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CHAPTER 4
ANALYSIS OF PROBLEMS OF LEATHER
INDUSTRY IN KERALA
250
CONTENTS
4.1 Problems of Dealers of raw hides and skins
4.1.1 Availability
4.1.2. Quality
4.1.3. Cost
4.1.4. Middlemen
4.1.5. Bad Payment
4.1.6. Storage Facility
4.1.7. Social Stigma
4.2. Problems of Tanneries –leather making
4.2.1. Environmental Pollution
4.2.2. Financial Assistance
4.2.3. High cost of raw hides and skins
4.2.4. Lack of modern technology
4.2.5. Density of population
251
4.3 Problems of Producers of leather products
4.3.1. Working Environment
4.3.2. Literacy of work force
4.3.3. Utilisation of production capacity
4.3.4. Financial Aid
4.3.5. Availability of design and art centers
4.3.6. Technical research development institutes
4.3.7. Illiteracy
4.3.8. Application of Machinery
4.3.9. Lack of knowledge and awareness
4.3.10. Training of workers
4.3.11. Quality of raw material
4.3.12. Lack of export
4.3.13. Profit Margin
4.3.14. Low Profit
4.3.15. Availability of Manpower
4.3.16. Inadequate skilled manpower
4.3.17. Bus iness environment
252
4.3.18. Nature of Marketing
4.3.19. Lack of effective marketing
4.4 Problems of Traders of leather products
4.4.1. Disparity in market prices
4.4.2. Financial Assistance
4.4.3. Competition
4.4.4. Export
4.4.5 Quality of Products
4.4.6. Supply Level
253
CHAPTER 4
ANALYSIS OF PROBLEMS OF LEATHER
INDUSTRY IN KERALA
The problems existing in the leather industry are analysed from
the view point of the different players in the leather industry.Almost all
the different types of problems in the leather industry shall be identif ied
and analysed by adopting this approach.Most of the areas are also
covered in this analysis.
4.1 PROBLEMS OF DEALERS OF RAW HIDES AND
SKINS
4.1.1 Availability
Availability of the raw hides and skins in sufficient quantity poses
a problem for the dealers.
T106.Availability of raw hides and skins
Nature of Availability Percentage
Not available 67%
Available 33%
Total 100
254
F59:Availability of raw hides and skins
It is seen that 67% of the dealers do not get the raw hides and
skins in sufficient quantity in time for trading purpose. 33% of the
dealers are able to get the material in time and in the required quantity.
Non availability of hides and skins is a major problem for the majority of
the dealers. Trading activity cannot be carried out smoothly in these
circumstances.
Not available67%
Available33%
Availability of raw hides and skins
255
4.1.2. Quality
Quality of material determines the quality of both domestic and
export performance in the sector.
T107.Quality
Nature Percentage
Required Quality 27%
Inferior Quality 73%
Total 100
F60:Quality
Required Quality
Inferior Quality
27%
73%
QualityPercentage
256
73% of the dealers deals in substandard quality of hides and skins
because of the non-availability of the required quality while 27% of the
dealer do get the required quality of the raw material. What is required
quality is a case in point and varies from dealer to dealer. Thus, majority
of the dealers do not get the required quality of raw hides and skins.
4.1.3. Cost
Cost is the most important factor to determine the price of hides
and skins to be charged from the buyers.
T108.Cost
Nature of cost Percentage
Affordable 20%
Not affordable 80%
Total 100
257
F61:Cost
80% of the traders agree that the cost of the raw hides and skins is
not affordable to fetch a reasonable margin of profit. Only 20% of the
dealers claim to afford the cost of the material. Thus, majority of the
dealers asserts that the cost of the raw hides and skins is not affordable.
This results in low demand for the materials.
0%
20%
40%
60%
80%
Affordable
Not affordable
20%
80%
Cost
Percentage
258
4.1.4. Middlemen
Middle men act as the link between the source of raw hides and
skins and the material dealers.
T109.Effect of middlemen
Nature Percentage
Non Availability 15%
Lesser quality 5%
High prices 80%
Total 100
F62: Effect of middlemen
Non Availability
Lesser quality
High prices
15%
5%
80%
Effect of MiddlemenPercentage
259
The major adverse effect of the presence of middlemen is the high
prices for the material at 80%, while non availabilitycomes next effect at
15% and good quality of material is hoarded for private undue gain.
Thus, involvement of middlemen is the major reason for the hike in
prices of raw hides and skins.
