Docstoc

Leather Report

Document Sample
Leather Report Powered By Docstoc
					 BUSINESS OPPORTUNITIES IN HONG KONG FOR INDIAN BUSINESS


Exporting Leather and Leather Products to Hong Kong
                        - A Guidebook




                                      l
                         Consulate General of India
                             Commercial Wing
               26A, United Centre, 95, Queensway, Hong Kong
                Phone: +852.2528.4476, Fax: +852.2529.0421
                    Commerce1@indianconsulate.org.hk
                    Commerce2@indianconsulate.org.hk
                     http://www.indianconsulate.org.hk
                                      l
                                March 2003
                                      l
The Consulate General of India, Hong Kong is pleased to bring out “Exporting
Leather and Leather Products to Hong Kong: A Guidebook”. This new addition in
our publication series on product reports provides the relevant background information
to Indian leather export promotion organisations and export companies interested in
pursuing business opportunities in and through Hong Kong. This practical guide also
offers a resource base to enable our exporters to access more detailed information on
specific issues. In the light of the increasing integration of the economies of Hong Kong
and the Chinese Mainland, we have added separate sections on China.

This booklet has been compiled by my colleagues, Mr. K. Govindan, Consul and Mr. M.
Sridharan, Consul, assisted by Ms. Kiran Juneja, Ms. Ada Lee, and Ms. Rashmi Ayyar.
We received useful inputs for this project from the Embassy of India, Beijing, and the
Council for Leather Exports, India.

A ‘soft’ copy of this report can be downloaded from our website:
www.indianconsulate.org.hk

We hope this publication will be useful to Indian organisations and companies interested
in doing business with Hong Kong and Mainland China. We would appreciate their
suggestions and feedback.



Ashok K. Kantha
Consul General of India
Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




                           Table of Contents

EXECUTIVE SUMMARY ...................... 3
                                                              Newsletters .................................... 37
                                                              Business Centre ............................. 38
1. INTRODUCTION ............................ 13
                                                              Website.......................................... 38
2 HONG KONG IMPORT SCOPE ...... 15
                                                          5. OPPORTUNITIES IN CHINA.......... 39
2.1 Hong Kong Economy .................15
   Changing Structure of Economy....15                    5.1 Leather Industry in China......... 39
   Regional Hub.................................15           Overview ....................................... 39
   ‘One Country – Two Systems’ ......16                      Leather Industrial Centres ............. 40
                                                             Development Trends...................... 40
2.2 Hong Kong: Basic Facts.............16
                                                          5.2 Important Leather Exhibitions . 43
2.3 Hong Kong Leather Market ......17
   Market Overview...........................17           5.3 Indian Exports to China ............ 43
   Product Overview ..........................17          5.4 Services by the Embassy ............ 44
2.4 Details of Products......................18
                                                          6. INDIA’S POTENTIAL ..................... 45
   Leather...........................................18
   Manufactures of Leather................18              6.1 Indian Leather Industry ............ 45
   Fur Skins........................................18       Introduction ................................... 45
   Leather Bags and Baggage ............18                   Export Potential ............................. 45
   Leather Apparel and Accessories ..19
   Leather Footwear ...........................19         6.2 Industrial Centres....................... 45

2.5 Major Suppliers ..........................20          6.3 Policies and Programmes........... 47
                                                             Policies .......................................... 47
2.6 Market Dynamics .......................23                Programmes................................... 49
   Global Characteristics....................23
   Standards and Rules.......................25           6.4 Indian Leather Organisations ... 50
   Product Improvements...................26
                                                          7. BACKGROUND INFORMATION ... 53
3 INDIA’S EXPORT SCOPE............... 27                  7.1 India-Hong Kong Relations ....... 53
                                                             Overview ....................................... 53
3.1 Indian Exports to Hong Kong ...27
                                                             Trade Links.................................... 54
3.2 Present Share and Future Scope27                         Investment Links ........................... 56
   Leather...........................................28
   Manufactures of Leather................28              7.2 India - China Economic Links... 57
   Fur Skin .........................................28      Trade Links.................................... 57
   Leather Bags and Baggage ............28                   Investment Links ........................... 58
   Leather Apparel and Accessories ..28                   7.3 Practical Business Tips .............. 59
   Leather Footwear ...........................29            Business Tips for Hong Kong........ 59
                                                             Additional Tips for China.............. 60
4. ENTERING THE MARKET ............. 31
                                                          8. RESOURCES ................................. 61
4.1 Exhibitions ..................................31
   Leather Trade Fairs in Hong Kong 31                    8.1 Key Contacts............................... 61
   Market Access Initiative ................35               Hong Kong Contacts ..................... 61
   Leather Trade Fairs in India ..........35                 China Contacts............................... 69
                                                             India Contacts................................ 71
4.2 Services by the Consulate ..........36
   Business Delegations .....................36           8.2 Online Resources ........................ 73
   Product Studies ..............................37
   Trade and Investment Queries .......37                 9. READER EVALUATION ................ 75




Consulate General of India, Hong Kong                                                                            i
                                                             Summary




Exporting Leather and Leather Products to Hong Kong
                                                             4
- A Guidebook

Executive Summary
Market Overview
Products Overview
Market Dynamics
Major Suppliers
India’s Export Potential
India’s Export Opportunities
Strategies for Entering Hong Kong Market
Further Information
Opportunities in Mainland China




T
          his publication, “Exporting Leather and Leather Products to Hong Kong
          – A Guidebook” is meant to serve trade promotion organisations and
          companies involved in exporting Indian leather and leather products.

Market Overview

Hong Kong is the second largest importer of leather and leather products in the
world, next to the USA, holding a share of 12% in the global leather import trade.
Hong Kong has emerged as one of the important leather trading hubs of Asia and
the Asia-Pacific region. Apart from being a base for a cluster of leather consumer
goods manufacturers, Hong Kong is also an important international sourcing
centre for leather and leather products, particularly medium-to-low end items.
Hong Kong also benefits by its proximity to Mainland China. Hong Kong and
the Pearl River Delta have trade and manufacturing activities in leather, which are
in many cases, vertically integrated.

Hong Kong is the     Hong Kong has established itself as one of the important
second largest       exhibition centres for promoting leather and leather
importer of leather  products. Hong Kong imports leather and leather products
and leather          mainly for re-exporting to other leather markets in the
products in the      world and for local consumption to a limited extent.
world                Moreover, Hong Kong provides opportunities to meet
                     leather importers from around the world and sell leather
and leather products to their respective markets, which will not be registered
under India – Hong Kong leather trade statistics. Hence, Hong Kong offers good



Consulate General of India, Hong Kong                                            3
             EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




business opportunities for leather and leather products by way of export and re-
export of raw materials, accessories, finished products, intermediaries, etc., apart
from providing a regional exhibition platform for leather and leather products.

The value of Hong Kong’s import of leather, manufactures of leather, bags and
baggage, leather apparel and accessories, and footwear was US$6,491 million in
2002. The value of Hong Kong’s total export of these products in 2002 was
US$6,738 million. Of this, the value of re-exports was US$6,685 million. (The
value of Hong Kong’s re-exports in this regard is more than the value of its
imports due to time difference between import and re-export cycle and the value
difference between the price of imported items and the mark-up price of the re-
export items). Hence, it can be seen that Hong Kong is essentially a re-export
market for leather and leather products industry.

Products Overview

Leather footwear forms the most important item of Hong Kong’s import. In
2002, Hong Kong imported leather footwear items worth US$2,973 million,
accounting for 45.8% of its total leather and leather products imports. This is
followed by leather (US$2,249 million, 34.6%), leather apparel and accessories
(US$552 million, 8.5%), leather bags and baggage (US$399 million, 6.1%), fur
skins (US$361 million, 4.6%), and manufactures of leather (US$22 million, 0.3%).

Market Dynamics

Global leather       Leather industry is totally dependent on the availability of a
market faces         by-product, namely, raw hides and skins from the meat
volatility in        industry. This situation creates problems like matching
supplies, in         inelastic supply to changing - and usually increasing -
quality, and in      demand. With the new phenomena that leather making is
price                moving around the world, the resultant situation offers
                     volatility in supplies, in quality, and in price. Indian exports
to the Hong Kong leather market would also face this situation.

Due to this, the need to ensure that the bulk order complies with the approved
sample, and that returns-and-rejects are held to acceptably low levels has also
gained importance. This has led to the older methods of quality control giving
way to the concept of quality assurance. Instead of inspecting and rejecting poor
products at the end of the production line, the emphasis has come to getting it
right first-time every time. When more than one party is involved in the process
of getting the leather and leather products to the market, the importance of quality
assurance at each level becomes critical. Trading hubs like Hong Kong are
realising the importance of the role of intermediaries and the need for quality
assurance at this stage.

One of the most significant changes in the global leather industry over the past
two decades has been its gradual transfer to Asia at the expense of manufacturing
capacity in North America, Europe, and Australia. The development of the
method of leather products supply known as resourcing has began to dominate
and dramatically affect the global leather industry. Resourcing has largely taken



4                                            Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




over from manufacture in some Western markets. Approximately 60% of shoes
sold in 2002 in the Western markets were effectively resourced. However, as
resourcing has become more widespread and manufacturing capacity has declined
in Western Europe and North America, resourcers have sought to expand the
role from simply placing contracts to actually designing and specifying products.
Some have set up joint ventures with shoe manufacturers, while others have
developed extended supply lines, which include material selection right through to
retail distribution. The importance of trading hubs like Hong Kong has increased
dramatically due to this development over the past two decades.

Importance of          The interconnected global leather industry expects
trading hubs like      flexibility in terms of location and time to meet the market
Hong Kong has          needs. For example, the recent widespread contagion of
increased              foot-and-mouth disease in Europe has led to a massive
dramatically           destruction of livestock. According to the US Department
                       of Commerce, the shortage in the supply of rawhide has
pushed up the prevailing prices by over 25%. Hence, European sourcing agents
are looking at Asian supply in this regard. Hong Kong being one of the regional
hubs, Indian leather exporters can route their exports through Hong Kong in
addition to established direct contacts.

Ecological considerations, protection of endangered species, thwarting illegal
export of banned items, etc., are among the most important factors guiding the
leather industry today. Hong Kong also strictly regulates its imports to comply
with the internationally accepted standards and norms.

The industry realises the need to find new ways for easier, quicker, and the most
productive leather product making. At the same time, the market needs long
service life, high-performance, and comfort from the product. Hence,
innovations providing a way for merging leather and non-leather items in
producing leather products are being welcomed by the operators in the industry.

Major Suppliers

Presently, China is dominating Hong Kong's leather market. Under most of the
items of leather and leather products, China has majority share in the market, with
above 80% share in many items. Other major players include Italy, Spain, the
USA, France, etc. In many cases, the other countries are poor-seconds to China.
However, the market is still dynamic and is not without fluctuations on both sides.
For example, under the item footwear with leather uppers and protective metal
toe-cap (SITC: 85115), China’s share dramatically increased from 47.9% in 2001
to 83.5% in 2002. However, with reference to footwear with leather soles and
leather stripe uppers (SITC: 85141), China's share is actually declining, from
76.2% in 2000, to 44.9% in 2001, and further to 17.3% in 2002. This trend is
matched by Italy increasing its share from 12% in 2000, to 41% in 2001, and
further to 45.6% in 2002.




Consulate General of India, Hong Kong                                           5
             EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




India’s Export Potential

India is endowed with 10% of the world's raw material but its exports constitute
only about 2% of the world trade. Leather industry in India has been identified as
one of the thrust areas of exports and is amongst the top eight export earners for
India. It provides employment to 2.5 million people. Moreover, about 60 to 75%
of the production is derived from the small-scale sector. The annual export value
is poised to touch about US$2 billion, accounting for about 4% of India’s total
exports. There has been increasing emphasis on its planned development, aimed
at optimum utilisation of available raw materials for maximising the returns,
particularly from exports.

India’s annual        Backed by a strong raw-material base and a large reservoir
export value is       of traditionally skilled and competitive labour force, the
poised to touch       Indian leather industry has made significant strides during
US$2 billion,         the past two decades. Especially in the last decade, export
accounting for        performance of the leather sector went up from Rs.3,036
about 4% of India’s   crore during 1991-92 to Rs.9,088 crore in 2001-02.
total exports
                       Though leather is one of the important export products of
India, its share in the world leather market is comparatively less and clearly
disproportionately small when compared to its capacity in this regard. India
exports only 2% of world’s leather and leather products imports. Approximately,
India accounts for 2.5% of leather, 1.5% of leather footwear, 5.5% of footwear
components, 10.5% of leather garments, 6% of leather goods, 7% of leather
gloves, 9.5% of saddlery and harness. Germany is the leading importer of Indian
leather and leather products, followed by the USA, UK, Italy, France, and Hong
Kong.

India’s Export Opportunities

One of Hong Kong's major strengths as a trading hub in the region is its dynamic
adaptability in choosing its import sources and export destinations. Even under
the leather and leather products sector, Hong Kong is continuously looking for
new sources of supply and new partners to collaborate to maximise its profits.
While Chinese supplies under most items are predominant, new players are
gaining the market share by offering a competitive alternative, in terms of cost,
design appeal, niche products, etc.

China's entry into the WTO not only means that Chinese exports will become
easier, but also will lower import tariffs of China due to its commitments to the
WTO. This will mean that Chinese manufacturers will look for obtaining their
materials, machinery, and the other supplies more cheaply from outside sources
also. Hong Kong, though a service based economy, is involved in manufacturing
activity indirectly. Companies in Mainland China, owned by Hong Kong
investors, employ more than ten million Mainland China workers, mainly in the
Pearl River Delta region. Hence, countries that can supply leather and leather
intermediary products have great growth opportunities in the region.




6                                          Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




In the leather sector, as in most other areas, Hong Kong is a re-export market. In
2002, out of Hong Kong's total export of leather and leather products, valued at
US$6,738 million, Hong Kong's re-exports were US$6,685 million, accounting for
more than 99%. Hence, Indian leather promotion organisations and companies
targeting Hong Kong market should realise that Hong Kong is primarily a leather
hub in Asia-Pacific region that has well established links to world's leather markets
beyond the region. Country-of-origin rules for footwear were relaxed as of 15
February 1999. Under the new arrangement, affixing uppers and inner soles in
Hong Kong will suffice for the status of Hong Kong origin, even if the uppers
and inner soles were not produced in Hong Kong. Hence, Hong Kong is on the
lookout for new suppliers in these areas.

Hong Kong is the sixth largest importer of Indian leather and leather products in
the world. Hong Kong received 6.3% of India’s export of leather and leather
products in 2001-02. India's export of leather and leather products to Hong Kong
is steadily increasing over the past few years. The value of Indian exports has
more than trebled between 1999 and 2002, from US$52 million to US$162
million. However, since Hong Kong's leather market is substantially large, to the
tune of US$6.5 billion, India's share in Hong Kong's leather market is still only
2.49%. The following table provides information about India’s share in Hong
Kong’s import of leather and leather products:
                                INDIA'S SHARE IN HONG KONG'S IMPORTS (2002)
                                                 (US$ million)

                              HONG KONG’S IMPORTS            INDIA’S EXPORTS TO HONG KONG        INDIA’S
                             VALUE          SHARE IN         VALUE    SHARE IN       GROWTH     SHARE IN
                                             TOTAL                     TOTAL                      HONG
                                            LEATHER                   LEATHER                    KONG’S
                                            IMPORTS                   EXPORTS                   IMPORTS
Footwear                        2973                45.8       1.07          0.7        -24.8         0.04
Leather                         2249                34.6       159          98.1         +48           7.1
Leather apparel and              552                   8.5      0.5          0.3         +14          0.09
accessories
Bags and baggage                 399                   6.1      0.1         0.06          -44         0.03
Fur skin                         296                   4.6       0               0          -              0
Manufactures of leather            22                  0.3      0.8          0.5       +208.4          3.6
          TOTAL                    6491                        162    OVERALL GROWTH: +47              2.5
(Source: Census and Statistics Department, HKSAR)

As it can be seen from the table above, India’s overall share in Hong Kong’s
import of leather and leather products is only 2.5%. India’s share under footwear
is 0.04%, leather is 7.1%, leather apparel and accessories is 0.09%, leather bags and
baggage is 0.03%, and manufactures of leather is 3.6%. Product distribution of
India’s export basket to Hong Kong under leather and leather products is also
lopsided, with 98.1% of the value coming from a single item of leather, and other
product categories, especially the value added items, providing less than 2%.
Hence, while sustaining and enhancing the momentum of growth of export of
leather from India to Hong Kong, India should also concentrate on diversifying
its export basket of leather and leather products to Hong Kong market.

Some of the trends to notice in Indian leather exports to Hong Kong are as
follows: Under the category of manufactures of leather, despite decline in Hong



Consulate General of India, Hong Kong                                                                 7
              EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Kong’s imports (-30.5%), India is the fourth largest supplier of this item to Hong
Kong, growing from US$0.243 million (-58.3%) in 2001 to US$0.750 million
(+208.4%) in 2002. Under the leather apparel and accessories category, India's
exports improved from US$14,000 and 1999 to US$48,000 in 2002 for the item
leather belts and bandoliers (+115.3% in 2002). Similarly, for other clothing
accessories, of leather, Indian exports grew from US$2,000 in 1999 to US$262,000
in 2002 (+109.8% in 2002). Footwear forms 45.8% share of Hong Kong's total
leather and leather products import. Hong Kong imported leather footwear
worth US$2,973 million. India's export of leather footwear to Hong Kong is only
US$1 million, marking a share of 0.04%. India's export of the footwear with
leather uppers and protective metal toe-cap, though from a miniscule basis grew at
the rate of +164.8% in 2002.

Strategies for Entering Hong Kong Market
Exhibitions

Hong Kong              Indian leather exporters can make a good beginning to
exhibitions attract    enter the Hong Kong leather market by participating in
major buyers from      leather related Hong Kong exhibitions. These exhibitions
North America,         not only cater to the local Hong Kong traders but also to
Europe, Japan,         major buyers from all over the world, including North
Korea, Mainland        America, Europe, other Asian countries like Japan, Korea,
China, etc.            etc. Hong Kong leather exhibitions can also provide an
                       opening to enter Mainland China market, as scores of
Mainland China traders and manufacturers visit Hong Kong leather exhibitions.
For example, during Asia Pacific Leather Fair (APLF) April 2002 shows alone, a
total of 8498 buyers from Mainland China visited the shows to source leather and
leather products.

Exhibition Services by the Consulate

Indian leather exporters desiring to participate in these exhibitions can contact the
Consulate General of India for updated information about these fairs, including
relevance of these exhibitions to their products, track record of the exhibitions
regarding visitor profile and turnout, calendar, contact details of the organisers,
etc. A list of important Hong Kong importers of that particular product can also
be provided to facilitate pre-exhibition promotion and meeting arrangements.

For an Indian organisation organising an India pavilion, support is given in terms
of identifying a stall construction contractor, stall designs, execution, and facilities
for Indian exhibitors, arranging interpreters, booth assistants, etc.
Market Access Initiative

Indian leather export organisations can provide impetus to the focus on Hong
Kong leather market by planning MAI’s for Indian exporting companies. To
participate in leather trade fairs in Hong Kong, MAI can be structured so that
over a period of three years, the exporters get the support to participate in Hong
Kong leather trade fairs by way of getting, say 75%, 50%, 25% of the cost of
participation from the organisation. After the third year, the individual company
will be able to participate on its own having realised the potential of the market


8                                             Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




and the trade volume. Focus can be on the regions in India, which need
additional thrust to promote local products and capabilities through International
exhibitions.

Even though the number of Indian companies participating in the exhibition can
increase on its own by the potential of the market, if all the Indian leather
exporting companies are brought under India pavilion organised by the leather
exporting organisations of India, this would provide a greater business impact. All
these stalls would be decorated with an Indian theme and this would project the
size of Indian participation in the exhibition and India’s interest in the Hong
Kong leather market.

Asia Pacific Leather Fair

Hong Kong has three important leather trade fair events per year, called Asia
Pacific Leather Fair. APLF Fashion and Finished Products Show (FFPS) is a bi-
annual event, held in April and October and APLF Raw Materials and
Manufacturing (RMM) is an annual event, held in April. In 2002, FFPS attracted
809 exhibitors from 29 countries and regions, and 20,844 visitors from 103
countries and regions. Similarly, RMM attracted 2,370 exhibitors from 65
countries and regions, and 30,417 visitors from 112 countries and regions. Apart
from these, there are others fairs where leather products like bags and baggage,
apparels, gift items, etc are featured.
Indian participation in APLF

India participated     Indian participation in APLF is increasing in number, and
as ‘Focus Country’     range of products. Normally, more than 60 to 80 Indian
in Asia Pacific        exhibitors participate in the April show and about 15 to 20
Leather Fair 2001      companies participate in the October Show. Indian
in Hong Kong           participation as ‘Focus Country’ in APLF April 2001 was a
                       milestone in this regard. (Every year, one particular country
is projected as a focus country in APLF April show. This provides the best
opportunity for a country to exhibit its capabilities in the leather sector and
present the same more conspicuously in the show). India Trade Promotion
Organisation (ITPO) along with the Council for Leather Exports (CLE),
projected India’s leather sector through the theme pavilion area, and through large
banners and carry bags through out the event, with the slogan “Think Leather;
Think India”. The “Trends Pavilion” displayed Mod-Europe leathers and colours
for the Spring/Summer 2002 season and leather products. India also participated
through fashion show, cultural presentation, etc.

