Leather Goods

Centre for the Promotion of Imports from developing countries

Leather GoodsA SURVEY OF THE NETHERLANDS AND OTHER SELECTED MARKETS IN THE EUROPEAN UNION

PUTS YOU IN TOUCH WITH THE MARKETS OFEUROPE

CBI is the Centre for the Promotion of Imports from developing countries, operating since 1971 within thepolicy framework set by the Netherlands Minister of Foreign Affairs and the Minister for Development Co-operation. CBI supports small and medium-sized enterprises (SMEs) and trade promotion organizations(TPOs) in developing countries, in their promotion of exports to the European Union.

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LEATHER GOODS

A SURVEY OF THE NETHERLANDS

AND OTHER SELECTED MARKETS

IN THE EUROPEAN UNION

Compiled for CBI by:

Searce

In collaboration withB.E. Taggenbrock

August 1999

DISCLAIMER

The information provided in this survey is believed to be accurate at the time of writing. It is, however, passed on to the reader without any responsibility on the part of CBI or theauthors and it does not release the reader from the obligation to comply with all applicablelegislation.

Neither CBI not the authors of this publication make any warranty, expressed or implied, concerning the accuracy of the information presented, and will not be liable for injury orclaims pertaining to the use of this publication or the information contained therein.

No obligation is assumed for updating or amending this publication for any reason, be itnew or contrary information or changes in legislation, regulations or jurisdiction.

Update of CBI market survey “Leather goods” (November 1996)

CONTENTS

REPORT SUMMARY 5

1 INTRODUCTION 9

2 PRODUCT CHARACTERISTICS 112.1 Product groups 112.2 Customs/statistical product classification 11

3 THE NETHERLANDS MARKET 133.1 Consumption 13

3.1.1 Market size 133.1.2 Market segmentation 143.1.3 Consumption patterns and trends 18

3.2 Production 203.3 Imports 21

3.3.1 Total imports 223.3.2 Imports by product 233.3.3 The role of developing countries 28

3.4 Exports 293.5 Trade structure 303.6 Prices and margins 34

3.6.1 Prices 343.6.2 Margins 343.6.3 Sources of price information 35

4 THE EUROPEAN UNION MARKET 364.1 The European market summary 364.2 Profile of the major EU markets 42

4.2.1 Germany 424.2.2 France 454.2.3 Italy 474.2.4 United Kingdom 504.2.5 Belgium 534.2.6 Spain 54

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5 ACCESS TO THE EUROPEAN UNION MARKET 565.1 Quality and grading standards 565.2 Packaging, marking and labelling 575.3 Trade-related environmental measures 585.4 Child labour and leather goods 625.5 Tariffs and quotas 625.6 Terms of the trade 64

5.6.1 The contract 645.6.2 Payment methods and delivery terms 645.6.3 Business practice 66

5.7 Promotion 685.7.1 Trade fairs 685.7.2 Trade press 695.7.3 Assistance with market entry 70

5.8 Checklist 71

APPENDICES1 Detailed import/export statistics 722 Standards organisations 843 Sources of price information 864 Trade associations 875 Trade fair organisers 906 Trade press 927 Trade promotion organisations 948 Other useful addresses 969 List of developing countries 9910 List of Netherlands importers 10111 Useful links 115

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REPORT SUMMARY

This market survey covers leather and travel goods sold by specialist retailers, departmentstores and other outlets, most of which also sell some garments like belts and gloves.Because the leather branch not only deals exclusively with leather, but also encompassesall sorts of products made from textiles, "artificials" - (plastic, nylon, vulcanised fibre) andpaperboard, in increasingly larger proportions, these products are also included in thissurvey. The leather goods covered in this survey are:

Product groups Products

Handbags È Handbags with and without shoulder strap.Small leather goods È Wallets, purses, billfolds, key/tobacco pouches,

cigarette cases. Briefcases È Briefcases, attaché cases, portfolios, school bags.Gloves È Protective, fashionable and special sports gloves.Belts È Waist belts, shoulder belts.Travel goods È Travel bags, rucksacks, sports bags, toilet and body-bags*Suitcases È Suitcases, trunks, vanity or beauty cases. Other bags/cases/boxes È Shopping bags, tool bags, jewellery boxes,

cases for maps, cutlery, binoculars, cameras, computers,instruments, phone holsters.

* Rucksack/cross-over bags with a wide strap/belt, worn on the back, stomach or side, which areknown in Dutch trade as "body-bags", not to be confused with the body bags that are used totransport corpses.

ConsumptionThe European Union ranks among the leading markets for leather goods in the world. In 1997, EU demand for leather goods was roughly estimated to be around US$ 7,000 million.The EU leather goods market is dominated by 4 countries, which in 1997 togetheraccounted for 62 per cent of the total EU retail sales: Germany (20%), France (16%), Italy(16%) and United Kingdom (10%). The EU leather industry fared badly in the recession inthe mid-1990s, when the majority of goods manufactured of leather were regarded as non-essential luxury items. A healthier economy combined with increased fashionconsciousness and more variety in the design both of goods manufactured of leather andnon-leather materials (nylon, fibre, and textiles) has given a strong impulse to this maturemarket. To keep up with the latest fashion trends, consumers often replace leather goodseven when this is not strictly necessary. Demand for travellers’ requisites (suitcases, travelbags, rucksacks and computer cases) has increased vigorously as more people travel onholiday or business. More women in business has meant an increased demand for brief anddocument cases and other office-related cases. The overall demand for bags/cases/holdersfor computers, mobile phones and other kinds of office accessories has increased.

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In 1997, Dutch consumers spent US$ 482 million, or around US$ 32 per head on leathergoods and luggage. This is an increase of 20 per cent in value compared to US$ 410 millionin 1991. Between 1991 and 1997, the market share of women’s handbags in leatherdecreased from 31 to 25 per cent of total leather goods sales. During that period,independent retailers broadened their range of products by selling more travel goods andby 1997 these occupied 33 per cent of the Dutch market for leather goods. In 1997,independent retailers and department stores each held one third of the Dutch market, while the remainder was shared by a growing number of other outlets (drug stores, fashionstores, supermarkets and shoe shops).

ProductionIn 1997, the total value of EU production, at factory prices, amounted to US$ 4,676 million.Italy accounted for more than 50 per cent of this total, of which handbags are the mainitems produced. Other large EU producers of leather goods are Germany, France and theUnited Kingdom. Since the late 1980s, there has been a continuous decrease in the EU’stotal output of leather goods. Particularly for high volume items (bags, travel goods, smallleather goods), the production of leather goods has often been shifted to East Europeancountries and Asia. It is well known that some products, carrying the world’s leadingEuropean brands or private brands of large retailers, are now produced (though notdesigned) under franchise or licence in developing countries because of low labour costs.The EU leather goods industry has been threatened by enormous price competition fromlarge supplying countries like China, India and Pakistan. As a consequence, the EUindustry now concentrates on the production and marketing of high quality leather goods,which need excellent technological control, good design and an ability to set trends (in Italy and France) and to anticipate the needs of consumers. In 1997, the total salesvalue of Dutch production amounted to US$ 40 million, consisting mainly of women’shandbags, small leather goods and a few fashion items like belts.

ImportsIn 1997, the EU imported more than 25 per cent of the total world imports of leather goods,or 529 thousand tonnes with a value of US$ 5,094 million. Germany, which imports almostone quarter of this total, is the largest EU market for leather goods: 120,115 tonnes, with avalue of US$ 1,222 million in 1997. Germany is followed by France (18% of EU importsin 1997), the United Kingdom (17%), Italy (9%), The Netherlands (6%), Belgium (7%) andSpain (5%). Almost all EU countries increased their imports of travel goods, especially in1997, when there was strong demand for travel goods and other bags/cases/boxes made oftextiles and plastic, which together account for the majority of EU imports. Between 1995 and1997, most EU countries imported an increasing amount of briefcases, small leather goods,gloves and belts. A note has to be made with respect to the use and interpretation of thefigures of gloves in this market survey. A large percentage (volume 91 per cent and value62 per cent in 1997) of the gloves imported by the EU are protective gloves. China is themajor supplier to the EU with a total of US$ 2,164 million in 1997 – or almost half of theEU imports of all leather goods. Next to China, India, other EU countries, Hong Kong,Vietnam and the USA are important suppliers of leather goods.

More than half of the leather goods imported by The Netherlands is re-exported, mainly to

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other EU countries. In 1997, Dutch imports amounted to a total of US$ 330 million, ofwhich 40 per cent came from Hong Kong, 24 per cent from China and 20 per cent fromother EU countries (Belgium and Germany). The remainder was supplied by India, USA,Indonesia, Taiwan, Pakistan, Vietnam and Eastern Europe.

ExportsIn 1997, the total value of the EU exports was US$ 4,369 million, of which 42 per centwent to other EU countries. Between 1995 and 1997, the total of EU exports grew by 12 per cent in value. Italy and France are both major producers and are the largest exportersof leather goods in the EU. Other large exporting countries are Belgium, Germany and The Netherlands. Handbags form almost 40 per cent of the EU export value. Other importantleather goods exported by the EU were: small leather goods, travel goods, suitcases andbelts. Major destinations were other EU countries, Japan, USA and Hong Kong.

Being the fourth largest exporting country, The Netherlands exported 21,886 tonnes ofleather goods in 1997, valued at US$ 220 million. Other EU countries purchased around88 per cent of Dutch exports, mainly Germany (34%), Belgium (17%) and France (13%),of which the greatest part was suitcases, travel goods and briefcases.

Developing countriesThe developing countries’ share of global trade in leather goods has increased enormouslyin the last two decades. In Asia, leather goods were developed as an extension of the textileindustry, which requires the importation of raw materials. Producing finished leathergoods, therefore, can be a profitable industry for developing countries, especially for thosethat already produce hides and skins. Instead of exporting hides and skins as semi-finishedmaterials, these countries make higher profits by producing finished leather goods.

In 1997, developing countries supplied 339,315 tonnes, or 64 per cent of the total EUvolume of imports, with a total value of US$ 2,767 million. All the leather goods exceptbelts were sourced in developing countries, which supply more than half the gloves (out ofwhich 91 per cent of the EU volume and 88 per cent of the EU value in 1997 for protectivegloves), travel goods (especially rucksacks and sports bags), other bags/cases, briefcasesand small leather goods to the EU. Travel goods represented 28 per cent of the totalimported from developing countries in 1997. Next to China, India and Vietnam, otherimportant suppliers were Pakistan (gloves), Thailand (handbags), South Korea (bags),Indonesia (suitcases), Turkey (belts), Philippines (gloves), Morocco (handbags) andTunisia (handbags).

The Netherlands imported 16,331 tonnes of leather goods from developing countries in1997, with a total value of US$ 113 million. Between 1995 and 1997, Dutch imports ofleather goods from developing countries increased in volume from 33 to 42 per cent. This was due to an increase in imports, mainly of briefcases and travel goods, from China,India, Indonesia, Vietnam, Malaysia and Tunisia.

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Market prospectsA healthier economy and increased optimism both stimulate consumer spending on non-essential items, either for first-time purchases or as replacements. As the countries ofthe EU become one market and competition increases, EU manufacturers and largeimporters/wholesalers increasingly look for production or sub-contracting in countries withlow labour costs. However, exporters from developing countries should note that there arestill large differences in demand between the countries of the EU.

OpportunitiesThe largest potential for growth is likely to be in travel goods (rucksacks, body-bags,sports bags), brief/document cases and office related cases/holders (i.e. for computers ormobile phones). More demand is expected for goods made of combinations of leather andsynthetic materials. Increased consciousness about fashion will force manufacturers to paygrowing attention to style, design and the introduction of more extravagant models ofleather goods. In future, consumers in most EU countries are expected to be moreconscious of quality and brands, especially in goods made of real leather. Buyers willcarefully select the goods they buy, based on the quality of leather, defects, coating, shines and the print possibilities of cheaper kinds of leather.As fashion changes twice a year and fashion items need to be exactly right in design andcolour, it is very difficult for exporters to penetrate this market successfully. Exportersshould seek the co-operation of EU manufacturers, particularly for the low – mediumquality/price segment of the market for leather goods. In this way, EU manufacturers cantake care of the sales/marketing and stocking side of the business, leaving exporters toconcentrate on the production and delivery of the goods.

ConstraintsThe main problem to be overcome by developing countries wishing to export to the EU iscompetition from established EU suppliers. The EU already has experienced producers(Italy, France and Germany) with the specialised skills for fine leather craftsmanship and acomprehensive understanding of fast-changing market needs. Protectionist measures maybe brought to bear by industrialised countries when products are imported into the EU, so the quality of the product is extremely important and products should meet the safetystandard Directive 92/59/EC. Consumers in some EU countries such as Germany, France and Italy prefer products made in their own country to those which are imported.Products from developing countries are likely to be affected by a growing consumerconsciousness of environmentally friendly production methods for leather goods and theirantipathy towards the use of child labour.

Nevertheless there definitely are possibilities for exporters from developing countries topenetrate the EU market. The chances are particularly high if exporters take a step-by-stepapproach with a view to establishing a long-term business relationship with their partnersin the EU. Hopefully this report can be of help to exporters from developing countries indeciding whether or not it is worthwhile to export to The Netherlands or to other EU countries,and that the information provided may assist them in taking the first concrete steps.

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1 INTRODUCTION

This survey deals with the Netherlands and European Union (EU) markets for leather goods.Its main purpose is to provide exporters in developing countries with a better insight intothis competitive market. It should assist them to find the right market opportunities and tobecome familiar with the most suitable market segments for their leather goods.

The main product groups, which are covered in this survey, are explained in chapter 2,along with their classification for Customs and statistical purposes.Chapter 3 starts with a brief general review of market size, trends, segments, influences onconsumer behaviour, giving an idea of the demand in the Dutch market for leather goods. The following section in this chapter reviews production and significant trade and includesimport and export statistics. Detailed information is also given on the role of developingcountries in Dutch imports of leather goods. The remainder of this chapter profiles thetrade structure of the main Dutch importers, wholesalers and retailers, including recentdevelopments, and gives an overview of prices and margins at different distribution levels.

Chapter 4 reviews the EU market as a whole and highlights the similarities and differencesbetween the national markets for leather goods. It also reviews production, imports andexports and the role of developing countries in EU imports is explained in more detail. The main part of this chapter outlines the larger individual markets for leather goods:Germany, France, United Kingdom, Italy, Spain and Belgium.

Chapter 5 covers some more practical issues of access to the Netherlands and EU marketsfor exporters from developing countries. Information is given on regulations and qualitystandards for imported leather goods and suggestions are made for environmentally soundproducts for the Dutch market. This chapter concludes with a series of practical tipsconcerning the business practices and promotional tools often used in the leather industry.A list of names and addresses of relevant trade fairs and magazines is included, along witha checklist showing the most important topics for exporters in developing countries.

It is important to note that since the establishment of the single EU market on January 1,1993, the collection of data regarding trade flows has become more difficult. Prior to thatdate, trade was registered through compulsory Customs procedures at border crossings.Due to the removal of the intra-EU borders, this is no longer the case, so statistical bodieslike Eurostat can no longer depend on the automatic generation of trade figures. In the caseof intra-EU trade, statistical reporting is only compulsory for exporting and importingfirms whose trade exceeds a certain annual value. This threshold varies considerably fromcountry to country, but it is typically about US$ 113,000 (ECU 100,000). Statisticalinformation on trade within the EU is consequently underestimated and must be carefullyinterpreted.

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On 1 January 1999, the euro (€) became the legal currency within eleven EU memberstates participating in the euro area: Austria, Belgium, Finland, France, Germany, Italy,Ireland, Luxembourg, The Netherlands, Spain, and Portugal. Their national currencieshave become subdivisions of the euro, but will continue to circulate as legal tender until2002. Circulation of euro coins and banknotes begins 1 January 2002 replacing graduallynational currency notes and coins, which must be withdrawn by 1 July 2002 at the latest.Currently, banking is possible both in euro and national currency.

The most recent Eurostat trade statistics described in this survey date from 1998. In thatyear, the European Currency Unit (ECU) was still used as a monetary instrument byfinancial institutions to simplify financial procedures. On 1 January 1999, statistical andcontractual values in ECU were converted into euro on a 1:1 exchange rate. The € / US$exchange rate currently (June 1999) stands at US$ 1.07 for one euro.

In this market survey, the US$ is the basic currency used to indicate values. Values datingafter 1 January 1999 are also expressed in euro.

Exchange rates of EU currencies in US$

Country Currency 1994 1995 1996 1997 1998 June 1999

European Union ECU 1.18 1.29 1.25 1.13 1.12 –Euro (€) – – – – – 1.07

Austria Ash 0.0876 0.0988 0.0943 0.0820 0.0809 0.0779Belgium Bfr 0.0309 0.0339 0.0322 0.0279 0.0276 0.0265Denmark Dkr 0.157 0.178 0.172 0.151 0.149 0.144France Ffr 0.180 0.200 0.195 0.171 0.170 0.164Finland FM 0.192 0.228 0.217 0.193 0.187 0.180Germany DM 0.616 0.696 0.663 0.577 0.569 0.548Greece GRD 0.00412 0.00429 0.00414 0.00364 0.003383 0.00329Ireland I£ 1.49 1.60 1.60 1.52 1.42 1.36Italy L 0.000620 0.000613 0.000647 0.000588 0.000577 0.000554Netherlands NLG 0.549 0.621 0.592 0.513 0.505 0.487Portugal Esc 0.00604 0.00665 0.00645 0.00569 0.00556 0.00535Spain Ptas 0.00747 0.00801 0.00787 0.00682 0.00672 0.00645Sweden Skr 0.130 0.140 0.149 0.131 0.126 0.121United Kingdom GB£ 1.53 1.57 1.56 1.64 1.66 1.61

Source: CBS Statline (July 1999)

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2 PRODUCT CHARACTERISTICS

2.1 Product groupsThe products covered in this report are those made of tanned, coloured and/or finishedleather of hides (bovine or equine animals) and of skins (sheep, goat, pigs, reptiles etc.).The main focus will be on leather and travel goods sold by specialist retailers, departmentstores and other outlets, most of which also sell some garments like belts and gloves.Other leather garments, footwear or upholstery leathers are not covered here. Information on related products can be found in the following CBI market surveys:● Leather garments● Hides and skins

The leather branch not only deals exclusively with leather, but encompasses all sorts ofproducts made of textiles, artificial materials (plastic, nylon, vulcanised fibre) and paperboard. In some product groups these materials account for large proportions and are,therefore, included in this survey. However, in trade statistics, products made of leatherwill be more emphasized and product groups are basically ranged in the sequence below:

Product groups Products Leather*

Handbags È Handbags with and without shoulder strap. 27%Small leather goods È Wallets, purses, billfolds, key pouches, 30%

cigarette cases, tobacco pouches. Briefcases È Briefcases, attaché cases, portfolios, school bags. 20%Gloves È Fashionable and special sports gloves. 100%Belts È Waist belts, shoulder belts. 100%Travel goods È Travel bags, rucksacks, sports bags, 2%

toilet and body-bags**Suitcases È Suitcases, trunks, vanity or beauty cases. 4%Other bags/cases/boxes È Shopping bags, tool bags, jewellery or cutlery boxes, 6%

map cases, cutlery cases, cases for binoculars, computers cameras, musical instruments, phone holsters.

* Made of leather or imitation leather as per cent of EU import volume in 1997.** Rucksack/cross-over bags with a wide strap/belt, worn on the back, stomach or side, which are

known in Dutch trade as "body-bags", not to be confused with the body bags that are used totransport corpses.

2.2 Customs/statistical product classification The classification system used for both Customs and statistical purposes in The Netherlands and the EU member countries is the Harmonised Commodity Descriptionand Coding system (HS).

Table 2.1 gives a list of the main HS codes for leather goods, most of which can be foundin Chapter 42 of the Harmonised System. The relevant HS code groups for leather goodscovered in this report are:

Table 2.1 HS code classification of leather goods

HS Codes Product group

4202 11 10 Briefcases, attaché cases, portfolios, school bags and similar containers of leather or imitation

12 11 Briefcases etc. of plastic sheeting 12 91 Briefcases etc. of plastic, vulcanized fibre or textile11 90 Suitcases, trunks, vanity cases, similar containers of leather or imitation12 19 Suitcases etc. of plastic sheeting12 50 Suitcases etc. of moulded plastic12 99 Suitcases etc. of plastic or textile19 10 Suitcases, trunks, vanity cases, briefcases, attaché cases, school bags,

bags or similar containers of aluminium19 90 Suitcases, briefcases etc. of other material21 00 Handbags, with or without shoulder straps, incl. those with handles

of leather or imitation22 10 Handbags of plastic sheeting22 90 Handbags of fabric29 00 Handbags of vulcanised fibre, paper or paperboard31 00 Small leather goods: wallets, purses, key pouches, tobacco pouches or

similar articles carried in the pocket or handbag, of leather or imitation32 10 Small leather goods: wallets etc. of plastic sheeting32 90 Small leather goods: wallets etc. of textile39 00 Small leather goods: wallets etc. of vulcanised fibre,

paper or paperboard incl. spectacle cases of moulded plastic91 10 Travel bags, toilet bags, rucksacks, sports, body-bags of leather or imitation92 11 Travel bags, toilet bags, rucksacks, sports, body-bags of plastic sheeting92 91 Travel bags, toilet bags, rucksacks, sports, body-bags of textile91 80 Other bags: shopping bags, tool bags, jewellery or cutlery boxes,

map cases cutlery cases, cases for binoculars, musical instruments,cameras, phone holsters and similar containers of leather or imitation

92 15 Musical instrument cases of plastic sheeting92 19 Other bags: shopping bags, tool bags etc. of plastic sheeting92 98 Other bags: shopping bags, tool bags etc. of textile99 00 Travel bags and other bags/cases/boxes of vulcanised fibre,

paperboard or other material

4203 21 00 Gloves, special sports gloves of leather or imitation29 00 Gloves, mittens and mits of leather or imitation30 00 Belts, waist belts and shoulder belts of leather or imitation

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3 THE NETHERLANDS MARKET

3.1 Consumption

3.1.1 Market size The Netherlands is a densely populated country, which had 15.7 million inhabitants and a total GDP of US$ 362 billion in 1997. In the same year, Dutch consumers spent US$ 482 million, or around US$32 per head on leather goods and luggage. This is anincrease of 20 per cent in value and 13 per cent in volume compared to 1991 (see figure3.1). A healthier economy, combined with more variety in designs of leather goods and ofnon-leather materials (nylon, fibre, and textile) has given a strong impulse to the maturemarket for leather goods. Because of lower prices and increased sales through departmentstores, a larger group of consumers has been exposed to leather goods. To keep up with the latest fashion trends, consumers often replace leather goods evenwhen this is not strictly necessary. Demand for travellers’ requisites (suitcases, travel bagsand rucksacks) increased vigorously as more people travelled on holiday or business. More women in business has meant an increased demand for brief cases, document cases,portfolios and small leather goods, while their higher disposable incomes have created an increased demand for high quality leather handbags. The overall demand forbags/cases/boxes/holders for computers, mobile phones and other kinds of officeaccessories has increased.