4.1.5. Bad Payment
Prompt payment for hides and skins supplied to the tanneries is a
necessary condition for the successful business operations of the dealers.
T110.Bad Payment
Nature of payment No. of dealers Percentage
Prompt payment 12 17
Bad payment 32 83
Total 44 100
83% of the dealers do face bad payment from the tanneries. The
tanneries do not make prompt payment in time which results in locking
up of investment with consequential loss to the dealers. However, 17%
of the dealers do get payment in time. Thus it can be concluded that
majority of the raw material dealers get bad payment from the tanneries
to whom hides and skins are supplied.
260
4.1.6. Storage Facility
Adequate storage facility is essential for the business of raw hides
and skins. Proper storage ensures quality of the raw material.
T111.Storage Facility
Nature of storage No. of dealers Percentage
Adequate 22 50
Inadequate 22 50
Total 44 100
It is seen that 50% of the dealers do not have proper storage
facilities for stocking the raw hides and skins while other 50% of the
dealers do have their own storage facilities. The dealers who do not have
adequate storage stock their goods in rented warehouses. Finance is the
important limitation of the dealers who cannot own their own storage
facilities. It is argued that proper storage ensures longer duration of
quality of the hides and skins.
261
4.1.7. Social Stigma
The nature of business and occupation has an influence on the
society where the dealers live. The view of the members of society about
the business of the dealers is worth analyzing.
T112.Social Stigma
Nature of feeling No. of dealers Percentage
Having social stigma 34 87
No social stigma 10 13
Total 44 100
It is seen from the table that 87% of the dealers do have a feeling
that dealing in raw hides and skins is considered by many people as a
bad occupation and has a negatively valued attitude. The dealer says that
their business is viewed by people as an inferior one and hence the
people have a prejudice against it. However, 13% of dealers do not have
a feeling of negative attitude towards their business.
262
4.2 PROBLEMS OF TANNERIES –LEATHER MAKING
Tanneries convert the raw hides and skins into semi-finished and
fully finished leather. The two tanneries in Kerala face the following
problems which are identified and analysed for the study.
4.2.1. Environmental Pollution
The leather tanning sector in India is included in the ‘Red’
category of industries due to the potential adverse environmental impact
caused from tannery wastes. Pollution from tanneries takes various
forms which are presented below:
T113.Environmental Pollution
Type of Pollution Effect
Occupational health hazards Diseases like dermatitis, skin
cancer
Odour Respiratory disorders
Excess water consumption Depletion of surface and ground
water resources
Waste water production Water treatment difficult and
tedious
Water pollution Saline and hard
263
Effect on land Damages soil
Solid waste Contaminate ground water
Noise problems Hearing impaired
The above table presents the possible dangers of tanning process.
The two tanneries in Ernakulam district conform to the standards
prescribed by the State Pollution Control Board. Unless proper measures
are taken, the tanneries will not be allowed to operate. Hence,
environmental issues do not arise in the case of the tanneries in the state.
4.2.2. Financial Assistance
Availability of required financial is very essential for the survival
and growth of a business firm.
T114.Financial Assistance
Nature of finance Percentage of assistance
Bank 25%
Private source 40%
Own fund 35%
Total 100
264
F63: Financial Assistance
Financial assistance for the two tanneries from bank is limited to
an average 25% of their requirement. Private sources like chitties,
friends’ loan etc. amount to 40% While own savings and reserves are
utilized to the extent of 35% of the total requirement. Government and
commercial bank financial assistance are thus comparatively meager for
the tanneries.
25%
40%
35%
Financial AssistanceBank Private source Own fund
265
4.2.3. High cost of raw hides and skins
Hides and skins are the raw material for converting into semi-
finished leather. The cost of raw material is highly relevant in this
context.
T115.Cost of structure (in percentage)
Nature Tanneries
A B
Cost of hides and skins 82.97 80.98
Other costs 17.03 19.02
Total 100 100
The cost of hides and skins assume a very large proportion of a
range of 81 to 83% of the total cost. The rising price of hides and skins
make it difficult for the tanneries to run the affairs of the business with a
reasonable margin of profit.
266
4.2.4. Lack of modern technology
For the tanneries to be efficient there is no alternative except to
initiate moderniasation of tanning facilities.