Business Delegations

Indian leather export organisations can organise business delegations to Hong
Kong. These delegations can be composed of select exporters whose products
have more relevance to the Hong Kong market. Complete information about the
members of the delegation along with their trade interest may be made available to
the Consulate General of India, Hong Kong. The Consulate would arrange
business interactions with leather industry associations, leather importers, buying
offices, etc., in Hong Kong. The Consulate General of India, Hong Kong can



Consulate General of India, Hong Kong                                            9
              EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




also arrange general business meetings with leather traders who are members of
other chambers of commerce in Hong Kong. Delegations can interact with
government bureaux and agencies to learn about the standards, rules and
regulations to be followed when Indian leather products are exported to Hong
Kong. Technical details in the two standard regimes between India and Hong
Kong can be discussed and options for creating common standards can be
explored.
Study

Indian leather exporting organisations can initiate a deeper study for individual
products like leather garments, leather footwear etc. These studies can be made
comprehensive by getting detailed information about the leather market for the
particular product from various sources in Hong Kong including Government
bureaux and agencies, leather industry associations, leather importers, buying
offices etc. Indian companies wanting to explore the market can also approach
the Consulate for essential information like trade figures, updated information on
rules and regulations, etc.
Trade and Investment Queries

Indian organisations and companies interested in entering the Hong Kong leather
market can make use of the Consulate’s trade matching services. Consulate
General of India can provide a list of matching business contacts in the Hong
Kong leather sector, including telephone, fax, and email details. In case of
organisations, this can be circulated among the members of the organisation.
Information about Indian business organisations and companies wanting to find
partners in Hong Kong are also circulated to important business organisations in
Hong Kong. The Consulate encourages trade queries through email. All queries
can be sent to commerce1@indianconsulate.org.hk
Newsletters

One can subscribe      Indian leather export organisations and companies can
by sending an          subscribe to the free e-newsletter published by the
email or through       Consulate General of India, Hong Kong called “Business
the Consulate’s        Opportunities in Hong Kong”. This newsletter contains
website                business information including economic developments in
                       Hong Kong, trade queries, tender notices, briefs about
important commercial associations, forthcoming business conferences and trade
fairs, etc. In case of organisations, this valuable business information can be
disseminated to the members of the organisations either by emailing the same to
their members, or by publishing the details on the organisation’s website.
Organisations and companies can subscribe by sending an email to
commerce2@indianconsulate.org.hk or can visit the Consulate’s website to
subscribe online (http://www.indianconsulate.org.hk)

Indian leather organisations and companies can utilise “Business Opportunities
in India”, another free e-newsletter published to project the capabilities of the
associations in catering to the needs of an importer from Hong Kong leather
market. In case of organisations, the role and functions of the organisation with



10                                         Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




full contact details can be provided. This information would be circulated to
important business organisations, apart from individual business people of Hong
Kong. This newsletter can also be utilised to advertise various leather fairs and
business events organised in India for the leather products export. Indian leather
export organisations can write to the Consulate General of India, Hong Kong
with full details about the event, which can be highlighted in the newsletter.
Indian organisations and companies wishing to provide information about the
organisation, and company can send an email with the details to
commerce1@indianconsulate.org.hk
Business Centre

The Consulate offers many services through its business centre including meeting
venue, conference venue, computer, telephone and fax facilities, identifying and
hiring of local assistance, interpreters, translators, etc.

Website

The Consulate’s website (http://www.indianconsulate.org.hk) provides relevant
and updated business information, including on India-Hong Kong trade and
investment, reports on Hong Kong economy, information on doing business in
Hong Kong, opening an office in Hong Kong, etc. Contact details of Indian
business organisations in Hong Kong are also given. The website features Online
Trade Queries, an interactive database providing information on business contacts
in Hong Kong and India. Business visitors can search business contacts based on
name of the product, company, SITC code, importing or exporting, etc. Visitors
can also register online so that their information is added to the database. Direct
access links for membership database of important commercial organisations in
Hong Kong are also provided. Online subscription forms, latest issues, and
archives, of the Consulate’s e-Newsletters are also available. A useful list of
important web links to Hong Kong is provided along with links to real time flight
information at Hong Kong airport.

Further Information

Extensive list of key contacts and support services both in India and in Hong
Kong with reference to Indian export of leather and leather products to Hong
Kong are given at the end of the report. Apart from the many email addresses
and website addresses provided in the report, a separate list of important websites
that would be useful for an Indian leather exporter to Hong Kong market is also
appended for ready reference. Consulate General of India would be happy to
assist any individual exporter or organisation in exporting leather and leather
products to Hong Kong.

Opportunities in Mainland China

Hong Kong not only acts as an outward port for leather and leather products
from Mainland China, but also functions as a gateway to enter Mainland China
market. Over the last two decades, Mainland China has emerged as the largest
leather producer of leather goods, the largest exporter of leather in terms of
volume and the largest supplier of leather raw materials. Nevertheless, it is to be
noted that Mainland China is also the largest importer of leather in terms of


Consulate General of India, Hong Kong                                           11
             EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




volume. With the acceleration of the process of urbanisation, overall
improvement in living standards and the increase in purchasing power of the
middle class would transform into greater demand for leather products.

It is to be noted   Embassy of India, Beijing can provide valuable services to
that China is also  the Indian leather organisations and companies pursuing
the largest         economic links with Mainland China, including business
importer of         match-making for trade and investment queries, providing
leather, in terms ofinformation about relevant exhibitions, arranging meetings
volume              for the visiting business delegations, providing resources
                    and inputs for product studies, etc. The Embassy operates
a business centre and provides important information through its website
http://www.indianembassy.org.cn.




12                                       Consulate General of India, Hong Kong
                                                                                     1
                                                                                         Intro




1. Introduction
Vast and Promising Scope



T
          he Consulate General of India, Hong Kong is happy to bring out
          “Exporting Leather and Leather Products to Hong Kong: A
          Guidebook”.

This product report covers leather, manufactures of leather, leather bags and
baggage, leather apparel and accessories, and leather footwear. The following
table provides information about the items covered under these different
categories of leather and leather products with their Standard International Trade
Classification (SITC) codes:

                      SITC                            DESCRIPTION
                611                                       Leather
                612                             Manufactures of leather
                613                                      Fur skin
                                               Leather bags and baggage
                83111        Leather handbags
                83121        Leather trunks, suitcases, briefcases, etc
                                            Leather apparel and accessories
                84811        Leather apparel
                84812        Leather gloves, mittens and mitts
                84813        Leather belts and bandoliers
                84819        Other clothing accessories, of leather
                84831        Clothing and accessories of fur skin
                                                    Leather footwear
                85115        Footwear with leather uppers and protective metal toe-cap
                85122        Ski footwear with leather uppers and other soles
                85124        Other sports footwear with leather uppers
                85141        Footwear with leather soles and leather stripe uppers
                85142        Footwear with leather uppers and wooden base
                85148        Footwear with leather soles and uppers
                85149        Other footwear with leather uppers
                85152        Footwear with leather soles and textile uppers

In 2002, Hong Kong imported leather and leather products worth about US$6.5
billion. Moreover, Hong Kong exports of leather and leather products reached
the value of US$6.74 billion, of which US$6.69 billion worth of products were re-
exports.

India's export of leather and leather products to Hong Kong has grown from
US$52 million in 1999 (-10.7%) to US$77 million in 2000 (+49.1%), and to



Consulate General of India, Hong Kong                                                            13
             EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




US$110 million in 2001 (+42.7%). The 2002, India's leather and leather products
exports to Hong Kong again grew by +47% and reached the value of US$162
million.

India’s exports to     It is to be noted that, though India's export of leather and
Hong Kong have         leather products to Hong Kong is growing substantially,
grown from US$52       India's share in Hong Kong's total imports of leather and
million in 1999 to     leather products is only 2.49%.
US$162 million in
2002                    India is endowed with 10% of the world's raw material but
                        its exports constitute only about 2% of the world trade.
Leather industry in India has been identified as one of the thrust areas of exports
and is amongst the top eight export earners for India. It provides employment to
2.5 million people. Moreover, about 60 to 75% of the production is derived from
the small-scale sector. The annual export value is poised to touch about US$2
billion, accounting for about 4% of India’s total exports.

Backed by a strong raw-material base and a large reservoir of traditionally skilled
and competitive labour force, the Indian leather industry has made significant
strides during the past two decades. Export performance of the leather sector
went up from Rs.3,036 crore during 1991-92 to Rs.9,004 crore in 2000-01. The
value of export of leather and leather products during April 2001 to October 2001
was Rs.5,411 crore.

This report aims to provide an overview of Hong Kong’s leather and leather
products market, the present position of India’s exports to this market under
these categories. This report also attempts to cover India’s potential in the leather
and leather products exports, especially in the areas relevant to Hong Kong’s
leather market. It analyses India’s present position vis-à-vis major suppliers to
Hong Kong’s leather market. Key contacts and support services in India are
given. This would provide the essential first step for Indian exporters to contact
the relevant organisation or agency in India. In addition, details about market
entry opportunities in India are also given. Moreover, key contacts and support
services in Hong Kong have been provided. These include list of important
importers of the commodities covered under the report. Moreover, a detailed
section on market entry opportunities in Hong Kong is also given. Sections on
Mainland China have been included. We are confident that this report would
offer good opportunity for Indian organisations and companies to take the first
step towards their exploration into the Hong Kong leather market or to enhance
their existing leather trade related operations with Hong Kong.

We have included a ‘Reader Evaluation Form’ at the end of the report. Kindly
provide your feedback to us, which would help us in fine-tuning our future
reports to suit your needs.




14                                           Consulate General of India, Hong Kong
                                                                 2
                                                                    Part




2. Hong Kong Import Scope
Hong Kong Economy
Hong Kong: Basic Facts
Hong Kong Leather Market
Important Imports
Major Suppliers
Market Dynamics

2.1 Hong Kong Economy




H
             ong Kong is one of the top ten trading economies in the world with an
             annual trade of more than US$400 billion. It has the world's second
             highest per capita holding of foreign currency. It is the second largest
             source of outward foreign direct investment in Asia. It has the world's
fifth largest foreign exchange reserves holding. It is the world's ninth largest
(sixth, if EU countries are regarded as one entity) trading economy and the world's
ninth largest exporter of commercial services. Hong Kong has the world's busiest
airport in terms of international cargoes and the world's busiest container port. It
is Asia's largest gold bullion market, the fourth largest in the world. Hong Kong’s
stock exchange is Asia's second largest stock market, the 9th largest in the world.
It is also Asia's third largest foreign exchange market in terms of turnover.

Changing Structure of Economy

Hong Kong is also a major re-export centre for the Asia-Pacific region and a
premier trade hub for intra-Asian trade, as well as trade between the East and the
West and between the Mainland China and the rest of the world. Although some
domestic industries, notably electronics, have continued to expand over the past
decade, since the early 1980s a large share of Hong Kong manufacturing capacity
has been shifted over the border into China in order to take advantage of lower
operating costs. The relative decline in Hong Kong’s manufacturing sector has
been accompanied by the rapid development of its service industries, leading to
growth in service exports. However, in general, growth in merchandise exports
outpaced growth in service exports, due to the rapid growth in re-export business,
resulting from the export boom in the Pearl River Delta and the increase in
indirect trade through Hong Kong between China and other countries.

Regional Hub

Hong Kong is also a regional leader in logistics and trade-supporting services,
such as product testing and inspection, arbitration and mediation, trade finance



Consulate General of India, Hong Kong                                              15
                 EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




documentation and insurance. As China liberalises its markets due to its WTO
membership commitments, Hong Kong firms are increasingly active in
connecting suppliers in other countries with consumers in the Chinese Mainland
and elsewhere in Asia. Hong Kong is the leading financial centre of Asia and is
one of the top sources of outward direct foreign investment in Asia.

‘One Country – Two Systems’

Hong Kong remains a separate economic entity under the One Country – Two
Systems policy. The Basic Law guarantees that Hong Kong will retain its free
trade free-enterprise environment for at least 50 years. Economic policy in post-
handover Hong Kong continues so far on the same ‘positive non-interventionist’
lines as under British administration. It has maintained its simple-and-low tax
system and its own currency. The Hong Kong dollar continues to be backed by a
100% reserve fund. The Hong Kong dollar remains convertible and exchange
controls have not been imposed; the free flow of capital into and out of Hong
Kong is safeguarded. Hong Kong continues as a separate Customs territory
distinct from Mainland China, and trade with Mainland China is treated as part of
the foreign trade. Hong Kong continues as a free port with its own trade policy
while Mainland China is a tariff economy. Hong Kong remains a separate
member of the major international economic organisations, such as the World
Trade Organisation (WTO), World Customs Organisation (WCO) and the Asia-
Pacific Economic Cooperation (APEC) forum, etc.

2.2 Hong Kong: Basic Facts
                                               ECONOMIC GROWTH
GDP: US$164 billion (2001)
GDP Per Capita: US$24,400 (2001)
Total exports to the World: US$200 billion (2002)
Re-exports to the World: US$183 billion (2002)
Total imports from the World: US$208 billion (2002)
                                                       AREA
Total Area: 1100 km2
                                          GDP BY ECONOMIC ACTIVITY
Economic Activity                                             Contribution to GDP
Agriculture and fishing                                       0.1
Industry                                                      14.3
Services                                                      85.6
                                    CHANGE IN THE CONSUMER PRICE INDICES
2001                                                          -1.6
                                     REGIONAL OPERATIONS IN HONG KONG
                                    (Set up by companies incorporated outside HK)
No. of companies that are regional headquarters               1996: 816; 2001: 948
Number of companies that are regional offices                 1996: 1,491; 2001: 2,171
                                     BEST LENDING RATE (PERIOD AVERAGE)
2001                                                          7.00
                                                 AIR MOVEMENTS
206 677 flights; 33.5 million passengers, 2.5 MT freight (2002)
                                                     SHIPPING
Container throughput: 19 million TEUs (2002)
                                                   POPULATION

6.77 Million (as at mid-2002)
                                                  NATIONALITIES
Predominantly of Chinese descent                               95%
Total foreign passport holders (end 2001)                      526510




16                                                             Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




2.3 Hong Kong Leather Market

Market Overview

Hong Kong is the second largest importer of leather and leather products in the
world, next to the USA, holding a share of 12% in the global leather import trade.
Hong Kong has emerged as one of the important leather trading hubs of Asia and
the Asia-Pacific region. Apart from being a base for a cluster of leather consumer
goods manufacturers, Hong Kong is also an important international sourcing
centre for leather and leather products, particularly medium-to-low end items.
Hong Kong also benefits by its proximity to Mainland China. Hong Kong and
the Pearl River Delta have trade and manufacturing activities in leather, which are
in many cases, vertically integrated.

Hong Kong has established itself as one of the important exhibition centres for
promoting leather and leather products. Hong Kong imports leather and leather
products mainly for re-exporting to other leather markets in the world and for
local consumption to a limited extent. Moreover, Hong Kong provides
opportunities to meet leather importers from around the world and sell leather
and leather products to their respective markets, which will not be registered
under India – Hong Kong leather trade statistics. Hence, Hong Kong offers
good business opportunities for leather and leather products by way of
export and re-export of raw materials, accessories, finished products,
intermediaries, etc., apart from providing a regional exhibition platform for
leather and leather products.

The value of Hong Kong’s import of leather, manufactures of leather, bags and
baggage, leather apparel and accessories, and footwear was US$6,491 million in
2002. The value of Hong Kong’s total export of these products in 2002 was
US$6,738 million. Of this, US$6,685 million worth of products were re-exports.
(The value of Hong Kong’s re-exports in this area is more than the value of its
imports due to time difference between import and re-export cycles and the value
difference between the price of imported items and the mark-up price of the re-
export items). Hence, it can be seen that Hong Kong is essentially a re-export
market for leather and leather products industry. The following table provides
information regarding Hong Kong’s export, import and re-exports for the last few
years:
                   HONG KONG’S TRADE IN LEATHER AND LEATHER PRODUCTS – 1999-2002
                                            (US$ billion)

 YEAR          IMPORT           GROWTH%             EXPORT      GROWTH%     RE-EXPORT    GROWTH%
1999        5.54                           -3.1          5.98        -2.9         5.91        -2.8
2000        6.40                        +15.5            6.80       +13.8         6.72       +13.8
2001        6.46                          +0.9           6.73        -1.0         6.67        -0.9
2002         6.49                           +0.5         6.74        +0.1         6.69        +0.3
(Source: Census and Statistics Department, HKSAR)

Product Overview

Leather footwear forms the most important item of Hong Kong’s imports. In
2002, Hong Kong imported US$2,973 million worth of leather footwear items,



Consulate General of India, Hong Kong                                                         17
                   EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




accounting for 45.8% of its total leather and leather products imports. This is
followed by leather (US$2,249 million, 34.6%), leather apparel and accessories
(US$552 million, 8.5%), leather bags and baggage (US$399 million, 6.1%), fur
skins (US$361 million, 4.6%), and manufactures of leather (US$22 million, 0.3%).
The following table provides information regarding Hong Kong’s imports under
various categories of leather and leather products in 2002:
                     HONG KONG’S LEATHER AND LEATHER PRODUCTS IMPORTS IN 2002
                                           (US$ million)

                          CATEGORY                      VALUE        GROWTH %          SHARE %
Footwear                                                     2973           +3.3            45.8
Leather                                                      2249               -1.4        34.6
Leather apparel and accessories                               552               -7.8         8.5
Bags and baggage                                              399           +2.8             6.1
Fur skins                                                     296           +4.5             4.6
Manufactures of leather                                         22          -30.5            0.3
TOTAL                                                        6491
(Source: Census and Statistics Department, HKSAR)


2.4 Important Imports

Leather

In 2002, the value of Hong Kong’s imports under this category was US$2,249
million (-1.4%). This is more than the total value of India’s leather and leather
products annual exports to the world. Due to the general economic slowdown in
US and Europe, Hong Kong’s intake of leather is on the decline, as it is mainly a
re-export market. In 2002, Hong Kong exported leather worth US$1,825 million
(-2.2%), of which US$1,824 million (-1.3%) worth of products were actually re-
exports.

Manufactures of Leather

In 2002, the value of Hong Kong’s import of manufactures of leather was US$22
million (-30.5%). Though the value of its imports is low and its growth is on
decline, it is to be noted that Hong Kong’s re-export of this item is on the raise.
Hong Kong re-exported US$29 million worth of manufactures of leather, which
saw a growth of +208.4%, despite its overall export of this item being only US$30
million (-28.7%).

Fur Skins

Hong Kong imported US$296 million worth of fur skins in 2002, marking a
growth of +4.5%. The value of Hong Kong’s total exports during the same
period was US$212 million (+3.9%), and the value of its re-exports was also
US$212 million (+4.0%).

Leather Bags and Baggage

Hong Kong imports a large amount leather bags and baggage. In 2002, the
import amount was US$399 million, which marked a growth of +2.8%. In 2002
Hong Kong exported leather bags and baggage worth US$436 million (+2.2%),
and it re-exports under this category reached the value of US$434 million


18                                                  Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




(+2.8%). The following table provides information regarding imports of items
under this category:
                       HONG KONG’S IMPORTS OF LEATHER BAGS AND BAGGAGE IN 2002
                                             (US$ million)

     SITC                                    ITEM                        VALUE          GROWTH %
83111               Leather handbags                                             361            +4.1
83121               Leather trunks, suitcases, briefcases, etc                    37               -7.8
TOTAL                                                                            398
(Source: Census and Statistics Department, HKSAR)

Leather Apparel and Accessories

Leather apparel and accessories is an important category of Hong Kong's leather
imports. In 2002, Hong Kong imported leather apparel and accessories worth
US$552 million (-7.8%). During the same period, Hong Kong's export of leather
apparel and accessories reached US$824 million (-7.8%), and its re-exports
reached the value of US$782 million (-8.4%). The following table provides
information regarding Hong Kong’s imports under this category:
                       HONG KONG’S IMPORTS OF LEATHER APPAREL AND ACCESSORIES
                                             (US$ million)

     SITC                                    ITEM                        VALUE          GROWTH %
84811               Leather apparel                                              158           -18.2
84812               Leather gloves, mittens and mitts                            122           -14.4
84813               Leather belts and bandoliers                                 118            +5.5
84819               Other clothing accessories, of leather                         4            +6.2
84831               Clothing and accessories of fur skin                         150            +1.6
TOTAL                                                                            552
(Source: Census and statistics Department, HKSAR)

Leather Footwear

Footwear is the single largest import item of Hong Kong’s leather and leather
products imports. In 2002, Hong Kong imported US$2,973 million worth of
footwear. This forms 45.8% of the total leather and leather products imports of
Hong Kong. This also marked a growth of +3.3%. During this period, Hong
Kong's export of leather footwear reached the value of US$3,411 million (+3.3%),
while its re-exports reached the value of US$3,405 million (+3.3%). The
following table provides information regarding Hong Kong’s import items under
this category:
                                       HONG KONG’S IMPORTS OF FOOTWEAR
                                                 (US$ million)

  SITC                                    ITEM                           VALUE          GROWTH %
85115        Footwear with leather uppers and protective metal toe-cap            11          +225.1
85122        Ski footwear with leather uppers and other soles                     12           +23.4
85124        Other sports footwear with leather uppers                            32               -8.1
85141        Footwear with leather soles and leather stripe uppers                0.3              -5.2
85142        Footwear with leather uppers and wooden base                         0.3          +22.7
85148        Footwear with leather soles and uppers                          2,872              +3.1
85149        Other footwear with leather uppers                                    8           +56.3
85152        Footwear with leather soles and textile uppers                       37               -1.8
TOTAL                                                                            2973
(Source: Census and statistics Department, HKSAR)




Consulate General of India, Hong Kong                                                              19
             EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




2.5 Major Suppliers

Hong Kong leather market is dominated by a few players. Here details about
Major suppliers under the different categories, with details of each item under
selected categories are given. All figures under this section pertain to 2002 unless
otherwise specifically mentioned.

