The Council for Leather Exports (CLE) and its various expert bodies are leaving no stone unturned to make India a global leader and grab at least 10 per cent of the $4 billion international trade in leather and allied goods.

Over 50 per cent of the world trade is in footwear and to become a global player, India has to strive hard. Speaking to The Financial Express, M Rafeque Ahmed, chairman of CLE's footwear division, and chairman of Farida Group, a leading Chennai-based exporters of leather and components, says that by being innovative and faster the country can achievethis.

Excerpts:-
On the exports of footwear from India

India exported leather footwear worth Rs 1,238.38 crore in the fiscal 1998-99, which was almost 18 per cent of the total leather and allied products exports from the country, which were to the tune of Rs 6,955.78 crore.

A close-up analysis conducted by CLE based on the export data of 1997-98, showed that 20 top exporters in the country accounted for about 57 per cent, contributing Rs 708.31 crore to the total exports of Rs 1,233.09 crore. The pattern has not changed much in two years. The same top 20 companies are doing the major share of exports. Of these, nine companies are from the south, six from the north, four from the west and one from the central region.

On India's world presence

Indian footwear goes to almost all rich countries in the world. The leading markets are Germany 20 per cent, followed by the US 15.70 per cent, Italy 14 per cent, the UK 13 per cent and France 4 per cent. The Indian products cater to the middleand upper segment of the customers. The super market prices range from $25 to $ 50 or $60 in the men's section and $15 to $35 in the women's section. But there are a few companies that export shoes priced at $150 and above.

About the country's major competitors in international markets

China has become the world leader in leather trade just in a decade. It does not have a century-old industry background as that of India. The environmental awareness in the neo-rich countries in the south east Asian countries of South Korea and Taiwan led to large-scale relocation of the leather tanneries and shoe factories to China.

They came with technology, product profiles and western markets. China welcomed them with liberal investment policies and very flexible labour laws. India missed the bus. Not a single unit came into the country. India is yet to decontrol shoe production from the small sector in spite of ministerial announcements about dereservation. Along with China, Indonesia and the east Europeancountries are in direct competition with India in the world market.

On the country's brand building in the global markets

Much is talked about brand and brand equity. In footwear the focus should be in creating a brand, highlighting India as a reliable supplier of quality footwear in large volumes. When such an image is created naturally a few companies will emerge as best runners and best performers with strong brands and they should be encouraged to go further and build up individual brands.

It is an expensive and laborious exercise and the government should support more creatively and effectively. The present brand equity fund is too cumbersome to be useful and none seems to be trying to tap it. Already a few companies are marketing under their own brand names and their products are well accepted. Farida's `Gordon & Brothers' and `Bioflex', Mirza Tanner's `Red Tape', `Liberty' among others are some of the successful Indian brands abroad.

About the new footwear brands in India

Nocompany in the country has the reach of Bata India and none can equal its domination now. However, a few have successfully promoted their brands in the country and carved niche markets for them. Liberty's `Fortune', `Woods' from Woodlands, `Florsheim', Mirza Tanners `Red Tape' and `Oakridge', Gaitonde's `Protocol' are brands that are becoming popular among select market segments in the country. Farida group manufactures and markets shoes under a foreign brand name. Previously it was making Italian `Lumberjack'.

Recently, the company has tied up with Caterpillar's of the US to make and market its international brand CAT in India. `Lotus Bawa' is another foreign brand made and marketed in the country.

On the direct action plans of the council

Continuous market development is inevitable. The council is exploring new markets, sending trade delegations there and the government is willing to provide market development assistance. Latin America, the Gulf countries, Israel and Greece are untappedmarkets. CLE in 1998 has send trade teams to all these countries, resulting in generation of business now. For the current year the focus is on the north American markets, especially the US and Mexico.

On participation in Indian and International fairs

Participation in international fairs are essential for export business development. India's show has been quite impressive in this realm and this is corroborated by being the partner country to the world's largest footwear fair in Dusseldorf, Germany, the GDS Fair, in September.

In the country, the Chennai fair is a major fair, held every year in January-February for 4 days. In Delhi shoe and allied component's fair in held July and in Calcutta the fair for leather goods is conducted in March. They all generate business, open up avenues of new partnerships and give glimpses of new technologies.