T116.Extent of modern Technology
In percentages
Nature of technology A B
Modern 45 40
Traditional 55 60
Total 100 100
F64: Extent of modern Technology
A B
4540
5560
Extent of Modern TechnologyModern Traditional
267
It is observed that the entire tanning process is not modernized in
both the tanneries. While tannery A use modern technology up to 45% of
the entire process, traditional practices are followed in majority of
operations. In the case of B tannery, modern facilities are at 40% while
traditional methods are being followed for 60% of the operations. Thus,
both the tanneries in the state have not made complete technology up
gradation, but using at an average level.
4.2.5. Density of population
Kerala is a thickly populated state with high richness in
environment. The density of population is a case in point for the growth
of tanneries in the state.
T117.Density of population
Whether conducive No 100%
Not conducive Yes 100%
The two tanneries unanimously agree that Kerala State is not
suitable and conducive for setting up more tanneries because of the
population and environmental problems. They suggest that although the
state has no favourable condition for the growth of full fledged tanneries
as in Tamil Nadu, there is scope for setting up units like them for the
production of wet blue type semi finished leather.
268
4.3 PROBLEMS OF PRODUCERS OF LEATHER
PRODUCTS
Manufactures face a number of serious problems in producing
leather products. The more important and specific problems are
highlighted and analysed as under.
4.3.1. Working environment
The environment in which work is performed is a major influential
factor on efficient production.
T118.Working environment
Nature Manufactures Percentage
Satisfactory 9 30
Not satisfactory 21 70
Total 30 100
269
F65: Working environment
It is found that 70% of the workers in the leather products
manufacturing units are not satisfied with the working environment,
while only 30% of the total work force has expressed their satisfaction
about the working environment. Thus, lack of proper working
environment is a major problem in the manufacturing sector of leather
industry.
31%
69%
Working EnvironmentSatisfactory Not satisfactory
270
4.3.2. Literacy of work force
Literacy helps to know better about the various aspects and new
knowledge of work.
T119.Literacy of work force
Nature Number of workers Percentage
Illiterate 269 84
Literate 52 16
Total 321 100
F66: Literacy of work force
0 100 200 300
Illiterate
Literate
269
52
Literacy of Work Force
Number of workers
271
84% of the workers are illiterate and only 16% know how to read
and write. The literacy among workers poses a big problem in this sector
because of the lack of knowledge about on various spheres relating to
their work. It acts as hindrance to advancement and achievement in life.
4.3.3. Utilisation of production capacity
Normally the manufacturing units must utilize its production
capacity to its maximum extent.
T120.Utilization of capacity
Nature of
utilization
Number of
firms
Percentage of
firms
Percentage
utilization
Fully utilized 7 23 96
Under utilized 23 77 60
Total 30 100
It is seen from the table that 77% of the firms cannot utilize fully
its capacity for production. 23%utilize only 60% of the full capacity on
an average. Seven firms utilize nearly 100% of the capacity.
272
Underutilization
F67: Utilization of capacity
4.3.4. Financial Aid
Finance is the life blood of any business activity. Lack of adequate
financial assistance poses a big problem for the manufacturers of leather
goods. The factors contributing to this problem is tabulated as follows.
T121.Financial Aid
Factors Ranking
Lack of collateral security 1
Poor repayment capacity 2
Lack of creditworthiness 3
Official formalities 4
Number of firms Percentage of firms Percentage utilization
7
23
96
23
77
60
Utilization of CapacityFully utilized Under utilized
273
It is observed from the ranking process that lack of collateral
security is the major factor contributing to the problem of lack of
financial assistance.
T122.The participants in the ranking process
Ranking No. of manufactures Percentage
1 14 47
2 9 30
3 4 13
4 3 10
Total 30 100
F68:The participants in the ranking process
Lack of collateral security
Poor repayment capacity
Lack of credit worthiness
Official formalities
1 2 34
14
9
43
Factors affecting Financial AssistanceRanking No. of manufactures
274
It is also observed that 47% of the manufacturers favoured rank 1
factor followed by 30% for rank 2 factor and 13% and 10% for rank 3
and 4 factors respectively. Thus it is concluded that lack of collateral
security and repayment capacity are the major factors contributing to the
lack of financial assistance
4.3.5. Availability of design and art centers
Design and art work are important factor contributing to the
demand and quality of the leather products.
T123. Availability of design and Art centres
Availability No. of firms Percentage of firms
Available 10 33
Not available 20 67
Total 30 100
275
F69: Availability of design and Art centres
Majority of the manufacturing firms do not have the facility of
availing the design and art centers. Only33% of the firms have the
chance of getting the design and art facilities. Thus it is concluded that
majority of the firms do not have the prospects of improving the design
of the final leather products which cause lesser demand for the products.