Leather

India was the          Hong Kong imported US$2,249 million worth of products
fourth largest         under the category leather (SITC: 611). China supplied
supplier of leather    22.1% of the products, worth US$497 million. This was
to Hong Kong,          followed by Italy (US$362 million, -7.5%, share 16.1%),
enjoying a market      Korea (US$246 million, -18.2%, share 11%). India was the
share of 7.1%          fourth largest supplier of leather to Hong Kong, enjoying a
                       market share of 7.1%, worth US$159 million. For the last
three years, India’s supply to the Hong Kong leather market under this category
had been growing consistently. In 2000, it was 48.2%, which grew by 46.5% in
2001 and 48% in 2002.

Manufactures of Leather

Hong Kong imported US$22 million worth of products under the category,
manufactures of leather (SITC: 612). China supplied US$12 million worth of
products, enjoying a share of 55.3% of the market. This is followed by France
(US$2.9 million, -26.1%, share 13.2%), and the USA (US$2.4 million, -18.2%,
share 10.8%). India was the fourth largest supplier of this item to Hong Kong,
worth US$0.8 million. In 2002, Indian exports under this item saw a growth of
+208.4% thereby increasing India's market share from 0.8% in 2001 to 3.5% in
2002. India was followed by Vietnam (US$0.6 million, +30.4%, share 2.8%).

Fur Skin

Products worth US$253 million were supplied by China under the category fur
skin (SITC: 613), out of Hong Kong's total import of US$296 million, thereby
contributing to 85.4% of the market. This was followed by United Kingdom
(US$7.5 million, -5.6%, share 2.5%), Denmark (US$6.4 million, +8.3%, share
2.1%), Macau (US$3.9 million, -31.1%, share 1.3%), and Italy (US$3.8 million, -
1.2%, share 1.3%).

Leather Bag and Baggage
Leather handbags (SITC: 83111)

Chinese supplies contributed to 65.1% of the market, worth US$235 million, out
of Hong Kong's total import of US$361 million. This was followed by France
(US$52 million, -0.7%, share 14.3%), Switzerland (US$28 million, +28.9%, share
7.6%), Italy (US$27 million, -13.3%, share 7.4%) and the USA (US$6 million, -
18%, share 1.7%).




20                                          Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Leather trunks, suitcases, briefcases (SITC: 83121)

Hong Kong imported US$37 million worth of products under this item in 2002.
Out of this, China supplied US$27 million worth of products, contributing to
73.2% of the market. This was followed by France (US$6 million, -4.3%, share
16.7%), Switzerland (US$0.8 million, -16.1%, share 2.2%), Italy (0.7 million, -
28.5%, share 1.8%), and the USA (US$0.66 million, -30.4%, share 1.8%).

Leather Apparel and Accessories
Leather apparel (SITC: 84811)

In 2002, China enjoyed 85.6% share in the market, worth US$135 million, out of
Hong Kong's total import of US$158 million. This is followed by Italy (US$8
million, +9.5%, share 5.3%), France (US$4 million, +11.8%, share 2.7%), Spain
(US$3 million, +6%, share 1.7%), and Switzerland (US$2 million, -18%, share
1.5%).

Leather gloves, mittens and mitts (SITC: 84812)

China dominated the market with an overwhelming share of 99.2%, worth
US$121 million, out of Hong Kong's total intake of US$122 million. This is
followed by Italy (US$0.16 million, -23.4%, share 0.1%), the USA (US$0.16
million, -76.8%, share 0.1%), United Kingdom (US$0.107 million, -52.5%, share
0.1%). India was the fifth largest supplier of this item to Hong Kong. India
supplied US$0.103 million worth of products (-40.9%), accounting for 0.1% share
in the market.
Leather belts and bandoliers (SITC: 84813)

Out of Hong Kong's US$118 million worth of imports under this item, China
supplied US$95 million, contributing to 80% of the market share. This was
followed by France (US$6 million, +8.8%, share 5.1%), Italy (US$4.6 million, -
9.8%, share 3.9%), United Kingdom (US$4.3 million, -2.8%, share 3.7%), and
Switzerland (US$3.9 million, +14.7%, share 3.3%).
Other clothing accessories of leather (SITC: 84819)

India was the        China was the major supplier of this item to Hong Kong,
fourth largest       which supplied products worth US$2.2 million,
supplier of leather  contributing to 52% of the market share out of Hong
clothing             Kong's total import of US$4.1 million. This was followed
accessories to       by Canada (US$0.8 million, +5.5%, share of 20.1%), and
Hong Kong            Macau (US$0.5 million, +106.5%, share 12.9%). India was
                     the fourth largest supplier of this item to Hong Kong.
India enjoyed 6.3% share of the market by supplying products worth US$0.26
million, with a growth rate of +109.8%. The newcomer Uruguay supplied
products worth US$0.12 million, and captured a share of 3% of the market in
2002.
Clothing and accessories of fur skin (SITC: 84831)

Of the Hong Kong's total import of US$150 million under this item, China
supplied US$141 million, and enjoyed 93.7% share of the market. This was



Consulate General of India, Hong Kong                                       21
            EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




followed by Italy (US 2.8 million, +18.5%, share 1.9%), the USA (US$1.7 million,
-54.5%, share 1.1%), Canada (US$1.2 million, +4.5%, share 0.8%), and Japan
(US$0.6 million, +21.8%, share 0.4%).

Footwear

China is the          Under this category, of the eight items that were imported,
leading supplier of   Mainland China was the leading supplier to Hong Kong for
seven out of eight    seven items and was the second most important supplier
items                 for the other item.
Footwear with leather uppers and protective metal toe-cap (SITC: 85115):

Under this item, the major supplier was China, which supplied products worth
US$9 million, marking a growth of +467.2%, and a share of 83.5% of the total
import value of Hong Kong, which was US$11 million. This was followed by
Singapore (US$0.527 million, -6.7%, share 4.8%), France (US$0.373 million,
+12%, share 3.4%), Malaysia (US$0.302 million, -3.4%, share 2.7%), and UK
(US$0.195 million, -0.7%, share 1.8%).
Ski footwear with leather uppers and other soles (SITC: 85122)

Under this item, China clearly dominates by supplying products worth US$12.26
million, which was 99.3% of Hong Kong's total intake of US$12.35 million. The
other players were the USA (US$0.045 million, share 0.4%), and Italy (US$0.028
million, +66.6%, share 0.2%).
Other sports footwear with leather uppers (SITC: 85124)

China supplied US$30.6 million worth of products under this item, contributing
to 95.4% of Hong Kong's total intake of US$32 million, followed by Portugal
(US$0.585 million, share 1.8%), Thailand (US$0.265 million, share 0.8%), the
USA (US$0.175 million, +17.7%, share 0.5%), and Germany (US$0.134 million,
share 0.4%).

Footwear with leather soles and leather stripe uppers (SITC: 85141)

Italy was the major supplier under this item, which supplied products worth
US$0.141 million, enjoying a share of 45.6% of Hong Kong's total intake of
US$0.310 million. This was followed by China (US$0.054 million, -63.5%, share
17.3%), Korea (US$0.051 million, share 16.3%), Spain (US$0.020 million,
+88.4%, share 6.4%), and Taiwan (US$0.019 million, share 6%).
Footwear with leather uppers and wooden base (SITC: 85142)

China enjoyed 53.3% of the market share by supplying products worth US$0.181
million out of Hong Kong's total intake of US$0.339 million. This was followed
by Italy (US$0.097 million, -41.3%, share 28.7%), United Kingdom (US$0.020
million, +254.7%, share 6%), Spain (US$0.017 million, -18.2%, share 4.9%), and
Taiwan (US$0.016 million, share 4.8%).




22                                        Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Footwear with leather uppers and leather soles (SITC: 85148)

Hong Kong imported US$2,872 million worth of products under this item. Of
this, China supplied 92.8%, valued at US$2,665 million. This was followed by
Italy (US$80 million, -9.6%, share 2.8%), Switzerland (US$17 million, +15.6%,
share 0.6%), Spain (US$16 million, +3.2%, share 0.6%), and France (US$15
million, +21.2%, share 0.5%).
Other footwear with leather uppers (SITC: 85149)

China enjoyed 91.4% share by supplying products worth US$7.4 million out of
Hong Kong's total intake of US$8 million. This was followed by Italy (US$0.49
million, -25.8%, share 6%), Spain (US$0.2 million, +79 percent, share 2.1%), and
Japan (US$0.04 million, share 0.5%).
Footwear with leather soles and textile uppers (SITC: 85152)

Under this item, China supplied US$30 million worth of products out of Hong
Kong's total import of US$37 million, accounting for 81.9%. This was followed
by Italy (US$3 million, +3.4%, share 8.4%), France (US$1.6 million, +133.6%,
share 4.4%), United Kingdom (US$0.5 million, -2.1%, share 1.4%), and Korea
(US$0.3 million, +591.8%, share 0.8%).

However, the            In the light of the above mentioned figures, the following
market is still         trends can be noticed. It is clear that China is dominating
dynamic and is not      Hong Kong's leather market. Under most of the items of
without                 leather and leather products, China has majority share in
fluctuations            the market, with above 80% share in many items. Other
                        major players include Italy, Spain, the USA, France, etc. In
many cases, the other countries are poor-seconds to China. However, the market
is still dynamic and is not without fluctuations on both sides. For example, under
the item footwear with leather uppers and protective metal toe-cap (SITC: 85115),
China’s share dramatically increased from 47.9% in 2001 to 83.5% in 2002.
However, with reference to footwear with leather soles and leather stripe uppers
(SITC: 85141), China's share is actually declining, from 76.2% in 2000, to 44.9% in
2001, and further to 17.3% in 2002. This trend is matched by Italy increasing its
share from 12% in 2000, to 41% in 2001, and further to 45.6% in 2002.

2.6 Market Dynamics

Global Characteristics
Increasing Volatility

Leather industry is totally dependent on the availability of a by-product, namely,
raw hides and skins from the meat industry. This situation creates problems like
matching inelastic supply to changing - and usually increasing - demand. With the
new phenomena that leather making is moving around the world, the resultant
situation offers volatility in supplies, in quality, and in price.




Consulate General of India, Hong Kong                                            23
             EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Predominance of Resourcing

Like any other manufacturing activity, leather product manufacturing is also
gravitating to lower-cost locations providing that all other considerations are
equal. That means product quality, reliability of deliveries, and quick response.
One of the most significant changes in the global leather industry over the past
decade has been its gradual transfer to Asia at the expense of manufacturing
capacity in North America, Europe, and Australia. The development of the
method of footwear supply known as resourcing has began to dominate and
dramatically affect the global leather industry. Most major footwear brands in the
West now operate as resourcing companies although some still manufactured at
least part of the product range themselves. Resourcing has largely taken over
from manufacture in some Western markets. Approximately 60% of shoes sold
in 2002 in the Western markets were effectively resourced. However, as
resourcing has become more widespread and manufacturing capacity has declined
in Western Europe and North America, resourcers have sought to expand the
role from simply placing contracts to actually designing and specifying products.
Some have set up joint ventures with shoe manufacturers, while others have
developed extended supply lines, which include material selection right through to
retail distribution. The importance of trading hubs like Hong Kong has increased
dramatically due to this development over the last few years.
Flexibility in Location and Time

The interconnected global leather industry expects flexibility in terms of location
and time to meet the market needs. For example, the recent widespread
contagion of foot-and-mouth disease in Europe has led to a massive destruction
of livestock. According to the US Department of Commerce, the shortage in the
supply of raw hide has pushed up the prevailing prices by over 25%. Hence,
European sourcing agents are looking at Asian supply in this regard. Hong Kong
being one of the regional hubs, Indian leather exporters can route their exports
through Hong Kong in addition to established direct contacts.
New Suppliers

China’s entry into    China's entry into the WTO not only means that Chinese
the WTO also          exports will become easier, but also will lower import tariffs
means that China      of China due to its commitments to the WTO. This will
will lower import     mean that Chinese manufacturers will look for obtaining
tariffs               their materials, machinery, and the other supplies more
                      cheaply from outside sources also. Hong Kong, though
service based economy, is involved in manufacturing activity indirectly.
Companies in Mainland China, owned by Hong Kong investors, employ more
than ten million Mainland China workers, mainly in the Pearl River Delta region.
Hence, countries that can supply leather and leather intermediary products have
great growth opportunities in the region.




24                                          Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Standards and Rules
Ecological Considerations

Ecological considerations are weighing increasingly more heavily on producers,
firstly, how the skins and hides are gathered, secondly, with regard to how the
components are manufactured, and thirdly how they can be recycled. The
concept of Eco-label for leather products was a product of the early 1990s but it
has taken a decade to become established. It relates to a number of ecological and
the toxicological issues on the materials, chemicals, and the processes used in
manufacture. The aim is to reduce cruelty to animals, to limit levels of toxic
residues and the emission of toxic substances to atmosphere while promoting a
more durable product and setting appropriate standards on fitness for use.
Change in Rules

Hong Kong is on      Country-of-origin rules for footwear were relaxed as of 15
the lookout for      February 1999. Under the new arrangement, affixing
new suppliers due    uppers and inner soles in Hong Kong will suffice for the
to changes in        status of Hong Kong origin, irrespective of whether the
country-of-origin    uppers and inner soles are produced in Hong Kong. For
rules                this very reason, local manufacturers can save production
                     costs in the manufacture of "made in Hong Kong"
footwear with uppers and inner soles imported from low-cost producer countries.
Hence, Hong Kong is on the lookout for new suppliers in these areas.

Restrictive Markets

In general, trade measures for leather consumer goods are quite prohibitive world-
wide. In some overseas markets, footwear exports are restrained by quota systems
and anti-dumping charges, whereas leather handbags, apparel and accessories are
usually subject to high tariffs.

Protection of Endangered Species

Leather goods manufacturers are obliged to observe international restrictions for
the protection and preservation of endangered species. The Washington
Convention (Convention on International Trade in Endangered Species of Wild
Fauna and Flora - CITES) restricts or prohibits the trade of species listed in the
Appendices to the Convention under three categories, namely, species threatened
with extinction, species noted for incompatible utilisation, and species protected in
at least one country, which has asked other CITES parties for assistance in
controlling the trade.

Import Regulations

In order to protect the endangered species, the import of endangered species is
strictly regulated in Hong Kong Special Administrative Region in accordance with
the Animals and Plants (Protection of Endangered Species) Ordinance, Chapter
187. The Ordinance gives effect to the Convention on International Trade in
Endangered Species of Wild Fauna and Flora (CITES) – an international
convention drawn up in 1973 and now implemented by some 150 countries. The
Ordinance is administrated by the Agriculture, Fisheries and Conservation



Consulate General of India, Hong Kong                                             25
               EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Department (AFCD), and enforced by the department and the Customs and
Excise Department through checking at boundary entry and exit points, markets,
shops and restaurants. The Ordinance applies to all parties, including traders, and
private individuals.

For further information, please contact:
ENDANGERED SPECIES PROTECTION DIVISION
Agriculture, Fisheries and Conservation Department
5/F, Cheung Sha Wan Government Offices
303 Cheung Sha Wan Road
Kowloon, Hong Kong
Phone: +852.2150.6999
Fax: +852.2376.3749
Email: afcdenq@afcd.gcn.gov.hk

Product Improvements
New Materials for Components

Most of footwear components such as insoles, footbeds, toe puffs, counters and
stiffeners are hidden from the view but they are vital to achieving the shape and
structure of the shoe whilst contributing significantly to long service life, high-
performance and the wearer comfort. In the early days, leather was used for
virtually all components of leather products. Today a wide diversity of natural and
fabricated materials are used to achieve the best combination of properties for
performance and shoe making for each specific application. This is also driven by
the need to find a way for easier, quicker, and the more productive shoe making.
Hence, innovations providing a way for merging leather and non-leather items in
producing leather products are being welcomed by the market.
Quality Control to Assurance

The emphasis has       Due to the above-mentioned trend of resourcing, apart
come to getting        from the need for careful attention to detail in case of
the quality right      standardisation like labelling and sizing, the need to ensure
first-time every       that the bulk order complies with the approved sample, and
time                   that returns-and-rejects are held to acceptably low levels has
                       also gained importance. This has led to the older methods
of quality control giving way to the concept of quality assurance. Instead of
inspecting and rejecting poor products at the end of the production line, the
emphasis has come to getting it right first-time every time. When more than one
party is involved in the process of getting the leather and leather products to the
market, the importance of quality assurance at each level is critical. Trading hubs
like Hong Kong are realising the importance of the role of intermediaries and the
need for quality assurance at this stage.




26                                                   Consulate General of India, Hong Kong
                                                                             3
                                                                                  Part




3. India’s Export Scope
Indian Exports to Hong Kong
Present Share and Future Scope

3.1 Indian Exports to Hong Kong



H
           ong Kong is the sixth largest importer of Indian leather and leather
           products in the world. Hong Kong received 6.3% of India’s export of
           leather and leather products in 2001-02. India's export of leather and
           leather products to Hong Kong is steadily increasing over the past few
years. The value of Indian exports has more than trebled between 1999 and 2002,
from US$52 million to US$162 million. However, since Hong Kong's leather
market is substantially large, to the tune of US$6.5 billion, India's share in Hong
Kong's leather market is still only 2.5%. The following table shows the recent
trend of India's share in Hong Kong's leather market:
                               INDIA'S SHARE IN HONG KONG'S LEATHER MARKET
                                                 (US$ million)

                         IMPORTS FROM WORLD                  IMPORTS FROM INDIA            INDIA'S
   YEAR
                       VALUE                GROWTH          VALUE           GROWTH         SHARE
1999                           5,539                 -3.1            51.7         -10.7          0.9
2000                           6,400                +15.5            77.1         +49.1          1.2
2001                           6,460                 +0.9           110.1         +42.7          1.7
2002                              6,491              +0.5           161.8            +47         2.5
(Source: Census and Statistics Department, HKSAR)


3.2 Present Share and Future Scope

This section provides information about Hong Kong's imports, various categories
of leather and leather products, and India's share under these categories. All
figures pertain to 2002 unless otherwise specified.

In the leather sector, as in most other areas, Hong Kong is a re-export market. In
2002, out of Hong Kong's total export of leather and leather products, valued at
US$6,738 million, Hong Kong's re-exports were US$6,685 million, accounting for
more than 99%. Hence, Indian leather promotion organisations and companies
targeting Hong Kong market should realise that Hong Kong is only a leather hub
in Asia-Pacific region that has well established links to leather markets in other
countries.

One of Hong Kong's major strengths as a trading hub in the region is its dynamic
adaptability in choosing its import sources and export destinations. Even under


Consulate General of India, Hong Kong                                                                27
             EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




the leather and leather products sector, Hong Kong is continuously looking for
new sources of supply and new partners to collaborate in order to maximise its
profits. As pointed out in the earlier section, while Chinese supplies under most
items are predominant, new players are gaining market share by offering a
competitive alternative choice in terms of cost, design appeal, niche products, etc.

Leather

Hong Kong imported US$2,249 million worth of goods under the leather
category, accounting for 34.6% of its total leather and leather products imports.
Indian export of leather to Hong Kong was worth US$159 million, accounting for
7.1% of Hong Kong's market share.

Leather alone           Since India's total export of leather and leather products to
contributes 98% of      Hong Kong in 2002 was only US$162 million, it can be
India’s export of       seen that the share of export of leather is 98.1% of India's
leather and leather     total export of leather and leather products to Hong Kong.
products to Hong        Hence, while sustaining and enhancing the momentum of
Kong                    growth of export of leather from India to Hong Kong,
                        India should also concentrate on diversifying its export
basket of leather and leather products to Hong Kong market.

Manufactures of Leather

Hong Kong imported US$22 million worth of products under this category, of
which India contributed US$0.8 million, marking a share of 3.6%. Among the
leather and leather products exported by India to Hong Kong, this category
contributes to 0.5%. From US$0.456 million in 1999 (+70.4%), it grew to
US$0.584 million in 2000 (+28.1%). In 2001, Indian exports declined to
US$0.243 million (-58.3%). However, in 2002, it grew to US$0.750 million,
registering a growth of +208.4%. It is to be noted that India is the fourth largest
supplier of this item to Hong Kong. The decline in exports of the top three major
suppliers to Hong Kong market, (China -26.7%, France -26.1%, and the USA -
18.2%), and Hong Kong's overall decline under this category (-30.5%) provide
another perspective in this regard.

Fur Skin

Hong Kong imported US$296 million worth of products under this category in
2002. India does not supply fur skin to Hong Kong.

Leather Bags and Baggage

Of Hong Kong's total import of US$399 million worth of products under this
category, India's exports were valued at US$0.1 million, marking a share of 0.03%.
Under the item to leather trunks, suitcases and briefcases (SITC: 83121), India is
among one of the few countries that registered a positive growth in 2002.

Leather Apparel and Accessories

In 2002, Hong Kong imported US$552 million worth of products under this
category. Of these, India's exports were US$0.5 million, marking a market share



28                                           Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




of 0.09%. One important item to note under this category is leather belts and
bandoliers (SITC: 84813), in which India's exports have improved from
US$14,000 and 1999 to US$48,000 in 2002. India's export of this product grew at
+115.3% in 2002. Similarly, under other clothing accessories, of leather (SITC:
84819), Indian exports grew from US$2,000 in 1999 to US$262,000 in 2002, with
+109.8% growth in 2002.