Figure 3.1 Market for leather goods in The Netherlands 1991-1997, Value in US$ million

Note: Market values are based on retail prices and include Value Added Tax (VAT)

Source: EIM (1998)

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1995 19971991

US $ million

408

482

410

As their disposable income rises and the price of leather goods has decreased slightly,Dutch people are tending to buy more travel bags, rucksacks (especially the morefashionable types), briefcases, sports bags, body-bags, suitcases and other cases. Althoughmany people still regard real leather goods as a luxury item, demand is expected toincrease. This especially applies to rucksacks, small leather goods and, to a lesser extent,to handbags. An increase in the market for handbags manufactured of artificial "leather" isexpected, along with an increased demand for handbags containing combinations of leather and other materials in a larger range of designs, styles, brands and colours.

3.1.2 Market segmentation

Segmentation by product

The market for leather goods can be segmented into product groups (see figure 3.2). The market share allocated to each group is based on sales made by Dutch independentretailers, whose turnover in 1997 amounted to US$ 145 million, or one third of the totalDutch market. Product assortments of department stores are not included in this figure, buttheir share in the total Dutch market was considerable, being around 30 per cent in 1997.Department stores mainly sell travel bags, rucksacks, sports bags, small leather goods,suitcases and handbags. Sales of the leather goods by other outlets are also excluded infigure 3.2.

Figure 3.2 Market shares by product group in The Netherlands in 1991 and 1997Per cent of market value (1991: US$ 410 million, 1997: US$ 482 million)

Source: EIM (1998)

● Women’s handbagsBetween 1991 and 1997, the share of women’s handbags made of leather decreased from 31 to 25 per cent in total sales of leather goods. The main reason is that independent retailersbroadened their range of products by selling more travel goods, briefcases, gloves, umbrellasand handbags in artificials (fabric, plastic sheeting, cardboard or fibre). Apart fromfunctionality, the shape of handbags and belts is largely determined by fashion, but there is aconstant demand for sturdy, well-finished, classical items with uncomplicated design.

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Travel goods32%

Small leather goods11%

Accessoiriesand repair 8%

Ladies handbags 31%

Belts, gloves 7%

Briefcases11%

1991

Travel goods33%


Accessoiriesand repair 11%

Ladies handbags 25%

Belts, gloves 7%

Briefcases12%

1997

Large and small "softline" bags are now very popular. These contain compartments closedby a zipper. Stitching should be straight, in vertical lines and not in contrasting colours.Small bags are used mainly by young people. Soft bags usually have a long, adjustableshoulder strap, worn over one shoulder, but are also increasingly carried under the arm onshort shoulder straps. The length of shoulder straps varies with the design of the bag. The latest handbag fashion and design can be found in international magazines, such asArpel, Lederwaren Report and Lederwaren Zeitung (see address, Appendix 6).Dutch women have a habit of filling their handbags, so exporters are advised to makeshoulder straps and fasteners which are strong enough to remain closed when the bag isfull. It is also important that bags remain securely closed to allay consumer fears of pickpocketing. Decorative closures and strap fittings of brass, silver or platinum with a mattfinish have grown in popularity. Handbags with flap-over closing are favourites butfashion handbags with metal frames for closing are gaining appeal. Manufacturers shoulduse high quality fittings and magnetic fasteners. When zips are used, they should be longenough to allow items to be easily removed. It is recommended that nylon zippers in thesame colours as the bag are used. Linings in soft quality leather, silk or artificial silk arepreferred, although other lining materials are acceptable, if they are the same, or matching,colour as the outside material. Leather bags should have a smooth, shiny surface and notbe dull. Exporters are advised to avoid producing sample handbags in fashionable colours,as fashions change so quickly.

Small leather goodsBetween 1991 and 1997, small leather goods slightly increased their share in the leathergoods market from 11 to 12 per cent. Small leather goods are designed and purchased fortheir functionality and do not change much in form. Dutch people handle a lot of coins, so purses must have a compartment to accommodate both the very tiny Dutch 10 cent coinalongside the big, heavy 21/2 and 5 guilder coins; women’s purses should have metalframes. There should be at least four compartments: for credit cards, telephone cards, club-member cards, whose size is international, like American Express or VISA. Dutchbanknotes measure: 76 x 152 mm. Billfolds (wallets) with compartments for coins and credit cards are the most popular itemsfor men. Classical passport holders are not much in demand. Exporters should avoid usingembossed leather and stitching in contrasting colours. Items should be smoothly finishedby folding (including the skiving) instead of having cut edges. The most popular colours ofsmall leather goods are:

● for women’s items È black, dark brown, golden brown, navy blue, burgundy.● for men’s items È black, golden brown, dark brown, burgundy.

The introduction of euro (€) coins and banknotes on January 1, 2002, may be a reason forconsumers to change their wallets, which will give a new impulse to this mature marketsegment. There will be eight coins: of 1, 2, 5, 10, 20 and 50 cents and 1 and 2 euros, with diameters ranging from 16 to 25 mm. As there will be more different sizes of coins,manufacturers have already developed new products, such as key cases with holders forcoins; tallones (a purse in the shape of a shoe heel); men’s wallets with enlarged coinholders and women’s purses with bigger compartments. Euro banknotes, all of differentsizes and colours, will be issued in seven values in the following sizes:

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Sizes of euro banknotes

5 euro = 120 x 62 mm 100 euro = 147 x 82 mm10 euro = 127 x 67 mm 200 euro = 153 x 82 mm20 euro = 133 x 72 mm 500 euro = 160 x 82 mm50 euro = 140 x 77 mm

● Briefcases (attaché cases, document cases, portfolios)The share of this segment grew from 11 to 12 per cent between 1991 and 1997, with steadyand continuing growth in sales in department stores and office centres. Attaché cases arestill popular, but document and briefcases are increasingly fashionable. Briefcases shouldhave two solid combination locks and both locks and fittings should be of good quality.Linings in men’s items are preferred in fine leather (not too bulky) or artificial silk.Standard writing paper measures 31 x 21 cm (A4). Brief cases should have the possibilityof containing two sheets of this paper, packed next to each other. Men’s shoulder bagsshould have a handle on top and a rather long shoulder strap. The wrist straps on men’spurses to be held in the hand should be rather wide. However, the demand for both men’sshoulder bags, and wrist bags has declined recently. Exporters should supply sampleproducts in this segment in black, golden brown, dark brown and burgundy.

● Travel goods (suitcases, travel bags, body-bags, rucksacks)Most leather goods sold in The Netherlands between 1991 and 1997 were in this category,its market share increased from 32 to 33 per cent. This is expected to increase in future asDutch people travel more. Since the mid 1990s, increasing amounts of travel goods havealso been sold by department stores, mail order houses or other large retail outlets. The majority of these goods is made, not of leather, but of artificial materials. To preventpick pocketing, the latest models of rucksacks have a large zipper which is worn next tothe owner’s back. Body-bags are rucksack-like bags with a wide belt, which are worncross-over the shoulder along the body for example at the persons’ back, stomach or side.They are very popular among young people and often the cross-over bags, which are alsoincluded here, have a special built-in holder for a mobile phone.

The main sizes for classical suitcases are: È 70 and 75 cm (with wheels)È 60 and 65 cm (without wheels)

Classical suitcases with 2 or 4 wheels (at the bottom) have lost a large share of the market,because of the growing popularity of the "trolley-case", which has two wheels at the rearand an extendible handle, making it much easier to transport. Trolleys now hold the majorshare of the suitcase segment. Airline companies use different maximum sizes for suitcases,depending on the aircraft. In general, a size of 115 cm as total for length + height + widthare the maximum acceptable size for "cabin luggage". The 115 cm can be divided as 55 + 40 + 20 cm or 55 + 35 + 25 cm respectively. Consumers prefer suitcases with nylonor optilon zippers to metal zippers. Larger travelling bags should have two handles foreasy carrying and a rather long (removable) shoulder strap. "Patchwork" is completelyunacceptable for heavy travelling items.

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Exporters are advised to offer sets of suitcases and other travelling items in the samestyling and colour combination. As garment bags are much in demand in The Netherlands,exporters should add these when presenting their collection to Dutch buyers. The mostpopular colours of suitcases are:

● leather items È saddle brown, black, chestnut● artificial items È navy blue, green, red, black, grey.

Segmentation by user

Group Main characteristics

Children/Teenagers È They mainly buy school, sports bags and rucksacks. (0-18 years) Rucksacks have now replaced the classical type of schoolbag.

Rucksacks should be trendy and carry a large logo of aninternational brand. For this group, the functionality ofrucksacks seems to be of minor importance.

Young È They are very conscious about the latest trends and brands. (18-30 years) Materials need to match the latest fashion. Most buy

non-leather goods because of lower prices and their trendycolours. They like a logo, but less striking. Collections change3-4 times per year and "old collections" cannot be sold after the launch of a new one.

È Young people with a higher income like to show that they canafford to buy very fashionable products in leather or in othermaterials. They like to be different by choosing strikingdesigns, colours, and colour combinations. The price ofproducts seems to be of minor importance.

Lower income È They prefer low priced, products in artificials, which can be (30-50 years) used over a long period of time; they choose items which are

functional and durable rather than fashionable. Logos on theproduct should be as small as possible. They like classicalcolours (black, brown and blue).

Average income È This group prefers functional products manufactured of real leather. (30-50 years) They strongly prefer fashionable colours to classic colours,

but pay reasonable prices varying from US$ 51 - 77 for a bag.Higher income È They prefer leather goods responding to the latest fashion. (30-50 years) The price of products is of minor importance to them.

Designs and colours should not be too extreme. A logo on the product is only accepted when it represents a well-knownbrand of high quality, fitting well into their lifestyle. Unknown or fancy brands are not accepted.

Older people È They are fairly classic in their buying habits and most people (50+ years) do not like logos on the product, unless they are of world

famous brands like Gucci. Designs of leather goods should be somewhere between classical and fashionable.

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Although it is easy to classify people into different segments, it is harder to predict howeach group will behave and what they buy. The main reasons for this are the changes inconsumer behaviour, lifestyle and trends, which has led to demand in the leather goodssector becoming increasingly fragmented. Although 70 per cent of leather goods is boughtby trend followers, new types of leather goods in different designs can be introduced.These appeal to particular lifestyles, such as the youth market. The mass media also exertsa stronger influence on product dynamics and on competition than it did in the past.

3.1.3 Consumption patterns and trends

● FashionFashion sensitive products are the most profitable part of the leather goods business, wherequality or technical imperfections seem to be of minor importance. However, as materials,colours, designs and sizes change quickly, short lead times from design to manufacture arerequired. Since fashion changes every 6 months, it is difficult to give examples orrecommendations concerning trends in leather goods. The latest trends in fashion andcolours for the coming collection of leather goods can be found in international magazines,of which addresses can be found in Appendix 6. Generally, two categories of leather goodscan be distinguished in terms of fashion:

Leather goods Characteristics for fashionable leather goods

Influenced by fashion:È Handbags Classic fashionÈ Belts – traditional coloursÈ Gloves – continuation of existing models with slight variationsÈ RucksacksÈ Briefcases Up-to-date fashionÈ Travel bags – mass-bought fashionÈ Sports, body-bags – products in accordance with latest trends in dressingÈ Shopping bags – colour, design are as important as the prices

Highly individualistic fashion– young or high income groups try out new products– for very young people, price is important– difficult for exporters to reach this market segment– products in this market indicate future trends– for next season’s products, up-to-date fashion

information about this market segment is necessary.

Hardly influenced by fashion:È Small leather goodsÈ SuitcasesÈ Other bags, cases, boxes

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● PricesThe Dutch market is well-known for the highly developed price consciousness of itsconsumers, so importers should consider the price of a product in combination withquality, materials, workmanship, finish, styling and so on. Because of the many differenttypes of leather and other elements mentioned above, a general guideline about pricescannot be given. Sources of price information are fairs, catalogues from mail-order houses(for travel and small leather goods), periodicals (for leather goods) and, of course, retailshops and department stores. Here, margins at each distribution level, which are given inchapter 3.6.2, should be taken into account.

● MaterialsThe material from which leather goods are made influences consumer behaviour.Consumers compare the quality of materials with the prices charged. Expensive leathergoods are generally made of calf or good leather from cattle hides. Good imitations ofexotic leathers (or exotic combined with smooth leather) are in demand for up-to-datefashion. Cheaper items may be made of lower quality cattle hides or goatskin. Split leatheris often used for brightly coloured, low-budget fashion items. Some fashion items might bemade of sheep leather.

For women’s handbags, there is a tendency towards the use of other materials or"artificials", combined with leather. Trendy bags can be offered in the right colours atrelatively low prices. These artificials are often not available in developing countries andpurchasing them in small quantities is often not possible. Therefore, it is difficult forexporters in developing countries to compete in this growing market segment. Pigskin isnormally used for lining in briefcases or attaché cases made of leather. In the case of lowerpriced items for business purposes, split pigskin is often used. Travel items should beproduced in textiles or nylon; leather is only used for the more expensive items. Real exotics like crocodile, lizard, snake, or ostrich leather etc. are not allowed to beimported into The Netherlands, since some animals are protected by the Convention ofWashington (CITES), as is explained more in detail in Chapter 5.1. Good imitations of realexotics are in demand for up-to-date fashion.

● ColoursThe colours of fashion items generally change twice a year. Information about predictedcolours for the new seasons can generally be found in periodicals of international standardlike Lederwaren Report and Arpel (see address Appendix 6). Normally, the colour of leatherproducts follows the colours of the clothing and shoe-fashion industry. Exporters, who liketo make leather goods in fashionable colours, are advised to place orders at tanneries in goodtime. In order to prevent discrepancies in desired colours, it is recommended that the precisecolours be ordered from tanneries in the EU. This is more expensive, but the risk of a slightdifference in colours or in material can be minimised. Discrepancies in colours or materialsare quickly recognised by buyers and consumers and eliminating them can be crucial forsuccess. Where there is likely to be a problem in purchasing the correct colours or materials,the exporter can ask the EU manufacturer or importer to obtain the proper leather or othermaterials, which can then be made in the right colours.

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The classical fashion colours for non-fashion items, mostly are:● For women’s items È Black, dark brown, golden brown (tan), navy blue.● For men’s items È Black, dark brown, tan, burgundy.

● SeasonsThere are two main seasons for fashion colours: winter and summer. About one yearbefore seasons begin, importers and producers start selecting colours and models. Italianfairs for clothing and shoes are considered good indicators for the future fashion colours inThe Netherlands. The Offenbach Fair in Germany is used as a confirmation of choice. In general, production has to begin six months before the season starts. Buyers, particularly those making first–time purchases, will place a trial order 4-6 monthsin advance and followed this with test sales of the product. If the product sells well,substantial orders will be placed, but then the importer will expect delivery within 4-6 weeks! The main seasons for leather goods in the retail trade are shown below.

Product groups Period of peak sales

Handbags May, November, DecemberBriefcases August, September, DecemberTravel goods June, AugustSuitcases May, JuneSmall leather goods May, DecemberGloves, belts, accessories May, December

Decisions regarding fashionable products are made as late as possible, while lessfashionable items are bought at the beginning of the buying season. Highly fashionableproducts are traded all the year round, with the exception of January and July, the monthsin which retailers hold their clearance sales. (Although sales periods are no longer legallyenforced, many retailers still hold their sales in the months January and July).

● FinishLeather finish depends on fashion, but certain general characteristics can be mentioned.The leather must be soft, natural coloured, pleasant to the touch and processing ormanufacture should not impair its natural properties. Embossed leather is only acceptableas a very good imitation of exotics. Fancy embossing is not accepted. An importantconsideration in The Netherlands is the humid climate. The finish must be able to resistrain as well as sunlight.

3.2 ProductionOf all leather goods and luggage sold in the Dutch market, around three quarters isforeign-made and the rest is locally produced. In 1997 there were around 150 leather goodsfactories in The Netherlands, 50 of which mainly repaired leather goods. Most factories arelocated in Waalwijk in the southern part of The Netherlands. In the same year, the totalsales of the Dutch leather industry amounted to US$ 40 million. Production concentrateson women’s handbags and small leather goods. Fashion items like belts are also producedin The Netherlands.

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Since the 1970s, the whole Netherlands leather industry has suffered from internationalcompetition from Eastern Europe, Asia and other low-cost countries. These countriesincreasingly started to produce their own finished leather products and to sell them inAsian and European markets. Present indications are that the leather industry will stagnatein The Netherlands and that production will be further shifted to China, Indonesia,Thailand, South Korea, Turkey and Morocco. These countries have few environmentalregulations and their tanners are hiring more formerly unemployed European tanners, i.e.people who have the necessary skills and who know the needs of the EU market very well.

Since 1996, the core of the Dutch manufacturers, who survived competition and the totalrestructure of the leather industry, has been stronger than before. In order to make a cleardistinction between its own products and those produced by the low cost countries, the Netherlands’ leather industry has concentrated on high quality leather products, requiringlarge investments. As in other northern EU countries, the Netherlands’ leather goodsindustry will produce and market well-designed high quality leather goods in special colours.

Nowadays, production is often contracted out to Asian and, to a larger extent, to East European countries, which manufacture various fast-moving leather goods (small leather goods and travel goods) carrying the private brands of the importers, buying groups or large chain stores.

3.3 ImportsAll statistics presented in this section are official trade figures provided by Eurostat. After the unification of the EU in 1992, Customs authorities stopped recording the intra-EU trade in leather goods, and since then import and export figures have been basedon reports given by the companies themselves. In the case of intra-EU trade, statisticalreporting is only compulsory for Dutch exporting and importing firms, whose tradeexceeds US$ 113,000 (ECU 100,000). Smaller companies, whose trade is below this level,are not obliged to report and are, therefore, excluded from these statistics. However, the Customs authorities still register imports from non-EU sources so official statisticsonly give an indication of major trends and of the relative importance of individualimporting countries, and do not represent the situation accurately. The above implies that not all trade is included, especially when it concerns productgroups (small leather goods, handbags or belts) where there is a large number of smalltransactions. Here a relatively large share of trade is under-represented.

The statistics specify total imports, divided into volumes/values sourced from EU countries(intra-EU) and from non-EU countries (extra-EU) with the values/volumes coming fromdeveloping countries (dev.countries). Developing countries, as defined by the OECD, are listed in Appendix 9. Products made of real leather or imitation leather (handbags,small leather goods, briefcases, gloves and belts) are emphasized in the statistics.Therefore, product groups are ranged according to the sequence, as given in Chapter 2.1.

Appendix 1 lists detailed import statistics of The Netherlands and the EU, which includesimport figures of product groups more in detail, of the most important supplying countriesand of each product group separately.

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3.3.1 Total importsThe Netherlands, as the fifth largest EU importer, accounted for 7 per cent of total EU importsof leather goods in 1997. More than half of Dutch imports is re-exported, mainly to otherEU countries. In the same year, Dutch imports amounted to a total of US$ 330 million, an increase of 22 per cent over imports in 1995, which was mainly due to higher demandfor briefcases, travel goods and small leather goods.

Table 3.1 Imports of leather goods by The Netherlands by product group, 1995-1997Tonnes / US$ 1,000

1995 1996 1997Volume Value Volume Value Volume Value

Total 34,068 268,272 38,301 321,907 38,350 329,944Intra-EU 5,016 59,256 4,945 65,163 5,245 59,570Extra-EU 29,052 209,016 33,356 256,744 33,105 270,374Developing countries 11,451 80,508 15,940 102,368 16,331 113,982

Handbags 6,509 55,025 6,401 59,574 3,118 37,080Small leather goods 1,945 28,349 2,272 36,089 1,962 37,858Briefcases 2,227 15,547 2,709 19,964 5,353 34,378Gloves 3,127 24,905 3,479 30,391 2,981 32,464Belts 247 6,479 231 6,591 246 7,626Travel goods 8,220 66,081 9,701 86,689 9,706 88,623Suitcases 6,741 41,103 7,987 46,536 8,400 47,441Other bags/cases/boxes 5,052 30,782 5,521 36,073 6,584 44,474

Source: Eurostat (1999)

The significance of imported goods in this sector is constantly increasing, where Asian andother EU countries are major suppliers for both leather goods in leather and in artificials.In 1997, imports from other EU countries amounted to almost US$ 60 million, or 20 percent of total Dutch imports. Belgium and Germany are the main EU suppliers to The Netherlands and mostly supply travel goods, suitcases, handbags and small leathergoods. The United Kingdom is the third EU supplier to The Netherlands, while Italy is animportant source for leather handbags and belts.