4.3.6. Technical research development institutes
Research and development is essential for the successful
functioning of organizations in an industry. Old technologies can be
modernized and improved only through proper research and
development.
33%
67%
Non availability of design and art centersAvailable Not available
276
T124.Technical research and development Facilities
Research and
development facilities No. of firms Percentage of firms
Available 3 10
Not available 27 90
Total 100 100
F70: Research and development Facilities
It is seen from the table that 90% of the firms do not get the
services of technical research and development institutes in the state.
Only 10% of the firms have the opportunity to get the services from
0 5 10 15 20 25 30
Available
Not available
3
27
Research and Development Facilities
No. of firms
277
these institutions. Thus, it can be concluded that majority of the firms do
not get any help from technical research and development institutions.
4.3.7. Illiteracy
Illiteracy is a major problem among the manufacturers of leather
products in the state. It is essential to ascertain the rate of illiteracy
among the manufacturers.
T125.Literacy of Manufacturers
Nature of literacy No. of manufacturers % of manufacturers
Literate 7 23
Illiterate 23 77
Total 30 100
278
F71: Literacy of Manufacturers
The table reveals that 77% of the manufacturers are illiterate
causing unawareness of various incentives and promotional schemes.
They are also not able to get the benefits of latest design and technical
research facilities available in a limited manner.
4.3.8. Application of Machinery
The manufacturing process undertaken in leather industry requires
suitable machines for getting quality finished products. The extent of
application of machinery in leather industry in Kerala is analysed as
follows.
23%
77%
Literacy of ManufacturersLiterate Illiterate
279
T126.Application of Machinery
Application Percentage
Manual operation 70
Mechanical operation 30
Total 100
F72: Application of Machinery
70% of the manufacturing activity is done by man operators.
While only 30% of the production operations use machinery. Thus most
of the manufacturing operations are manual resulting in low
productivity.
70%
30%
Application of MachineryManual operation Mechanical operation
280
4.3.9. Lack of knowledge and awareness
It is very essential in an industry that the manufacturers are
expected to have the requisite level of knowledge and awareness about
the technical development in the industry.
T127.Knowledge and awareness
Awareness and knowledge Percentage
Aware 20%
Not aware 80%
Total 100
F73: Knowledge and awareness
Aware Not aware
20%
80%
Knowledge and AwarenessPercentage
281
80% of the producers are not aware of the latest developments
taking place and modernization techniques available in the industry. This
lack of knowledge and awareness about the industry leads to inefficiency
and ineffectiveness in the progress of the production unit.
4.3.10. Training of workers
Proper training is necessary for workers in an industry to become
more efficient and productive in an organization.
T128.Training of workers
Training Number Percentage
Training given 5 17
Training not given 25 83
Total 30 100
282
F74:Training of workers
It is found that 25 producers do not provide regular training to
their workers. The producers complaint that there are no good training
facilities available in the state. Thus, disinterest of producers coupled
with absence of training facilities lead to improper training of workers.
17%
83%
Training of WorkersTraining given Training not given
283
4.3.11 .Quality of raw material
Quality of raw material determines the quality and demand of
finished products.
T129.Quality of raw material
Quality Percentage
Low quality 30
Average quality 50
Good quality 20
Total 100
F75:Quality of raw material
30%
50%
20%20%
Quality of Raw MaterialLow quality Average quality Good quality
284
It is seen that producers assert that they get finished leather for the
production of leather products in varying degree of quality. Quality is
determined on the basis of the grade of leather. Of the total quality of
finished leather used in the production, only 20% is of good quality, 50%
of average quality and 30% of inferior quality. Thus quality of finished
leather is not available in required quantity for the production of leather
products in the state.
4.3.12. Lack of export
Leather industry is one of the most export potential industries in
our country. The problem of lack of export orders is analysed below:
T130.Lack of export
Nature of export
orders Producer Percentage
Subcontracting
orders received 6 20
No orders received 24 80
Total 30 100
285
F76:Lack of export
It is found that only 20% of producers receive regular sub-
contracting orders from exporters of leather products. Majority of the
producers constituting 80% do not get any orders for export purpose.
The reason for lack of export includes stale design, lack of knowledge,
competition, low productivity etc.