Leather Footwear

Italy gained           In 2002, footwear formed 45.8% share of Hong Kong's
market share from      total leather and leather products import. Hong Kong
12.9% to 45.6%         imported US$2,973 million worth of leather footwear.
while China lost it    India's export of leather footwear to Hong Kong was only
from 73.8% to          US$1 million, marking a share of 0.04%. India's export of
17.3%. This shows      footwear with leather uppers and protective metal toe-cap
the dynamic            (SITC: 85115), though from a miniscule basis, grew at the
nature of Hong         rate of +164.8%. Hong Kong's import of footwear with
Kong’s market
                       leather soles and leather stripe uppers (SITC: 85141) shows
                       the dynamic nature of Hong Kong's leather market.
Despite China's predominant role in many of the footwear items, Italy has proved
that Hong Kong welcomes new players, by increasing its share in Hong Kong's
total imports under this item from 12.9% in 1999 to 45.6% in 2002. This is clearly
at the expense of China's exports to Hong Kong, which during the same period
declined from 73.8% to 17.3%.

The following table provides information about India’s share in Hong Kong's
import of leather and leather products.
                                    INDIA'S SHARE IN HONG KONG'S IMPORTS
                                                  (US$ million)

                              HONG KONG’S IMPORTS                     INDIA’S EXPORTS              INDIA’S
                             VALUE          SHARE IN         VALUE      SHARE IN       GROWTH     SHARE IN
                                             TOTAL                       TOTAL                      HONG
                                            LEATHER                     LEATHER                    KONG’S
                                            IMPORTS                     EXPORTS                   IMPORTS
Footwear                         2973               45.8       1.07            0.7        -24.8         0.04
Leather                          2249               34.6        159           98.1         +48           7.1
Leather apparel and               552                  8.5      0.5            0.3         +14          0.09
accessories
Bags and baggage                  399                  6.1      0.1           0.06          -44         0.03
Fur skin                          296                  4.6       0                 0          -              0
Manufactures of leather            22                  0.3      0.8            0.5       +208.4          3.6
TOTAL                               6491                        162    OVERALL GROWTH: +47
(Source: Census and Statistics Department, HKSAR)




Consulate General of India, Hong Kong                                                                   29
                                                                 4
                                                                    Part




4. Entering the Market
Exhibitions
Services by the Consulate



T       his chapter provides information about the ways to enter the Hong Kong
        leather market and methods of enhancing existing business links in this
        regard. This will help the Indian leather organisations and companies
pursuing business links with the Hong Kong leather market.

4.1 Exhibitions

Leather Trade Fairs in Hong Kong
Introduction

Hong Kong              Indian leather exporters can make a good beginning to
exhibitions cater      enter the Hong Kong leather market by participating in
to buyers from         leather related Hong Kong exhibitions. It is to be noted
North America,         that more than 3,000 economy-related conferences and
Europe, Japan,         events are organised in Hong Kong. Hong Kong
Korea, Mainland        international exhibitions have created a niche as showcases
China, etc.            of Asian products to the world. These exhibitions not only
                       cater to the local Hong Kong traders but also to major
buyers from all over the world, including North America, Europe, other Asian
countries like Japan, Korea, etc. Hong Kong leather exhibitions can also provide
an opening to enter Mainland China market, as scores of Mainland China traders
and manufacturers visit Hong Kong leather exhibitions. For example, during
APLF April 2002 shows alone, a total of 8498 buyers from Mainland China
visited the shows to source leather and leather products.

Hong Kong has three important leather trade fair events per year, called Asia
Pacific Leather Fairs. APLF Fashion and Finished Products Show is a bi-annual
event, held in April and October and APLF Raw Materials and Manufacturing is
an annual event, held in April. Apart from these, there are others fairs where
leather products like bags and baggage, apparels, gift items, etc are featured.
Exhibition Services by the Consulate

Indian leather exporters desiring to participate in these exhibitions can contact the
Consulate General of India for updated information about these fairs, including
relevance of these exhibitions to their products, track record of the exhibitions
regarding visitor profile and turnout, calendar, contact details of the organisers,



Consulate General of India, Hong Kong                                              31
              EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




etc. A list of important Hong Kong importers of that particular product can also
be provided to facilitate pre-exhibition promotion and meeting arrangements.

The Consulate            For an Indian organisation organising an India pavilion,
assists in               support is given in terms of identifying stall construction
organising India         contractors, stall designs, execution, and facilities for Indian
pavilion                 exhibitors, arranging interpreters, booth assistants, etc.

Reaching Hong Kong Convention and Exhibition Centre

Most of the Hong Kong international exhibitions are held at the Hong Kong
Convention and Exhibition Centre (HKCEC). It is located in Wanchai,
overlooking the Victoria Harbour. It is connected by covered walkways to
adjacent Grand Hyatt Hong Kong and Renaissance Harbour View Hotel. It is at
a walkable distance from Wanchai MTR station with an exit marked for HKCEC,
and is also linked by bus and ferry.

Basic information about select list of fairs in Hong Kong, which can be targeted
to promote Indian leather and leather products are given below:

Asia Pacific Leather Fair (APLF)
Organisers:

ASIA PACIFIC LEATHER FAIR LTD
17/F., China Resources Building, 26 Harbour Road, Wanchai
Hong Kong
Phone: +852.2827.6211
Fax: +852.2827.7831
Email: info@aplf.com
Web: http://www.aplf.com

APLF Fashion and Finished Products Show

The bi-annual APLF Fashion and Finished Products Show, held in April and
October, is the premier leather fashion trade event in the region showcasing
footwear, handbags, travelware and luggage, leather garments and fashion
accessories. APLF organises professional fashion shows presented by countries,
regions, and individual companies. APLF also features a range of seminars
covering fashion trends, the global supply chain, developments in leather industry,
the proximity manufacturing, vertical integration of production, etc.

The April 2002 edition attracted 809 exhibitors from 29 countries and regions. Of
these, 25% of the exhibitors offered footwear as their main product of trade,
followed by leather handbags (22%), other handbags (22%), garments (15%),
luggage (13%), and fashion accessories (3%). Many countries and regions
organised pavilions including Bangladesh, Mainland China, France, Germany,
Hong Kong, India, Italy, Pakistan, the Philippines, Spain, Taiwan, Thailand, and
Turkey.

This exhibition also attracted 20,844 visitors from 103 countries and regions.
Apart from the Hong Kong buyers, majority of buyers were from Mainland China
(3,301), followed by Korea (1,367), Japan (1,358), Taiwan (1,200), India (796), etc.



32                                               Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




It had 30% visitors from import-export business followed by 26% of wholesalers,
24% of manufacturers and 20% of department stores/retailers.

The October 2002 show attracted 468 exhibitors from 31 countries and regions.
Of these, 30% of the exhibitors offered footwear as their main product of trade,
followed by other handbags (24.5%), luggage and travel goods (16%), leather
handbags (15%), and fashion accessories and other products (14.5%). Many
countries and regions organised pavilions including Argentina, Mainland China,
France, Germany, Hong Kong, Italy, Korea, Pakistan, the Philippines, Spain,
Taiwan, Turkey, etc. The exhibition attracted 8,470 visitors from 71 countries and
regions, mainly from Mainland China, Taiwan, Japan, Korea, the USA, Italy, etc.

APLF Raw Materials and Manufacturing Show

This ‘original’ APLF show continues since 1984, in sync with the global shift of
leather making from Europe and the USA to Asia. This annual show is held in
April. From 2003 onwards, this show is being held concurrently with the Fashion
and Finished Product Show.

This fair covers the full spectrum of products and services for leather-making and
leather product manufacturing from hide and skin supply, leather-making
chemicals and machinery through to shoe-making components, materials and
machinery. It displays a large collection of finished leather for footwear, clothing,
leather goods, upholstery and furniture.

This show              In 2002, it attracted 2,370 exhibitors from 65 countries. Of
attracted 2,370        these, 65% exhibitors showcased raw materials, followed by
exhibitors and         manufacturing equipment & components (10%), process
30,417 buyers          chemicals (9%), tanning machinery (5%), manufacturing
                       tanners (4%), and others (7%). The show attracted 30,417
buyers from 112 countries and regions. Buyers from Mainland China formed the
maximum (5,197), followed by Korea (2,533), Taiwan (2,112), Japan (1,748), India
(1,704), etc. It had 40% visitors from manufacturing business, followed by 30%
of agent/wholesaler/retailer and 30% of importer/exporter.

Indian participation in APLF

Indian participation in APLF is increasing in number, and range of products.
Normally, more than 60 to 80 Indian exhibitors participate in the April show and
about 15 to 20 companies participate in the October Show. Indian participation
as ‘Focus Country’ in APLF April 2001 was a milestone in this regard. (Every
year, one particular country is projected as a focus country in APLF April show.
This provides the best opportunity for a country to exhibit its capabilities in the
leather sector and present the same more conspicuously in the show). India Trade
Promotion Organisation (ITPO) along with the Council for Leather Exports
(CLE), projected India’s leather sector through the theme pavilion area at the
atrium of Hong Kong Convention & Exhibition Centre, and through large
banners and carry bags through out the event, with the slogan “Think Leather;
Think India”. The “Trends Pavilion” displayed Mod-Europe leathers and colours
for the Spring/Summer 2002 season and products like shoes, bags and garments
for the Autumn/Winter 2001-2002 season. Eight Indian models participated in


Consulate General of India, Hong Kong                                             33
               EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




the leather fashion show. Folk dance with the background of Indian drums along
with leather puppet show was shown continuously in this area. Information on
Indian manufacturers, exporters, and materials like pamphlets and brochures
providing information on leather industry were distributed.

Other Trade Fairs Featuring Leather Products
Hong Kong Fashion Week

Organisers:

HONG KONG TRADE DEVELOPMENT COUNCIL
38/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai,
Hong Kong
Phone: +852.2584.4333
Fax: +852.2824.0249
Email: hktdc@tdc.org.hk
Web: http://www.tdctrade.com

The Hong Kong Fashion Week (HKFW) is a bi-annual event conducted by Hong
Kong Trade Development Council as HKFW Spring/Summer Show and HKFW
Fall/Winter Show.

Important products displayed in both the shows include all kinds of clothing like
ladies' wear, men's wear, babies and children's wear, sportswear, fashion and
clothing accessories including handbags, shoes, costume jewellery, fabrics, labels.
Leather handbags, shoes, leather garments are also showcased through this
popular fair.

HKFW Fall/Winter 2003, held in January 2003, attracted 920 exhibitors from 22
countries and regions and 23,706 visitors (of which 11,188 were from overseas).
Indian participation was the second largest with 56 exhibitors, next only to
Mainland China. For further information on participation fee, package,
application, etc, please visit: http://www.hkfashionweek.com
Hong Kong Gifts & Premium Fair

Organisers:

HONG KONG TRADE DEVELOPMENT COUNCIL
38/F., Office Tower, Convention Plaza, 1 Harbour Road, Wanchai,
Hong Kong
Phone: +852.2584.4333
Fax: +852.2824.0249
Web: http://www.tdctrade.com
Email: hktdc@tdc.org.hk

This annual event conducted by the Hong Kong Trade Development Council
(HKTDC) is held in April/May. Its 2002 edition attracted 2,898 exhibitors from
31 countries and regions and 56,853 visitors from 139 countries and regions, of
which, 31,139 visitors came from overseas.

This exhibition features all types of gifts and premium products including
advertising products, ceramic, electronics, stationary, etc. Leather gift items are



34                                               Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




also featured. For further information on participation fee, package, application,
etc, please visit: http://www.hkgiftspremiumfair.com
Asian Gifts Premium & Household Products Show

Organisers:

KENFAIR INTERNATIONAL LTD
Suite 2803, 28/F., Tower 6, The Gateway, Harbour City, 9 Canton Road, Tsim Sha Tsui,
Hong Kong
Phone: +852.2311.8216
Fax: +852.2311.6629
Email: info@kenfair.com
Web: http://www.kenfair.com

This annual event is held during October, and in 2002, it attracted more than
3,000 exhibitors and 58,405 visitors. The products featured include advertising
premiums, bags, fashion accessories, craft items, household products, promotional
hats, souvenirs, etc. Leather gifts and products are also featured in this show. For
further information on participation fee, package, application, etc, please visit:
http://www.kenfair.com

Market Access Initiative

Indian leather export organisations can provide impetus to the focus on Hong
Kong leather market by planning Market Access Initiative’s (MAI) for Indian
exporting companies. To participate in leather trade fairs in Hong Kong, MAI
can be structured so that over a period of three years, the exporters get the
support to participate in Hong Kong leather trade fairs by way of getting, say
75%, 50%, 25% of the cost of participation from the organisation. After the third
year, the individual company will be able to participate on its own having realised
the potential of the market and the trade volume. Focus can be on the regions in
India, which need additional thrust to promote local products and capabilities
through International exhibitions.

Even though the number of Indian companies participating in the exhibition can
improve on its own by the potential of the market, if all the Indian leather
exporting companies can come under a National Pavilion organised by the leather
exporting organisations of India, this will provide a greater business impact. All
these stalls would be decorated with an Indian theme and this would project the
size of Indian participation in the exhibition and India’s interest in the Hong
Kong leather market.

Leather Trade Fairs in India

India organises a number of important international conferences and trade fairs in
the leather export sector. These exhibitions are drawing substantial number of
leather importers from other countries. These can provide a good opening for an
Indian leather exporter. The basic details of some of these fairs are given below.




Consulate General of India, Hong Kong                                                  35
               EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




India International Leather Fair

This annual fair is conducted by India Trade Promotion Organisation. The
product range includes all items of leather industry, including machinery and
components. The India International Leather Fair is normally held at Chennai.

Interested Indian exporters can participate in this Expo by contacting the
organisers at the following address:
INDIA TRADE PROMOTION ORGANISATION
Pragati Bhavan, Pragati Maidan
New Delhi 110 001
Phone: +91.11.2331.8143
Fax: +91.11.2337.1874
Web: http://www.iilfleatherfair.com

Delhi International Leather Fair

This important exhibition displays leather products and machinery.

Delhi International Leather Fair is normally organised at Pragati Maidan, New
Delhi. Interested Indian exporters may contact the organisers at the following
address:
INDIA TRADE PROMOTION ORGANISATION
Pragati Bhavan, Pragati Maidan
New Delhi 110 001
Phone: +91.11.2331.8143
Fax: +91.11.2337.1874
Web: http://www.indiatradepromotion.com

International Leather Goods Fair

IDFT is an annual Fair, held in Kolkata, featuring leather products of India. The
product range includes leather goods, leather machinery, accessories for leather
goods, and all types of leather.

Interested exporters may contact the organisers:
INDIA TRADE PROMOTION ORGANISATION
Pragati Bhavan, Pragati Maidan
New Delhi 110 001
Phone: +91.11.2331.8143
Fax: +91.11.2337.1874
Web: http://www.ilgfleatherfair.com

4.2 Services by the Consulate

Business Delegations

Indian leather export organisations can organise business delegation to Hong
Kong. These delegations can be composed of select exporters whose products
have more relevance to the Hong Kong market. Complete information about the
members of the delegation along with their trade interest may be made available to
the Consulate General of India, Hong Kong. The Consulate would arrange
business interactions with leather industry associations, leather importers, buying


36                                          Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




offices, etc., in Hong Kong. The Consulate can also arrange general business
meetings with leather traders who are members of other chambers of commerce
in Hong Kong. Delegations can interact with government bureaux and agencies
to learn about the standards, rules and regulations to be followed when Indian
leather products are exported to Hong Kong. Technical details in the two
standard regimes between India and Hong Kong can be discussed and options for
creating common standards can be explored.

Product Studies

Indian leather exporting organisations and major companies can initiate a deeper
study for individual products like leather garments, leather footwear, etc. These
studies can be made comprehensive by getting detailed information about the
leather market for the particular product from various sources in Hong Kong
including Government bureaux and agencies, leather industry associations, leather
importers, buying offices, etc. Indian companies wanting to explore the market
can also approach the Consulate for essential information like trade figures,
updated information on rules and regulations, etc.

Trade and Investment Queries

Indian organisations and companies interested in entering the Hong Kong leather
market can make use of the Consulate’s trade matching services. The Consulate
can provide a list of matching business contacts in the Hong Kong leather sector,
including telephone, fax, and email details. In case of organisations, this can be
circulated among the members of the organisations. Information about Indian
business organisations and companies wanting to find partners in Hong Kong are
also circulated to important business organisations in Hong Kong. The Consulate
encourages trade queries through email.           All queries can be sent to
commerce1@indianconsulate.org.hk

Newsletters
Business Opportunities in Hong Kong

Indian leather export organisations and companies can subscribe to the free e-
newsletter published by the Consulate General of India, Hong Kong called
“Business Opportunities in Hong Kong”. This newsletter contains business
information including economic developments in Hong Kong, trade queries,
tender notices, briefs about important commercial associations, forthcoming
business conferences and trade fairs, etc. In case of organisations, this valuable
business information can be disseminated to the members of the organisations
either by emailing the same to their members, or by publishing the details on the
organisation’s website. Organisations and companies can subscribe by sending an
email to commerce2@indianconsulate.org.hk or can visit the Consulate’s website
to subscribe online (http://www.indianconsulate.org.hk)

Business Opportunities in India

Indian leather organisations and companies can utilise “Business Opportunities
in India”, another free e-newsletter published to project the capabilities of the
associations in catering to the needs of an importer from Hong Kong leather



Consulate General of India, Hong Kong                                          37
              EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




market. In case of organisations, the role and functions of the organisation with
full contact details can be provided. This information would be circulated to
important business organisations, apart from individual business people of Hong
Kong. This newsletter can also be utilised to advertise various leather fairs and
business events organised in India for the leather products export. Indian leather
export organisations can write to the Consulate General of India, Hong Kong
with full details about the event, which can be highlighted in the newsletter.
Indian organisations and companies wishing to provide information about the
organisation, and company can send an email with the details to
commerce1@indianconsulate.org.hk

Business Centre

The Consulate offers many services through its business centre including meeting
venue, conference venue, computer, telephone and fax facilities, identifying and
hiring of local assistance, interpreters, translators, etc. The details of the tariff for
meeting and conference facilities are given below:
                     MEETING ROOM (SEATING CAPACITY 5-8 SEATS)
             Hourly Rate                                       HK$75
                  CONFERENCE ROOM (SEATING CAPACITY 12-20 SEATS)
             Half a day: 0900-1300 hrs or 1300 – 1700 hrs     HK$500
             Hourly Rate                                      HK$150

Website

The Consulate’s website provides relevant and updated business information,
including on India-Hong Kong trade and investment, reports on Hong Kong
economy, information on doing business in Hong Kong, opening an office in
Hong Kong, etc. Contact details of Indian business organisations in Hong Kong
are also given. The website features Online Trade Queries, an interactive database
providing information on business contacts in Hong Kong and India. Business
visitors can search business contacts based on name of the product, company,
SITC code, importing or exporting, etc. Visitors can also register online so that
their information is added to the database. Direct access links for membership
database of important commercial organisations in Hong Kong are also provided.
Online subscription forms, latest issues, and archives, of the Consulate’s e-
Newsletters are also available. A useful list of important web links to Hong Kong
is provided along with links to real time flight information at Hong Kong airport.
For further information, please visit: http://www.indianconsulate.org.hk

Trade Disputes and Miscellaneous services

Though the role of the Consulate in resolving trade disputes is limited, the
Consulate liaises with the disputing parties to seek solution. In case the Indian
company wants to pursue arbitration and legal courses, the Consulate can provide
contact particulars of relevant organisations in Hong Kong.

The Consulate also provides other services like attestation of trade documents,
consular services, etc.




38                                             Consulate General of India, Hong Kong
                                                                5
                                                                   Part




5. Opportunities in China
Leather Industry in China
Important Leather Exhibitions
Indian Exports to China
Services by the Embassy


5.1 Leather Industry in China

Overview




O
          ver the last two decades, China has established an integrated leather
          industrial system with four principal industries such as leather-making,
          leather shoes, leather goods (including leather garment) and furs. It
          also includes other allied trades such as leather chemical, leather
machinery, and leather hardware and shoe materials.