The majority of leather goods came from Hong Kong. Between 1995 and 1997 Dutchimports from Hong Kong increased by 27 per cent to a total value of US$ 128 million.Also a large proportion came from China. In the same period, The Netherlands importedmore leather goods from China and India. In 1997 developing countries supplied a totalvalue of US$ 113 million of leather goods to The Netherlands, or 16,331 tonnes, whichformed more than 40 per cent of the total Dutch import volume. Other important non-EUsuppliers are the USA, Taiwan and Eastern Europe.

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The tendency among Dutch importers is to look for newer developing countries likeVietnam, Tunisia, Turkey, Mexico, Argentina or other sources in South America or Africa,where production costs are lower. In addition, Eastern Europe has made some gains, sincethis region is closer to the Dutch market; transportation costs are low and thus compensatehigher material costs. Another advantage of the shorter distance is the ability to be quick in responding to the faster changing market needs. The main producing countries areCzech Republic, Poland, Hungary, Slovakia, Romania, Bulgaria and Estonia. Most of these countries manufacture gloves, leather wallets, handbags and textile bags.A detailed overview of the sources of Dutch imports can be found in Appendix 1. The leading supplying non-EU countries are shown in figure 3.3.

Figure 3.3 Main non-EU suppliers of leather goods to The Netherlands, 1995-1997Value in US$ 1,000


3.3.2 Imports by productThe most important leather goods which The Netherlands imported in 1997 and their mainnon-EU supplying countries are shown in figure 3.4. A breakdown of product groups indetail (in terms of materials), imported by The Netherlands can be found in Appendix 1.Import statistics of each product group separately, where supplies from developingcountries are being emphasized, can be found in Appendix 1as well. Dutch imports of eachproduct group can be briefly described as follows:

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130

120

110

100

90

80

70

60

50

40

30

20

10

0

Hong Kong China India USA Indonesia Taiwan Pakistan Vietnam South CzechKorea Republic

1995

1996

1997

128

88

24

12

6 5 5 5 4 3

● HandbagsDemand for womens’ handbags in The Netherlands has decreased and there is a standstillin the total Dutch market. In 1997, handbags accounted for 11 per cent of total Dutchimports. In terms of value, handbags in leather form the largest part of Dutch imports, as is shown below. However, on a volume basis, handbags in artificials are in the lead.

Womens’ handbags Volume per cent Value per cent

Leather or imitation 865 28% 15,533 42%Plastic sheeting 907 29% 7,772 21%Fabric surface 1,124 36% 11,474 31%Cardboard or fibre 222 7% 2,301 6%

Note: Dutch imports of 1997 are given in tonnes and US$ 1,000.

Between 1995 and 1997, the volume of Dutch imports fell by more than half from 6,509 tonnes to 3,118 tonnes and decreased by 34 per cent in value. In 1995, more thanhalf of Dutch handbag imports came from Hong Kong and China, and were mostlyhandbags in artificials. In 1996, prices of handbags from China were driven up by theenormous anti-dumping levies on imported handbags in leather and in artificials. The same applied to the imported bags from Hong Kong, since it was united with China in 1997. Dutch imports of handbags in artificials (plastic sheeting, fabric surface) fromthese countries have, in particular, drastically decreased. Still Hong Kong and China areleading the supplies to The Netherlands as is shown in figure 3.4. However, imports fromother countries like Pakistan, Turkey, Taiwan, USA and other EU countries slightlyincreased between 1995 and 1997.Despite the drop in the total imported handbags, the volume of Dutch imports of handbags in leather increased by 30 per cent, reaching a level of 865 tonnes in 1997 valued at US$ 15 million. The main supplying countries for handbags in leather are India,Hong Kong, Thailand, Italy, Germany, Switzerland, Spain, Czech Republic and Hungary.

● Small leather goodsImports of small leather goods increased, between 1995 and 1997, by 30 per cent reachinga total value of US$ 38 million, representing 11 per cent of all Dutch imported leathergoods. Most wallets, purses and holders sold in The Netherlands are made of real leather.In value, almost half of Dutch imports are small leather goods in leather or imitation, as is shown below.

Small leather goods Volume per cent Value per cent

Leather or imitation 592 30% 19,420 51%Plastic sheeting 503 26% 6,016 16%Textile surface 686 35% 10,399 27%Cardboard or fibre 181 9% 2,023 6%

Note: Dutch imports of 1997 are given in tonnes and US$ 1,000

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It is expected that the consumption of wallets, purses will slightly increase, but the largemarket potential will be in other small leather goods like key holders and in othersegments, such as the gift markets, especially items for promotional purposes.In terms of volume, Dutch imports of small leather goods showed a fluctuating pattern,with a temporary increase in 1996 of small leather goods of textile material and in leather.In the same period, fewer small leather goods in artificials (plastic, cardboard and fibresheeting) were imported by The Netherlands. Hong Kong and China were the leadingsuppliers for small leather goods, as is shown in figure 3.4. In 1997, the share of Hong Kong in the total Dutch import value was 43 per cent, while its share in volume was58 per cent. An important supplier of wallets, purses and holders in leather was India,which was in 1997 the second largest supplier to The Netherlands with a total export valueof US$ 9 million. Important developing countries for goods in leather were Tunisia, South Korea, Turkey and Thailand. Other suppliers to The Netherlands of small leathergoods were Taiwan, USA, Italy, Germany and France.

Figure 3.4 Imports of leather goods by The Netherlands by product group, 1997Main suppliers as per cent of total value


25

100 US $ million

500

Suit

case

s

47

Tra

vel g

oods

89

Oth

er b

ags,

case

s44

Bel

ts

8

Glo

ves

32

Bri

efca

ses

34

Han

dbag

s

37

Smal

l lea

ther

good

s38

%

Tota

l

Hong Kong 43%India 24%

China 15%Others 13%

Intra-EU 5%

43 524 15 13

China 27%Hong Kong 15%

Indonesia 8%USA 5%

Others 7%Intra-EU 38%

3815 827

37 16 10 15 22

Hong Kong 37%China 16%India 10%


103448Hong Kong 48%

China 34%Others 8%

Intra-EU 10%

46934 18 39

China 34%India 18%


52USA 19%

Hong Kong 10%Others 19%

Intra-EU 52%

73553

Hong Kong 53%China 35%


1792549

Hong Kong 49%China 25%


● BriefcasesThe market for briefcases and attaché cases increased steadily during the 1980s in The Netherlands. Attaché cases continue to be preferred over the other types, but since themid 1990s briefcases (in the style of schoolbags) and portfolios became more popular.However since 1997, growth in the sale of briefcases slowed down. The market forbusiness items, like attaché cases, computer cases or other cases for office accessories isexpected to grow further because of a group of new users (women) is attracted to them,especially to the latest attaché cases in leather, which come in more different designs. In 1997, briefcases represented 10 per cent of all Dutch imported leather goods. In terms ofvalue, briefcases in plastic, fibre and in leather dominate Dutch imports, as is shownbelow, whereas on a volume basis briefcases in artificials were on the lead.

Briefcases Volume per cent Value per cent

Leather or imitation 1,122 21% 13,333 39%Plastic, moulded plastic 926 17% 5,772 17%Plastic, fibre sheeting or textile 3,305 62% 15,273 44%


Between 1995 and 1997, the volume of Dutch imports increased by more than half from2,227 tonnes to 5,353 tonnes and doubled in value to a total of US$ 34 million. In 1997,more than 80 per cent of Dutch briefcase imports came from Hong Kong and China, as isshown in figure 3.4. Other suppliers of leather briefcases were Italy, Germany, Poland,India, Indonesia and Morocco.

● GlovesGloves are regarded as being an accessory in the leather goods industry. However, since there has been a growing number of retailers, who have expanded their productrange, gloves became a slightly more important item within the leather goods assortment.This product group includes men’s and women’s gloves, made of leather or imitation. In 1997, gloves represented 10 per cent of all Dutch imported leather goods. The volume of Dutch imports showed a decrease between 1995 and 1997, when the totalimported volume of gloves amounted to 2,981 tonnes of pairs. In the same period though,their import value increased from US$ 25 to 32 million. Most Dutch imports came fromChina, India, Hong Kong, Pakistan, Taiwan, Indonesia, Thailand, Czech Republic.Germany and Belgium are important EU suppliers.

● BeltsThis product group includes belts and bandoliers for men and women made of leather orimitation, which is also regarded as being an accessory. Between 1995 and 1997 thevolume of Dutch imports slightly fluctuated, but their total value increased by 18 per centto almost US$ 8 million. In terms of value, other EU countries (Italy) and the USA accountfor more than half of the total Dutch imports, as is shown in figure 3.4. However, in termsof volume, India and Italy dominate the supply. The Netherlands imported more belts fromthe USA and Hong Kong between 1995 and 1997.

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Apart from India, other important suppliers from developing countries were Turkey,Thailand, China and Argentina. Main EU suppliers include Germany, Belgium, United Kingdom and France.

● Travel goodsThe market for travel goods (travel bags, sports bags, body bags and rucksacks) has grownfast because of increased holidays, more business travel and more sports activities. At theexpense of ladies handbags, this product group accounted in 1997 for more than one third ofthe Dutch retailers’ sales turnover. A larger variety of new items in up-to-date designs andcolours has been successfully sold in The Netherlands. The same applies to sports bags andrucksacks, which are being used by a larger group of people, who like to keep up with thelatest trends. This market is expected to grow further, as travelling and sports activities willincrease. In 1997, The Netherlands imported 9,706 tonnes of travel goods, representing 25 per cent of the Dutch total. In terms of both volume and value, textile bags dominateDutch imports, as is shown below.

Travel goods Volume per cent Value per cent

Leather or imitation 144 2% 2,313 3%Plastic sheeting 1,487 16% 10,329 13%Textile 7,633 82% 67,389 84%


Between 1995 and 1997, the value of Dutch imports increased by more than 30 per centfrom US$ 66 to 88 million and increased by 18 per cent in volume. The major increasewas in the Dutch imports of textile bags, mainly from Hong Kong where in 1996 averageimport prices increased, at a much higher rate than those from China. In 1997, more thanthree-quarters of total Dutch travel goods came from Hong Kong and China, as is shown infigure 3.4. Sources in developing countries included Vietnam, Malaysia (bags of plasticsheeting), Thailand, South Korea and India. Other notable sources were Taiwan, USA andthe Czech Republic. Dutch imports from other EU countries slightly increased between1995 and 1997 from US$ 10 to 15 million, where Belgium, United Kingdom and Germanywere the leading suppliers.

● SuitcasesThe suitcase segment (suitcases, trunks and beauty cases) has been a growing market andis expected to grow further. In 1997, suitcases represented 14 per cent of all Dutchimported leather goods. In this product group, both in terms of volume and value, suitcasesof moulded plastic form the largest part of Dutch imports, as is shown below. Compared tothe other materials, plastic has the advantages of being more durable and lighter in weight.

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Suitcases Volume per cent Value per cent

Leather or imitation 316 4% 3,724 8%Plastic sheeting 1,014 13% 4,918 11%Moulded plastic 3,230 43% 21,001 49%Textile surface 2,873 40% 13,196 32%


Between 1995 and 1997, the volume of Dutch imports showed an increase from 6,741 to8,400 tonnes. In the same period the import value increased by 15 per cent from US$ 41 to47 million, the largest increase being in the imports of suitcases of moulded plastic. Most suitcases came from China, Belgium, Hong Kong, Indonesia USA, Taiwan, Czech Republic, Thailand, Mexico and India. Other important supplying countries in theEU were Germany, United Kingdom, Italy and Spain.

● Other bags/cases/boxesThis product group includes mainly shopping bags, toolbags, jewellery boxes/cases andcases for spectacles, cameras, office accessories and musical instruments. Almost 70 percent of these imported goods was of textile, while 25 per cent was of moulded plastic andthe remaining 5 per cent of leather or imitation. In 1997, Dutch imports of otherbags/cases/boxes were 6,584 tonnes, representing 13 per cent of the total Dutch imports ofleather goods. Between 1995 and 1997 the value of Dutch imports increased by more than40 per cent from US$ 30 to 44 million. In 1997 almost 90 per cent of total Dutchbags/cases/boxes imports came from Hong Kong and China, as is shown in figure 3.4.Other sources include USA, South Korea, Taiwan, Vietnam, India, Pakistan, Malaysia andPoland. Dutch imports from other EU countries dropped by half between 1995 and 1997.Major EU sources include Germany, United Kingdom, Belgium and France.

3.3.3 The role of developing countriesIn recent years, two trends in the leather goods industry have had a major influence on therole of producers in developing countries.● Dutch manufacturers continue to contract lower-cost, labour-intensive items to foreign

manufacturers.● Dutch importers, who in the past only dealt with ready-made articles, are willing to

assist foreign low-cost suppliers in product development and adaptation according totheir specific requirements.

Both trends may be of importance to developing countries, as they could give help to low-costproducers to compete in world markets in terms of styles, quality, colours, workmanship etc..The developing countries’ share of world trade in leather goods has increased enormouslyin the last two decades. In Asia, leather goods were developed as an extension of the textileindustry, which requires the importation of raw materials. Producing finished leather goods,therefore, can be a profitable industry for developing countries, especially for those thatalready produce hides and skins. Instead of exporting hides and skins as semi-finishedmaterials, these countries make higher profits by producing finished leather goods.

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The main problem, which developing countries wishing to export to the EU mustovercome, is competition from established suppliers. The EU (Italy, France and Germany)has enough experienced producers with the specialised skills for fine leather craftsmanshipand with thorough knowledge of market needs.

Nevertheless, the proportion of Dutch imports of leather goods from developing countriesincreased in volume terms, between 1995 and 1997, from 33 to 42 per cent. In terms ofimport value this proportion increased from 30 to 35 per cent to almost US$ 114 million in1997. This was due to increased imports, mainly of briefcases and travel goods, fromChina, India, Indonesia, Vietnam, Malaysia and Tunisia. The importance of developingcountries in the supply of each product group is shown in table 3.2. A list of developingcountries, as defined by the OESO, can be found in Appendix 9.

Table 3.2 Imports of leather goods by The Netherlands from developing countries, 1997Value in US$ 1,000

Total imports From dev. % per % of total dev.countries product group countries supply

All groups 329,944 113,982 35 100

Suitcases 47,441 17,366 37 14Small leather goods 37,858 17,520 46 15Handbags 37,080 11,948 32 9Briefcases 34,378 12,669 37 10Gloves 32,464 22,612 69 18Belts 7,626 984 13 1Travel goods 88,623 21,942 25 18Other bags/cases/boxes 44,474 18,751 42 15


Asia, especially Hong Kong, is the main supplier to The Netherlands of almost all productgroups. China and India are the major developing country-supplier of gloves, small leathergoods, suitcases, briefcases and other bags/cases/boxes. Between 1995 and 1997, Dutch imports of briefcases from developing countries (China) tripled, while imports from developing countries of both travel goods and suitcases almost doubled. Appendix 1gives import statistics for each product group separately, showing the tendencies insupplies from the most important developing countries.

3.4 ExportsThe Netherlands became a sizeable exporter of leather goods as from the mid 1980s, when the quantities which are re-exported have increased year by year, because of the shift in production to low cost countries. In 1987, Dutch re-exports accounted for 41 percent of total Dutch imports, while in 1997 re-exports reached 55 per cent. In the same year, The Netherlands, with a volume of 21,886 tonnes, was the fourth largest exporting country

29

in the EU. As is shown in table 3.3, in that year the total export value amounted to US$ 220 million. Other EU countries were the destination for around 88 per cent ofexports, of which the greatest part was suitcases, travel goods and briefcases, togetheraccounting for 70 per cent of the Dutch export volume.

Between 1995 and 1997, Dutch exports rose by 30 per cent in volume, but grew in value by18 per cent, mainly because of re-exports and trade in leather goods. The other main exportproducts, in order of their share of the total volume, were: other bags/cases/boxes (11%),handbags (6%), small leather goods (5%), gloves (5%) and belts (2%). Major destinationsin the EU are Germany, which took 34 per cent of Dutch export volume in 1997, Belgium(17%), France (13%), United Kingdom (8%), Spain (6%) and Portugal (5%). Non-EUdestinations are Poland (2%), Czech Republic (1%), Switzerland (1%), Russia (1%) andUSA (1%).

Table 3.3 Exports of leather goods by The Netherlands by product group, 1995-1997Tonnes / US$ 1,000


Total 16,854 186,276 17,726 189,599 21,886 220,036Intra-EU 14,781 157,509 15,631 163,387 20,181 194,134Extra-EU 2,073 28,767 2,095 26,212 1,705 25,902Developing countries 128 1,748 195 1,639 168 1,864

Handbags 3,601 52,356 3,121 46,054 1,396 29,268Briefcases 1,700 17,034 1,755 12,757 4,040 25,940Small leather goods 1,165 16,602 1,064 16,968 1,179 19,179Gloves 1,804 15,249 2,201 15,187 1,039 17,075Belts 466 14,189 528 12,777 398 12,119Travel goods 2,868 27,737 4,114 49,111 5,471 62,855Suitcases 3,343 25,331 3,014 20,384 6,003 34,216Other bags/cases/boxes 1,907 17,777 1,929 16,361 2,360 19,382


3.5 Trade structure

Relative to its market size, The Netherlands has a very large number of distributingcompanies in the leather goods trade. In 1997, 33 per cent of the total market value forleather goods in The Netherlands (US$ 482 million) went to 415 independent retail shops,while the share of department stores had grown to 33 per cent of the Dutch market value.The remaining 34 per cent was shared by a constantly enlarging group of other outlets.This makes the diversity in leather goods distribution enormous. The most common otheroutlets are mail order houses, shoe shops, garment shops, stationery shops, sports shops,

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perfumery stores and street markets. Therefore, the trade diagramme shows a few entrieswith a strong fanning-out pattern afterwards, as is shown in figure 3.5.

Figure 3.5 Distribution channels for leather goods

In 1997, importers/wholesalers, domestic manufacturers and agents were responsible forthree-quarters of total Dutch leather goods imports. Department stores, buying groups andmail-order houses, which use the remaining 25 per cent, usually order direct from foreignmanufacturers, especially on large turnover "standard" items, to minimise the cost ofmiddlemen. Department stores in particular prefer to buy the more "risky" items (i.e. leather goods influenced by fashion), directly from importers and place all risk onthem. Importers are required to keep a large stock in order to deliver quickly. In thebeginning, department stores place small orders, then when the item starts selling well,large orders follow. However, if the item fails, importers are forced to sell them at a loss.Medium-sized outlets mostly buy from importers/wholesalers or agents, while smalloutlets usually buy from wholesalers or central buying groups of which they are members.Domestic manufacturers very often contract lower-cost foreign producers to produce theirmore labour-intensive lines of production.

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Large retailchain

Central Buyinggroup

Department stores

Mailorder houses

Public* services

Own outlets Small retail Large retail shops

Other **outlets

Street market

Trading exporter

Importer/Wholesaler

Domesticmanufacturer

Agent

Foreign producer/exporter

C O N S U M E R

* PUBLIC SERVICESAirlinesOil companiesCredit-Card Org.etc.

** OTHER OUTLETSShoe retailersGarment shopsStationeryPerfumery storesSport shopsPremium companies (gifts)etc.

Typically, the main parties involved in the distribution of leather goods are:

● Agent/brokerThese are independent companies which negotiate and settle business on the instructionsof their principals and which act as intermediary between buyer and seller. They do notbuy or sell on their own account. Most agents represent more than one manufacturer,although competition is avoided. More agents now sell from stock in order to meet theirclients’ short-term demand. Stock is often formed on a consignment basis. If the agentbuilds up his own stock, he is in fact functioning as an importer/wholesaler.

● Importers/wholesalersUnlike agents, wholesalers hold their own stock at their own risk. However, an increasingnumber also act as agents. The fact that many independent retailers as well as departmentstores are becoming more cautious about pre-ordering, preferring to sell from stock, is reinforcing the position of the importer/wholesaler. The choice of whether to selldirectly to an importer or through an agent depends on the type of supplier organisationconcerned and its product/market combinations. All the factors relating to price, collectionforming, exclusiveness, labels, packing and promotion play a role in this respect.

● Domestic manufacturersConfronted with rapidly rising production costs, which have rendered many Dutchmanufacturers uncompetitive, (especially in labour-intensive production lines)manufacturers are increasingly assuming the role of importers. However, they still preferto find low-cost sources, which produce leather goods on a made-to-order basis, instead ofpurchasing ready-made articles. The main advantage is that these items can be madeaccording to their own design, quality and colour specification.

● Large retail chains and buying groupsLarge retailers and central buying groups prefer to minimise the cost of middlemen bypurchasing directly from a supplier whenever possible. This channel is used particularlyfor large-scale requirements, where direct dealing with well-known suppliers is essential.In 1997, there were three large chain stores for leather goods in The Netherlands:Berclouw Lederwaren B.V., Duifhuizen Lederwaren and Arcon Groothandel B.V.Together they accounted for one quarter of all Dutch outlets for leather goods.

In The Netherlands there are two central buying groups: Lecombi (38 members with 65 outlets)and the German owned Goldkrone (65 members with 114 outlets). In total more than 35 per centof all Dutch shops/stores are members of one of these groups. Buying groups have direct linkswith producers and with agents/importers and are becoming less dependent on the wholesaletrade. They do not function as suppliers for their members, but merely as purchasing agents forindividual retailers and as financial intermediaries between producers and retailers. The buyinggroups’ objective is to make it possible for their members to compete with chain stores, whichhave the buying power necessary to get larger discounts from suppliers and to buy under theirown private labels directly from abroad. Buying groups are tending to purchase from fewersuppliers, with whom they aim to intensify their relationship and together promote increasedsales in the market. This new trend is called "partner shipping" and originated in the USA.