20%
80%
Lack of ExportSubcontracting orders received No orders received
286
4.3.13. Profit Margin
Profit is the main motivating force of any business activity. The
profitability and the main factors determining profitability are analysed
below:
T131.Profit Margin
Profit Margin Percentage
Low margin 55
Medium margin 25
High margin 20
Total 100
F77:Profit Margin
55
2520
Low margin Medium margin High margin
Profit MarginPercentage
287
It is realized from above that 55% of the producers earn only a low
margin of profit while only 20% earns a reasonably high margin of profit
from their business. Medium rate of profit margin is also earned by
certain prodders. However, majority of the producers earn only low
margin of profit due to a number of valid reasons.
4.3.14. Low Profit
Low profit is an indication of negative trend in the business. It
becomes inevitable to analyse the reasons for low profit earned by
leather products producers.
T132.Low Profit
Sl.No. Reasons Percentage
1 Traditional family business 3
2 Low level of education 4
3 Poor management 11
4 Financial problem 20
5 Lack of knowledge 6
6 Little network 4
7 Stale design and low productivity 12
288
8 High cost 17
9 No joint marketing 10
10 Competition 13
Total 100
F78: Low Profit
It is evident from the graphical presentation that the poor
management, financial problem, stale design and low productivity, high
cost, marketing and competition are the major reasons for the low profit
margin in the leather industry production sector in the state. These
factors require urgent attention by the producers to improve the profit
position of their organizations.
3 411
20
6 412
1710 13
0
5
10
15
20
25
Low ProfitPercentage
289
4.3.15. Availability of Manpower
Skilled manpower is one of the vital pre-requisites for the success
of a business.
T133.Availability of Manpower
Availability of skilled man power Percentage
Adequate 30
Inadequate 70
Total 100
F79: Availability of Manpower
Only 30% of the producers have adequate skilled manpower
available for various business operations and 70% of the producers, vast
majority, have only inadequate manpower facility available. This results
in serious consequences of low productivity, stale des ign and poor finish
of leather products.
Adequate
Inadequate
30
70
Availability of Skilled ManpowerPercentage
290
4.3.16. Inadequate skilled manpower
The reasons for insufficient skilled manpower in the production
sector of leather industry are analysed as under:
T134.Inadequate skilled manpower
Reasons Percentage
Lack of knowledge and awareness 15
Absence of good training facility 30
Traditional family business 10
Low wage rate 35
Inadequate job 10
Total 100
291
F80:Inadequate skilled manpower
The major reason is the low wage rate followed by absence of
training facility. Lack of knowledge, family business and inadequacy of
the job are the other reasons for the present state of inadequate
availability of skilled manpower in the leather industry. Remedial
measures shall be taken by the producers to solve this pertinent problem.
4.3.17. Business environment
Conducive business environment is very essential for the proper
development of an industry. There are certain important factors for the
unfavourable business environment of leather industry in the state of
Kerala.
15
30
10
35
10
Lack of knowledge and awareness
Absence of good training facility
Traditional family business
Low wage rate Inadequate job
Reasons for Inadequate Skilled Manpower
Percentage
292
T135. Business Environment
Factors Percentage
Lack of knowledge and awareness 15
Lack of active associations 15
Lack of entrepreneurs 40
Improper projection of industry
demand 30
Total 100
F81:Business Environment
Lack of knowledge and awareness
15%
Lack of active associations
15%
Lack of entrepreneurs
40%
Improper projection of industry demand30%
Business Environment
293
It is seen that entrepreneurship is lacking to a great extent in
leather industry and industry demand is not projected properly to get
advantage for the industry. The analysis also reveals that knowledge and
awareness about the industry and the presence of active associations are
also lagging behind in the industry. The result of these factors which
influence adversely the business environment is that there is only low
competitive strength for the industry. Strategic and competitive
advantage and sustainability will be absent in the industry resulting in
low and slow progress and development of the industry.
4.3.18. Nature of Marketing
Successful marketing of products is the ultimate aim of any
entrepreneur and as a result marketing is the most important aspect of
successful running of a business.
T136.Nature ofMarketing
Nature of marketing No. of producers Percentage
Effective 10 33
Not effective 20 67
Total 30 100
294
F82:Nature ofMarketing
Majority of producers have no effective marketing strategy since
they can not boost up sales either in the short or long run. Only 33% of
the producers do have marketing systems which help them to achieve
their sales target. Thus marketing programme is not effective for
majority of the producers.
33%
67%
Nature of MarketingEffective Not effective
295
4.3.19 Lack of effective marketing
There are reasons for having problems in marketing. These causes
lead to ineffective marketing of leather products.