In 2001, China’s        There are about 16,000 leather enterprises in China that
total exports           draw a work force of over two million people, making
amounted to             China one of the largest leather manufacturing countries in
US$12.48 billion        the world. Of these, 2,300 are tanning enterprises, 7,200
                        are shoe-making enterprises, 1,700 are leather clothing
enterprises, 1,200 fur and fur product enterprises and over 2,000 leather accessory
enterprises. Although the Chinese leather industry ranks third in the world, it tops
the list in being the largest producer of leather goods, the largest importer and
exporter of leather in terms of volume and the largest supplier of leather raw
materials. In 2001, China’s total leather exports amounted to US$12.48 billion.
Leather-making industry

The number of leather making enterprises of significant scale in China is over
2,300, of which enterprises with annual sales over RMB5 million numbering
more than 400, employing over 80,000 people. (Mainland China’s currency is
Renminbi, RMB. As per the 2001 average, RMB8.277 = US$1). The number
of private enterprises accounts for 42%, collective enterprises 23% and state-
owned enterprises 11%. According to figures of 2001, China’s total output in
leather products reached 190 million pieces. China is the world’s largest
producer of raw leather materials – cowhide light leather output in China is
the third largest in the world, accounting for 10% of the world total; the
annual output of sheep-hide leather is the largest in the world, accounting for
21% of the world total; annual output of pig hide light leather is also the
highest in the world. Most of the leather production areas are concentrated in


Consulate General of India, Hong Kong                                             39
                EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




the middle and eastern regions of China. The ten largest leather production
areas that account for 96% of the nation’s total light leather output include
Zhejiang, Hebei, Shandong, Guangdong, Henan, Hunan, Guangxi, Sichuan,
Fujian and Jiangsu. In 2001 export volume of trade in finished leather
exports reached US$900 million.
Shoe-making industry

China’s shoe-making industry is dominated by the production of leather shoes
and sneakers. In 2001, there were over 7,200 shoe-making enterprises of
significant scale nationwide, of which over 1000 had annual sales of over
RMB5 million, employing over 600,000 people. Total national shoe
production is about six billion pairs, with leather shoes over two billion pairs,
cloth shoes 1.6 billion pairs and rubber overshoes 1.2 billion pairs. In 2001,
output of leather shoes reached 2.1 billion pairs. Most of the shoe production
areas in China are concentrated in the eastern coastal regions. The ten largest
production areas that account for 98% of the nation’s total output include
Guangdong, Zhejiang, Fujian, Jiangsu, Shandong, Shanghai, Liaoning, Tianjin,
Henan and Hubei. In 2001, China exported 3.96 billion pairs of footwear
amounting to US$9.68 billion. In the first two quarters of 2002, China
exported 2.1 billion pairs of footwear amounting to US$4.93 billion.
Suitcase and Handbag Industry

In the leather accessory industry, there are over 2000 scaled-enterprises in
China. In 2001, there were over 900 state-owned enterprises as well as non-
state owned leather accessory enterprises nationwide with annual sales over
RMB5 million, employing over 250,000 people. Most of the leather accessory
enterprises in China are concentrated in the eastern coastal areas of China.
Guangdong province is the largest leather suitcase and bag producing
provinces in China, accounting for 65.5% of the total output of the leather
suitcase and bag production nationwide. Guangdong is followed by Zhejiang
province that accounts for 15% of the total production. Though the leather
accessory industry of China was affected by the September 11 attacks, exports
in 2001 still reached US$3.88 billion.
Leather Industrial Centres
Wenzhou, Zhejiang province             Leather shoes
Haining, Zhejiang province             Leather garment and leather-making
Guangzhou, Guangdong province          Leather shoes
Jinjiang, Fujian province              Sport shoes
Chengdu, Sichuan province              Leather shoes
Chongqing municipality                 Leather shoe
Xinji, Hebei province                  Leather garment and leather-making
Li County, Hebei province              Leather-making and fur
Tong-er-pu, Liaoning province          Leather garment
Jining, Inner Mongolia                 Small leather accessories
Huadu, Guangdong province              Leather tools
Shandong province                      Leather garment and leather-making

Development Trends

The “2015 Long-term Development Strategy of China’s Leather Industry”,
aims to take China’s leather industry into the “Second Phase of
Development”. To this extent the Chinese government is placing added



40                                         Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




emphasis on upgrading the technology of the leather industry, enhancing the
overall quality of the industry, implementing a brand strategy for international
recognition and raising environmental consciousness by ensuring the
sustainable development of the leather industry.
China’s Entry into the WTO

China’s entry into the WTO in 2001 has resulted in the Chinese government
gradually adjusting its policies and laws to meet international standards. This will
lead to the creation of a sound environment for investment and market expansion
for foreign enterprises in China. Lowering of import tariff by China will also
result in the price reduction of foreign products exported to China, thereby
enhancing the competitive edge of their products in the Chinese market and
providing an opportunity for fair competition between Chinese and foreign
leather products.

Lowering of import tariff by China will also enable domestic enterprises to select
and purchase the most needed raw materials, supplementary materials, chemical
materials, as well as machinery equipment etc. based on quality and pricing. Entry
of China into the WTO has enabled Chinese exports to enjoy more favourable
treatment in the international market. Though China’s entry into the WTO has
also brought in a large number of international players thereby intensifying
competition, the presence of international players has also resulted in the
improvement of Chinese leather quality, brought in advanced technology and
management practices, which in turn have made the Chinese leather enterprises
competitive.
Growth Areas

Improvements in       China’s population of over 1.2 billion accounts for 1/5 of
living standards      the world total. While 31% are living in cities and towns,
and purchasing        69% of the population resides in villages, i.e., over 2/3 of
power will result in  Chinese population is still living in rural areas. However,
greater demand        with the acceleration of the process of urbanisation, the
for leather           urban population is expected to see rapid growth. The
products              overall improvement in living standards and the increase in
                      purchasing power of the middle class would transform into
greater demand for leather products. The growth areas in the field of leather are
as follows:

The average consumption of shoes per head is still low in China. In the urban
areas, it is 2.5 pairs per person, while it is only 0.66 pairs per person in the rural
areas.

Given the huge domestic demand for rawhide, China has to import a great deal of
raw leather each year. Current raw leather import amounts to 610,000 tons, of
which the cowhide imports accounts for 430,000 tons, followed by sheep/goat
skin amounting to 130,000 tons. In 2001, import of raw leather amounted to
US$770 million, an annual average increase of 21% from 1997 to 2001.




Consulate General of India, Hong Kong                                              41
              EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




           1. Imports of shoe materials, supplementary materials, as well as parts
              of hardware will also increase.
           2. Low priced, high quality and environmentally friendly leather
              chemicals will find a greater market. Import of main leather
              chemical products has seen an increase in the past five years, which
              had reached more than US$200 million.
           3. Consumption of middle and high-grade leather shoes and leather
              goods in the local market will increase at a steady pace.
           4. Investment opportunities exist in the field of extending and
              developing the livestock husbandry bases in China.
           5. There is demand for personnel and units engaged in designing of
              leather shoes, garments, and leather goods.
           6. There is demand for personnel and units engaged in Leather-
              making engineering and techniques.
           7. There exists a demand for leather pollution control equipment and
              technology
           8. Demand for advanced leather processing technology and talented
              personnel in the western region of China, which accounts for 57%
              of the country’s land mass and 40% of its total livestock
              population.
Trademark

The Chinese government prescribes a standard called “Genuine Leather
Mark”. This is a certificate of trademark which provides a reliable guarantee for
selection and purchase of China-made famous and excellent quality leather
products by Chinese and foreign enterprises that are engaging in leather and
leather products trade.
Protected by state laws and registered in 1994 by China Leather Industry
Association in the State Administration of Industry and Commerce, “Genuine
Leather Mark” has the following three functions:

     •   The said product is manufactured by first layer natural leather material
     •   The said leather product is a medium and high-grade product with
         excellent quality
     •   Enterprise that manufactured this product has sound after-sale
         service.
A total of 300 leather shoe, leather garment and leather accessory manufacturing
enterprises from 25 provinces and cities nationwide have been approved to be
genuine leather marked enterprises. Genuine leather product is tagged with blue
paper marks and has already been registered in 14 countries including Italy,
France, and Germany.

Every two years, the China Leather Industry Association (CLIA) will conduct a
comprehensive inspection of leather shoe and leather garment enterprises tagged
with genuine leather marks according to product quality, scale, degree of public
recognition as well as level of management etc. and select ten enterprises with top
comprehensive index, and grant them titles such as “King of Leading Genuine



42                                           Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Leather Shoes”, “King of Genuine Leather Shoes” or “King of Genuine Leather
Garment”.

Based on market demand, China Leather Industry Association has currently
developed the “ecological leather mark”. Already registered with the State
Administration of Industry and Commerce, ecological leather mark is a certified
mark of environmental-friendly high-quality leather product and will be
implemented in the leather manufacturing and production enterprises nationwide.

5.2 Important Leather Exhibitions

The Embassy of India, Beijing prepares a product-specific exhibition list based on
India's top exports of the previous year at the beginning of every year for
circulation among various ministries, departments, export and import councils,
chambers of commerce and business enterprises. Interested parties could contact
the Mission for assistance in getting further information, booking of stalls and
other logistics, etc.

List of important exhibitions in China in the area of leather products and
accessories:

    1. China Dongguan International Fair for Shoes, Leather Products and
       Accessories
    2. China SHOETECH
    3. Guangzhou International Exhibition on Footwear, Bags & Leather
       Goods
    4. Shanghai International Footwear Exhibition
    5. China (Beijing) International Footwear Exhibition
    6. All China Leather Exhibition
    7. MODA Shanghai
Since the venue of these exhibitions keep changing every year, the Embassy
publishes a fresh list at the beginning of the new year for the convenience of the
Indian participants. It should also be noted that most of the exhibitions and fairs
in China are organized or co-ordinated by the China Council for Promotion of
International Trade (CCPIT). Interested parties could contact them directly for
further information:

      China Council for Promotion of International Trade
      No.1 Fuxingmenwai Street
      Beijing-100860, P.R. China
      Phone: +86.10.6801.3344 (Operator), +86.10.6803.4830
      Fax: +86.10.6803.0747, 6801.1370

5.3 Indian Exports to China

Though Indian exports of hides and skins to China have steadily increased since
1999 to 2001, we supply only 0.98% of this market. Our main items of exports
are sheep/lamb leather. The main item of Chinese import is Bovine leather.



Consulate General of India, Hong Kong                                           43
                   EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




There is also potential to export finished leather products to this market. Given
the temperate to cold weather conditions and increasing prosperity of the people,
raw materials for making leather products like garments, shoes, bags, etc., will be
in demand. Exports of hides and skins to China from India have been growing
steadily over the past few years. It reached a figure of US$43.5 million in 2002, an
increase of about 12% from 2001. There is, however, considerable scope to
increase our leather exports to China. India’s exports to China have increased
from US$3.7 million in 1998-99 to US$4.7 in 1999-2000, and further to US$8.93
million in 2000-01. During 2001-02, it reached US$ 13.84 million. The largest
exporters against whom we are currently competing are South Korea, Taiwan, the
US, Italy, Australia, Canada, Brazil, New Zealand, Thailand etc. India ranked 12th
in 2002. The following table provides information about India’s export of leather
products to China:
                INDIAN EXPORTS OF HIDES AND SKINS TO CHINA FOR THE PERIOD 1999-2002
                                            (US$ million)

 HS CODE                        DESCRIPTION                      1999     2000     2001    2002     TARIFF %
       41                      HIDES AND SKINS                    20.6    28.29    38.88   43.53
4104            O Bov/eq leath, n hair                             5.86     8.21   10.40     3.15           9
4105            O Sheep/lmb lthr, n wl                            10.23    11.86   15.35     2.30         14
4106            Other animal n leather, no hair nesoi              4.42     8.06   12.85     4.44         14
4107            Leather furt                                                                 5.76         14
4112            Sheep/lamb ltr,                                                              5.23
4113             Lthr fthr perp, tanning                                                     4.71
(Source: World Trade Atlas)
                                           INDIA'S EXPORTS AND SHARE
                                                    (US$ million)
                                LEATHER                 LEATHER FOOTWEAR           FOOTWEAR COMPONENTS
 COUNTRY
                        2000-01         2001-02         2000-01       2001-02       2000-01       2001-02
    China                  8.39          12.66            0.17          0.03          0.02          0.05
 India’s Share                     2.2%                         0.04%                       0.01%
(Source: Council for Leather Exports)


5.4 Services offered by the Embassy

Embassy of India, Beijing can provide valuable services to the Indian leather
organisations and companies pursuing economic links with Mainland China,
including business match-making for trade and investment queries, providing
information about relevant exhibitions, arranging meetings for the visiting
business delegations, providing resources and inputs for product studies, etc. The
Embassy operates a business centre and provides important information through
its website http://www.indianembassy.org.cn. For further information, please
contact:
EMBASSY OF INDIA
Commercial Wing
1, Ritan Dong Lu, Beijing – 100 600
Phone: +86.10.6532.3291
Fax: +86.10.6532.4684
Email: ssc@indianembassy.org.cn
Web: http://www.indianembassy.org.cn




44                                                            Consulate General of India, Hong Kong
                                                                6
                                                                   Part




6. India’s Potential
Indian Leather Industry
Industrial Centres
Policies and Programmes
Indian Leather Organisations


6.1 Indian Leather Industry

Introduction




I
       ndia is endowed with 10% of the world's raw material but its exports
       constitute only about 2% of the world trade. Leather industry in India has
       been identified as one of the thrust areas of exports and is amongst the top
       eight export earners for India. It provides employment to 2.5 million
people. Moreover, about 60 to 75% of the production is derived from the small-
scale sector. The annual export value is poised to touch about US$2 billion,
accounting for about 4% of India’s total exports. Though traditionally the
industry has been an exporter of tanned hides and skins, from the early seventies
itself, it set its sights on becoming a major player in the leather product segment.
The industry uses primarily indigenous natural resources with little dependence on
imported resources.

Export Potential

Backed by a strong raw-material base and a large reservoir of traditionally skilled
and competitive labour force, the Indian leather industry has made significant
strides. Especially in the last decade, export performance of the leather sector
went up from Rs.3,036 crore in 1991-92 to Rs.9,088 crore in 2001-02. However,
India’s share in the world leather market is disproportionately small when
compared to its capacity in this regard. India exports only 2% of world’s leather
and leather products imports. Approximately, India accounts for 2.5% of leather,
1.5% of leather footwear, 5.5% of footwear components, 10.5% of leather
garments, 6% of leather goods, 7% of leather gloves, 9.5% of saddlery and
harness. Germany is the leading importer of Indian leather and leather products,
followed by the USA, UK, Italy, France, and Hong Kong.

6.2 Industrial Centres

Leather Industry occupies a place of prominence in the Indian economy in view
of its massive potential for employment, growth, and export earnings. There has



Consulate General of India, Hong Kong                                             45
               EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




been increasing emphasis on its planned development, aimed at optimum
utilisation of available raw materials for maximising the returns, particularly from
exports. Major products exported from India include leather footwear, footwear
components (shoe uppers, soles, etc.), leather garments, leather goods (including
harness & saddlery, leather gloves, etc) and finished leather. In India, the
production centres of leather and leather products form notable clusters in the
northern and southern regions.
Footwear

Exports in the leather footwear category, the export product range includes casual
shoes, sport shoes, moccasins, safety boots, monk, oxford, chappals, horachi and
sandals. The important production centres in India are located at Agra, Ambur,
Bangalore, Chennai, Delhi, Jallandhar, Kanpur, Mumbai and Ranipet. The top ten
importing countries are the USA, UK., Germany, France, Italy, Netherlands,
UAE, Canada, Russia and Australia.
Components

For footwear components of leather, the product range for export includes shoe
uppers, sandal uppers, moccasin lasted uppers, unit soles, insole and sock linings.
The important production centres in India are located at Agra, Ambur, Bangalore,
Chennai, Delhi, Jallandhar, Kanpur, Mumbai and Ranipet. And the top ten
importing countries are U.K., Germany, Italy, U S A, France, Portugal,
Switzerland, Spain, Netherlands and Austria.
Garments

For leather apparel, the product range for export includes leather jackets for men
& women, long coats, leather blouseons, shirts, trousers, motorbike jackets, waist
coats, skirts and children garments. The important production centres in India are
located at Bangalore, Chennai, Delhi, Hyderabad, Jallandhar, Kanpur, Mumbai
and Poona. The top ten importing countries are Germany, U.K., U S A., Italy,
Spain, France, Netherlands, Denmark, Sweden and Canada.
Accessories

For leather accessories, the product range for export includes wallets, purses,
handbags, belts, key chains, passport folders, spectacle cases and hand gloves,
travelware, portfolios, suitcases, harness and saddlery goods. The important
production centres in India are located at Chennai, Delhi, Jallandhar, Kanpur,
Kolkata and Mumbai. The top ten importing countries are U.S.A., Germany, U
K., Italy, Netherlands, France, Spain, Russia, Canada, and Sweden. The following
table provides information about the share of individual categories in India’s
export of leather and leather products:
                                 INDIA’S EXPORT PRODUCTS
                                         (US$ million)
                      CATEGORY                    2000-01       2001-02       GROWTH
Finished leather                                       381.49        457.37       19.89%
Leather footwear                                       381.37        394.19        3.36%
Footwear components                                    238.09        233.34       -2.00%
Leather garments                                       460.45        378.62      -17.77%
Leather goods                                          440.37        406.52       -7.69%




46                                             Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Saddlery and harness                                                       42.66         35.50        -16.78%
Non-leather footwear                                                       19.11         26.09         36.49%
(Source: Council for Leather Exports)

Major markets

Germany is the leading importer of Indian leather and leather products, followed
by the USA, UK, Italy and France. Hong Kong is the sixth largest importer of
Indian leather and leather products. The following table provides information
about India’s major export destinations:
                                              INDIA’S EXPORT DESTINATIONS
                                                        (US$ million)

        COUNTRY                   2000-01               2001-02              % CHANGE        SHARE (2001-02)
Germany                                     307.17                304.02            -1.02%             15.74%
USA                                         342.78                286.67           -16.37%             14.84%
UK                                          270.09                248.31            -8.06%             12.86%
Italy                                       241.07                262.49            8.88%              13.59%
France                                       90.68                 89.51            -1.28%              4.63%
Hong Kong                                    98.32                120.92           22.99%               6.26%
Spain                                       100.75                100.98            0.23%               5.23%
Russia                                       31.53                 15.74           -50.08%              0.81%
Netherlands                                  55.56                 60.39            8.68%               3.13%
Australia                                    28.33                 27.03            -4.57%              1.40%
(Source: Council for Leather Exports))


6.3 Policies and Programmes

Matching with the liberalisation of Indian economy during the last decade, the
leather industry in India also continues to face major changes and growth. The
liberalised industrial policy has been designed to target significant capital inflows.
It also aimed at encouraging joint ventures, technology transfers, marketing tie-
ups, etc. The following are some of the highlights of Indian policies and
programmes with reference to leather and leather products:

Policies
Licensing

After de-reservation of 11 items in leather sector, which include semi-finished
hides and skins, leather shoes, leather washers and laces, moulded rubber soles
and heels for footwear, flexible polyurethane foam, polyurethane shoe soles, shoe-
tacks & eyelets and leather pickers and other leather accessories for textile
industry, vide Notification No. SO 603(E) dated 29th June 2001, no Industrial
Licence is required for manufacture of most of the items of the leather industry.

The location of industrial projects will be subject to Central or State
environmental laws or regulations including local zoning and land use laws and
regulations. Industrial undertakings desiring to set up industrial undertakings for
manufacture of these items have to only file an Industrial Entrepreneurs’
Memorandum (IEM), in the prescribed format with requisite fees to the
Secretariat for Industrial Assistance in the Department of Industrial Policy &
Promotion, Government of India, Udyog Bhawan, New Delhi-110011.



Consulate General of India, Hong Kong                                                                     47
              EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Some of the items of the leather industry viz. leather shoe uppers (closed), leather
sandals and chappals, leather garments, industrial leather gloves, leather suitcase
and travel goods, leather purses and hand bag, fancy leather goods and novelty
items, watch straps and leather straps of all types are still reserved for exclusive
manufacture by the small scale sector. Small-scale sector units are defined in
terms of investment in plant and machinery. Non-small scale units can
manufacture these items after obtaining industrial licence, which is granted subject
to an export obligation of 50% of the production in each year.

Exim Policy 2002-07

The Export-Import Policy 2002-07, announced on March 31, 2002 provides
relaxed norms for Duty Free Replenishment Certificate (DFRC) by dispensing the
technical characteristics for audit purposes. Similarly, the Duty Entitlement
Passbook (DEPB) norms have also been relaxed as under:

• Value cap exemption granted on 429 items to continue. However, there
are no value caps in DEPB rates for leather and leather products.
• No Present Market Value (PMV) verification except on specific
intelligence
• Same DEPB rate for exports whether as CBUs or in CKD/SKD form
• Reduction in rates only after due notice
• DEPB rates for composite items to have lowest rate applicable for such
constituent
Export Promotion Capital Goods (EPCG) scheme

Under Export Promotion Capital Goods (EPCG) scheme, supplies under
Deemed Exports have been made eligible for export obligation fulfilment along
with Deemed Export benefits. Moreover, export obligation fulfilment period has
been extended from eight years to 12 years in respect of companies under revival
plan of Board for Industrial and Financial Reconstruction (BIFR). Re-fixation of
export obligation in respect of past cases of imports of second hand capital goods
under EPCG Scheme. EPCG licences of Rs.100 crore or more to have 12 year
export obligation (EO) period with five year moratorium period.

Export Policy

As far as the Export Policy is concerned, all types of leathers including raw hides
& skins, semi processed leathers such as EI tanned hides & skins, wet blue
chrome tanned leathers, crust leathers etc, continue to be allowed for export
without any restriction. There is no change in the policy with regard to the
exportability of different types of leathers. The export of finished leather, all kinds
will continue to be allowed for export but subject to the definition of the finished
leather notified by DGFT from time to time.
Liberalisation of Registration Requirements

However, the condition of registering the export contracts with the Council for
Leather Exports in respect of export of raw hides & skins, semi-processed
leathers such as EI tanned hides & skins, wet blue chrome tanned leathers, crust
leathers etc, has been withdrawn in the new Exim Policy. Accordingly, the


48                                            Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




exporters of these types of leathers are not required to register their export
contract with the Council for leather Exports w.e.f. April 1, 2002.

Relaxation of Import Rule

In addition to the above, duty free imports of trimmings and embellishments up
to 3% of the FOB value hitherto confined to manufacturer-exporters of leather
garments has been extended to manufacturer-exporters of all leather products.
Package Offer

A strategic package is also offered for Status Holders, and they shall be eligible for
the following special facilities:

• Licence/Certificate/Permissions and Customs clearances for both
imports and exports on self-declaration basis.
• Fixation of Input-Output norms on priority;
• Priority Finance for medium and long term capital requirement as per
conditions notified by RBI;
• Exemption from compulsory negotiation of documents through banks.
The remittance, however, would continue to be received through banking
channels;
• 100% retention of foreign exchange in Exchange Earners’ Foreign
Currency (EEFC) account;
• Enhancement in normal repatriation period from 180 days to 360 days
Programmes
National Leather Development Programme (NLDP)

A UNDP-assisted National Leather Development Programme (NLDP Phase-I)
has been executed from 1992 to 1998. The UNDP had contributed about US$17
million for the Programme. The Government of India provided counterpart
funding of about US$11.065 million. The Programme was aimed at integrated
development of leather industry through selected institutions/agencies in the
country. The Programme was successful in upgrading training systems for design
and manufacture of footwear, garments, and leather goods. Research and
Development work got a fillip under the Programme, with good response from
the artisan community and small enterprises clusters.
Small Industries Development and Employment Programme

Based on the perceived needs of the leather sector, the second phase of NLDP,
namely, Small Industries Development and Employment Programme in the
Leather Sector (SIDE-NLDP) had commenced with UNDP assistance from
August 1998. The SIDE-NLDP is executed by the Department for the
development of the leather sector with focus on promoting poverty alleviation
and sustained livelihood and building linkages between the organised and
unorganised sectors.