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● Department storesDepartment stores sell a wide range of products under one roof. The majority of Dutchpeople, in particular women up to 30 years of age, buy their small leather goods (wallets,purses), travel goods, suitcases, handbags, gloves and belts here. Most department storesare members of large chain organisations with centrally-organised buying departments. Well-known department stores include Vroom en Dreesman (V&D), Hema and De Bijenkorf, which merged in 1999. The structure of a future combined purchasingdepartment for Hema and De Bijenkorf was not clear in August 1999, when both storesstill had their own purchasing department. In future, this may change and exporters areadvised to offer leather goods at the same price to buyers from each department. Although all three stores are under one organisation, to consumers they will continue theirstore concepts, which are quite different. De Bijenkorf stocks high-quality, stylish andappropriately priced products. V&D operates in the middle of the market, while Hema hasgood quality at lower prices, although their goods are not as fashionable as those in theother two stores. Hema has 146 sales outlets, V&D has 60 and De Bijenkorf 6 outlets. At the end of 1990, Marks & Spencer (UK) opened their first department store inAmsterdam; in 1992, they opened one in The Hague.

● Mail order housesMail-order houses operate in the low and middle ranges as regards price, quality andfashion. Recently they drastically reduced their range of leather goods and now mainlyoffer suitcases and travel goods. Wehkamp and Neckermann are the best-known mail-order houses.

● Premium companiesThese companies concentrate on promotional gift items and sell by catalogue to advertisingagents and companies. Small leather goods, travel bags, sports bags and a wide range ofcases are premiums which are often used. In 1997, the share in the total Dutch market forleather goods of the 165 premium companies was estimated to be around 3 per cent and isexpected to grow further.

● Independent retailersIn 1997, independent retailers had a market share of 33 per cent, which has decreasedbecause of increased competition from department stores and the ever-expanding range of other outlets. These include drug stores, ladies’ fashion stores, supermarkets, discountstores and shoe shops. Therefore, the main operations of independent retailers lie in themiddle and, increasingly, in the upper sections of the market, especially for luxuryhandbags, attaché cases, suitcases and travel goods. Independent retailers lack theadvantages of economies of scale and consequently have to work with higher margins.This means that the products must be fashionable and exclusive, otherwise customers will purchase in cheaper stores. The average value of sales in leatherwear stores amountedto well over US$ 295,000 (excluding VAT) in 1997, when there were an estimated415 shops. Of these, the following three types of shops can be recognised:

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Type of shop Number of outlets Share in total

General leather goods shop (in leather and artificials) 305 73%Leather goods shop (in leather) 65 16%Leather goods and luggage shop (in leather and artificials) 45 11%Total 415 100%

● Street marketsStreet vendors are involved in clearing up stocks from wholesalers, manufacturers andimporters and are not themselves involved in importing. Women’s inexpensive handbagsand some small leather goods are mostly bought here.

3.6 Prices and margins

3.6.1 PricesThe price is a major element in the leather goods sector, but there is such a broad range ofgoods - qualities - materials - styles - etc., which makes it almost impossible to giveguidelines. In principle, the importers maintain fairly close control over the recommendedretail prices, but parallel imports, an oversupply of goods and the growing success ofdiscounters have seriously disturbed the situation.

3.6.2 MarginsThe margins for leather goods are not fixed. However, a general pattern can be recognised:

Trade channel Mark up

From FOB - CIF (The Netherlands) 20 - 40%From CIF - importer/wholesaler 10 - 20%From importer/wholesaler - retailer 30 - 50%From retailer - consumer 95 - 120%

Ratio CIF - Consumer price 3 - 4.5 times (incl. VAT 17.5%)

Most often importers are wholesalers as well. In addition, importers are sometimes left outin favour of agents, who will only charge 6 - 12 per cent for their services. Usually, agentsact for suppliers within the EU and all risks for payment are up to the exporter, sinceagents do not carry a stock. As a rule, importers who buy from developing countries lookfor low-priced merchandise. Here, margins differ for each product/market combination andcan be influenced by the following factors:

34

● degree of risk;● volume of business (rate of turnover); listing fees (up to US$ 35,000 per year in

department stores);● functions or marketing services rendered;● anti-dumping levies;● general economic conditions (booming or depressed business);● level of competition between supplying countries or in the leather industry;● exclusiveness of the item concerned.

3.6.3 Sources of price informationThe best way to obtain information about prices and price level in The Netherlands or EUis by visiting one of the major trade fairs. Another possibility is prices given in cataloguesfrom mail-order houses, large department stores or from web sites of companies. Window-shopping in The Netherlands, or another prospective market place, at severalretail shops is another good way of getting information about prices, fashion, colours,qualities, promotion, etc. Concerning hides and skins and finished leather, three publishedsources of information are listed below. The addresses can be found in Appendix 3.

ITC - International Trade Centre È Web site which gives information on trade inthe leather industry: http://www.leathernet.com

Filiere Cuir È Leather markets and price information is givenat the web site of the magazine Filiere Cuir:http://www.leathermarkets.com

FAO È Publishes the “Monthly Bulletin of Statistics”,“Commodity and Market Review”

35

4 THE EUROPEAN UNION MARKET

4.1 The European Union market summary

● ConsumptionThe European Union ranks among the leading markets for leather goods in the world. It is estimated that the 373 million consumers of the 15 member states spent around US$ 7,240 million in 1997. The EU leather goods market is dominated by 4 countries,which in 1997 together accounted for 62 per cent of the total EU retail sales: Germany(20%), France (16%), Italy (16%) and United Kingdom (10%). Consumer income is stillan important determinant in the purchase of leather goods. Most Northern EU countries aremuch wealthier than those surrounding the Mediterranean. Per capita gross domesticproduct (GDP) is well above average in Belgium, Denmark, Germany and The Netherlands and below average in Ireland, Portugal and Spain. It should also be noted that there are also large differences in income between regions within EU countries,as in the North and South of Italy, France and Spain.

Demand for leather goods in the European Union as a whole is influenced not only by arising income per capita, but recently also by the increase in leisure time and the interest intravel, outdoor activities and outdoor sports. Whereas in the 1980s employment andearnings were the most important indicator of status, in the 1990s staying young and being"busy"are important. These concerns are expected to be one of the most important marketstimulants in Europe in the coming years.

Furthermore, fashion has always been an important factor in the sale of leather goods anddemand for leather goods is influenced by new, different styles and designs for differentconsumer target groups. A large group of consumers likes to keep up with the latest trendsin fashion. In this respect Italy and France remain the world's fashion leaders. However ineach EU country (or region) there are still large differences in taste, fashion, stylisticpreferences and disposable income, which makes it impossible to approach the EU as onemarket. Preferences for leather goods vary from country to country as is shown below.

Differences in consumption in EU markets

Italy Handbags account for 50 per cent of the retail market.France Handbags, gloves and belts are major items and rapidly change

in style.Germany Travel goods account for almost 50 per cent of the retail market.United Kingdom Small leather goods are most in demandOther EU markets Travel goods and handbags are the major items in the retail

market.

36

The EU leather industry fared badly in the recession in the mid-1990s, the majority ofleather goods (in leather) being regarded as non-essential; the market for leather goodsshowed signs of maturity, which was being reinforced by a large number of suppliers. The market share of synthetic products increased as their quality and finish improved, but because the purchase price of these items remains lower than that of products made of leather, the value of the market has not risen in proportion. However, a healthier economy and an increased optimism since 1996 has stimulatedconsumer spending in most countries purchasing non-essential items, for the first time oras replacements, the largest potential growth being noted for the purchase of travel goods.

This changing pattern in demand has forced manufacturers to pay growing attention tostyle and design; models that are more fashionable, extravagant and expensive are beingintroduced. Consumers are becoming more conscious of quality and brands, especially inthe case of real leather goods. Buyers carefully select different kinds of leather (bovine,lamb etc.), checking defects, coating, shine and print possibilities with cheaper kinds ofleather. On the other hand, more demand is expected for goods made of combinations of leather and synthetic materials. Besides their lower price, it is also easier to make printson synthetic materials. Changes in demography, such as the ageing population in most EUmember countries, have also led to shifts in demand. It is expected that by the year 2000the core 15-35 years old segment of the leather goods market will decrease by around 10 per cent, while the older age groups will increase in importance.

● ProductionCompared to the USA and Japan, the EU has a large market share in finished leatherproduction. Italy is by far the largest producer of leather goods, followed by Germany,France and the United Kingdom. Europe has traditionally been regarded as a reliablesupplier of high quality leather goods. Moreover, European countries have a long traditionof craftsmanship, years of experience of the latest fashions, the ability to manufacturefashion items and a reputation for maintaining consistency in supply.

Since the 1980s, the EU tanning sector has lost more than 1,000 production units and about30,000 employees. In Europe, there were about 3,000 tanneries with 50,000 employees in1997. Of those, 10 companies employed more than 200 people, but almost 90 per centwere very small family businesses employing less then 20 people, many of which had beenin business for generations.

The production of leather goods has often been shifted to East European countries andAsia, where the leather industry uses second hand machines supplied by Germany andother Northern EU manufacturers. This is particularly the case in the production of highvolume items (bags, travel goods, small leather goods). It is well known that someproducts carrying the world's leading European brands are now produced (though notdesigned) under franchise or licence in developing countries, because of low labour costs. Since the late 1980s, there has been a continuous decrease in the EU's total output ofleather goods. In 1997, the total value of EU production, at factory prices, amounted toUS$ 4,676 million. Italy accounted for more than 50 per cent of this total and handbags arethe main items produced, as is shown in table 4.1.

37

Table 4.1 EU production of leather goods by EU country and product group, 1997 Production value in US $ million

Handbags Suitcases Travel Small leather Briefcases Belts/ Totalgoods goods gloves

Total 2,001 307 612 570 308 878 4,676

Italy 1,292 378 214 186 514 2,584France 434 223 165 122 169 1,113Germany 225 240 90 195 750United Kingdom 20 67 61 148Other EU countries* 30 11 40 81

Note: * Other EU countries are: The Netherlands, Denmark and Sweden


As already mentioned in section 3.2, the European leather goods industry has beenthreatened by enormous price competition from large supplying countries like China, Indiaand Pakistan. As a consequence, the EU industry now concentrates on the production andmarketing of high quality leather goods. European manufacturers changed their productionemphasis from quantity to quality and adjusted their production methods and techniques inorder to fulfil higher quality standards and to produce the latest fashion trends in leather.Sometimes they specialise in particular niche markets, which need excellent technologicalcontrol, good design and an ability to anticipate the needs of consumers.

● ImportsImport and export statistics are distorted by the existence of central European distributioncentres for the larger brand manufacturers. They import the leather goods, especially travelgoods from non-European sources to one location, but subsequently re-export the samegoods to individual EU markets. Therefore, official statistics give only an indication of themajor trends and of the relative significance of individual importing countries and do notrepresent the real situation. Furthermore the same restrictions apply to the import andexport statistics of the EU as to The Netherlands (see section 3.3). Detailed import andexport statistics are given in Appendix 1.

The EU ranks among the leading importers of leather goods in the world. All small leathergoods exports are almost evenly shared between the EU countries and the USA on onehand and Asia on the other. In 1997, the EU imported more than 25 per cent of the totalworld imports of leather goods, or 529 thousand tonnes with a value of US$ 5,094 million.

Between 1995 and 1997, almost all countries in the EU increased their imports of leathergoods, except Germany, Austria and Sweden. In this period, therefore, total EU importsincreased by 20 per cent in volume and in value. Germany, which imports almost onequarter of all EU imports, is the largest EU market for leather goods: 120,115 tonnes,

38

with a value of ECU 1,222 million in 1997. Germany is followed by France (18 per cent ofEU imports in 1997), the United Kingdom (17%), Italy (9%), The Netherlands (6%),Belgium (7%) and Spain (5%). An overview of the imports of each country is given in table 4.2.

Table 4.2 EU Imports of leather goods, 1995-1997Tonnes / US$ 1,000


Germany 126,791 1,226,361 122,929 1,215,274 120,115 1,222,277France 73,975 770,292 81,239 838,849 82,861 894,220United Kingdom 75,888 614,263 86,433 768,088 116,484 880,012Italy 31,899 284,347 35,022 335,851 48,694 449,594Netherlands 34,068 268,272 38,301 321,907 38,350 329,944Belgium 26,677 276,735 33,189 310,991 37,257 346,928Spain 20,392 181,695 24,992 221,720 29,881 258,981Austria 13,556 192,055 13,066 196,611 12,076 185,320Sweden 13,574 148,324 13,128 157,583 12,690 155,467Denmark 8,741 100,065 9,097 105,297 9,122 115,315Greece 4,017 40,635 5,780 58,128 7,475 72,148Finland 3,920 42,815 4,562 51,775 4,666 64,275Portugal 3,682 45,738 4,179 56,512 4,921 65,728Ireland 4,193 35,233 4,569 40,675 5,191 53,882TOTAL EU 441,373 4,226,830 476,486 4,679,262 529,783 5,094,091


Between 1995 and 1997, almost all countries in the EU increased their imports of travelgoods, especially in 1997, when there was high demand for travel goods and otherbags/cases/boxes made of textile and plastic. EU imports of briefcases, small leathergoods, in leather and with plastic sheeting, as well as imports of gloves and belts alsoincreased. EU imports of handbags fell by 35 per cent in volume and just by 4 per cent invalue, which is probably a result of anti-dumping levies within the EU, as from 1996, onhandbags from China. A detailed breakdown of product groups which are imported by the EU can be found in Appendix 1.

As is shown in figure 4.1, travel goods dominate imports of leather goods. China is themajor supplier to the EU and, with a total of US$ 2,164 million, accounted in 1997 foralmost half of the EU imports of all leather goods. Travel goods are mainly supplied byChina, whose exports to the EU increased by 25 per cent between 1995 and 1997 to159,581 tonnes. In 1997, China also supplied 38 per cent of the total suitcase supplies toEU countries, but the majority of suitcases came from other EU sources, like Belgium andFrance. Next to China, India, other supplying countries like Hong Kong, Vietnam and theUSA increased their supplies of leather goods to EU countries. India exported morehandbags (in leather) to the EU, at the expense of China, and is an important supplier of

39

small leather goods and gloves. Between 1995 and 1997, Vietnam increased its supplies tothe EU of travel goods, while the USA exported more belts and suitcases. A detailedoverview of the development of EU imports of product groups more in detail is given inAppendix 1. An overview of the main suppliers by each product group in 1997 is given infigure 4.1.

Figure 4.1 EU imports of leather goods by product group, 1997Main suppliers as per cent of total value


The role of developing countriesThe role of developing countries is substantial, since they supplied 64 per cent of the totalimported volume into the EU (339,315 tonnes). Between 1995 and 1997 the share ofdeveloping countries in the import volume decreased slightly from 67 to 64 per cent but invalue their share increased from 52 to 54 per cent to US$ 2,767 million in 1997. However, as the total EU imports increased between 1995 and 1997, supplies fromdeveloping countries increased more or less proportionally. Except belts, all leather goods

40

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Intra-EU 25%

were sourced in developing countries, which supply more than half of gloves, travel goods(especially rucksacks and sports bags), other bags/cases, briefcases and small leather goodsto the EU. In 1997, travel goods took 28 per cent of total supplies of developing countries.Next to China, India and Vietnam, other important suppliers were Pakistan (gloves),Thailand (handbags), South Korea (bags), Indonesia (suitcases), Turkey (belts),Philippines (gloves), Morocco (handbags) and Tunisia (handbags). The importance ofdeveloping countries in the supply of each product group is shown in table 4.3. An overview of the EU imports of each product group separately can be found inAppendix 1. A list of developing countries, as defined by the OESO, is given in Appendix 9.

Table 4.3 EU imports of leather goods from developing countries, 1997, US $ 1000

Total imports From dev. % per % of total dev.countries product group countries supply

All groups 5,094,091 2,767,221 54 100

Handbags 866,015 347,810 40 12Suitcases 732,958 333,722 46 12Small leather goods 619,560 364,069 59 13Gloves 515,819 400,686 78 14Briefcases 298,506 176,966 59 6Belts 158,570 18,484 12 1Travel goods 1,347,082 831,802 62 28Other bags/cases/boxes 555,582 415,756 75 14


● ExportsIn 1997, the total value of the EU exports was US$ 4,369 million, of which 42 per centwent to other EU countries. Between 1995 and 1997 the total of EU exports grew by 12 percent in value. The fall in total EU export volume is mainly due to incidental large exports ofbelts from the United Kingdom to other EU countries in 1995. Being the major producers,Italy and France are the largest exporters of leather goods in the European Union. Other EU countries, which are growing in importance are Belgium, Germany and The Netherlands. Handbags form almost 40 per cent of the EU export value. Other importantleather goods exported by the EU, in order of their share of total export value in 1997were: small leather goods (17%), travel goods (14%), suitcases (11%), belts (7%), otherbags/cases (6%). An overview of EU exports by product group is given in Appendix 1.

Major destinations for EU exports within the EU in 1997 were France, which took 10 percent, Germany (9%), United Kingdom (5%), Belgium (4%), Italy (3%), Spain (3%), The Netherlands (2%) and Austria (2%). Non-EU destinations were: Japan (16%), USA (10%), Hong Kong (8%) and South Korea (2%). An overview of the exports of eachEU country is given in table 4.4.

41

Table 4.4 EU exports of leather goods, 1995-1997Tonnes / US$ 1,000


Italy 23,909 1,538,784 21,333 1,857,558 20,976 1,713,264France 21,807 1,057,989 24,471 1,112,557 27,458 1,134,684Belgium 24,777 237,528 29,449 296,769 35,184 361,082Germany 12,989 399,974 13,388 384,618 13,974 384,093United Kingdom 54,227 161,487 13,109 204,393 14,062 266,799Netherlands 16,854 186,276 17,726 189,599 21,886 220,036Spain 4,350 167,042 4,252 185,445 3,422 148,450Denmark 2,194 40,009 1,654 34,854 2,242 39,336Austria 859 21,843 1,098 23,394 1,292 27,882Sweden 855 16,779 964 20,630 995 23,470Portugal 1,181 19,560 967 17,786 751 19,380Ireland 551 10,536 655 12,253 527 12,870Finland 486 9,850 546 10,923 547 12,082Greece 479 2,620 237 4,660 372 5,711EU TOTAL 165,518 3,870,278 129,849 4,355,440 143,688 4,369,138


4.2 Profiles of the major EU markets

4.2.1 Germany

Germany has by far the largest population size within the EU, with 81.8 millioninhabitants and a recorded average GDP (Gross Domestic Product) per capita in 1997 ofECU 22,500. Consequently, Germany is the largest market in the EU for leather goods.Germans like to show their wealth by their choice of garments, shoes and leather goods,though those from the former East Germany are only able to spend about half as muchmoney on leather goods as their West German cousins.

Consumption and market trendsThe total German retail market for leather goods was valued around US$ 1,450 million in1997, a decrease of 8 per cent compared to 1996. Germany's share in the total EU retailmarket for leather goods in 1997 was 20 per cent. In the same year, travel goods, with a valueof US$ 406 million, accounted for 28 per cent of the German market. Here, rucksacks, whichhave been popular among German teenagers, were the fastest growing segment. For youngwomen, a greater variety of rucksacks has led to an increase in sales at the expense ofhandbags. Between 1993 and 1997 sales of small leather goods (in artificials) and gloves rose,while sales of briefcases, belts and small leather goods (in leather) decreased. The Germanretail market is a mature market and little growth is expected. An increase in leisure time andtravel may result in more demand for rucksacks, especially up-to-date fashionable models,

42

and for travel bags. Further growth can be sought in the market for more expensive, qualityleather goods, since Germans are very interested in fashion and good quality. They preferGerman-made (or apparently German-made) articles. Soft luggage is preferred to hard, whiletravelling bags and other items should link up nicely with the suitcases in style and colour.

Figure 4.2 German retail market for leather goods by product group, 1997Value in US$ million

Source: BBE Branchenrapport Lederwaren (1998)

Trade structureIndependent retailers sold 47 per cent of leather goods in 1997, a market share which hasbeen fairly stable for the past five years. In 1997, there were 2,822 independent leathergoods shops in Germany, for which Goldkrone, Assima and Anconia were the majorbuying groups. Department stores accounted for 25 per cent of retail sales - a slightdecrease compared to 28 per cent in 1993. Mail-order houses make almost 8 per cent oftotal sales. The remaining 20 per cent is sold in other outlets, where clothing and shoeshops are growing in importance, especially those selling leather goods at a price andquality in the middle and lower ranges.

Production and processingGerman manufacturers are well known for high quality leather goods. In 1997, the Germanproduction output of leather goods was valued at US$ 750 million, which is almost equallyshared between handbags, suitcases and belts. This shows a decrease of 10 per cent,however, compared to the turnover of US$ 826 million in 1996. German manufacturerstogether outsource more then half of the country’s imported leather goods, frequently fromlow-cost countries like Poland, Hungary and Asian countries. Products are produced underlicence or can be a private brand, made according to buyers' specifications. Very often,technical staff and management are transferred to a plant with low labour cost, in order toassure high quality standards. This practice has resulted in fewer plants and a decrease inthe numbers employed in the German leather industry. In 1997 there were around 250 German companies manufacturing leather goods, of which 121 companies employedmore than 20 people (total: 7,500 employees). This number is expected to decrease further.

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Travel goods28%

Suitcases, briefcases22%

Gloves14%

Small leathergoods15%

1,450

Ladies handbags15%

Belts6%

Imports and exportsWith a 24 per cent share of total EU imports, Germany is the largest market in the EU forleather goods. In 1997, Germany imported 120,115 tonnes with a value of US$ 1,222 million.In the same year, 24 per cent of imports was sourced inside the EU, while 60 per cent oftotal German imports came from developing countries. Germany is the largest EU importerof gloves (29 per cent of total EU imports in 1997) and of suitcases, small leather goods,and travel goods. German imports slightly decreased by 5 per cent between 1995 and 1997,mainly because of a fall in demand for handbags, gloves, briefcases, suitcases and belts. In 1997, small leather goods, travel goods and other bags (textile) were more in demand.The main supplier of leather goods to Germany is China (54 per cent of total volume ofimports). Other suppliers include India (6%), Belgium (5%), The Netherlands (4%),Pakistan (3%), Italy (3%), Vietnam (3%), Czech Republic, Taiwan, Poland, Indonesia,Hungary, United Kingdom, USA, Bulgaria and Hong Kong. An overview of Germanimports by product group is given in table 4.5.