T137.Lack of effective marketing
Reasons Percentage
Poor quality of finished products 45
Unorgranised marketing
infrastructure 20
Not viable due to lesser volume of
production 15
Shorter credit period to retailers 20
Total 100
296
F83:Lack of effective marketing
It is found that all the reasons for ineffective marketing are crucial
and relevant. 45% of the reasons are assigned to the poor quality of
finished leather products, while unorganized marketing efforts and credit
period to retailers assume 20% each. Lesser volume of production is also
no less important. This shows that there are fundamental reasons for
ineffective marketing of leather products.
051015202530354045
Poor quality of finished products
Unorgranised marketing
infrastructure
Not viable due to lesser volume of production
Shorter credit period to retailers
Reasons for Lack of Effective Marketing
Percentage
297
4.4 PROBLEMS OF TRADERS OF LEATHER
PRODUCTS
The pertinent problems being faced by the traders of leather
products are analysed below:
4.4.1. Disparity in market prices
It is a necessary condition of an industry that the market prices of
similar products sold should be more or less remain similar. If not, it can
result in serious problems.
T138.Type of Products
Items Price variation range in
Percentage
Leather bags, handbags, cases etc. 8 -14
Leather belts, designer belts,
fashion belts etc. 10 - 15
Men & Women wallets and Purses 12 - 18
Portfolio bags, brief cases, lap top
bags and other executive bags 6 - 12
Other leather goods 5 -15
298
It is indicated that all the types of leather products available in the
market have price variations among different traders. The price variation
is in the highest range for leather belts and bags.The traders claim that
such a variation in the prices is inevitable due to the differences in the
quality and sources of purchase of leather products.However it is found
that there are still price variations for the same quality and size of certain
products sold by different traders.
4.4.2. Financial Assistance
Traders also face the problem of lack of adequate financial
assistance.
T139.Financial Help
Financial assistance No. of traders Percentage of
traders
Available 40 20
Not available 160 80
Total 200 100
299
F84:Financial Help
The table shows that only 20% of the traders get suitable f inancial
help for their business while 80% of the traders cannot avail adequate
financial assistance. The non-availability of finance prevents them from
keeping a wide assortment of products including leather products. Thus,
majority of the traders lack financial assistance for their business.
0
20
40
60
80
100
120
140
160
Available Not availableNo. of traders 40 160
No: of Traders
Availability of Financial Assistance
300
4.4.3. Competition
Healthy competition always facilitates more business. However,
competition poses a problem for the traders of leather products.
T140.Sales Turnover
Nature of leather products % of sales turnover
Indian make 30
Chinese make 70
Total 100
F85:Sales Turnover
0 20 40 60 80
Indian make
Chinese make
Sales Turnover
% of sales turnover
301
The table indicates that 70% of the sales is made in imported
Chinese products. Only 30% of the sales is effected in Indian made
leather products. Chinese products eat up the major market share because
these products are cheap and second hand imported goods. This results
in lesser demand for Indian made leather products.
4.4.4. Export
Leather products have very high potential for export. Indian
leather products are in great demand in foreign countries.
T141.Export Potential
Whether Exporting No. of traders % of traders
Yes 10 5
No 190 95
Total 200 100
302
F86:Export Potential
95% of the traders are unable to export leather products directly to
foreign countries due to lack of required resources and facilities. Only
5% of the traders are able to export the products through agents. Those
who do export business suggest that more traders must come forward for
export since leather products arevery good foreign exchange earners for
the State.
5%
95%
Export PotentialYes No
303
4.4.5. Quality of Products
Quality of the leather products sold is an important factor for
determining the larger sales turnover.
T142.Quality of Products
Nature of Quality % of products
Superior Quality 15
Average Quality 40
Low Quality 45
Total 100
F87:Quality of Products
15%
40% 45%
45%
Nature of QualitySuperior Quality Average Quality Low Quality
304
45% of the leather products purchased and sold is of low quality
with respect to the finished leather material. While 40% is of average
quality. 15% of the products sold is of good and superior quality.
4.4.6. Supply Level
Required quantity of leather products have to be stocked by the
traders to meet the demand. The nature of supply is a case in point in this
regard.
T143. Supply Level
Nature of supply % of products
Adequate 70
Shortage 30
Total 100
305
F88:Supply Level
70% of the leather products are supplied to the traders in the
required quantity, while 30% of the products are in short supply on an
average. Shortages of supply of products which are in comparatively
higher demand usually results in lose of valuable customers.
0
10
20
30
40
50
60
70
80
Adequate Shortage
Supply Level
% of products