Consulate General of India, Hong Kong                                              49
              EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Indian Leather Development Programme

To complement and supplement the ongoing NLDP/SIDE-NLDP, a new Plan
scheme titled Indian Leather Development Programme (ILDP) has been in
operation during the Ninth Plan (1992-97) period, with the objectives including,
bridging gaps in infrastructure, tackling perceived gaps in the industry, promoting
productivity, value addition, and employment, undertaking investment/trade
development activities, and building up an information base for leather industry.
From 1997-98 to 2000-01, under ILDP, decentralised common facility centres
and design studios have been supported. INTECHMARTs (investment cum
technology promotion events) were also sponsored during the important leather
fairs.

A Scheme for Tannery Modernisation was launched under ILDP in January 2000.
The scheme seeks to provide the much needed financial help to the tanneries of
India for adoption of more efficient and cleaner process technologies for
improving their performance in terms of productivity and pollution control. The
scheme has been well received by the industry and has generated visible results in
terms of quality of leather being produced by modernised units.

Women Entrepreneurs in the Leather Industry

Women are employed in large numbers in Indian leather industry and are making
important contribution to the national economy as well as to exports. Women are
involved in footwear production in Athani (Karnataka), Rajasthan, Agra (UP) and
Chennai, Ambur, Ranipet and Vaniambadi (Tamil Nadu). Their entry into
productive work has helped considerably in improving their household situation.
With the ‘take off’ of the footwear industry, especially in the last 20 years and the
rapid rise of exports, women’s employment has increased.

6.4 Indian Leather Organisations

Council for Leather Exports

The Council for Leather Exports (CLE) was set up in July 1984, and functions
under the Ministry of Commerce, Government of India. The Council is entrusted
with export promotion activities and overall development of the Indian leather
industry. The Council's activities also include promoting Foreign Direct
Investments and Joint Ventures in the Indian leather industry. The CLE serves as
a bridge between Indian leather exporters and buyers all over the world. Council's
services to the Indian Leather Industry:

     •   Collecting, collating and disseminating world market intelligence
     •   Updating the information on global trends in fashion & design,
         product development and adaptation
     •   Dissemination of information of commercial and technological nature
         through seminars, news bulletins and magazines
     •   Organising participation of Indian exporters in international fairs and
         buyer-seller meets
     •   Sponsoring sales-cum-study teams and trade delegations



50                                           Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




    •    Inviting foreign experts for providing technological inputs to Indian
         leather exporters
    •    Organising international leather fairs in India
Council's services to overseas buyers include:

    •    Serving as a focal point for disseminating information on Indian
         manufacturers and exporters
    •    Organising visits of buyers' delegations from different countries
    •    Liaising with various international organisations dealing with trade
         information
    •    Providing trade and commercial information on Indian leather
         industry
CLE regional offices are located in different States like New Delhi, Kolkata,
Mumbai, Kanpur, Agra, etc.
COUNCIL FOR LEATHER EXPORTS
53, Raja Muthiah Road, Periamet, Chennai – 600003
Phone: +91.44.2538.2041
Fax: +91.44.2538.8713
Email: cle@vsnl.net.com
Web: http://www.indialeather.com

Indian Footwear Components Manufacturers Association

Indian Footwear Components Manufacturers Association (IFCOMA) was
established in 1992. The association sought to support and encourage the
member footwear component industries, which are valued at present at US$500
million, in improving their quality, services, and marketability in the domestic and
international markets.

IFCOMA is the only association of its kind in India that is duly recognised by the
government and many other trade institutions. Membership is open to all those
who are connected with the footwear component and accessories manufacturing
industry. IFCOMA offers technical assistance, trade assistance, work force
training, representation of the component industry, free access to online
resources, etc.
INDIAN FOOTWEAR COMPONENTS MANUFACTURERS ASSOCIATION
B-22, Satyam shopping centre - M.G.Road, Ghatkopar (East)
Mumbai 400 077
Phone: +91.22.2514.7711
Fax: +91.22.2516.4911
Email: priyaexp@bom3.vsnl.net.in

Indian Shoe Federation

The Indian Shoe Federation (ISF) is a select group of manufacturers and
exporters of footwear and footwear components. Its members include India's
leading exporters whose collective share in Indian exports is well over 50%.




Consulate General of India, Hong Kong                                            51
               EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Activities of the ISF include identification and screening of potential promoters
and entrepreneurs, providing necessary guidance and assistance to selected people,
development of components manufacturing infrastructure and promoting
indigenous components, organisation of training courses by experts to improve
the competence of Indian technicians, monitoring of courses run by leather
institutions and improving the quality of such courses, development of Indian
design talent with the help of internationally reputed designers, collection of
market intelligence and conducting market surveys, gathering and distribution of
commercial and technical information through seminars and publications, help in
raising finance, inviting foreign experts for providing technical inputs for the
upgrading of Indian products, etc.
INDIAN SHOE FEDERATION
7-B, Wellington Estate, 24 Ethiraj Salai Chennai (Madras) 600105
Tel / Fax: +91.44.2828.3715

Indian Leather Garment Association (ILGA)

The Indian Leather Garment Association is a non-profit making body registered
under the Societies Registration Act 1860 at New Delhi. The association’s main
objective is to support and promote the manufacture and exports of leather
garments. ILGA was born out of a noteworthy initiative when a section of the
industry in India manufacturing leather garments joined hands to constitute a
concerted new effort to promote its business and the industry.

ILGA aims to achieve many objectives like assisting the leather garment importers
in identifying suppliers from India, securing co-ordination between ILGA and
other institutions, societies, associations, federations, research councils,
government departments and services and to seek help from these agencies,
identifying the inhibitors to export growth and undertake such scientific,
education and training programmes of national and international importance, and
research to further the development of Indian leather garment industry,
encouraging advancement of research and education relevant to this field,
associating with foreign research institutions to promote research and
development, disseminating information on trade and commerce esp. Govt.
policies, procedures and investments related to this sector, settling disputes, etc.
INDIAN LEATHER GARMENTS ASSOCIATION
Saroj House, I - 68, Sector IX, Noida 201301
Uttar Pradesh, India
Phone: +91.11.8454.5921
Fax: +91.11.8454.5921
Email: ilga@ilga.com

Apart from the above leather organisations, there are many more leather related
organisations including, All India Skin and Hide Tanners & Merchants
Association, All India Leather Machinery Manufacturers Association, All India
Small Scale Tanners and Exporters Association, Indian Finished Leather
Manufacturers & Exporters Association, Indian Leather Products Association,
Indian Leather Technologists Association, The Tanners Federation of India, etc.




52                                                 Consulate General of India, Hong Kong
                                                               7
                                                                  Part




7. Background Information
India – Hong Kong Relations
India – China Economic Links
Practical Business Tips


7.1 India-Hong Kong Relations

Overview




L
         inks between India and Hong Kong date back to the 1840s, when the
         British came to the territory, and have since flourished to encompass
         many fields of activity, including trade, culture, tourism, and academics.
         Over the past more than 160 years, the Indian community has become
increasingly integrated into Hong Kong, and has contributed not only to the local
community, but also to bilateral relations. Trade has traditionally been the main
link, with sourcing from and supplying to India being a long-standing feature.
Hong Kong has also been an active partner for India, with bilateral trade reaching
US$4 billion in 2002, increasing Foreign Direct Investment coming from Hong
Kong to India, and almost 30% of Foreign Institutional Investment into India
originating from Hong Kong.

Relations between Hong Kong and India, besides the prominence of trade, have
also expanded to many other areas. Members of the Indian community have
participated actively in creating some of Hong Kong’s most well known
institutions, including the Hong Kong University, the Hong Kong and Shanghai
Banking Corporation, the Ruttonjee Hospital and Star Ferry. A number of
cultural activities are organised by Indians in Hong Kong, keeping them in touch
with India. In addition, increasing academic exchanges, at both formal and
informal levels, have been taking place, contributing to the strengthening of these
links. The Consulate General of India promotes academic, cultural, and
commercial exchanges between Hong Kong and India, and the success of these
efforts can be seen by way of increasing interaction. The Consulate also actively
promotes tourism to India, and the number of visas issued has been going up,
crossing 12,000 in 2002. The total number of tourist arrivals from India, too, is
on the increase, the figure for 2002 being more than 215,000.

The Commission for India was set up in 1951, and was re-designated as the
Consulate General of India on 15 October 1996.




Consulate General of India, Hong Kong                                            53
                   EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Trade Links

The following table shows the trend in India -Hong Kong trade over the past few
years:
                                     INDIA – HONG KONG TRADE OVERVIEW
                                                 (US$ million)

  YEAR        INDIAN IMPORTS         INDIAN EXPORTS          TOTAL         TRADE BALANCE FOR INDIA            %
   1997                       685                   2110           2795                         +1425
   1998                       679                   1876           2555                         +1197        - 8.6%
   1999                      1099                   2216           3315                         +1117       +29.8%
   2000                      1294                   2624           3918                         +1330       +18.2%
   2001                      1202                   2290           3491                         +1088       -10.9%
   2002                         1441                2494           3935                         +1053       +12.7%
(Source: Census & Statistics Department, HKSAR)

According to DGCI&S statistics, with Rs.112 billion (US$2.3 billion approx)
worth of imports from India during 2001-02, Hong Kong was the third largest
destination for Indian products after the USA (Rs.405 billion) and UAE
(Rs.118 billion). However, the share of India’s trade with Hong Kong is less than
1%, which provides vast scope for further growth in bilateral trade between India
and Hong Kong.

Indian trade with Hong Kong is characterised by dominance of a few products
that form the bulk of the bilateral trade. Pearls, precious and semi-precious
stones, textile yarns, and leather are important Indian export items and pearls,
precious stones, silver & platinum, semi-conductors, telecom equipment, office
equipments, etc are important Indian import items.

In 2002, India was the 17th major trading partner of Hong Kong. India-Hong
Kong trade reached US$3,935 million (+12.7%). Bilateral trade has not only
recovered from the slump in 2001 (US$3,491 million), but also marginally crossed
2000 levels (US$3,918 million). Indian exports reached US$2,494 million
(+8.9%). Of this, US$1,404 million (+12.9%) worth of goods were re-exported
to other countries via Hong Kong. Hong Kong exported US$1,441 million
(+19.9%) worth of goods to India. Hence, India had a positive trade balance of
US$1,053 million in 2002.
                                    INDIA – HONG KONG TRADE: AN OVERVIEW
                                                  (US$ billion)
                                                   2000                         2001                 2002
                                             US$           %              US$          %       US$            %
India to Hong Kong
Exports to Hong Kong                               2.6     +18.4                2.3    -12.7         2.5      +8.9
Hong Kong to India
Domestic Exports                                   0.2      +9.9            0.06       -65.5     0.05         -11.5
Re-exports                                         1.1      +19              1.1       +1.8       1.4        +21.6
Total exports                                      1.3     +17.7             1.2        -7.1      1.4        +19.9
Total bilateral trade                              3.9     +18.2             3.5       -10.9      3.9        +12.7
Trade balance for India                                     +1.3                       +1.1                     +1
(Source: Census & Statistics Department, HKSAR)

Indian Exports to Hong Kong

In 2002, India exported a total of US$2,494 million worth of products to Hong
Kong, marking a growth of +8.9%. Some of the major export items from India



54                                                             Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




to Hong Kong include Pearls, precious & Semi-precious stones, Leather, Textile
yarn, Flat-rolled products of Alloy Steel, Jewellery, etc. The following table
provides details of the top ten export items from India to Hong Kong in 2002.
                      INDIAN EXPORTS TO HONG KONG - TOP TEN PRODUCTS (2002)
                                           (US$ million)
                                COMMODITY                      VALUE     SHARE     GROWTH
Pearls, precious & Semi-precious stones                           1825      73.2       +11.7
Leather                                                            159       6.4       +48.0
Textile yarn                                                       102       4.1        -37.8
Flat-rolled products of Alloy Steel                                 50       1.9      +236.7
Jewellery                                                           29       1.2       +14.3
Polymers of Styrene, in primary forms                               20       0.8      +226.8
Other Plastics in Primary form                                      18       0.7       +26.7
Synthetic organic colour lakes/colouring matter/preparations        18       0.7        +4.8
Textile fabrics, woven, other than cotton/man-made fibres           16       0.6        +5.5
Medicinal & pharmaceutical products, other than medicaments         15       0.6        -11.1
(Source: Census & Statistics Department, HKSAR)

India is the single largest exporter of pearls, precious and semi-precious stones to
Hong Kong and holds more than 40% share in Hong Kong’s total imports from
the world. This is also the single most important item of Indian exports to Hong
Kong. It accounted for 73.2% of the total exports from India to Hong Kong in
2002, and marked a positive growth of 11.7%. Most of these imports are re-
exported from Hong Kong to other markets, including North America, Europe,
etc. Hong Kong is the second largest importer of leather and leather products in
the world, next to the USA, holding a 12% share in the global leather imports.
Leather is one of the fastest growing items of exports from India to Hong Kong
and is the second most important item of Indian exports to Hong Kong. Indian
export of leather reached the value of US$159 million (6.4% of total Indian
exports to Hong Kong) in 2002 marking a +48% growth from its 2001 level
during which it grew again by +46.5%.

India exported US$102 million worth of textile yarn in 2002. Textile yarn forms
4.1% of the total Indian exports to Hong Kong. However, India’s export of
textile yarn to Hong Kong has declined by –37.8% in 2002 from US$164 million
in 2001. Starting from a low base, flat-rolled products of alloy steel has marked
+236.7% growth in 2002 and reached the value of US$50 million from US$14
million in 2001. With the need for quality steel products increasing and India’s
focus on exporting manufactured items, export of flat-rolled products of alloy
steel from India to Hong Kong is expected to grow further.

Jewellery: Export of jewellery from India to Hong Kong is also on the rise. It has
reached US$29 million marking a growth of 14.3%. This is followed by polymers
of styrene in primary forms (US$20 million, +226.8%), other plastics in primary
form (US$18 million, +26.7%), synthetic organic colour lakes/colouring
matter/preparations (US$18 million, +4.8%), synthetic textile fabrics
(US$16million, +5.5%), and medicinal and pharmaceutical products (US$15
million, -11.1%) form major export items of India.
Focus Products for Exports to Hong Kong

The above mentioned products are important export items from India to Hong
Kong. There are many more products offering promising export opportunities


Consulate General of India, Hong Kong                                                    55
                   EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




from India to Hong Kong. Upon analysing Hong Kong’s top imports and India’s
top exports, feedback from trading community, trends in Indian exhibitor
participation in Hong Kong trade fairs, and other relevant factors, the following
products have been identified as focus products for export from India to Hong
Kong:
              •   Gems and Jewellery
              •   Cotton Yarn, Fabrics
              •   Dyes/Intermediaries
              •   Finished Leather
              •   Drugs, Pharmaceuticals & Chemicals
              •   Electronic Goods
              •   Plastics
              •   Primary and Semi Finished Iron & Steel
              •   Manufactures of Metals
              •   IT services
              •   Apparels
              •   Travel bags and footwear
              •   Handicrafts
              •   Agricultural and food products
              •   Telecommunication equipment
Indian Imports from Hong Kong

In 2002, Hong Kong exported US$1,441 million (+19.9%) worth of goods to
India. The important items of exports are pearls, precious and semi-precious
stones (US$652 million, +18.5%), telecommunication equipment & parts
(US$189 million, +207.8%), semi-conductor, electronic valves & tubes, etc.
(US$76 million, +69.4%), Parts & accessories of office machines/computers,
(US$46 million, -21.1%), and silver and platinum (US$40 million, -52.9%).
                       INDIAN IMPORTS FROM HONG KONG - TOP TEN PRODUCTS (2002)
                                             (US$ million)
                              COMMODITY                                   VALUE     SHARE      GROWTH
Pearls, precious & semi-precious stones                                 652       45.3      +18.5
Telecommunications equipment & parts                                    189       13.1      +207.8
Semi-conductors, electronic valves & tubes, etc.                        76        5.2       +69.4
Parts & accessories of office machines/computers                        46        3.2       -21.1
Silver & Platinum                                                       40        2.8       -52.9
Watches and clocks                                                      37        2.6       -6.9
Computers                                                               34        2.4       +72.0
Miscellaneous manufactured articles                                     27        1.9       +16,2
Cotton fabrics, woven                                                   20        1.4       +30.0
Instruments & appliances, for medical, surgical, dental or veterinary   19        1.3       +33.2
purposes
(Source: Census & Statistics Department, HKSAR)

Investment Links

Hong Kong is the leading financial centre of Asia and is one of the top sources of
outward direct foreign investment in Asia. In 2001, Hong Kong invested about
US$11 billion. Hong Kong’s investment in the Chinese Mainland is about
US$187 billion in cumulative direct investment.

India has approved about 300 foreign collaboration proposals from Hong Kong
with a corresponding FDI of about US$500 million. Hong Kong companies
ranked 19th in the list of countries in terms of cumulative FDI. The official
figures about Hong Kong’s investment in India do not show the complete



56                                                             Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




picture, as bulk of the investments from Hong Kong are routed through
other countries like Mauritius, due to preferential tax policy extended by India
to these countries. Some of the important Hong Kong companies that have
invested in India are CLP Power International Ltd, Hutchison
Telecommunications, Pacific Century Cyber Works, Hong Kong & Shanghai
Banking Corporation, Standard Chartered Bank, Jardine Group of Companies,
Noble Group, Wittis Group, Mandarin and other hotels, etc. Their investments
are in sectors such as fuels (power), service sector (financial and non-financial),
hotel and tourism, telecommunication (cellular, mobile/basic telephone services),
manufacturing (garments, electronics), etc. About 30% of FII inflows into India
are routed through Hong Kong.

7.2 India - China Economic Links

Trade Links

India and China resumed trade officially in 1978. In 1984, the two sides signed
the Most Favoured Nation Agreement. With improving relations, trade and
economic cooperation between India and China has grown rapidly in the last
decade from US$264.8 million in 1991 to US$4.95 billion for 2002, which marks
an increase by 37.5% over 2001. While Chinese exports increased by 40.8%,
Indian exports to China rose by 33.7%.

India’s main exports to China in 2002 were iron and chrome ore, slag, ash, iron
and steel products cotton yarn/fabric, organic chemicals, marine products, granite
and marble stones, plastics, precious stones and inorganic chemicals, etc. China’s
main exports to India included organic chemicals, metallurgical coke and coal,
electrical and non-electrical machinery, TV picture tubes, silk yarn, manmade
fabrics, Phosphates, etc.

Trends in India’s Exports to China

There has been an increase of almost 800% in India’s plastic exports to China
between 1999 and 2000 and an increase of 130% between 2000 and 2001. China
imports around US$14 billion worth of plastic and the scope for exports is huge.
Use of plastic in China is of recent origin and there is great potential in this
market. India's textile exports to China mainly include cotton textiles that
comprise of cotton raw and cotton yarn, fabrics and made ups. There is a great
demand for synthetic and rayon fabrics in China. High quality cotton garments is
also an area of opportunity for Indian exporters.

Statistics from India show a surge of 600% in Indian seafood & fish exports to
China to US$84 million in 2000. At present, India takes the role of the third
largest seafood & fish exporter to the Chinese market, next only to Russia and
Japan. The potential lies in exploiting the high quality fish market e.g. prawn,
shellfish etc. Live fish is another potential area.

Exports of hides and skins to China from India have been growing steadily over
the past few years. It reached a figure of US$38.8 million in 2001 an increase of
about 37% from 2000. There is, however, considerable scope to increase India’s



Consulate General of India, Hong Kong                                           57
             EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




leather exports to China if we adopt advanced technology for processing and
finishing of rawhide. India ranked 14 in 2001. China consumes about 28 tons of
gold annually and is a world leader in platinum consumption. China also accounts
for 1.8% of the world’s diamond market. With an average annual growth of over
6%, China’s jewellery market is predicted to reach US$22 billion by 2010,
accounting for 10% of the world market. In the first eleven months of 2002,
China imported diamonds worth US$38 million. This is one of the potential areas
for India, which in 2001-02 exported diamonds worth US$0.06 million to China.

Although steel exports from India to China stand at 200,000 tons, it is turning out
to be a key export market for India. China has shown interest in imports from
India. Indian companies like the Steel Authority of India, Essar Steel, Jindal
Strips, and Ispat are looking at China in a big way to expand their exports. The
Indian Steel Alliance, working under the aegis of the Confederation of Indian
Industry (CII), has already initiated talks with the Chinese government and steel
companies in China to increase trade between the two countries.

China offers a huge market for stone imports (granite, marble, slate, etc.). India is
one of the largest exporters of granite and other building material to China. The
2008 Olympics alone will be presenting a US$34 billion opportunity in terms of
urban infrastructure and 37 new sports facilities. All this will make China a huge
market, since 25% to 30% of decorative stones demand will have to be met by
imports. In organic chemicals, India’s major item of export is Aluminium oxide.
There is great potential in this area because of the fact that China imported
organic chemicals worth US$8.327 billion in 2001.