Table 4.5 Imports of leather goods to Germany, 1995-1997Tonnes / US$ 1000


Total 126,791 1,226,361 122,929 1,215,274 120,115 1,222,277Intra-EU 19,675 316,261 23,355 346,498 19,247 287,617Extra-EU 107,116 910,100 99,574 868,776 100,868 934,660Developing countries 88,111 723,650 82,448 693,268 82,862 739,241

Handbags 12,404 237,345 11,652 237,428 7,933 184,083Small leather goods 7,521 146,379 7,650 141,483 8,688 157,355Gloves 18,220 148,851 16,246 137,220 16,839 151,275Briefcases 7,900 64,543 7,558 65,204 7,429 71,172Belts 1,438 49,826 1,313 47,842 1,322 45,062Travel goods 27,426 238,658 27,360 248,487 27,631 267,193Suitcases 32,973 187,131 32,384 184,800 30,866 168,451Other bags/cases/boxes 18,909 153,627 18,766 152,810 19,407 177,686


Germany is the fourth largest exporter of leather goods in the EU and exported for US$ 384 million in 1997, which represented 9 per cent of total EU exports. Handbagsaccount for 22 per cent, small leather goods 21 per cent, travel bags 15 per cent, suitcases13 per cent, belts 9 per cent and other bags 12 per cent. Other EU markets imported 46 per cent of German's exports, while 52 per cent went to non-EU markets, of whichJapan, USA and Hong Kong were significant customers in 1997.

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4.2.2 France

In 1997, France had around 58.3 million inhabitants, who had an average GDP per capitain 1997 of ECU 21,270. France, together with Italy, is the undisputed joint world leader interms of fashion and quality of leather goods. Many of France's famous fashion designersproduce their own lines of leather goods. Some well-known names are: Cartier, Dior,Hermes, Lancel, Chanel and Yves Saint-Laurent. A "French style" in handbags and smallleather goods definitely exists. The style is mainly characterised by classic lines andrelatively simple designs; it is sparing in embellishments, classic in choice of colours andrigorous in its insistence on superb finishing. Exporters in developing countries shouldkeep this style in mind, but this should not deter them from producing their own designs inco-operation with the importer or the agent. It is important for such designs to be basicallyclassic in style and colour.

Consumption and market trendsIn 1997, the total French retail market for leather goods was estimated to be around US$ 1,140 million. France's share in the total EU retail market for leather goods in 1997was 16 per cent. In 1997, handbags accounted for 29 per cent of the French market,representing a sales value of US$ 330 million and making France the second largest retailmarket for handbags in the EU. Hand-held or under-arm bags are popular; the smaller theybecome the more precious is the material: goatskin with metallic finish. Handbags tend tobe decorated with embroidered satins, trimmings and embellishments. Other popularleather goods sold were gloves, which together with belts accounted for 20 per cent of theFrench market. In the past few years, travel goods and suitcases have been a dynamicsector and their share in the total value of leather goods sold was 26 per cent in 1997, as is shown in figure 4.3.

Figure 4.3 French retail market for leather goods by product group, 1997Value in US$ million

Source: Le Conseil National de Cuir (1998).

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Travel goods26%

Briefcases14%

Gloves, belts20%


1,140

Ladies handbags29%

When buying leather goods, the French tend to pay more attention to the name of thedesigner than the brand. They are critical buyers, who are used to a highly sophisticatedhome industry and they carefully consider price, quality and fashion before making apurchase. It is important to know that most French consumers will pay high prices only forEuropean leather goods, preferably marked "Made in France" or " Made in Italy".Developing country exporters will therefore have a greater chance of success if theyoperate in the medium- and lower-priced product categories or approach the French marketwith less fashion-sensitive lines such as travel goods, briefcases or small leather goods.The majority of leather goods in France is sold by independent retailers, while one third issold in department stores and hypermarkets, which sell more small leather goods and bags,mainly under their private brands. The larger mail-order companies usually concentrate onthe lower end of the market.

Production and processingThe long-established domestic leather goods industry is highly skilled and specialised.Factories are usually small family businesses, sometimes producing for only one or twooutlets (their own) and specialising in one or two types of leather goods. In 1997, there were about 250 enterprises manufacturing leather goods, with 11,000 employees. The industry's turnover in 1997 was around US$ 1.100 million. An overview is given insection 4.1, table 4.1.

Imports and exportsIn terms of value, France accounted for almost 18 per cent of EU imports of leather goodsin 1997, or a total of 82,861 tonnes, valued at US$ 894 million. In 1997, 42 per cent oftotal French imports was sourced inside the EU, while 51 per cent came from developingcountries. France, compared to other EU countries, is a large importer of handbags andsmall leather goods. Travel goods dominate imports, accounting for 27 per cent of totalimports in 1997. French imports of leather goods together increased by 16 per centbetween 1995 and 1997, as is shown in table 4.6. Handbags were less in demand andimports of these had decreased by 4 per cent in volume, but had slightly increased to avalue of US$ 181 million in 1997. All other goods have been more in demand with thelargest increases in French imports of small leather goods (in artificials), briefcases andsuitcases (plastic, textile surface) and travel goods.

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Table 4.6 Imports of leather goods to France, 1995-1997Tonnes / US$ 1,000



Handbags 12,458 172,569 14,149 192,874 11,892 181,776Small leather goods 3,416 106,040 3,610 117,346 4,416 126,414Gloves 4,147 59,126 4,681 66,571 4,823 70,115Briefcases 5,974 48,528 6,338 51,321 7,515 60,324Belts 504 22,210 712 25,511 715 25,374Travel goods 24,963 207,400 26,553 220,432 27,377 242,397Suitcases 13,136 70,749 15,354 79,822 16,073 87,554Other bags/cases/boxes 9,377 83,670 9,842 84,971 10,050 100,266


In 1997, most French imports of leather goods came from China (59 per cent of totalvolume of imports), Belgium (13%). Other suppliers include Italy (4%), Netherlands (4%),Vietnam (4%), United Kingdom (2 pert cent), India (2%), Germany, Thailand, Spain, Taiwan,Portugal, Morocco, Pakistan, Tunisia, USA, Indonesia, South Korea and Hong Kong.

France is the second largest exporter of leather goods, exporting a value of US$ 1134 millionor 26 per cent of total EU exports in 1997. Exports continue to exceed imports and in 1997,around 80 per cent of the French industrial turnover was exported. Handbags accounted for33 per cent of this total, small leather goods for 32 per cent and travel goods17 per cent. In 1997, other EU markets imported 25 per cent of France's total exports. Japan, USA andHong Kong were major customers.

4.2.3 Italy

Italy had around 57.3 million inhabitants in 1997, with an average GDP per capita in 1997of ECU 17,465. Italy is one of the world's leading producers and exporters of leathergoods. Handbags, its most important product group, account for 58 per cent of the value ofall leather goods exports. Along with France, Italy is a world fashion leader for leathergoods. Fashion is a priority factor in the buying decisions of all Italian consumers. Traders say that if materials other than leather happen to be in fashion, many Italians willbuy the non-leather items in preference to those of leather. Men's belts are the only articlesthat seem impervious to fashion, as far as materials are concerned. Even the cheapestmen's belt must be made of leather to sell on the Italian market.

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Consumption and market trendsIn 1997, the total Italian retail market for leather goods was US$ 1,130 million. Demand inthis sector is fragmented. The youth market has gained in importance and the market ismore segmented by lifestyle instead of by income level. Consumers and their preferencescan be divided into four categories: citizens (classic style), freestyle (safari style),teenagers (extravagant style), children (curved style). As for the product groups, handbagsaccounted for 50 per cent of the Italian retail market, which is a very high percentage,compared to other EU countries. Leather handbags are mainly purchased by women olderthan 25 years, who represent around 20 million consumers. In 1997, gloves and beltsaccounted for 17 per cent of the Italian market, a decrease over the previous year.The same applied to sales of small leather goods, which in 1997 accounted for 12 per centof the total market. Rucksacks hold an important position in the travel goods segment and,in 1997, travel goods accounted for 15 per cent of the total Italian leather goods market, as is shown in figure 4.4.

Figure 4.4 Italian retail market for leather goods by product group, 1997Value in US$ million

Source: AIMPES (1999)

The value of the Italian retail market in 1998 was estimated at US$ 1,123, which is a slightdecrease of 1.3 per cent compared to 1997. Sales of handbags increased by 3.8 per cent (in volume), which was also the case for suitcases (1.6%) and briefcases (1.6%). Sales decreased, however, for bags/ rucksacks (8%), wallets (10.7%), belts (7.9%) andsmall accessories (1.9%).

In 1997, the distribution of leather goods by independent retailers accounted for 35 percent of retail sales. In 1997, there were 4,000 shops in Italy selling leather goods, but thesehave suffered from increased competition from street vendors, open markets and clothingstores, which accounted for almost half of retail sales that year. Department stores soldonly 7 per cent and are less important in the sale of leather goods in Italy than in other EUmarkets.

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Travel goods15%

Briefcases6%

Gloves, belts17%Small leather

goods12%

1,130

Ladies handbags50%

Many prospective suppliers fail to penetrate the Italian market because the goods theyoffer are simply not adapted to Italian tastes. The Italian style in leather goods is hard todefine and the materials and colours used are decisive in whether or not a product will sellwell. As the "look" of leather goods is essential to sales, prospective suppliers mustestablish close contacts with Italian designers in order to have a chance of succeeding inthis market. In their very first approach to an Italian importer, exporters should presentfinished leather goods instead of letters or photographs, since buyers prefer to see and feelthe items in question.

Production and processingIn 1997, the production value of leather goods, the majority of which was handbags, was valued at US$ 2,584. An overview of the Italian production of leather goods is givenin table 4.1, section 4.1. Production dropped by 8 per cent in 1998 to a total value of US$ 1,130. This was mainly due to a decrease in demand for small leather goods, belts and luggage and difficulties experienced in supplying many small quantities in shorttimes, which is often required by retailers. In 1997, there were 6,400 Italian manufacturersof leather goods, employing 27,000 people. Like other EU countries, Italy is facingcompetition from producing countries with low labour costs. Although it is probably stillthe world's biggest manufacturer of leather goods, it is finding it harder to produce leathergoods competitively, particularly in the lower and middle quality ranges.

Imports and exportsIn terms of value, Italy accounted for almost 9 per cent of EU imports of leather goods in1997, or a total of 48,694 tonnes, valued at US$ 449 million. In 1997, 26 per cent of Italianimports was sourced inside the EU and 58 per cent came from developing countries.Travel goods and suitcases dominated imports and accounted together for around 44 percent of total imports of leather goods. Handbags (mainly in artificials) accounted for 17 percent, small leather goods for 15 per cent, while gloves and other bags accounted for 9 percent each. Italian imports of leather goods increased between 1995 and 1997. Handbags were less in demand, with imports down by 44 per cent, to a volume of4056 tonnes by 1997. On the other hand, the value slightly increased. Imports of all otherproduct groups increased, especially those of travel goods, suitcases, other bags and smallleather goods. An overview of Italian imports by product group is given in table 4.7.

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Table 4.7 Imports of leather goods to Italy, 1995-1997Tonnes / US$ 1,000





In 1997, most Italian imports of leather goods came from China (62 per cent of totalvolume of imports). Other suppliers include Belgium (9%), France (5%), India (3%),Vietnam (2%), Pakistan, Hungary, Netherlands, Thailand, Taiwan, Germany, Switzerland,Indonesia, Bulgaria, Romania and the USA.

Being the largest EU producer, Italy controlled a 40 per cent share of all EU leather goodsexported, in 1997, with a volume of 20,976 tonnes, valued US$ 1,713 million. Most of thistotal was handbags, which accounted for 58 per cent of total Italian exports. Other largeexport products are small leather goods (11%), belts (11%) and suitcases (6%). In 1998Italian exports increased due to the popularity of products in synthetics, particularlybriefcases, small accessories and handbags. In 1997, other EU markets imported 33 percent of Italian leather goods, while the Japan, Switzerland, USA, Hong Kong, Canada,Eastern Europe and other Asian markets were also major customers.

4.2.4 United Kingdom

The population of 58.7 million inhabitants (1997) constitutes the fourth largest EU market forleather goods. This market is clearly divided between people from the South (basically theLondon area), who have a higher income and who prefer goods made of leather and peoplefrom the North, who are very price-conscious and who buy more goods made from artificials.

Consumption and market trendsThe total British retail market for leather goods in 1997 was around US$ 712 million, or 10per cent of the total EU retail market for leather goods. The UK market for leather goods hasbeen stable for some time and in 1997 small leather goods accounted for 44 per cent of this

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market, with a sales value of US$ 313, which is high compared to other EU markets. Walletsand purses are regarded as essential and are often used as personal gifts. Goods of goodquality leather are reasonably priced. Small leather goods are also used in the rapidly growingpromotional gift market. Gloves and belts accounted for 22 per cent of the total and handbagsfor 19 per cent, of which 3 per cent were handbags in artificials. Most women, from theirteens, are likely to use a bag daily and many will own more than one, varying them to suitoccasion and outfit. Some British women prefer not to use anything derived from animalproducts and choose instead bags of natural fabric, while younger women tend to preferhandbags with a synthetic look. Travel bags and suitcases accounted for 15 per cent of theretail market. These are often purchased only out of necessity, or are borrowed from others.However, the sale of luggage is expected to increase, since tourism within the UK and abroadis growing. Briefcases accounted for 8 per cent of the market and practicability and qualityare most important for British people. A stronger economy, a rise in the number of womenexecutives and an escalating demand for portable personal computers and other officeaccessories needing cases, will all stimulate further growth of briefcases and other cases.

Figure 4.5 United Kingdom retail market for leather goods by product group, 1997Value in US$ million

Source: Keynote/CIG (1998)

Department stores and chain stores accounted for around 44 per cent of retail sales ofleather goods in 1997. Independent retailers sold almost 29 per cent and mail order houses,including catalogue showrooms, accounted for 29 per cent of total retail sales.

Production and processingLeather goods "made in the UK" are mainly classic items of high quality, which are producedfor long-established British brands. In the high quality leather segment, the UK plays asignificant role in the EU leather industry. In 1997, the production value of leather goods wasvalued at US$ 148 million, mainly for suitcases and small leather goods. Most manufacturersdeal directly with retailers, forcing out the wholesaler, who mostly handles imported products.Like the other EU countries, most of the British leather industry has moved its production tocountries with low labour costs, first to South America and later to Asian countries.

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Travel goods15%

Small leathergoods44%

Ladies handbags19%(of which in artificials 3%)

Briefcases8%

Gloves, belts22%

712

Imports and exportsThe United Kingdom accounted for 17 per cent of EU imports of leather goods in 1997.Imports amounted to 116,484 tonnes, with a value of US$ 880 million, of which imports oftravel goods, handbags and small leather goods took the largest proportions. In 1997,British importers sourced around 25 per cent of their requirements in other EU countriesand, of this total, 65 per cent came from developing countries. Between 1995 and 1997,United Kingdom imports increased by 43 per cent, mainly because of a high demand forother bags (textile), travel goods, briefcases, belts and small leather goods. In 1997, therewas less demand for handbags and gloves. The main suppliers of leather goods to theUnited Kingdom are China (52%), France (28%). Other suppliers include India (3%),Italy, Taiwan, Germany, Pakistan, Hong Kong, Netherlands, USA, Ireland, Vietnam, Philippines, Indonesia, Thailand, South Korea, Malaysia, Myanmar, Sri Lanka and Turkey.An overview of United Kingdom imports by product group is given in table 4.8.

Table 4.8 Imports of leather goods to The United Kingdom, 1995-1997Tonnes / US$ 1,000





In 1997, the United Kingdom exported 14,062 tonnes of leather goods with a total value ofUS$ 267 million, or 6 per cent of total EU exports. Suitcases and travel goods accountedeach for 25 per cent of total exports, handbag 17 per cent and small leather goods 10 percent. In 1997, other EU markets imported 64 per cent, while Japan, USA and Hong Kongwere also significant customers.

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4.2.5 Belgium

In 1997, Belgium had around 10.1 million inhabitants with an average GDP per capita ofECU 21,042. Belgium is a relatively small market for leather goods, but plays a key role asa European trader for distribution to other EU markets. In 1997, the Belgian retail marketfor leather goods was estimated to be around US$ 387 million, or 5 per cent of the total EU market. As in other northern EU markets, sales of travel goods have increased rapidlyand took the largest proportion of the market. Due to the enormous variety of productsavailable, growth in the Belgian leather goods market as a whole has slowed down.Domestic production of handbags and small leather goods is almost negligible, owing tohigh labour costs. However, Belgium is the biggest supplier of hard-side luggage in the EU(Samsonite plant).

Belgium offers possibilities for exporters of articles at the extreme ends of the market,either the most expensive or the cheapest leather goods. Originality in both productcategories is essential. On the other hand, in the Brussels and Luxembourg areas, leathergoods at the higher end of the market are favoured. It is clear that most developingcountries should target the bottom end of the market. Simple articles without fancy designsare the best to start with, especially for producers whose production machinery is limitedto sewing machines and other basic tools. Fashion products are also likely to causeproblems. New exporters should develop product lines in close co-operation with buyers.This may take time, but will bring better results in the end. Sales service is also of greatimportance to Belgian buyers. Importers handle all matters in relation to production,transport, delivery, payment arrangements and stock financing. Bulk buyers such ashypermarkets (GB/Maxi, Delhaize) prefer to have access to these services, which are justas important to them as price. Exporters should calculate their minimum price and quotethis price, and no other, when presenting their collections to importers.

In 1997 Belgium, together with its neighbouring country Luxembourg, accounted for 7 per cent of total EU imports, importing a total of 37,257 tonnes, with a value of US$ 346 million, of which the largest part was re-exported. In 1997, 45 per cent of Belgianimports was sourced inside the EU and, of this total, 46 per cent came from developingcountries. Travel goods dominate Belgian imports. Suitcases and handbags are otherimportant product groups. An overview of Belgian imports by product group is given intable 4.9.

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Table 4.9 Imports of leather goods to Belgium and Luxembourg, 1995-1997Tonnes / US$ 1,000



Handbags 3,146 57,048 4,828 63,779 2,750 46,110Small leather goods 1,019 22,299 1,086 22,279 1,151 27,864Gloves 1,459 17,292 1,479 18,492 1,849 22,406Briefcases 1,422 13,993 1,590 15,314 1,597 17,227Belts 287 10,944 313 11,056 308 11,064Travel goods 9,412 78,773 12,498 97,853 16,171 129,345Suitcases 8,359 56,220 8,500 56,529 10,097 61,465Other bags, cases etc. 1,573 20,166 2,895 25,688 3,334 31,448


Between 1995 and 1997, Belgian imports of leather goods increased by 25 per cent.Particularly travel goods, other bags and gloves were more in demand. Imports of the other product groups also increased, except of handbags of which Belgian importsdecreased by 23 per cent between 1995 and 1997. China (52%), France (16%) were themain suppliers, while other suppliers include The Netherlands (8%), Vietnam (4%),Hungary (4%), Germany, India, United Kingdom, Italy, Philippines, Thailand, Taiwan,USA, Czech Republic, Pakistan and South Korea.Re-exports are considerable and themain destinations for leather goods of all types are The Netherlands and France. Belgium is the third largest exporter of leather goods in the EU with a total exports volumeof 35,184 tonnes, or US$ 361 million in 1997. Between 1995 and 1997, Belgian exportsincreased by 50 per cent in value, due to increased exports of travel goods, other bags andsmall leather goods. The majority (95%) went to other EU markets.

4.2.6 Spain

In 1997, Spain had around 39.2 million inhabitants. The population growth has beenslowing down in recent years and is forecast to rise by just 1.1 per cent between 1996-2005. Tourism brings 60 million foreigners into Spain every year. The average GDPper capita in 1997 was ECU 11,960 and Spain is among the fastest growing economies inthe EU. The Spanish retail market for leather goods in 1997 was estimated to be US$ 572 million, in which travel goods are expected to grow further. In 1997, Spanishimports of leather goods were 29,881 tonnes, or US$ 258 million, representing 5 per centof total EU imports. In the same year, 36 per cent of Spanish imports was sourced insidethe EU and 58 per cent came from developing countries. Travel goods, suitcases andhandbags together dominated these imports and accounted for 65 per cent of total imports.

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Between 1995 and 1997, Spanish imports of all leather goods increased by 42 per cent,except handbags. An overview of Spanish imports by product group is given in table 4.10.

Table 4.10 Imports of leather goods to Spain, 1995-1997Tonnes / US$ 1,000



Handbags 3,242 40,009 4,065 47,620 2,912 39,970Gloves 2,580 21,521 2,772 23,670 2,878 25,497Small leather goods 815 10,724 1,116 14,528 1,422 19,967Briefcases 929 8,048 1,261 10,446 1,551 12,025Belts 187 7,381 168 7,519 136 6,797Travel goods 6,794 52,528 7,129 61,130 9,979 82,895Suitcases 4,146 26,804 6,135 37,465 7,531 45,433Other bags/cases/boxes 1,699 14,681 2,346 19,341 3,472 26,397


China (63%) is the main supplier to Spain. Other suppliers include India (5%), France (5%),Belgium, Italy, Netherlands, Vietnam, United Kingdom, Taiwan, Thailand, Germany,Pakistan, USA and Indonesia. Spain is a small EU exporter of leather goods, with a valueof US$ 148 million or 3 per cent of total EU exports. Between 1995 and 1997, Spanishexports decreased by 12 per cent, which was due to fewer exports of handbags and smallleather goods, both in leather. In 1997, other EU markets imported 52 per cent, while theAsia and USA were also significant customers.

