a business of leather export products from India and all the information around it.
Table of Contents
What is leather?
Leather is a more stretchable and long-lasting material produced by cleaning animal skin, such as buffalo, cow, sheep, mink, crocodiles, goats, etc. It has been manufactured since age-old times, and with the growth of technology and scientific study, leather has turned into a regular product of the market. High-grain leather is one of the most superior and unique leather types and also the most saleable product in the market.
So, if you are interested in exporting leather or leather products, you have already chosen a winning outlook here. In the following segments, let us have a look at how to start a business of leather export products from India.
What leather products to export from India?
Leather is one of the most marketable products in the fashion and footwear industry, and in spite of different competitive and optional materials available there, leather has never been out of fashion. Having a leather jacket or high-quality leather shoes is always a trendy piece in each individual’s wardrobe.
Leather has different types, from excellent quality high-grain leather to break-up delicate leather. Suede leather possesses a basic texture and offers a different look when used in apparel and garments. Verona and Suede both include a big appeal in household products and are the most preferred option for leather in the market.
Patent leather is shiny because of the plastic covering applied to it and involves large use all over industries. Let us consider the most popular leather exporting products from India if you wish to initiate the export business of leather products.
1. Leather clothes: Leather is most prominently used in garment making. With every passing year, more style trends are coming up all over the world. India is the second biggest exporter of leather clothes in the world. If you are interested in the fashion industry, this can be the best way to run a business.
You can learn the latest fashion trends at global festivals, make a complete import-export business plan, and enter into exporting leather clothes. Even though it is a hugely competitive market, if you manufacture superior quality leather, there are better possibilities of getting a huge profit.
One more winning plan can be to get expertise in a specific class of leather clothes and become an expert in it. This way, the manufacturing cost can be decreased, and you can get a constant flow of sales because of the specialty in your area.
2. Leather shoes: Footwear is mainly manufactured in West Bengal, Tamil Nadu, Uttar Pradesh, and Maharashtra. India mainly exports moccasins, dress shoes, Sandals, Horrachies, Ballerinas, Boots and Sandals, etc. India makes 2065 million pairs of shoes, of which 95% are for household requirements. There are abundant opportunities available online for Leather footwear, and if you want to enter into the footwear industry, then this is one of the best export products from India.
3. Leather cushioning or upholstery: Leather cushioning or upholstered furniture is recognized for its royal look, durability, comfort, and quality. If you are interested in exporting products from India, you must choose a unique area in this business. Various businesses within this niche use only fascinating or exotic leather, and some use diverse styles of upholstery furniture. This is a large avenue to check out and involves a huge demand in local and global markets.
4. Tanning products: If you have proficiency in the tanning business, then this is also a cutthroat market. You can offer hides to different industries, such as furniture, garments, shoes, accessories, etc. Find out the kind of tannery business you wish to do by checking the market requirements and doing research in the global market. Look for the disparity or gap in the demand and supply of a high-quality leather tannery and develop a powerful brand in this area.
How do you export leather products from India?
Now that we have checked what are some of the popular leather products that are ever in demand in the global market. Let us find out the steps on how to export leather products from India.
1. Establish an export company: If you have chosen your product, then list your company name and set it up physically for linking the import-export business. Your company must be listed under DGFT to conform to the export regulations of India.
2. Apply for an IEC number: The company needs to apply for an IEC number to send goods out of India.
3. Get a License and Quota: After getting an IEC number, the company is required to apply for an export license from the Indian government via the ETCA or Export Trade Control Authority. It also fixes preferences on the allowed quantity of products that can be exported.
4. Sign a payment and delivery agreement: The exporter and the global buyer should sign a contract to make sure payment terms, for example, a letter of credit or periodic payout, etc., and a delivery contract in place.
5. Consider order and invoice process: Invoice should be made for your export orders. Certification or documentation for the export procedure is somewhat extensive, so make sure you have that in place.
6. Look for export customs clearance: Exported products must clear customs in the country of the buyer, and the supporting documents will make sure this is done very well.
7. Shipment: Shipping includes a bill of lading, bank documents, and other significant features to be held in order to export goods.
There are a large number of documents included, but it can be a simple task for your quality leather goods to reach internationally once everything is in place.
Conclusion
There is a wide market for producing high-quality leather in bulk amounts, and the market is as competitive as it is productive. Therefore, exporting leather products from India will only intensify the national economy.
Furthermore, if you are looking to start a business of leather export products from India, then Amazon Global Selling is here to help! With the help of Amazon Global Selling’s export platform, you can build and strengthen your export business in 18 international marketplaces. In only 3 easy steps, you can become an exporter to ship and deliver on a global level.