Future Potential

Presently, India’s exports are concentrated in the low value-added sector whereas
manufactured goods from India have yet to make a breakthrough in the Chinese
Market. However, the areas wherein India can take advantage include export of
iron ore, cotton yarn, organic chemicals, marine products, granite, pharmaceutical
and bulk drugs. The future potential for Indian exports is in the areas of high-
grade steel, plastics, machine tools, agro-products, milk and dairy products,
automobile accessories, finished leather, software, and precious stones.

Investment Links

The absorption of foreign investment in China is usually of the following kind:
Sino-Foreign Joint Ventures; Sino-Foreign cooperative enterprises; Wholly-owned
foreign enterprises and Cooperative development. Other ways of investment
include compensation trade and processing & assembling. The Interim
Regulations on FDI Directions and the Industrial Catalogue Guiding Foreign
Investment were formulated and promulgated in China in June 1995. In
December 1997, the State Development Planning Commission (SDPC), the State
Economic and Trade Commission (STPC) and the Ministry of Foreign Trade and
Economic Cooperation (MOFTEC) revised the Industrial Catalogue Guiding
Foreign Investment and enhanced the scope of investment in areas such as
agricultural technology, energy, transportation and projects aimed at the
development of the western and central regions of China.



58                                           Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Indian Businesses in China

Joint Ventures: Ranbaxy, Aurobindo Pharmaceuticals, Dr. Reddy’s Laboratories,
and NIIT. Wholly-owned ventures: Orissa Industries Ltd (Orind), Infosys, Essel
Packaging and TCS. Representative Offices: Tata Exports, Torrent Group, Lupin
Industries, Kanoria Chemicals and Industries, Raymond Ltd, Satyam Computer
Services Ltd, Reliance Industries Ltd, Bry-air, Vam Organics, United
Phosphorous, State Bank of India, Bank of India and Videocon. The total Indian
investment in China till end-November 2002 was US$28.4 million.

Chinese Businesses in India

Major Chinese companies represented in India include China National Machinery
Import and Export Corporation (engaged in selling technology for mini-blast
furnaces), China Shougang International Trade and Engineering Corporation,
China Petroleum Technology and Development Corporation, China Metallurgical
Import and Export Corporation (CMIEC) and SINOCHEM (China National
Chemical Import and Export Corporation). China Silk Corporation has opened a
representative office in India. Konka and TCL, two Chinese consumer durable
companies have set up joint ventures in India. Huawei Technologies has set up
an R&D centre in Bangalore. Some automobile companies, particularly
motorcycle companies are in the process of establishing joint ventures in India.
Many Chinese companies have plans to open up representative offices in India
and 2003 should see a greater influx. The total approved foreign investment of
Chinese businesses in India till November 2002 is US$148.5 million.

7.3 Practical Business Tips

Business Tips for Hong Kong

Hong Kong is a metropolitan city and has a good mix of expatriate business
community. However, there are some business practices, which are followed in
general.

Business in Hong Kong is typically formal. Shaking hands and wearing formal
business suits are norms. When interacting with Hong Kong business people,
exchanging business cards is a customary first step. Business cards printed both
in English and Chinese are preferred. Present business card with both hands.
Look at the card for a moment before putting it in wallet or purse. Meetings are
always by appointment and punctuality is strictly maintained. The leader of the
team normally leads the team to a venue and heads the discussion. For
delegations, exchange of gifts is normal. Business luncheons are common. If
the menu is discussed in advance, one can explain what one does not eat. Phrases
like non-vegetarian can be interpreted widely and may include any kind of meat
and seafood. Although English is used as a business language in Hong Kong,
Cantonese Chinese is still the most widely used language, especially among Small
and Medium Enterprises (SMEs). Interpreters, if required, can be hired on hourly
basis.

Normal payment methods include Letter of Credit, open account, sight draft,
and documents against payments. Documents covering a shipment normally


Consulate General of India, Hong Kong                                        59
             EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




include an invoice, health certificate, and bill of lading/airway bill. For airfreight
shipment, exporter should send the documents to the importer as soon as the
shipment is effected. Indian exporters should contact Hong Kong importers with
offers quoting c.i.f. (cost, insurance and freight) or c.f. (cost and freight) prices
preferably in US currency.

Additional Tips for China

Much of China’s business etiquette draws on its basic cultural values, such as
respect for age and position, and an orientation towards group goals rather than
individualism. The following are some of the tips for doing business in China:

Chinese write their family name first. Hence, call them by the name that appears
first after Mr./Ms. Chinese ask personal questions (this is done to seek
common ground). The network of personal connections is very important in
China. This is called ‘guanxi’. Good conversation topics include enquiry about
family, Chinese culture, shopping, and life in general. Topics to avoid include
government, politics, and Taiwan. The concept of "face" is important to
understanding the Chinese. Be careful to avoid causing someone to "lose face" by
insulting, criticising or embarrassing him or her in front of others, or by treating
the person with less than the proper respect due to his status in the organisation.
Part of Chinese negotiating strategy involves being an excellent host. One should
not misinterpret this as an indication of their attitude towards the individual or the
project. The Chinese will not usually come out directly and say "no" to a
proposal. They will find many indirect ways to reply. One may be greeted by a
group of people with applause, such as when touring a factory. Returning the
applause is the proper response.

Working lunches and dinners, which are usually fairly elaborate are not only
common but are expected in China. Count on attending banquets arranged by
the host. Return the favour if possible. At work meetings, seating will follow
strict protocol, so let the host seat the guest. Drinking alcohol is considered
friendly. (To avoid it, citing a medical reason is considered the best bet). During a
meal, wait for the host to make the first toast before drinking, and then return the
toast. Clean plate means one is still hungry. Gifts are important. For wrapping
gifts, either red or golden colour wrapping paper may be used. Chinese do not
open gifts when received and when given a gift do not open it unless insisted
(However, in Hong Kong, the recipient is expected to open the gift). Foreign
cigarettes, cognac, fine whisky, quality wine make fine gifts for Chinese. However,
do not give clocks, cut flowers, white objects, for these objects are associated with
death. Do not give food items for they suggest poverty (However, in Hong
Kong, gifting food items is acceptable).




60                                           Consulate General of India, Hong Kong
                                                                8
                                                                   Part




8. Resources
Key Contacts
Online Resources

8.1 Key Contacts

Hong Kong Contacts

Featured Contacts
Government Bureaux and Agencies
Industry Associations
Important Importers

.Featured Contacts.
THE HONG KONG HIDE & LEATHER TRADERS' ASSOCIATION LTD
Unit B, 3/F., Capital Commercial Building
446-448 Shanghai Street
Kowloon
Phone: +852.2388.7644
Fax: +852.2783.0804
Email: info@leatherassn.com
Web: http://www.leatherassn.com

The Hong Kong Hide & Leather Traders' Association Ltd was established in
1946. Their members are retailers, importers, exporters, and manufacturers of
leather. The association operates for the welfare of the industry and its
members. They maintain contacts with the members and exchange
information among them. Besides, they work to improve the technology in
leather industry, support various activities within the industry, and contact the
relevant government department.
HONG KONG LEATHER SHOE AND SHOE MATERIAL MERCHANTS ASSOCIATION LTD
Block E, 5/F., Lee Fung Building
88 Argyle Street
Kowloon
Phone: +852.2395.5302
Fax: +852.2396.6020

Hong Kong Leather Shoe and Shoe Material Merchants Association Ltd was
established in 1970. It is one of the industrial associations representing
footwear industry in Hong Kong. Their members include more than 300
leather shoe and shoe material manufacturers, traders, retailers, etc. The



Consulate General of India, Hong Kong                                               61
              EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




association pays attention to the needs of leather industry, helping members to
develop their business. They also participate in training professionals for
leather footwear industry, proposing reforms in the technology. Besides, it has
frequent contacts with social organisations of the industry inside and outside
Hong Kong, paying emphasis on information exchange and helping members
to explore the market. It sponsors and participates in seminars and exhibitions
to promote leather industry. It also organises delegation to visit other
countries.
HONG KONG RUBBER AND FOOTWEAR MANUFACTURERS’ ASSOCIATION LTD
Block A, 2/F,
185 Prince Edward Road,
Kowloon,
Hong Kong
Phone: +852.2381.2297
Fax: +852.2397.6927
Email: hkfma@netvigator.com

Hong Kong Rubber and Footwear Manufacturers’ Association Ltd was
established in 1948. It has been serving the rubber footwear manufacturing
industry and helping the development of Hong Kong footwear industry
development. Some of the members represent the association to participate in
the consultation work with the relevant government department. It also
organises different activities to promote trade, investment, personnel training,
and other aspects of development. Besides, it explains to the members on how
to explore opportunities overseas and in the Mainland China. Every year, it
also attends footwear industry conference in many countries in Asia, discussing
and exchanging views about the sales situation.
THE INDIAN CHAMBER OF COMMERCE HONG KONG
Phone: +852.2523.38771
Fax: +852.2845.0300
Email: secgen@icchk.org.hk
Web: http://www.icchk.org.hk

The Indian Chamber of Commerce Hong Kong (ICCHK) was established on
12 December 1952. It is consulted by the Hong Kong Government on
matters of importance in the areas of trade, commerce, shipping, and
manufacturing. The Chamber deals with the trade and economic relationship
between Hong Kong, Mainland China, and India, as well as other parts of the
world. The Chamber is a founder member of the Hong Kong Shippers'
Council. It is a member of the Council of Hong Kong Indian Associations. It
works closely with the Consulate General of India to organise various trade
promotional events and activities. ICCHK is a member of International
Chamber of Commerce, Paris and Confederation of Asia Pacific Chambers of
Commerce and Industry, Taipei. The current membership of around 500
comprises Indian businesses in Hong Kong, leading India-based private- and
public-sector companies operating from Hong Kong, non-Indian companies
and Indian professionals.
HONG KONG TRADE DEVELOPMENT COUNCIL
38/F, Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, HK




62                                              Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Phone: +852.2584.4066, +852.2584.4333
Fax: +852.2824.0249
Email: hktdc@tdc.org.hk
Web: http://www.tdctrade.com

The Hong Kong Trade Development Council (HKTDC), a statutory body for
promoting Hong Kong's trade, was established in 1966. It has 51 offices in 34
countries and regions. It is involved in Trade Enquiry Service (featuring
600,000 listings), accessible through its website. It owns the HK Convention
and Exhibition Centre, and organises or co-sponsors major international trade
shows in Hong Kong and overseas covering a wide range of consumer and
industrial products. It also publishes more than 20 product/service magazines
and trade directories, which have a combined worldwide circulation of more
than two million. HKTDC appointed a private firm as its representative in
Mumbai in early 2002.
HONG KONG GENERAL CHAMBER OF COMMERCE
22/F, United Centre, 95 Queensway, Hong Kong
Phone: +852.2529.9229, +852.2823.1211
Fax: +852.2527.9843
Email: chamber@chamber.org.hk
Web: http://www.chamber.org.hk

The Hong Kong General Chamber of Commerce is the oldest (founded in
1861) and largest (around 4,000 corporate members) business organisation in
Hong Kong. Its membership consists of multinational companies, Hong
Kong companies and Mainland China companies, and a growing number of
overseas associate and Mainland associate members. HKGCC has been a
functional constituency representing Hong Kong’s business community in the
Legislative Council since 1988. Their members elect the Chamber’s own
representative to the 60-member Legislative Council every four years.
Moreover, of the over 70 Hong Kong bodies and committees in which 64
Chamber members participate, half are official government advisory bodies,
such as the Labour Advisory Board, Trade Advisory Board and Joint Liaison
Committee on Taxation, etc.
CHINESE GENERAL CHAMBER OF COMMERCE
4/F, 24-25 Connaught Road, Central, Hong Kong.
Phone: +852.2525.6385
Fax: +852.2845.2610
Email: cgcc@cgcc.org.hk
Web: http://www.cgcc.org.hk

The Chinese General Chamber of Commerce was founded in 1900. Presently
it has a membership of over 6,000. The Chamber maintains close contacts
with trade associations and Chinese chambers all over the world, in particular
those in Mainland China. The Chamber has representatives in the Legislative
Council, Hong Kong Monetary Authority, Information Technology and
Broadcasting Bureau, and Education and Manpower Bureau. It is also
represented on a number of boards and committees of various public and
private bodies, including the Hong Kong Trade Development Council, the
ICAC, the Hong Kong Food Council, the Hong Kong Shippers' Council, as



Consulate General of India, Hong Kong                                            63
               EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




well as the Manpower Development Committee and the Labour Advisory
Board in the SAR government.
CHINESE MANUFACTURERS’ ASSOCIATION
CMA Building, 64-66 Connaught Road, Central, Hong Kong
Phone: +852.2545.6166
Fax: +852.2541.4541
Email: info@cma.org.hk
Web: http://www.cma.org.hk

Established in 1934, the Chinese Manufacturers' Association of Hong Kong
(CMA) has over 3,700 member-companies. The CMA liaises with international
bodies as well as trade and industrial associations overseas for the exchange of
information and ideas and for the promotion of trade, industrial progress, and
to foster mutual understanding and cooperation. It is a member of the
International Chamber of Commerce. The CMA also maintains close contact
with consulates and trade commissions of overseas governments in Hong
Kong.



                                                HONG KONG LEATHERGOODS, BAGS &
.Government Bureaux & Agencies.                 LUGGAGE ASSOCIATION LTD
TRADE AND INDUSTRY DEPARTMENT
                                                Room 313-315, 3/F.,
12/F, Trade and Industry Department             Kwong Sang Hong Centre
Tower                                           151-153 Hoi Bun Road
700 Nathan Road                                 Kwun Tong
Kowloon                                         Kowloon
Phone: +852.2398.5556                           Phone: +852.2797.3238
Fax: +852.2380.8504                             Fax: +852.2797.0778
Email: enquiry@tid.gov.hk
                                                HONG KONG & KOWLOON FOOTWEAR
                                                MANUFACTURERS ASSOCIATION
ENDANGERED SPECIES PROTECTION                   Flat D, 3/F., Kam Fung Building
DIVISION
Agriculture, Fisheries and Conservation         8 Cleverly Street
Department                                      Sheung Wan
5/F, Cheung Sha Wan Government Offices,         Hong Kong
303 Cheung Sha Wan Road                         Phone: +852.2541.4499
Kowloon, Hong Kong                              Fax: +852.2541.4499
T: 852-21506999
                                                HONG KONG LEATHER SHOE AND SHOE
FAX: 852-23763749                               MATERIAL MERCHANTS ASSOCIATION
Email: afcdenq@afcd.gcn.gov.hk                  LTD
                                                Block E, 5/F., Lee Fung Building
.Industry Associations.                         88 Argyle Street
                                                Kowloon
HONG KONG HIDE & LEATHER TRADERS'
ASSOCIATION LTD                                 Phone: +852.2395.5302
Unit B, 3/F., Capital Commercial Building       Fax: +852.2396.6020
446-448 Shanghai Street
Mong Kok                                        HONG KONG RUBBER AND FOOTWEAR
                                                MANUFACTURERS' ASSOCIATION LTD
Kowloon                                         Block A, 2/F Floor,
Phone: +852.2388.7644                           185 Prince Edward Road,
Fax: +852.2783.0804                             Kowloon,
Email: info@leatherassn.com                     Hong Kong
Web: http://www.leatherassn.com                 Phone: +852.2381.2297
                                                Fax: +852.2397.6927
                                                Email: hkfma@netvigator.com



64                                            Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




LEATHER RESEARCH                            Tsim Sha Tsui, Kowloon,
C.T.C. ASIA Ltd                             Hong Kong
Subsidiary of CTC France.                   Phone: +852.2786.9136
16-17/F, Tower B, Regent Centre             Fax: +852.2786.9286
63 Wuo Ye Hope Road                         Email: miriam@cedanca.com
Kwai Chung                                  Web: http://www.cedanca.com
New Territories
Phone: +852.2526.6714                       PACIFIC DECOR LTD
Fax: +852.2840.0783                         13/F, Luk Kwok Centre, 72 Gloucester
                                            Road, Wanchai,
.Important Importers.                       Hong Kong
                                            Phone: +852.2520.2122
NIKE INTERNATIONAL LTD
                                            Fax: +852.2865.4162
The Gateway 26/F, Tower 1,
                                            Email: pd.hk@pacificdecor.com
25 Canton Road, Tsim Sha Tsui,
                                            Web: http://www.pacificdecor.com
Kowloon
Phone: +852.2306.2306
                                            K K W HOLDINGS LTD
Fax: +852.2736.6897                         Flat 16, 18/F, Fotan Industrial Centre,
Email: rene.frei@nike.com                   26-28 Au Pui Wan Street, Sha Tin,
                                            New Territories, Hong Kong
ADIDAS-SALOMON INTERNATIONAL
SOURCING LTD                                Phone: +852.2684.1170
17/F Tower 3, China Hong Kong City,         Fax: +852.2688.5080
33 Canton Road,                             Email: zola@kteze.com.hk
Tsim Sha Tsui,
Kowloon, Hong Kong                          DAH HWA LEATHER & TRADING CO LTD
Phone: +852.2302.8888                       1/F, Hillwood Mansion,
Fax: +852.2302.8885                         45-47 Hillwood Road, Tsim Sha Tsui,
Web: http://www.adidas.com                  Kowloon, Hong Kong
                                            Phone: +852.2367.7317
WORLD CAT LTD (SOURCING OFFICE OF           Fax: +852.2721.8979
PUMA)                                       Email: info@dahhwaleather.com.hk
Unit 77-87, 8/F, HK International Trade &   Web: http://www.dahhwaleather.com.hk
Exhibition Ctr,
1 Trademart Drive, Kowloon Bay,             SUM SHUI CO LTD
Kowloon, Hong Kong                          Room 4102-4110, 41/F, Hong Kong Plaza,
Phone: +852.2736.7898                       369-375 Des Voeux Road West,
Fax: +852.2736.1782                         Sai Ying Pun, Hong Kong
Web: http://www.puma.com                    Phone: +852.2548.4293
                                            Fax: +852.2858.2744
HANG CHEONG (NE) FURNITURE                  Email: sumex@sumex.com.hk
CENTRE CO LTD
Unit 3 & 4, 1/F, Technology Plaza,          EDWARD WONG & CO LTD
29-35 Sha Tsui Road,                        3/F, Edward Wong Tower,
Tsuen Wan, New Territories,                 910 Cheung Sha Wan Road,
Hong Kong                                   Cheung Sha Wan, Kowloon,
Phone: +852.2417.1862                       Hong Kong
Fax: +852.2490.1108                         Phone: +852.2370.3883
Email: hcgroup@netvigator.com               Fax: +852.2310.9150
                                            Email: enquiry@edward-wong-group.com
INTERCONTINENT MERCANTILE                   Web: http://www.edward-wong-group.com
COMPANY
Room C, 11/F, Mai Wah Industrial            AUSTINS MARMON LTD
Building, 1-7 Wah Sing Street,              29/F, Nanyang Plaza, 57 Hung To Road,
Kwai Chung, New Territories,                Kwun Tong, Kowloon,
Hong Kong                                   Hong Kong
Phone: +852.2741.5907                       Phone: +852.2858.0388
Fax: +852.2785.8472                         Fax: +852.2251.5263
                                            Email: austins@austinsmarmon.com.hk
CEDANCA (HK) LTD                            Web: http://www.glove-world.com
3/F, Glory Centre, 8 Hillwood Road,



Consulate General of India, Hong Kong                                                 65
               EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