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5 ACCESS TO THE EUROPEAN UNION MARKET

5.1 Quality and grading standardsThe term "leather goods" covers a very wide range of products. Few other industriesproduce products which, apart from the basic material, differ so much in size, construction,production methods and supplementary materials. For this reason, it is impossible to givegeneral guidelines on quality and grading standards for all these different kinds of leathergoods. In trade, buyers are concerned with the five following points linked like a chain,which will snap if one of them is too weak: P = Price; Q = Quality; R = Reliability; S = Speed; T = Technology. P-Q-R-S-T is a yardstick in the leather industry forevaluating suppliers. Although buyers are always looking for new and better lines ofmerchandise, they tend to stay with their established suppliers. Exporters must prove thattheir company and products are absolutely reliable before buyers will consider them asnew suppliers. In addition, there are restrictions to the use of the term "leather", which areusually defined by the trade. Next to the P-Q-R-S-T chain, buyers may check if the productadheres to international standards or to the standards in their own country. Contrary to themany international regulations which apply to imported hides and skins and thoseproduced by EU tanners, there are almost no international rules on imported leather goods.When rules exist, most EU countries apply their national legislation. However, there is oneEU standard (Directive 92/59/EC), which aims to guarantee product safety on the use ofspecific materials (e.g. nickel) in leather goods that will come into contact with humanskin. In the leather industry, there are quality standards with international certificates orlabels and as long as these are met, the product definitely has a competitive advantage.

International standards

On a worldwide basis, the ISO 14001 standard provides guidelines for the tanning andproduction of leather. When producers apply these guidelines in their production, the highquality of their products will be recognised by the trade. The ISO standard is not a law butis regarded more as general advice. There is an enormous difference between theproduction methods and waste treatment in western and in developing countries. Tannersin EU member countries are obliged to invest in expensive water purification installationsto meet the strict environmental standards in their own country. Further information can beobtained from the ISO, whose address can be found in Appendix 2.

Imports of leather goods made from the skins of endangered species are strictly controlled.Documentation must be supplied to the Customs authorities showing that the exportedskins meet the protection of species regulations of supplying countries. Some animals areprotected by the Convention of Washington on International Trade in Endangered Speciesof Wild Fauna and Flora (CITES). CITES will supply information on the export of thesekinds of leather goods. The address can be found in Appendix 2.

EU Standards

In 1997, there was one EU standard (EN 420) for finished leather goods, restricting the useof chrome in the production of protective gloves. Currently, two EU TechnicalCommittees (TC 289 and 309) are developing standardised ecological criteria for the

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production of footwear (not dealt with in this survey), which in future will be alsoapplicable to the production of finished leather goods. These criteria will mainly concern:● The use of cadmium in certain dyes and stabilising agents in raw material and leather;● The health and safety of the products for consumers, based on Directive 92/59/EC,

which requires that all consumer goods must bear a safety guarantee.The European Commission can be contacted for further information. The address can befound in Appendix 2.

Dutch standards

In The Netherlands, there are some guidelines for quality control of standard suitcases,which can be ordered from TNO (National Technical Centre for Research), whose addresscan be found in Appendix 2.

5.2 Packaging, marking and labellingDeliveries from developing countries generally have a long distance to go before reachingtheir destination. Therefore, it is very important that close attention is paid to seaworthyand solid packaging. Items which can easily be damaged, moulded or chapped musttherefore be packed carefully and securely.

Points to consider when packaging

● do not to fill up the cardboard boxes just with the products, but pack a number ofsimilar items in a smaller box, or use some cardboard layers;

● clearly indicate which products and in which quantity is packed in each box, so that this won't be a mystery to the importer;

● before packing, products should be protected by plastic bags in order to avoid damage from rain or moisture;

● each box should have a packing list, which gives a specification of all products interms of quantity, types, colors etc..

Large importers often have their own requirements as to how the goods should be packed.The original packaging of leather goods is especially important for department stores andmail-order houses. Here, large quantities are usually involved and buyers want to be ableto transfer the goods from the shipping box straight onto the display shelves of their retailoutlet, or in case of a mail-order company, to be able to forward the item as originallypacked to its customers by mail. In both cases, there should be no need for buyers tocorrect or, even worse, to change the factory packing. The International Trade Centre(ITC) has published an international packaging guide for the leather sector, which servesas a guideline for exporters. For further details the ITC can be contacted; the address canbe found in Appendix 2.

Environmental considerations have become more important for all products in theEuropean Union, in determining the legal requirements for packaging and labelling. The EU directive 94/62/EC on Packaging and Packaging Waste sets common objectivesfor all member countries for the recovery and the recycling of packaging. By law, from July 1996 onwards, all EU member states had to have a packaging waste recycling

57

system in operation. In general, an exporter can make his contribution by taking thefollowing measures:● take care that packaging materials (transport packaging) are limited and as much as

possible of the same kind and could be re-usable or recyclable;● try to combine products and make larger shipments, instead of frequently shipping

small quantities;● try to develop re-usable and multi-functional foils with, for example, snap fasteners so

that the same foil can be used again for (domestic) packaging purposes.

All main boxes should bear the precise address of the receiver and sender. In case ofsending several boxes to one receiver, each main box should be marked individually. The documentary requirements for shipping may vary from country to country and should be always cleared with buyers before the goods are shipped. The bill of lading (or consignment note), a copy of the invoice, the packing list, certificate of origin and aninsurance certificate are the usual minimum documents required. On the consignment noteand on the invoice the following should be mentioned:

Information on the consignment note

● address of the receiver ● address of the sender● quantity of the boxes ● sizes of the boxes● markings on the boxes ● date of sending● total gross weight ● total net weight● description of contents

Information on the invoice

● all information as indicated above● prices of the goods (per product and in total)● materials used to manufacture the goods● payment condition● description of the products and HS code (see chapter 2.2)

5.3 Trade-related environmental measuresGrowing awareness of environmental pollution and hazardous ingredients, particularlyin the (final) processing of leather goods, has led to reductions in the use of chemicalsdangerous to human health. As well as the quality and price, importers and consumers aretaking increasingly more notice of the environmental aspects of the product.Environmental issues mainly concern the production process, the recycling of waste water,preservation methods used on hides and the level of chemicals which remain in the final(leather) product.

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Sustainable developmentThe concept of sustainable development, adopted by nearly all the countries in the world atthe 1992 Rio de Janeiro Conference, represents the philosophy that economic developmentshould automatically take into account environmental issues. In this respect all parties,from the general public to manufacturers, are asked to accept their social responsibility andminimise the environmental impact of their activities. This is called sustainability and thefollowing tools can assist manufacturers to achieve it:

Life Cycle Assessment (LCA)

LCA is also called "the cradle to grave" approach. Manufacturers (have to) look at thetotal environmental aspects of their products. A material which is very environmentallysound when the product is used could be very polluting, energy consuming or difficult to break down in the excavation, refining, production or discard stage of the life cycle.Thus the use of a material which is less environmentally sound when the product is used,could be justified because the impact on the environment is less in another stage of the life cycle. On a European scale the European Commission decided that the LCA methodwill be the technique to decide if a product is produced environmentally conscious or not.The LCA technique is therefore used by the EC in the setting of criteria for ecolabels.

Cleaner production

Cleaner production is the conscious use of products and processes to prevent the pollution of air, water and land. This means that a careful look is taken at the overallprocesses and waste materials. A process liquid could be re-used instead of beingdiscarded, simple measures could increase the efficiency of a machine, toxic processliquids could be replaced by non-toxic etc.

Ecodesign

Ecodesign means basically giving the environment a place in product development. This implies that during product design, efforts are made to reduce the use of rawmaterials, minimise waste, energy used and toxic emissions. This will ultimately lead to a reduction of material and energy used. Although these tools are used by manufacturersto reduce the impact of their product(ion) on the environment, it is known that otherbenefits can arise, like a reduction of product(ion) costs.

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Environmental labelsIn Europe, some "green" marketing labels (for products) and environmental managementstandards (for the whole organisation) have been created both by governments and byprivate parties. The labels most relevant to leather goods are the:

● Ecolabel, which is voluntary and is found mainly on the packaging of the finalproduct. At present there are ecolabels for footwear. In The Netherlands, the "StichtingMilieukeur" (the Dutch Ecolabelling Foundation) is planning to develop criteria forleather goods in the longer term. For more information, interested parties shouldcontact the Stichting Milieukeur (see Appendix 2).

● SG label or Schadstoffgeprüfft label, which stands for "tested for dangeroussubstances", is not only created for leather goods but it also defines norms for textiles,pulp, paper, wood, cork, glue, plastics, rubber and synthetic leather. Limits are beingset for dangerous substances to human health, like: Formaldehyde, Pentachlorophenol(PCP), Chlorified phenols (non-PCP), Arsen, Lead, Cadmium,Mercury, Nickel andChromium. In addition to the listed standards, other norms have to be fulfilled like theminimum colour fastness grades for staining. The testing authorities are threerecognised institutes: TÜV Rheinland Sicherheit und Unweltschutz GmbH, InstitutFresenius Gruppe and Prüf- und Forschungsinstitut Pirmasens. Addresses can be foundin Appendix 2.

Environmental standardsEcolabelling procedures are aimed purely at products and indicate that products carryingan ecolabel have a reduced impact on the environment. If a manufacturer wants topublicise the fact that he is manufacturing in an environmentally sound way, he cancomply with standards, which have been developed for this purpose. There are now twogeneral, but voluntary, standards with which manufacturers can comply: BS 7750 and ISO 14001. Both standards are based on the ISO 9000 series of standards for qualitymanagement. One norm currently being developed is the EU Ecological Management andAudit Scheme (EMAS), but as this only applies to companies with production facilitieswithin the EU, it is usually not relevant for manufacturers in developing countries. So far, EMAS registration is widely accepted only in Germany. It is therefore expectedthat other EU companies will favour ISO 14001.

Issues related to leather goodsIn The Netherlands, consumers are increasingly looking for leather goods which areproduced using environmentally sound methods. Dutch manufacturers now use water-based lacquers and similar measures to deal with the drainage of waste water.Improvements are still being made for soil protection, hazardous production equipmentand working conditions. The association of the Dutch leather industry (address: see Appendix 4) has established guidelines for a standardised environmental managementsystem, to be implemented by leather producers. When producing leather or plastic thefollowing points should be taken into account at the different stages of the productionprocess:

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Environmental issues in the production of leather

In the beamhouse È the use of chemicals during the cleaning of the skin.Tanning process È consider organic tanning instead of chrome tanning.Finishing process È reduce the waste coming from residues of finishing materials,

È finishing solvents, solvent vapour and water.Waste treatment È reduce waste during all stages of the production process,

such as: waste-water, solid waste and atmospheric emissions.This can be achieved by: - Process integrated improvements

- Re-use of wastes- End-of pipe treatment- Reduce azo dyes in leather goods

Environmental issues in the production of plastic

● Find environmentally sound alternatives for cadmium. It may not be used as apigment in concentrations exceeding 0.01 per cent weight in a wide range ofmaterials. In The Netherlands the standard is 50 mg/kg cadmium (50 ppm).

● Find less flammable retardants, like polyamide (PA), polyamideimide (PAI),polyetherimide (PEI), (PEI) or polyimide (PI).

● Find alternatives for asbestos, as its use in products is strictly prohibited in the EU.● Find alternatives for CFCs and halons, like nitrogen and carbon dioxide, which are

prohibited.● Check the latest EU legislation on: - the use of cadmium

(Directives 76/769/EC and 91/338/EC);- bromated flame retardants

(an EU ban is being considered);- asbestos

(Directive 76/769/479 and amendments);- CFCs and halons

(Directive 594/91 and amendments).

The manufacturer is always held responsible for the environmental standards of hisproduct, even if he purchases leather from tanneries in other countries, which may notcomply with the strict standards in Germany or in other EU countries. Therefore, exportersare advised to ask tanneries or traders to declare in writing, that their leather meets the EUenvironmental standards or the standards of the consuming country. Such writtendeclaration does not safeguard exporters from their environmental responsibility, but itenables them to claim damages from tanneries when their leather goods are rejected by theinspection authorities or importers in consuming countries. When tanneries make incorrectstatements in their declaration, exporters can hold them responsible for rejection of goods.

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Information

For detailed information about environmental aspects relevant to trade, please refer to theEco Trade Manual, which can be obtained from CBI. This publication has been jointlydeveloped by CBI and the other trade promotion organisations NORAD, DIPO and SIDA;the addresses can be found in Appendix 7. Information can also be obtained throughGreenBuss®, CBI’s on-line database for Environment, Trade and Technology, which canbe found on the CBI Internet website at: http://www.cbi.nl. CBI has published anEnvironmental Quick Scan for the product group leather. Its purpose is to informindividual companies about relevant environmental standards in trade and to offer themsolutions for meeting these standards.

5.4 Child labour and leather goodsNext to environmentally sound leather goods, consumers have a negative attitude to theuse of child labour in the production of leather goods and it is expected that publicity willincrease the consumer’s awareness of this issue in future. There is growing concern amongbuyers of leather goods on the use of child labour in the factories of new suppliers.Exporters who can guarantee and prove that their products are made without child labourwill not only have a competitive advantage over other products, but will also have a muchbetter chance of establishing a long-term business relationship.

As in other industrial sectors, trade associations of leather goods in most EU countries arecurrently exploring the possibilities of developing a model code of ethical conduct for theproduction of all leather goods. Control programmes to eliminate child labour from theleather goods industry are now being discussed. In future, this may result in theestablishment of a label, to be used by leading manufacturers, which guarantees that theirleather goods are made without child labour. Some well-known brand manufacturers/importers are expected to establish their own standards.

5.5 Tariffs and quotasIf there is no special trade agreement in force between countries, the general import tariffsapply. For developing countries, some kind of preferential trade agreement is establishedwhere import tariffs for leather goods are reduced under the Generalized System ofPreferences (GSP) or the Lomé Convention for the ACP countries (Africa, Caribbean andPacific). However, leather goods originating in China, Thailand and Malaysia are excludedfrom the GSP. Showing the Customs Authority Certificate of Origin ("form A") canpresently reduce the import duty for leather goods and a permanent reduction is beingconsidered. In addition, a Movement Certificate EUR 1 is required to show where theproducts have been produced (the country of origin). Most imported goods are subject toan "ad valorum" duty, which means that the duties are levied as a percentage of its value.The general and GSP tariff for all leather goods are both shown in table 5.1.

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Table 5.1 EU import duties by product group ( in per cent of the CIF value)

HS Codes Product description General tariff GSP tariff

4202 11 10/90 Briefcases, suitcases, leather 3 14202 12 11/19 Briefcases, suitcases, plastic 9.7 3.34202 12 50 Suitcases, moulded plastic 5.2 1.84202 12 91/99 Briefcases, suitcases, fibre or textile 3.7 1.24202 19 10 Suitcases, briefcases, aluminium 5.7 1.94202 19 90 Suitcases, briefcases, other material 3.7 1.24202 21/91 10 All bags, leather 3 14202 2210/92 11/19 All bags, plastic 9.7 3.34202 92 91/98 All bags, textile 2.7 0.94202 22 90/29/99 00 All bags, fabric, fibre, paperboard 3.7 1.24202 31 00 Small leather goods, leather 3 14202 32 10/90 Small leather goods, plastic, textile 9.7 3.34202 92 15 Musical instrument cases, plastic 6.7 2.34202 21/31 Gloves, belts, leather 3 1

Note: Value Added Tax (VAT) for all leather goods is in The Netherlands 17,5 %

Source: Belastingdienst Douane (1999)

If the leather goods are made of hides and skins, which originally come from endangeredspecies, no preferences are granted and the exporter should contact the CITES or theMinistry of Agriculture in The Netherlands; addresses see Appendix 8.There are no quantitative restrictions for imports of leather goods. However, as a result of the EU Council regulation 1567/97 of 1 August, anti-dumping duties for handbags (in leather or in artificials) coming from China have been imposed. These duties may varyfrom US$ 1 even up to US$ 65 per piece. More detailed information on this issue can befound at the CBI trade documentation centre or at the European Commission, DG III;address see Appendix 2.

Regarding up-to-date information on import tariffs and for an updated list of leastdeveloped countries, contact the Customs authorities in Rotterdam, The Netherlands.Information can be also obtained by telephone in The Netherlands and from abroad. The relevant information numbers are given in Appendix 8. The HS code of the productconcerned must be always mentioned; a detailed list of HS codes can be found in chapter 2.2.Other information sources are the European Commission, branch organisations importers.

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5.6 Terms of the trade

5.6.1 The contractDiffering customs, habits and traditions can cause problems in business relationships, even after both partners have carried out sound preliminary investigations. A contract isnot necessarily a document. If two parties agree on something verbally, this verbalagreement is a contract according to most European laws. Since it is difficult, in the caseof a verbal contract, to prove that something in particular has been agreed upon, the agreement should always be confirmed in writing.

Details to be mentioned in a contract

1. The contract parties: the seller, the buyer, the broker and/or buying/selling agent, with all names and addresses correctly spelled.

2. The product, price and quality of the product must be sufficiently specified, so that no misunderstandings can arise.

3. The quantities must be mentioned. If the buyer and the seller agree to more or lessthan the agreed quantity, this should be specifically mentioned.

4. The delivery terms are mentioned according to the description of the Incoterms 1990(available at the International Chamber of Commerce).

5. The payment terms are to be spelled out in detail.6. The delivery time is a vital piece of information on which the seller and the buyer

will have to agree.7. Packaging details, including measurements and weights.8. If one of the parties has negotiated special conditions, this is to be mentioned in the

contract.9. What will be done if the two parties disagree with each other? To which arbitration

court/district they will go?

A contract is of importance if there is a disagreement. A dispute may arise for examplebecause:● the buyer is of the opinion that goods/equipment are delivered late;● the agreed quality level has not been met;● the seller is of the opinion that the buyer does not live up to his financial commitments.

Failure to deliver on time is likely to be subject to penalties. Exporters should beabsolutely sure they can meet delivery dates without delays, before they enter into acontract. Trading relations between exporter and importer are based on trust, and they canonly be built up by meeting the high expectations of the importer.

5.6.2 Payment methods and delivery termsIn the leather goods trade, the method chosen will depend on negotiations between buyerand seller in which both will try to achieve the best conditions for themselves. In general,this means that exporters prefer to be paid before shipment of the goods (by confirmedirrevocable letter of credit at sight), while buyers prefer to pay as late as possible, afterarrival, inspection or even sale of the goods.

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Common methods of payment

Clean paymentThis is the most common method and is used when both parties know each other well.The process is fast and reliable, depending on the credit worthiness of the importer. The bank carries out the transactions through swift electronic data system and the transfercosts are not very high.

Documents against payment (D/P)Also known as cash against documents (CAD). The buyer takes possession of the goodsonly after payment. Although this method is not very popular, it is very safe and the costsare about one pro mille.

Letter of credit (LC)The irrevocable LC is very often used at the beginning of a business relationship when the importer and exporter do not yet know each other very well. The LC is irrevocable and will always be paid. The costs, namely five pro mille, are higher than the D/P method.This method is widely used in the EU when dealing with exporters from outside Europe.

Bank guaranteeThe buyer's bank will present a bank guarantee for the amount of the invoice.

ChequesBank guaranteed cheques are generally no problem, though cashing them may take sometime, up to six weeks. Not all personal cheques are accepted.

Payment on consignment basisPayment on consignment basis is often used in the trade of perishable products and not for leather goods.

A detailed explanation of the payment terms can be found in CBI's manual "Exporting tothe EU", which is available at CBI. When dealing with every (new) supplier, the importerconsiders very carefully which method of payment should be agreed upon. The sameapplies to the delivery terms.

Most common delivery terms

● FOB (Free on Board): the buyer arranges for transportation and insurance. FOB must specify the port of departure.

● CFR (Cost & Freight): the exporter pays the freight, the buyer arranges for theinsurance.

● CIF (Cost, Insurance & Freight): the exporter pays the freight and the insurance.

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5.6.3 Business practiceIn order to establish a successful long-term business relationship, the exporter’s first offershould be interesting in the field/market of the buyer. Importers complain that productranges offered have no direct relation to their business and are therefore not interesting.Before making contact with importers, it is advisable for exporters to research the marketthoroughly to find out more details of importers and their consuming industries.Prospective exporters to The Netherlands or other EU countries could use the followingresources to do their own desk research:

Resources for your desk research

● Trade promotion organisations in your country, as well as chambers of commerce and banks;

● Trade magazines, catalogues from mail-order houses and department stores;● Reports on markets for leather goods published by the other (commercial) agencies;● International Trade Centre (ITC), (for address see Appendix 8);● Import promotion organisations such as CBI to check if export promotion

programmes in your field are being organised.

The next step is to select potential trade partners in EU countries. Names and addresses of relevant importers and traders in The Netherlands can be found in Appendix 10. Do not expect that buyers are waiting just for you or your company, or that you can bookorders right away. Exporting is a long-term business!

When visiting Europe

● Pay a visit to Europe during the year you are planning to export.● Inform selected prospective buyers of your intended visit by letter, fax, or e-mail

two to four weeks before leaving. This can be accompanied by a trade offer. Giving information to buyers beforehand will increase the chance of makingappointments by telephone when in The Netherlands or other EU countries.

● Inform CBI beforehand. Visit CBI to obtain latest information and advice.● Plan a visit during a period in which a trade fair is being organised somewhere in

Europe.● Visit important shopping centres.

Having followed the steps mentioned above, you can select a number of appropriateprospective buyers for your products and try to make an appointment. There are no generalguidelines for approaching a buyer, but the following information about business practicesin The Netherlands and other EU countries should be helpful.

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Some important factors to keep in mind when doing business in EU countries

È Suppliers should accompany their offers to buyers with samples. Quotations should be made on C&F, CIF or FOB basis, depending on the location of the producer and the habits of the importer. Prices should be mentioned in US$, DM, NLG or euros.

È In the leather goods sector, there are many imitations of imitations of imitations etc. This makes life easy for the importer of "copying" producers, but rather frustrating forcreative manufacturers. Regarding fashion items, there is a two-way stream of models:either the importer hands the model to the producer or the producer offers a collection tothe importer. The search for "something new" at "a good price" is an all-pervading themein the selection of models. It is very important for manufacturers in developing countrieseither to have a western-designer style in their collection or to follow the models asindicated by the importer. In the latter case, every importer will insist on exclusivity.

È Large retailers buying high volumes usually expect to obtain a price which is lowerthan the best wholesale price. Suppliers must take this into consideration when setting their prices, after making their own "mixed calculations".

È Importers normally start by placing trial orders, if good samples of the desired modelshave been received. If the first trial order proves to be successful, more substantialorders may follow. Delivery should then be made in a rather short time!

È The delivery date of an order is always specified at the time of purchase. Suppliersshould be aware that failure to meet the specified delivery will usually result incancellation of the order.

È Never ship poorer quality goods than those demanded and agreed upon. Importersreserve the right to return merchandise which does not conform to the sample theywere shown or is not up to the standards of quality they expected. In some cases, thelogistics of returning an order may make it unfeasible, but the importer will surelynever place a new order from the same supplier.

È Avoid bad packaging of the goods. Research packaging problems (mutually) to reduce transportation costs and improve product quality and appearance.

È Depending on the size and market of the importer and the success of an item, thenumber of items of one model may vary from 50 to several thousand. The latter figureindicates a fairly successful product in, for example, the Dutch market.

È Appointments are carefully planned in diaries, leaving little or no room for individualdiscussions on a spontaneous basis, so: always make appointments ahead of time.

È Communication and speaking the right language is very important. If you cannot finishsomething by a deadline, say so early on. Doing your best (though not keeping a deadline) isnot enough. Also, answer questions as soon as possible. Telephone and fax are indispensable;telex is hardly used anymore. E-mail and Internet are rapidly gaining popularity.

È People are frequently in meetings and therefore often unavailable.È Everything is highly planned in detail.È It takes a considerable time to gain confidence as a new supplier.È Little business is done in July and August (holidays).È Individual opinion is important. In all instances directness is preferred.È Women can occupy high executive positions. È Do not go "European"; stick to your own identity. Use "culture" as an asset, rather

than a burden.

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5.7 PromotionPromotional activity is basically carried out by importers and traders; here personalcontacts and long-established relationships are most important. Advertising is done ininternational trade magazines. However, the emphasis in promotion will be in personalselling at trade shows/events, as well as during international trade conferences.

5.7.1 Trade fairsThere are no specific fairs for leather goods at industrial or trade level. Most trade fairs aremainly organised for the retailers in leather goods. Trade fairs for leather goods areorganised in almost all EU countries. Some of these fairs are internationally orientated,while others are just of national importance.

Special attention should be given to the fairs in Germany (Offenbacher Messe andModeforum). The Offenbacher Messe gives a good overview of all leather goods availableon the international market and is held twice a year. The Modeforum, held in Offenbachtwice a year, gives a good impression of the latest fashion for the season to come, wherewomens' handbags are the main item in new collections. Recently the Modeforum hasgrown in importance and most of the goods shown here are ordered at the nextOffenbacher Messe. Foreign manufacturers may participate in the Offenbacher Messe. The organisers of the Modeforum, however, are extremely selective in choosing theirexhibitors and new companies, e.g. exporters in developing countries, do not stand achance of exhibiting, which shows the protectionist attitude of the EU market.

Another trade fair in Germany is the Frankfurter Messe, which is a large show for all typesof consumer goods, held at the same time as the Offenbacher Messe. There is less varietyin leather goods at the Frankfurter Messe and the goods displayed are meant for a specifictarget group. Most exhibitors also have a stand at the Offenbacher Messe, where they showtheir complete product range. For exporters in developing countries, the Frankfurter Messecould be a good alternative to the Offenbacher Messe. However, participation costs arehigh and the waiting lists for participation are rather long.

In Italy the Mipel, which is visited by buyers from all over the world, is the largest andmost important international trade show and sets the trends for fashion in leather goods.This fair provides the best opportunities for international orientation on fashion, styles,colours etc. It is difficult for exporters from developing countries to participate. If a standcan be negotiated, it will be in the "Overseas hall". Because visitors primarily aim toobtain information on the latest trends, this hall is visited by fewer people. It should benoted that French and Belgian consumers have their own interpretation of fashion andstyling, therefore visiting the fairs in Paris and Brussels is recommended. For informationabout developments in tanning and leather finishing, it might be wise to visit the specialfair for leathers and accessories in Pirmasens (Germany).

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In The Netherlands, a permanent fair building for leather goods and other consumer goodshas been established in Utrecht in the center of The Netherlands. This permanentexposition is called "Trade Mart " and is a national fair, which is not open to foreignparticipants. Manufacturers and exporters have their permanent stands in this building.Very often, these stands are used as their main showroom or even as a warehouse, whereretailers can buy from stock. Leather goods are concentrated on the sixth floor. Retailersare welcome every first and third Monday of the month. Special appointments can bemade. Stand owners have access to their own stand whenever they want to welcomevisitors. Season Fairs of several days are held twice a year, which are not strictly fornational participants. The most important international trade fairs for leather goods are:

Trade fair Location Date Visitors

Offenbacher Messe Offenbach, Germany February/August 5,000Modeforum Offenbach, Germany April/October 5,000Frankfurter Messe Offenbach, Germany February/August 105,000Mipel Milan, Italy March/September 10,000Campionare di Firenze Florence, Italy September 4,000Trade Mart Brussels, Belgium May/ November 8,000Iberbiel Madrid, Spain February/September 5,000Trade Mart Utrecht, Netherlands March/September 9,000Linea Pelle * Milan, Italy September 5,000Pirmasens * Pirmasens, Germany March/October 4,000Asia Pacific Leather fair Hong Kong, China April 10,000

Note: * more focused on raw material and finished leather

A large conference for the African leather industry was organised by the InternationalTrade Centre (ITC) for the first time in Cape Town in November 1998. The purpose of thisinitiative was to create a permanent event for the African leather industry, which will be amajor tool in the development of African exports. The conference covered one week andincluded seminars, buyer-seller meetings, factory visits and a trade fair (on raw materials,chemicals, equipment components, accessories and finished leather goods).The conference was sponsored by the CBI and co-organised by the SIC (SemaineInternational de Cuir). Detailed information can be obtained by contacting the ITC andadditional information can be found on the Internet; addresses are given in Appendices 5and 11.

5.7.2 Trade pressThere are many national periodicals giving information about the national production ofleather goods, some of which are of international standard. However, most of theseperiodicals are only in the national language, without a translation into English. On the otherhand, they give a lot of visual and valuable information about fashion and colours for the nextseason. The German and Italian periodicals are the most internationally orientated sources ofinformation. Leading international trade magazines for leather goods are listed next page.

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Title Frequency Language Coverage

Lederwaren Report Monthly German German/Int. leather goods industry(quarterly special on production)

Lederwaren Zeitung Monthly German German trends in leather goods Arpel Monthly Italian/English Italian/Int. fashion in leather

goods/clothingLeather Monthly English International leather industryFiliere Cuir Fortnightly 4 languages International leather trade and industryTrend Boutique Monthly Dutch Dutch/Int.trends in leather goods Lederwaren Tribune Monthly Dutch/French Belgian leather goods industrySko & Laedervarer Monthly Danish Danish leather goods industry

The Italian magazine Arpel and the German magazines not only give information aboutleather goods, but also on the trends and colours in fashion for the new season. For exportersin developing countries, these periodicals could be of interest for orientation on the market,but not for advertising. In order to keep well up to date, buyers and retailers also read theinternational trade press. The Internet gives the latest information on the leather sector at thesite http://www.leathernet.com. This site also offers the opportunity to get in contact withtrade partners. Another international site is related to the Filiere Cuir magazine, calledleathermarkets. This is written in French, English, Chinese and Arabic; the address ishttp://www.leathermarkets.com. Other useful Internet addresses can be found in Appendix 11.

5.7.3 Assistance with market entryBefore approaching organisations abroad, potential exporters are recommended to check withthe local trade promotion organisations, Chambers of Commerce and foreign representativesin their country as to whether the information required is readily available. There are manyorganisations in EU countries, which are important in the field of general representation,promotion and public relations activities for exporters from developing countries.

Import Promotion Organisations:In most EU countries, there are organisations (for example CBI in The Netherlands) which support imports from developing countries, through a specific export promotionprogramme. They can provide the following services:● supplying information about:

– statistics and publications about the national market– regular news bulletin– database of importers– product market opportunities

● giving individual assistance, such as:– management training– testing products by display– product adaptation services

● establishing contacts by means of:– collective trade fair missions– selling missions

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Branch organisations: In most European countries, producers, wholesalers and retailers are organised in branch organisations or trade associations. These organisations can help new exporters to the EU,by supplying information about the market.

For addresses, telephone and fax numbers of Import Promotion Organisations and other organisations, which can be of assistance in entering the European Union market, see listin Appendix 7.

5.8 ChecklistThis checklist can be used to verify the subjects mentioned in the previous chapters:

q Check the European quality and grading standards for leather goods (see section 5.1).

q Determine for which end-use a particular product in leather or in artificials is supplied (see section 5.1).

q Conduct market research on leather goods and your product in particular: market size; segmentation; imports; main competitors; consumption patterns andtrends.

q Check that packaging, marking and labelling meet the requirements of individualtrading partners and any applicable legislation (see section 5.2).

q Be aware of the importance of environmental measures and check the opportunitiesand threats linked to environmental topics (see section 5.3).

q Check the tariff and non-tariff barriers for your products (see section 5.4).

q Verify the conditions of contracts (see section 5.5.1).

q Verify the payment methods used (see section 5.5.2).

q Check the trade fairs which maybe of interest for you (section 5.6.1).

q Study the business practices in The Netherlands and the EU (section 5.5.3).

È Most important: If necessary, see if you can adapt your product or production process to meet the requirements indicated above.

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APPENDIX 1 DETAILED IMPORT/EXPORT STATISTICS

This section gives Eurostat statistics covering the imports of the main product groups intoThe Netherlands and the EU. Instead of listing all supplying countries ranged in order ofimportance, here only the the top 5 or top 3 leading supplying countries are mentioned.This is done in order to emphasize the role and tendencies in supplies of leather goodsfrom developing countries (dev. countries), which are printed in the tables in italics.

THE NETHERLANDS - IMPORTS

Imports of leather goods by The Netherlands by source, 1995-1997Tonnes / US$ 1,000


Total 34,068 268,272 38,301 321,907 38,350 329,944Intra-EU 5,016 59,256 4,945 65,163 5,245 59,570Extra-EU 29,052 209,016 33,356 256,744 33,105 270,374Dev. countries 11,451 80,508 15,940 102,368 16,331 113,982

Top 5 suppliers:Hong Kong 15,347 100,443 15,482 126,308 14,737 127,632China 10,098 61,706 14,128 80,387 14,169 88,159India 1,332 17,130 1,517 21,558 1,640 24,287Belgium 2,506 25,792 2,444 26,861 2,368 24,187Germany 1,549 17,816 1,246 17,003 1,641 16,766Dev. countries: China 10,098 61,706 14,128 80,387 14,169 88,159India 1,332 17,130 1,517 21,558 1,640 24,287Indonesia 617 4,720 963 6,083 896 5,866Pakistan 393 4,110 435 4,451 388 4,583Vietnam 298 3,415 353 4,089 341 4,537South Korea 249 3,715 238 4,684 177 3,938Thailand 180 2,792 177 2,841 135 2,260Tunisia 37 1,907 33 1,714 56 2,015Argentina 37 1,264 43 1,553 48 1,820Phillipines 50 929 60 1,123 46 1,063Turkey 50 910 24 573 32 927Malaysia 18 244 9 80 432 904Mexico 23 288 21 226 20 298Sri Lanka 2 41 1 50 15 261Morocco 12 270 8 189 10 149


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Imports of leather goods by The Netherlands by product group, 1995-1997Tonnes / US$ 1,000



Detailed product groups:Briefcases, leather or imitation 427 4,815 374 5,003 1,122 13,333Briefcases, plastic sheeting 868 4,474 766 5,296 926 5,772Briefcases, plastic, textile surface 932 6,258 1,569 9,665 3,305 15,273Suitcases, leather or imitation 178 2,941 236 3,955 316 3,724Suitcases, plastic sheeting 596 3,285 849 4,254 1,014 4,918Suitcases, moulded plastic 2,654 20,620 3,160 21,875 3,230 21,001Suitcases plastic, textile surface 1,604 7,626 2,263 9,703 2,873 13,196Brief-, suitcases, aluminum 1,269 3,710 925 3,146 590 2,720Brief-, suitcases of other material 440 2,920 554 3,602 377 1,881Handbag, leather or imitation 661 14,827 699 16,817 865 15,533Handbag,plastic sheeting 3,631 24,651 3,382 26,549 907 7,772Handbag, fabric surface 1,875 12,785 2,014 13,648 1,124 11,474Handbag, cardboard or fibre 342 2,763 306 2,559 222 2,301Belts, leather or imitation 247 6,479 231 6,591 246 7,626Small leather goods, leather 429 13,611 472 16,849 592 19,420Small leath.goods, plastic sheeting 682 5,144 591 5,974 503 6,016Small leath.goods, textile surface 721 8,223 1,057 11,686 686 10,399Small leath.goods, cardboard, fibre 342 2,763 306 2,559 181 2,023Travel/sports bags, rucksacks (L) 175 2,063 115 1,737 144 2,313Travel/sports bags, rucksacks (P) 1,623 10,521 1,118 8,560 1,487 10,329Travel/sports bags, rucksacks (T) 5,686 43,891 7,704 65,958 7,633 67,389Shopping bags, boxes, cases (L) 119 2,628 149 4,079 308 5,205Shopping bags, boxes, cases (P) 1,440 10,373 1,483 11,541 1,828 12,247Shopping bags, boxes, cases (T) 3,965 25,590 4,474 29,531 4,835 34,835Musical instrument cases, plastic 35 405 25 375 14 501Gloves, leather or imitation 3,127 24,905 3,479 30,391 2,981 32,464

Note: (L)= made of leather or imitation; (P) = made of plastic; (T) = made of textile


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Netherlands imports of selected product groups by source, 1995 -1997Tonnes / US$ 1,000

HANDBAGS 1995 1996 1997Volume Value Volume Value Volume Value

Total 6,509 55,025 6,401 59,574 3,118 37,080Intra-EU 386 7,037 373 9,385 685 8,176Extra-EU 6,123 47,988 6,028 50,189 2,433 28,904Dev. countries 2,169 19,269 2,451 21,972 943 11,948

Top 3 suppliers:Hong Kong 3,736 25,598 3,354 24,991 1,330 13,676China 1,931 14,662 2,112 16,930 544 5,814India 102 2,016 153 2,453 226 3,932Dev. countries:China 1,931 14,662 2,112 16,930 544 5,814India 102 2,016 153 2,453 226 3,932South Korea 35 782 24 634 25 604Thailand 23 798 20 608 10 460Pakistan 6 31 76 327 76 340Indonesia 20 322 18 297 26 258Turkey 9 231 8 205 10 175


SMALL LEATHER GOODS1995 1996 1997

Volume Value Volume Value Volume Value

Total 1,945 28,349 2,272 36,089 1,962 37,858Intra-EU 139 2,315 122 2,953 92 2,054Extra-EU 1,806 26,034 2,150 33,135 1,870 35,804Dev. countries 595 12,757 967 15,788 677 17,520

Top 3 suppliers:Hong Kong 1,127 11,419 1,111 15,587 1,139 16,239India 132 5,609 215 7,838 246 9,180China 412 4,809 697 5,763 358 5,669Dev. countries:India 132 5,609 215 7,838 246 9,180China 412 4,809 697 5,763 358 5,669Tunisia 37 1,903 32 1,709 56 2,009South Korea 7 168 4 202 9 448Turkey 1 43 1 9 3 259Thailand 7 250 5 218 6 252


74

BRIEFCASES 1995 1996 1997Volume Value Volume Value Volume Value

Total 2,227 15,547 2,709 19,964 5,353 34,378Intra-EU 150 2,209 169 3,385 343 3,440Extra-EU 2,077 13,337 2,540 16,578 5,010 30,937Dev. countries 907 5,249 1,141 5,103 2,761 12,669

Top 3 suppliers:Hong Kong 1,080 6,724 1,263 10,013 2,126 16,641China 660 3,304 953 3,451 2,635 11,644Germany 59 939 44 889 219 1,376Dev. countries:China 660 3,304 953 3,451 2,635 11,644India 12 172 31 515 20 351Indonesia 154 959 107 518 65 318


BELTS 1995 1996 1997Volume Value Volume Value Volume Value

Total 247 6,479 231 6,591 246 7,626Intra-EU 112 4,213 133 4,695 110 3,977Extra-EU 135 2,266 98 1,896 136 3,649Dev. countries 109 1,349 64 826 83 984

Top 3 suppliers:Italy 46 1,683 75 2,542 60 1,994USA 4 293 11 503 32 1,442Hong Kong 12 350 9 257 18 736Dev. countries:India 67 435 18 165 64 409Turkey 7 303 4 138 6 229Thailand 10 336 8 202 5 149China 14 116 23 162 4 86


75

TRAVEL GOODS (Travel bags, sports bags, body-bags and rucksacks)


Total 8,220 66,081 9,701 86,689 9,706 88,623Intra-EU 780 10,141 825 11,959 987 15,234Extra-EU 7,440 55,939 8,876 74,729 8,719 73,387Dev. countries 2,442 19,564 4,005 26,481 3,740 27,442

Top 3 suppliers:Hong Kong 4,233 28,214 4,397 42,257 4,629 43,242China 2,101 14,614 3,634 21,372 3,025 21,747Belgium 467 6,316 468 7,705 599 9,336Dev. countries:China 2,101 14,614 3,634 21,372 3,025 21,747Vietnam 219 2,600 233 2,920 225 3,132Malaysia 11 138 5 44 295 660Thailand 22 379 27 437 38 478South Korea 62 1,045 59 1,104 19 437India 51 406 19 219 33 302


SUITCASES 1995 1996 1997Volume Value Volume Value Volume Value


Top 3 suppliers:China 1,676 6,252 2,710 9,499 3,245 12,848Belgium 1,408 12,727 1,453 12,742 1,418 11,095Hong Kong 1,865 7,531 1,599 8,161 1,334 7,251Dev. countries:China 1,676 6,252 2,710 9,499 3,245 12,848Indonesia 404 2,648 808 4,219 760 3,705Thailand 9 82 12 147 29 296Mexico 0 0 7 46 10 176India 8 145 17 297 13 128


76

OTHER BAGS/CASES/BOXES


Total 5,052 30,782 5,521 36,073 6,584 44,474Intra-EU 661 6,099 466 5,744 252 3,273Extra-EU 4,391 24,683 5,055 30,329 6,332 41,200Dev. countries 1,904 11,410 2,400 13,877 3,107 18,751

Top 3 suppliers:Hong Kong 2,547 16,612 2,818 19,757 3,177 23,756China 1,629 9,066 2,152 11,797 2,663 15,784USA 93 1,772 149 2,543 181 2,966Dev. countries:China 1,629 9,066 2,152 11,797 2,663 15,784South Korea 102 1,098 87 1,606 100 1,863Vietnam 47 555 45 476 62 906India 35 409 43 576 116 806Pakistan 114 658 100 513 87 454


Imports of gloves by The Netherlands in percentages, 1995-1997


Total 100 100 100 100 100 100of which developing 76 69 73 69 68 70countries

Total protective gloves 94 72 93 71 91 76of which developing 77 78 74 77 68 76countries

Total fashionable and 6 28 7 29 9 24special sport glovesof which developing 60 46 68 50 68 54countries


77

EUROPEAN UNION - IMPORTS

EU imports of leather goods by source, 1995-1997Tonnes / US$ 1,000


Total 441,373 4,226,830 476,486 4,679,262 529,783 5,094,091 Intra-EU 88,493 1,456,128 102,681 1,647,500 136,172 1,650,939 Extra-EU 352,880 2,770,702 373,805 3,031,762 393,611 3,443,152 Dev. countries 296,210 2,209,843 318,457 2,433,873 339,315 2,767,221

Top 5 suppliers: China 257,667 1,686,316 281,098 1,909,825 296,293 2,164,192Italy 13,123 429,190 13,489 497,959 14,294 468,898 India 20,208 277,844 20,508 286,206 21,741 309,811 Belgium 24,976 246,528 30,612 279,635 31,714 299,306 France 15,343 241,360 16,894 272,433 48,531 266,694 Dev. countries: China 257,667 1,686,316 281,098 1,909,825 296,293 2,164,192 India 20,208 277,844 20,508 286,206 21,741 309,811 Vietnam 7,412 72,920 8,327 93,990 12,049 138,407 Pakistan 7,908 81,562 8,107 84,992 7,993 92,768 Thailand 5,055 75,100 4,611 76,607 4,623 76,107 South Korea 3,934 64,362 2,879 55,811 2,349 53,427 Indonesia 4,451 35,216 4,541 34,992 4,926 45,951 Turkey 1,108 26,493 862 22,137 1,229 28,656 Phillipines 564 13,552 586 14,408 1,452 22,050 Morocco 1,275 24,978 958 21,019 975 21,476 Tunisia 995 26,129 778 22,088 776 20,993 Argentina 227 6,642 234 7,789 265 9,832 Sri Lanka 584 7,079 327 5,970 706 8,242 Malaysia 562 6,724 659 6,243 1,093 7,643 Mexico 349 6,625 315 6,379 280 6,994 Slovenia 367 8,177 358 7,648 333 6,913 Mauritius 242 5,697 187 5,257 252 6,728 Brazil 384 7,600 428 7,101 517 6,129 Colombia 216 5,728 186 5,088 161 4,819 Bangladesh 256 1,620 119 1,669 203 3,611 Egypt 103 3,009 112 2,448 77 2,592 Syria 6 42 243 1,008 379 1,818