PEKING FUR FACTORY (HK) LTD                   EDWARD KELLER LTD
Unit 501-2, 5/F Tower 1, Harbour Centre, 1    21/F, Southmark, 11 Yip Hing Street, Wong
Hok Cheung Street, Hung Hom, Kowloon,         Chuk Hang, Hong Kong
Hong Kong                                     Phone: +852.2895.0888
Phone: +852.2766.2834                         Fax: +852.2577.1057
Fax: +852.2362.7481                           Web: http://www.diethelmkeller.com
Email: pekinghk@hkabc.net
Web: http://www.giorgia.da.ru                 DURBAN DISTRIBUTIONS (HK) LTD
                                              6/F, Trinity Building, 10 Shing Yip Street,
AITKEN VANSON & CO LTD                        Kwun Tong, Kowloon, Hong Kong
33/F, Aitken Vanson Centre,                   Phone: +852.2797.7110
61 Hoi Yuen Road, Kwun Tong, Kowloon,         Fax: +852.2763.1873
Hong Kong                                     Email: qchong@ttlmail.com
Phone: +852.2344.0145                         Web: http://www.d-urban.com
Fax: +852.2341.9491
Email: av@netvigator.com                      KWOK HANG HOLDINGS LTD
Web: http://bigmarket.com.hk/aitken           Room 1001-1002, Tower 2, Harbour
                                              Centre, 8 Hok Cheung Street, Hunghom,
FAIRTON INTERNATIONAL GROUP LTD               Kowloon, Hong Kong
6/F, Inter-Continental Plaza,                 Phone: +852.2735.0131
94 Granville Road, Tsim Sha Tsui,             Fax: +852.2735.4272
Kowloon, Hong Kong                            Email: khhl@netvigator.com
Phone: +852.2722.6233
Fax: +852.2724.2211                           COUR CARRE CO LTD
Email: mm@fairton.com                         Unit 701-702, 7/F, Grandtech Centre,
                                              8 On Ping Street Siu Lek Yuen, Sha Tin,
DICKSON CONCEPTS (INTERNATIONAL)              New Territories, Hong Kong
LTD                                           Phone: +852.2316.6800
4/F, East Ocean Centre,                       Fax: +852.2637.9029
98 Granville Road, Tsim Sha Tsui East,        Email: vivian@gaygiano.com
Kowloon, Hong Kong                            Web: http://www.gaygiano.com
Phone: +852.2311.3888
Fax: +852.2311.3323                           ESPRIT DISTRIBUTION LTD
                                              10/F, Gee Luen Chang Industrial Building,
INCOME TEAM LTD                               11 Yuk Yat Street, To Kwa Wan, Kowloon,
Room 6206, The Centre,                        Hong Kong
99 Queen's Road Central,                      Phone: +852.2765.4321
Central, Hong Kong                            Fax: +852.2365.5942
Phone: +852.3199.1991                         Email: cherie_cheung@esprit.com.hk
Fax: +852.2891.2676                           Web: http://www.esprit.com.hk
Email: interact@ithk.com
Web: http://www.ithk.com                      TOPPY CO (HK) LTD
                                              11/F, Toppy Tower, 659 Castle Peak Road,
CASEY INTERNATIONAL LTD                       Kwai Chung, New Territories,
7/F - 8/F, Casey Building,                    Hong Kong
38 Lok Ku Road, Sheung Wan,                   Phone: +852.2489.8559
Hong Kong                                     Fax: +852.2484.1219
Phone: +852.2543.0015                         Email: winniecheng@toppy.com.hk
Fax: +852.2544.7465                           Web: http://www.colour18.com
Email: caseyint@casey.com.hk
                                              WALKER SHOP FOOTWEAR LTD
JDH (HONG KONG) LTD - CONSUMER                7/F, Hope Seas Industrial Building, 26 Lam
HONG KONG                                     Hing Street, Kowloon Bay,
15/F, Lifung Centre, 2 On Ping Street,        Kowloon, Hong Kong
Siu Lek Yuen, Sha Tin, New Territories,       Phone: +852.2331.3885
Hong Kong                                     Fax: +852.2331.3931
Phone: +852.2635.5555                         Email: info@walkershop.com.hk
Fax: +852.2635.0084                           Web: http://walkershop.com.hk
Web: http://www.jdhmarketing.com




66                                           Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




WINSON TRADING COMPANY                     NUANCE-WATSON (HK) LTD
14/F, Amtel Building,                      PARTNERSHIP
148 Des Voeux Road Central,                Suite 601-604, One Citygate,
Central, Hong Kong                         20 Tat Tung Road, Tung Chung,
Phone: +852.2815.3611                      Hong Kong
Fax: +852.2544.8025                        Phone: +852.2870.6777
                                           Fax: +852.2555.8848
PERFECT CORPORATION LTD
Shop 5, G/F, Windsor Mansions, 17 Austin   CHINESE ARTS & CRAFTS (HK) LTD
Avenue, Tsim Sha Tsui, Kowloon,            7/F, China Resources Building, 26 Harbour
Hong Kong                                  Road, Wan Chai, Hong Kong
Phone: +852.2369.2151                      Phone: +852.2839.1888
Fax: +852.2723.1989                        Fax: +852.2577.5063
Email: pcl@netvigator.com                  Email: retail@crcretail.com
                                           Web: http://www.crcretail.com
MACGREGOR GOLF ASIA LTD
Flat C, 22/F, Vulcan House,                I-LINE LTD
21 Leighton Road, Causeway Bay,            Flat C, 5/F,
Hong Kong                                  Lucky Horse Industrial Building, 64 Tong
Phone: +852.2891.8222                      Mi Road, Tai Kok Tsui, Kowloon,
Fax: +852.2572.0327                        Hong Kong
Email: officehk@macgregorgolfhk.com.hk     Phone: +852.2368.1808
                                           Fax: +852.2368.1809
CHANEL LTD                                 Email: info@nineinches.com.hk
41/F, Gloucester Tower, The Landmark, 11
Pedder Street, Central, Hong Kong          GOOD FIT SHOES COMPANY
Phone: +852.2526.6461                      2/F Shop S73, Mei Lam Commercial
Fax: +852.2845.9094                        Centre, Mei Lam Estate, Sha Tin,
Email: rwikins@chanel.com.hk               New Territories, Hong Kong
Web: http://www.chanel.com                 Phone: +852.2692.6129
                                           Fax: +852.2692.6129
YGM TRADING LTD
3/F, 22 Tai Yau Street, San Po Kong,       HILLTOP COMPANY
Kowloon, Hong Kong                         Block G, 11/F, Houston Industrial Building,
Phone: +852.2320.0251                      32-40 Wang Lung Street,
Fax: +852.2351.5211                        Tsuen Wan, New Territories, Hong Kong
Web: http://www.ygmtrading.com             Phone: +852.2408.7077
                                           Fax: +852.2407.5561
G 2000 (APPAREL) LTD                       Email: hilltop@glink.net.hk
Penthouse, Wyler Centre II,
200 Tai Lin Pai Road, Kwai Chung,          FONG'S CO
New Territories, Hong Kong                 Room 302 & 312A, Phase 1,
Phone: +852.2494.3000                      Cheung Sha Wan Plaza,
Fax: +852.2480.5916                        833 Cheung Sha Wan Road,
Web: http://www.G2000.com.hk               Cheung Sha Wan, Kowloon, Hong Kong
                                           Phone: +852.2991.4978
GUCCI GROUP (HONG KONG) LTD                Fax: +852.2991.4608
Room 4001, 40/F, The Lee Gardens,          Email: fongs@hkfashionwholesale.com
33 Hysan Avenue, Causeway Bay,
Hong Kong                                  YUEN CHEONG SHOE COMPANY LTD
Phone: +852.2839.6900                      Room 1303, 13/F, Eastern Harbour Centre,
Fax: +852.2504.5913                        28 Hoi Chak Street, Quarry Bay,
                                           Hong Kong
LVMH ASIA PACIFIC LTD                      Phone: +852.25620221
34/F, Dorset House, 979 King's Road,       Fax: +852.28805404
Taikoo Place, Quarry Bay, Hong Kong        Email: ycscoltd@netvigator.com
Phone: +852.2968.9288
Fax: +852.2968.9222                        VETEX & CO LTD
Email: lvmhap@lvmh.fr                      G/F, Tai Moon Building, 43-45 Tai Tsun
Web: http://www.lvmh.fr                    Street, Tai Kok Tsui, Kowloon,



Consulate General of India, Hong Kong                                               67
               EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Hong Kong                                      Email: grandaz@netvigator.com
Phone: +852.2399.0993
Fax: +852.2392.2291                            POLYTEK LEATHER
Email: vetex@vetex.biz.com.hk                  Room 1214, Wellborne Commercial Centre,
Web: http://www.vetex-motorcycle.com           8 Java Road, North Point,
                                               Hong Kong
STACCATO FOOTWEAR CO LTD                       Phone: +852.2790.0723
Flat F, 10/F, Hop Hing Industrial Building,    Fax: +852.2790.0650
702-704 Castle Peak Road,                      Email: ingsh@netvigator.com
Cheung Sha Wan, Kowloon, Hong Kong
Phone: +852.2741.4760                          EASTERN FORTUNE COMPANY
Fax: +852.2785.9157                            Room 2903, 29/F, Tower 1, Admiralty
Web: http://www.staccato.com.hk                Centre, 18 Harcourt Road, Admiralty,
                                               Hong Kong
NEW CREATIVE PRODUCTION LTD                    Phone: +852.2881.6963
Room 2903, 29/F, Tower 1, Admiralty            Fax: +852.2889.5037
Centre, 18 Harcourt Road, Admiralty,
Hong Kong                                      FORTUNE WIDE CO
Phone: +852.2881.6963                          Room 2903, 29/F, Tower 1, Admiralty
Fax: +852.2889.5037                            Centre, 18 Harcourt Road, Admiralty,
                                               Hong Kong
GRANDAZ DEVELOPMENT LTD                        Phone: +852.2881.6963
Suite 701C, Level 7, Landmark North, 39        Fax: +852.2889.5037
Lung Sum Avenue, Sheung Shui,
New Territories, Hong Kong
Phone: +852.2366.0301
Fax: +852.2366.0327




68                                            Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Key Contacts

China Contacts

Embassy of India
EMBASSY OF INDIA
Commercial Wing
1, Ritan Dong Lu, Beijing – 100 600
Phone: +86.10.6532.3291
Fax: +86.10.6532.4684
Email: ssc@indianembassy.org.cn
Web: http://www.indianembassy.org.cn

China Leather Industry Association

China Leather Industry Association (CLIA) is an open organisation, wherein
both Chinese and foreign leather enterprises may apply for its membership. As
the only national level industrial organisation commissioned by the Chinese
government, CLIA is responsible for works of coordination and management
of leather industries throughout the country. As the bridge and link between
government and enterprise, its purpose is to convey government intentions,
reflect industrial requirement, carry out assignments by the government,
implement State policies and regulations, and facilitate improvement of the
overall standard of the whole leather industry.
CHINA LEATHER INDUSTRY ASSOCIATION
No.6 East Chang-An Street, Beijing 100740
Phone: +86.10.6526.1935 / 6514.1016 / 6526.7347
Fax: +86.10.6526.7346 / 6523.1698
Email: clia@china-leather.com
Web: http://www.china-leather.com
Web: http://www.ecoleather.com.cn

Genuine Leather Mark Office of CLIA

This office is responsible for the development and daily administration of
genuine leather mark enterprises, recommend to domestic and foreign
customers above medium-grade genuine leather shoes, garments, accessories
and leather products of excellent quality manufactured in China with quality
assurance, organise the “Genuine Leather Mark Cup” contest for leather shoe,
leather garment, leather accessory design, as well as fashion trend
announcement of Chinese leather shoes and leather garments.
GENUINE LEATHER MARK OFFICE OF CLIA
Phone: +86.10.6514.0984 / 6514.1016
Fax: +86.10.6523.1698
Email: clia@china-leather.com

CLIA Information Centre

This centre is responsible for the providing, both domestic and abroad, with
information consulting services, establishment of INTERNET services,
international exchange and cooperation services, organisation of exhibition



Consulate General of India, Hong Kong                                           69
              EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




services in China and abroad, as well as publication of “Correspondence of
China Leather Industry Association” etc.; provision of domestic and
international market survey, pre-phase survey of the project and consulting
service; recommendation of domestic and international technical, management
and trade talents; search for overseas enterprises business cooperative partners
in China; and also provide manufacture and trade statistics etc. to Chinese
leather industries.
CLIA INFORMATION CENTRE
Phone: +86.10.8652.1407 / 8511.7752
Fax: +86.10.6523.1698
Email: clia@china-leather.com

Office of Special Shoe-making Committee of CLIA

As the permanent unit of the Special National Shoe-making Committee, the
office is responsible for coordination and management of the shoe-making
industries nationwide.
OFFICE OF SPECIAL SHOE-MAKING COMMITTEE OF CLIA
Phone: +86.10.6514.0984 / 6514.1016
Fax: +86.10.6514.0984
Email clia@china-leather.com

Office of China Leather Industry Association (CLIA)

Comprehensive Administrative Office of CLIA is responsible for the
membership development of CLIA, external contact, as well as daily
administrative activities.
OFFICE OF CHINA LEATHER INDUSTRY ASSOCIATION (CLIA)
Phone: +86.10.6525.7218 / 6526.1935
Fax: +86.10.6523.1698
Email: clia@china-leather.com




70                                         Consulate General of India, Hong Kong
EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




Key Contacts

India Contacts

Government Ministries and Agencies
Industry Associations
General Trade Organisations


                                          CLE REGIONAL OFFICES
.Government Ministries and Agencies.      NEW DELHI
                                          Flat No. 6 G & F, Gopala Towers,
DEPARTMENT OF COMMERCE
Joint Secretary (FT-NEA)                  Rajendra Place
Udyog Bhavan                              New Delhi 110008
New Delhi 110011                          Phone: +91.11.2571.8516 / 2571.5517
India                                     Fax: +91.11.2575.2760
Phone: +91.11.2301.5215                   Email: cle@ndf.vsnl.net.in
Fax: +91.11.2301.4418
                                          KOLKATA
                                          1B, First Floor, "Duck Back House"
MINISTRY OF FINANCE
Department of Economic Affairs            41, Shakespeare Sarani,
Room No. 66-B, North Block                Kolkata 700017
New Delhi 110011                          Phone: +91.33.2240.7270 / 2287.3579 /
Phone: +91.11.2301.1247                   2287.3580
Fax: +91.11.2301.2477 / 2379.3422         Fax: +91.33.2247.4543
                                          Email: cle_er@vsnl.com
INDIA TRADE PROMOTION ORGANISATION
Pragati Bhavan, Pragati Maidan            MUMBAI
New Delhi 110001                          11/4, World Trade Centre-I, Cuffe
Phone: +91.11.2337.1540 / 2337.1836       Parade
Fax: +91.11.2331.8142 / 2331.7896         Mumbai 400005
Email: itpo@giasd101.vsnl.net.in          Phone: +91.22.2218.4060
Web: http://www.indiatradepromotion.org   Fax: +91.22.2215.1207
                                          Email: cleb@vsnl.com

                                          KANPUR
DTE. GENERAL OF FOREIGN TRADE
Udyog Bhavan                              15/238, Civil Lines,
H-Wing, Gate No. 2                        Kanpur 208 001
New Delhi 110011                          Phone: +91.512.30.4053
Phone: +91.11.2301.1777                   Fax: +91.512.30.4247
Fax: +91.11.2301.4436                     Email: knpcle@sancharnet.in
Email: dgft@ub.nic.in
                                          EXTENSION OFFICE
Web: http://dgft.delhi.nic.in             AGRA
                                          5-6, 2nd Floor, Friends Tower,
.Industry Associations.                   Block No.41-B, Sanjay Place
COUNCIL FOR LEATHER EXPORTS               Agra 282002
CLE Head Office - Chennai                 Phone: +91.562.235.2619
3rd Floor, CMDA Tower - II                Email: cle@datainfosys.net
Gandhi Irwin Bridge Road
Egmore, Chennai 600008                    OTHER LEATHER ORGANISATIONS
Phone: +91.44.2859.4367 - 71 (5 lines)
                                          AGRA FOOTWEAR MANUFACTURERS
Fax: +91.44.2859.4363 / 2859.4364         AND EXPORTERS CHAMBER
Email: cle@vsnl.com                       c/o Tej Shoe Factory
Web: http:// www.leatherindia.org         Jeoni Mandi, John Mills,
                                          3 Agra 282004
                                          Phone: +91.562.365.2503
                                          Fax: +91.562.36.2161



Consulate General of India, Hong Kong                                         71
                EXPORTING LEATHER AND LEATHER PRODUCTS TO HONG KONG




ALL INDIA SKIN AND HIDE TANNERS &                      .General Trade Organisations.
MERCHANTS ASSOCIATION
53, Sydenhams Road, Periamet –                         ASSOCIATED CHAMBERS OF
Chennai (Madras) 600003                                COMMERCE AND INDUSTRY OF INDIA
Tel.: +91.44.58.9945                                   147 B, Gautam Nagar
Fax: +91.44.56.5292                                    Gulmohar Enclave
                                                       New Delhi 110049
ALL INDIA LEATHER MACHINERY                            Phone: +91.11.2651.2477-79
MANUFACTURERS ASSOCIATION                              Fax: +91.11.2651.2154
9A, New Tagra Road                                     Email: assocham@sansad.nic.in
Calcutta 700004                                        Web: http://www.assocham.org
Phone: +91.33.2244.2558
Fax: +91.33.2329.1096                                  CONFEDERATION OF INDIAN
                                                       INDUSTRY (CII)
ALL INDIA SMALL SCALE TANNERS AND                      23 Institutional Area,
EXPORTERS ASSOCIATION                                  Lodi Road
136, Vapery High Road, Periamet, Chennai               New Delhi 110003
600003                                                 Phone: +91.11.2462.9994
Phone: +91.44.2258.6673                                Fax: +91.11.2463.3168 / 2462.6149
Fax: +91.44.2256.4641                                  Email: ciico@ciionline.org
                                                       Web: http://www.ciionline.org
INDIAN FINISHED LEATHER
MANUFACTURERS & EXPORTERS                              FEDERATION OF INDIAN CHAMBERS
ASSOCIATION                                            AND COMMERCE OF INDUSTRY
45, Wuthucattan Street, 2d Floor, Periamet             Federation House
Chennai (Madras) 600003.                               Tansen Marg
Phone: +91.44.2644.5837                                New Delhi 110001
                                                       Phone: +91.11.2373.8760 (11Lines)
INDIAN FOOTWEAR COMPONENTS                             Fax: +91.11.2332.0717 / 2312.1504
MANUFACTURERS ASSOCIATION
                                                       Email: ficci@ficci.com
B-22, Satyam Shopping centre - M.G.Road,
                                                       Web: http://www.ficci.com
Ghatkopar (East)
Mumbai 400 077                                         CONFEDERATION OF 100% EXPORT
Phone: +91.22.2514.7711                                UNITS
Fax: +91.22.2516.4911                                  PHD House, 4th Floor,
Email: priyaexp@bom3.vsnl.net.in                       Opp. Asian Games Village
                                                       New Delhi 110016
INDIAN SHOE FEDERATION                                 Phone: +91.11.2683 0743
7-B, Wellington Estate, 24 Ethiraj Salai Chennai
(Madras) 600105                                        FEDERATION OF INDIAN EXPORTS
Tel / Fax: +91.44.2828.3715                            ORGANISATION
                                                       PHD House (3rd floor)
INDIAN LEATHER PRODUCTS ASSOCIATION                    Opp Asian Games Village
Chatterjee International Centre, 14th Floor,           New Delhi 110016
Suite 6                                                Phone: +91.11.2685.1310 / 2685.1312
33A Jawaharlal Nehru Road,                             Fax: +91.11.2686.3087
Calcutta 700071                                        Email: fieo@nda.vsnl.net.in
Phone: +91.33.29.7102                                  Web: http://www.fieo.com
Fax: +91.33.29.8339

INDIAN LEATHER TECHNOLOGISTS
ASSOCIATION
Lal Bazar Street, Mercantile Building, Calcutta
700001

THE TANNERS FEDERATION OF INDIA
14/69, Civil Lines,
Kanpur
Phone: +91.512.69862




72                                                 Consulate General of India, Hong Kong
8.2 Online Resources

In addition to the website address provided in the previous pages, a select list of
websites for further information is provided below:

Consulate General of India, Hong Kong
     http://www.indianconsulate.org.hk
Embassy of India, Beijing
    http://www.indianembassy.org.cn
Hong Kong Hide & Leather Traders' Association Ltd
     http://www.leatherassn.com
Asia Pacific Leather Fair Ltd
      http://www.aplf.com
Hong Kong Special Administrative Region Government
     http://www.info.gov.hk/eindex.htm
Indian Chamber of Commerce Hong Kong
      http://wsww.icchk.org.hk
Hong Kong General Chamber of Commerce
     http://www.chamber.org.hk
Chinese General Chamber of Commerce
     http://www.cgcc.org.hk
Chinese Manufacturers’ Association
     http://www.cma.org.hk
Hong Kong Trade Development Council
     http://www.tdctrade.com
South China Morning Post
     http://www.scmp.com
Sea cargo tracking facility
      http://www.schednet.com/tdc/seatrak.htm
Air cargo tracking facility
      http://www.schednet.com/tdc/seatrak.htm
Real time flight info for Hong Kong airport
       http://www.hkairport.com/eng/flight_info/FlightInfoFrame.jsp
Hong Kong Fashion Week
     http://www.hkfashionweek.com/
Hong Kong Gifts and Premium Fair
     http://www.hkgiftspremiumfair.com
Asian Gifts Premium & Household Products Show
      http://www.kenfair.com




Consulate General of India, Hong Kong                                            73
                                                                                          9
                                                                                     Evaluation




9. Reader Evaluation
You can assist the Consulate General of India, Hong Kong to produce market
reports that meet your business information needs. Your feedback will help us in
fine-tuning future editions of this report and other similar reports being prepared
by the Consulate.

Complete the evaluation form (just five questions) on the next page and return it
to us by post or by Fax.

Thank you for your valuable feedback.




 This report is intended to provide general information to facilitate more detailed studies and analysis by individual
 companies. Information subject to change without notice. References to other sources and organisations should
                                         not be construed as endorsement.




Consulate General of India, Hong Kong                                                                                    75
                                              Reader Evaluation
  Exporting Leather and Leather Products to Hong Kong – A Guidebook

                                        Please post or fax the filled in form to
    Consulate General of India, 26A, United Centre, 95, Queensway, Hong Kong. Fax: +852 – 2529 0421

1. How did you obtain a copy of this market report?

          Consulate General of India, Hong Kong
          The Indian Chamber of Commerce Hong Kong
          Other Ministry of External Affairs sources
          Other Ministries or Government Agencies
          Commercial Associations
          Other (Please specify): ……………………………………………………
2. How would you describe this report?
                       Strongly agree         Agree              No opinion        Disagree   Strongly disagree
Useful
Well organised
Well written
Complete
Ideal length
3. In what form do you prefer to obtain similar reports?

          Print
          Electronic
4. Based on the information in this report, what specific action(s) does your company / organisation plan to
take in this market? Check all that apply.

          Seek an agent/distributor
          Contact Consulate General of India, Hong Kong
          Visit Hong Kong market
          Participate in a Hong Kong trade fair
          Do more research
          Nothing
          Other: ………………………………………………………………………
5. What other product reports would be of use to your company / organisation?



Additional comments/suggestions for improvement: (If necessary, attach separately)



The name of your organisation / company (Optional):
………………………………….………………………………………………………………….

				
DOCUMENT INFO