78

EU imports of leather goods by product group detailed, 1995-1997Tonnes / US$ 1,000


Total 441,373 4,226,830 476,486 4,679,262 529,783 5,094,091Intra-EU 88,493 1,456,128 102,681 1,647,500 136,172 1,650,939Extra-EU 352,880 2,770,702 373,805 3,031,762 393,611 3,443,152Dev. countries 296,210 2,209,843 318,457 2,433,873 339,315 2,767,221

Detailed product groups:Briefcases, leather or imitation 6,689 97,188 6,341 103,915 7,227 116,253Briefcases, plastic sheeting 9,227 51,980 9,103 56,874 8,573 58,613Briefcases, plastic, textile surface 12,423 82,154 15,545 94,449 19,394 123,640Suitcases, leather or imitation 3,917 56,445 4,495 61,160 3,872 66,329Suitcases, plastic sheeting 7,778 53,709 10,696 66,137 10,464 67,965Suitcases, moulded plastic 35,614 246,056 35,248 246,938 39,203 266,577Suitcases plastic, textile surface 45,029 205,757 48,729 234,333 56,541 265,317Brief-, suitcases, aluminum 8,129 34,141 6,292 29,451 5,761 29,716Brief-, suitcases of other material 6,617 33,874 7,400 38,975 6,455 37,054Handbag, leather or imitation 15,762 472,749 16,076 534,630 12,422 479,586Handbag, plastic sheeting 24,841 205,550 30,984 246,096 18,593 171,762Handbag, fabric surface 17,768 180,712 17,181 185,530 11,765 169,964Handbag, cardboard or fibre 4,482 46,596 4,283 45,855 3,670 44,703Belts, leather or imitation 4,208 151,205 4,366 159,083 4,731 158,570Small leather goods., leather 7,612 288,671 7,226 311,520 8,134 348,499Small leath.goods, plastic sheeting 6,022 85,265 7,808 101,246 8,641 126,059Small leath.goods, textile surface 6,391 72,702 7,193 84,644 6,946 99,104Small leath.goods, cardboard, fibre 4,482 46,596 4,283 45,855 3,670 44,703Travel/sports bags, rucksacks (L) 3,071 53,669 2,755 50,300 2,578 54,621Travel/sports bags, rucksacks (P) 17,422 145,962 21010 156,680 24,883 184,185Travel/sports bags, rucksacks (T) 93,462 734,187 102,483 864,746 134,8451,067,134Shopping bags, boxes, cases (L) 3,824 83,957 3,574 82,524 4,557 110,076Shopping bags, boxes, cases (P) 12,244 90,289 15,131 107,329 17,410 129,200Shopping bags, boxes, cases (T) 34,140 256,382 37,595 290,177 58,572 352,021Musical instrument cases, plastic 350 3,979 503 5,015 591 6,621Gloves, leather or imitation 49,869 447,054 50,186 475,801 50,285 515,819

Note: (L)= made of leather or imitation; (P) = made of plastic; (T) = made of textile


79

EU imports of selected product groups by source, 1995 -1997Tonnes / US$ 1,000

HANDBAGS 1995 1996 1997Volume Value Volume Value Volume Value

Total 62,853 905,607 68,524 1,012,112 46,450 866,015Intra-EU 12,069 399,722 13,364 455,637 10,780 419,196Extra-EU 50,784 505,885 55,160 556,475 35,670 446,819Dev. countries 44,197 364,533 48,838 467,170 31,470 347,810

Top 3 suppliers:Italy 5,170 222,500 4,829 260,966 4,539 234,950China 37,680 286,565 42,714 329,024 24,552 197,049India 3,466 64,112 3,420 69,803 3,756 79,410Dev. countries:China 37,680 286,565 42,714 329,024 24,552 197,049India 3,466 64,112 3,420 69,803 3,756 79,410Thailand 633 24,978 647 24,575 481 18,052Morocco 488 10,880 298 8,273 294 8,213Indonesia 173 3,665 242 4,277 289 6,924Tunisia 284 7,512 210 6,134 222 6,465Turkey 255 6,116 213 5,605 280 6,270


SMALL LEATHER GOODS1995 1996 1997

Volume Value Volume Value Volume Value


Top 3 suppliers:China 13,311 156,945 15,564 189,944 17,397 235,113India 2,050 75,322 2,046 75,108 2,495 87,233Italy 901 40,857 942 45,278 994 52,633Dev. countries:China 13,311 156,945 15,564 189,944 17,397 235,113India 2,050 75,322 2,046 75,108 2,495 87,233Thailand 171 8,790 223 9,478 204 10,671South Korea 134 3,534 172 4,849 234 8,926Turkey 105 4,552 132 4,021 119 3,936Tunisia 79 3,770 77 3,529 90 3,163Mexico 24 3,050 27 2,956 24 2,919Mauritius 62 2,031 82 2,043 64 1,457


80

GLOVES 1995 1996 1997Volume Value Volume Value Volume Value

Total 49,869 447,053 50,186 475,801 50,285 515,819 Intra-EU 3,734 62,451 3,467 67,128 3,609 68,872Extra-EU 46,135 384,602 46,719 408,673 46,676 446,946Dev. countries 43,346 341,688 45,056 365,767 45,040 400,686

Top 3 suppliers:China 26,856 157,186 28,832 172,014 29,168 199,470Pakistan 5,328 64,728 5,168 67,754 4,995 74,296India 8,236 73,959 8,927 79,194 8,755 73,816Dev. countries:China 26,856 157,186 28,832 172,014 29,168 199,470Pakistan 5,328 64,728 5,168 67,754 4,995 74,296India 8,236 73,959 8,927 79,194 8,755 73,816Indonesia 218 7,767 135 7,954 178 10,851Philippines 107 7,450 102 8,105 114 10,792Vietnam 322 4,494 365 7,315 394 10,792Morocco 235 5,694 215 4,791 317 6,244Thailand 1,353 7,965 379 4,551 168 4,403


EU Imports of gloves in percentages, 1995-1997


Total 100 100 100 100 100 100of which developing 87 78 90 78 90 78countries

Total protective gloves 92 70 92 67 91 62of which developing 89 88 91 89 91 88countries

Total fashionable and 8 30 8 33 9 38special sport glovesof which developing 66 55 73 55 76 61countries


81

BRIEFCASES 1995 1996 1997Volume Value Volume Value Volume Value

Total 28,339 231,322 30,989 255,238 35,194 298,506 Intra-EU 4,096 59,590 6,753 77,592 6,956 77,440Extra-EU 24,243 171,732 24,236 177,642 28,238 221,066Dev. countries 20,190 138,157 20,546 141,169 23,813 176,966Top 3 suppliers:China 17,639 105,547 18,515 113,428 22,027 151,342Hong Kong 878 9,603 2,685 13,174 2,778 19,894Netherlands 1,335 9,595 1,563 12,494 2,434 17,327Dev. countries:China 17,639 105,547 18,515 113,428 22,027 151,342India 294 4,223 261 4,961 309 5,799Vietnam 516 4,442 604 5,339 543 5,455Indonesia 946 4,579 633 2,660 525 2,478Slovenia 48 2,126 32 1,862 35 2,209South Korea 243 4,504 197 3,471 94 1,859Morocco 124 1,619 60 1,617 60 1,805Turkey 131 3,441 81 2,196 35 1,197


BELTS 1995 1996 1997Volume Value Volume Value Volume Value

Total 4,208 151,205 4,366 159,083 4,731 158,570Intra-EU 3,098 124,710 3,479 135,436 3,579 124,747Extra-EU 1,110 26,495 887 23,647 1,152 33,823Dev. countries 854 18,482 655 15,025 772 18,484

Top 3 suppliers:Italy 1,611 67,497 1,599 70,276 1,810 65,152Netherlands 601 17,520 611 16,792 570 15,464Germany 244 12,663 287 13,342 200 11,902Dev. countries:Turkey 183 7,212 148 6,036 263 9,224China 137 2,720 153 2,514 99 2,339Tunisia 39 1,698 38 1,511 40 1,551India 177 1,631 79 905 157 1,472Argentina 15 503 21 635 37 1,098Pakistan 86 1,153 69 859 63 829Morocco 98 1,073 78 798 71 719Mexico 62 688 38 504 20 409


82

SUITCASES 1995 1996 1997Volume Value Volume Value Volume Value


Top 3 suppliers:China 51,541 207,123 53,518 226,055 62,076 279,346Belgium 13,350 109,321 12,395 102,007 12,562 101,293France 9,720 75,507 10,111 83,800 9,144 69,005Dev. countries:China 51,541 207,123 53,518 226,055 62,076 279,346Indonesia 2,587 13,688 3,155 15,516 3,401 17,836Thailand 490 4,539 922 7,328 1,180 9,554Vietnam 893 5,544 545 4,366 1,078 7,520India 524 4,634 631 5,687 566 4,807South Korea 293 4,253 235 4,039 179 3,943Philippines 150 2,054 143 1,809 388 3,015


OTHER BAGS/CASES/BOXES



Top 3 suppliers:China 31,494 214,358 35,152 241,658 42,054 330,002Hong Kong 3,142 23,015 3,458 27,017 3,966 32,779Germany 1,020 16,391 1,629 20,358 963 20,245Dev. countries:China 31,494 214,358 35,152 241,658 42,054 330,002India 1,482 14,837 1,270 11,863 1,759 16,369Vietnam 765 7,846 934 10,402 1,491 16,127South Korea 840 11,862 571 10,833 568 15,060Pakistan 1,751 9,823 2,236 11,889 2,221 12,813Thailand 604 8,272 888 11,058 555 7,800

83

EUROPEAN UNION - EXPORTS

EU exports of leather goods by product group, 1995-1997Tonnes / US$ 1,000


Total 165,518 3,870,278 129,849 4,355,440 143,688 4,369,138Intra-EU 121,916 1,553,130 87,145 1,760,772 101,942 1,852,751Extra-EU 43,602 2,317,148 42,704 2,594,668 41,746 2,516,387Dev. countries 4,644 120,801 4,898 142,652 5,922 141,882

Handbags 25,988 1,647,250 25,624 1,827,593 21,824 1,621,654Small leather goods 6,998 681,234 7,862 835,271 7,930 774,432Belts 47,058 300,171 5,531 328,725 5,356 319,283Briefcases 5,433 133,035 6,391 136,047 8,792 162,454Gloves 5,710 103,112 5,842 113,420 5,158 129,383Travel goods 25,641 375,414 27,315 423,774 36,169 606,839Suitcases 39,554 451,130 40,606 472,207 47,023 494,160Other bags/cases/boxes 9,136 178,932 10,678 218,403 11,436 260,933


84

APPENDIX 2 STANDARDS ORGANISATIONS

INTERNATIONALInternational Standardisation Organisation (ISO)Address : P.O.Box 56, CH-1211 Geneva, SwitzerlandTelephone : + 41 (0) 22 7490111Fax : + 41 (0) 22 7333430

Convention on International Trade in Endangered Species (CITES)Address : 15 Chemin des Animones, 1219 Chatelet, Geneva, SwitzerlandTelephone : + 41 (0) 22 9799139Fax : + 41 (0) 22 7973417

EUROPEAN UNIONEuropean Commission, Directorate General III (Textile and Leather)Address : Rue de la Loi 200, 1049 Brussels, BelgiumTelephone : + 32 (0) 2 2963063Fax : + 32 (0) 2 299638

International Trade Centre (ITC)Address : Palais des Nations, P.O. Box 10, 1211 Geneva 10, SwitzerlandTelephone : + 41 (0) 22 7300111Fax : + 41 (0) 22 7334439E-mail : [email protected] : http://www.intracen.org

TÜV - Rheinland Sicherheit und Umweltschutz GmbHSafety and environmental institute of RheinlandAddress : Am Grauen Stein, D-51105 Köln, GermanyTelephone : + 49 (0) 221 8062958Fax : + 49 (0) 221 8062882

Institut Fresenius GruppeAddress : Im Maisel 14, D-65232 Taunusstein-Neuhof, GermanyTelephone : + 49 (0) 6128 744155Fax : + 49 (0) 6128 744201

Prüf- und Forschungsinstitut PirmasensAddress : Hans-Sachs-Straße 2, D-66955 Pirmasens, GermanyTelephone : + 49 (0) 6331 74016Fax : + 49 (0) 6331 74507

85

THE NETHERLANDSTNONational Technical Centre for Research; department for leather good and footwearAddress : P.O. Box 6235, 5600 HE Eindhoven, The NetherlandsTelephone : + 31 (0) 40 2650300Fax : + 31 (0) 40 2650301

Stichting MilieukeurContactpoint for the EU Ecolabel and for the Milieukeur labelAddress : Eisenhowerlaan 150, 2517 KP Den Haag, The NetherlandsTelephone : + 31 (0) 70 3586300Fax : + 31 (0) 70 3502517

86

APPENDIX 3 SOURCES OF PRICE INFORMATION

International Trade Center (ITC)Address : Palais des Nations, P.O. Box 10, 1211 Geneve 10, SwitzerlandTelephone : + 41 (0) 22 7300111Fax : + 41 (0) 22 7334439E-mail : [email protected] : http://www.leathernet.com

Filiere Cuir / LeathermarketsAddress : 44, Rue Bayen, Paris, FranceTelephone : + 33 (0) 1 40687391Fax : + 33 (0) 1 40687922E-mail : [email protected] : http://www.leathermarkets.com

Food and Agriculture Organisation of the United Nations (FAO) Publisher of "Monthly Bulletin of Statistics", "Commodity and Market Review"Address : Viale della Terme di Caracella, 00100 Rome, ItalyTelephone : + 39 (0) 6 57051Fax : + 39 (0) 6 57053152E-Mail : [email protected] : http://www.apps.fao.org

87

APPENDIX 4 TRADE ASSOCIATIONS

EUROPEAN UNIONCOTANCE Federation of European Leather manufacturersAddress : Rue Galliard 3, B-1040 Brussels, BelgiumTelephone : + 32 (0) 2 5127703Fax : + 32 (0) 2 5129157

AUSTRIAVerband der Lederwaren und KofferindustrieAssociation of the Austrian Leather IndustryAddress : P.O. Box 313, 1045 Wien, AustriaTelephone : + 43 (0) 1 5010534Fax : + 43 (0) 1 5020627

BELGIUMProfessional Council for the Leather IndustryAddress : Avenue de la Joyeuse Entrée 17-21, B-1040 Brussels, BelgiumTelephone : + 32 (0) 2 2338837Fax : + 32 (0) 2 2338912

DENMARKLaedervarefabrikant ForeningAssociation of the Danish Leather IndustryAddress : Dansk Industri, DK 1787 Copenhagen V, DenmarkTelephone : + 45 (0) 45 33773377Fax : + 45 (0) 45 33773350

FRANCEFédération Française de la MaroquinerieAssociation of Leather Goods ManufacturersAddress : 59, Boulevard Magenta, 75010 Paris, FranceTelephone : + 33 (0) 1 46074455Fax : + 33 (0) 1 46078789

Conseil National du CuirNational Leather CouncilAddress : 109, Faubourg, Saint Honoré, 75373 Paris Cedex 08, FranceTelephone : + 33 (0) 1 43590569Fax : + 33 (0) 1 43593002

88

GERMANYBundesverband Lederwaren und Kunststofferzeugnisse E.V.Association of the German Leather Goods and Luggage IndustryAddress : Kaiserstrasse 108, P.O. Box 102055, 63020 Offenbach am Main, GermanyTelephone : + 49 (0) 69 887250Fax : + 49 (0) 69 8004261

Bundesverband der Deutsche LederindustrieAssociation of German retailers for leather goodsAddress : Am Lyskirchen 14, 50676 Köln, GermanyTelephone : + 49 (0) 221 9215090Fax : + 49 (0) 221 92150910

ITALYAIMPESAssociation of Italian Leather Goods manufacturersAddress : Corso D'Italia 17, 20122 Milano, ItalyTelephone : + 39 (0) 2 89010020Fax : + 39 (0) 2 3264312

IRELANDIrish Leather FederationAddress : Quay Street, Dungarvan, Waterford, IrelandTelephone : + 353 (0) 58 41500Fax : + 353 (0) 58 42834

PORTUGALAssociacao Portugeuesa dos Industriais de CurtumesAssociation of the Portugese Leather IndustryAddress : Av. Fernao de Magalhaens 460 5e, 4300 Porto, PortugalTelephone : + 351 (0) 2 74115Fax : + 351 (0) 2 74139

SPAINFederacion Espagnola de fabricantes de Maroquinera Articulas de Viajes Y AfinesAssociation of Spanish Leather Goods manufacturersAddress : Calle Velazquez no. 4 (9 Planta), 28001 Madrid, SpainTelephone : + 34 (0) 91 7257326Fax : + 34 (0) 91 7257328

UNITED KINGDOMBritish Leather Goods Manufacturers AssociationAddress : 10 Vyse Street, Birmingham B18 6LT, UKTelephone : + 44 (0) 121 2362657Fax : + 44 (0) 121 2363921

89

Leather Producers' Association Address : Leather Trade House, Kings Park Road Moulton Park,

Northhampton NN3 6JD, UKTelephone : + 44 (0) 1604 679999Fax : + 44 (0) 1604 679998

THE NETHERLANDSBond van Nederlandse Lederwaren en kofferfabrikantenAssociation of the Dutch Leather IndustryAddress : P.O. Box 90154, 5000 LG Tilburg, The NetherlandsTelephone : + 31 (0) 13 5944778Fax : + 31 (0) 13 5944749

Vereniging van Detailhandelaren in Lederwaren en Reisartikelen (DLR)Association of retailer traders in leather goods and luggageAddress : Bureau P.J. van Rijn, P.O. Box 96070, 1006 EB Amsterdam,

The NetherlandsTelephone : + 31 (0) 20 6100820Fax : + 31 (0) 20 6192215

90

APPENDIX 5 TRADE FAIR ORGANISERS

OFFENBACHER MESSE - MODEFORUMFrequency : Four times a yearAddress : Offenbacher Messe, Kaiserstrasse 108-112, D-63065 Offenbach a.Main,

GermanyTelephone : + 49 (0) 69 2281550Fax : + 49 (0) 69 82975560E-Mail : [email protected] : http://www.messe-offenbach.de

FRANKFURTER MESSE - TENDENZEFrequency : Twice a year Address : Messe und Ausstellung Gelände, P.O. Box 150210, Frankfurt/Main,

GermanyTelephone : + 49 (0) 69 75750Fax : + 49 (0) 69 75756433Internet : http://www.1.tendenze.de

MIPELFrequency : Twice a yearAddress : Milan Fairgrounds Corso Italia 17, 20112 Milano, ItalyTelephone : + 39 (0) 2 89010020/ 801026Fax : + 39 (0) 2 89010345 / 865732

CAMPIONARE DI FIRENZEFrequency : AnnualAddress : Via della Scala 87, 50123 Firenze, ItalyTelephone : + 39 (0) 55 215867/282792Fax : + 39 (0) 55 2396769

TRADE MARTFrequency : MonthlyAddress : Atomium Square p.b. 211, 1020 Brussels, BelgiumTelephone : + 32 (0) 2 4784989Fax : + 32 (0) 2 4786258

IBERBIELFrequency : Twice a yearAddress : Velasques 4, 9th., 28001 Madrid, SpainTelephone : + 34 (0) 91 57763123Fax : + 34 (0) 91 5775899

91

TRADE MARTFrequency : Twice a year; permanent stands can be visited every first and third Monday

in the monthAddress : Koninklijke Nederlandse Jaarbeurs, P.O. Box 8500, 3503 RM Utrecht,

The NetherlandsTelephone : + 31 (0) 30 2955911/2955900Fax : + 31 (0) 30 2940379

ASIA PACIFIC LEATHER FAIRFrequency : AnnualAddress : Miller Freeman Asia Ltd, 102-5 Stanhope House, 738 Kings Road,

Quarry Bay, Hong KongTelephone : + 852 (0) 2 8276211Fax : + 852 (0) 2 8277831/7064Internet : http://www.aplf.com

LINEA PELLEFrequency : AnnualAddress : Ente Arenpelle, Via Brisa 2, 20123 Milano, ItalyTelephone : + 39 (0) 2 801026Fax : + 39 (0) 2 860032

SEMAINE DE CUIR - INTERNATIONAL LEATHER WEEK Frequency : AnnualAddress : 109 Foubourg Saint-Honoré, 75373 Paris Cedex 08 FranceTelephone : + 33 (0) 1 43590569Fax : + 33 (0) 1 43593002E-mail : [email protected] : http://www.leatherfairs.com

MEET IN AFRICAFrequency : BiennialConference on the internationl leather trade organised by the International Trade Centre (ITC)Address : Palais des Nations, P.O. Box 10, 1211 Geneva 10, SwitzerlandTelephone : + 41 (0) 22 7300295Fax : + 41 (0) 22 7300580E-mail : [email protected] : http://www.leathernet.com/africa/

92

APPENDIX 6 TRADE PRESS

INTERNATIONALLeather, The International Journal / International Leather GuideAddress : Miller Freeman UK Ltd, Sovereign Way, Tonbridge, Kent TN9 1RW, UKTelephone : + 44 (0) 1732 377485Fax : + 44 (0) 1732 361534

FRANCE/ INTERNTIONALFiliere Cuir / LeathermarketsAddress : 44, Rue Bayen, Paris, FranceTelephone : + 33 (0) 1 40687391Fax : + 33 (0) 1 40687922E-mail : [email protected] : http://www.leathermarkets.com

GERMANYLederwaren ReportAddress : Otto Sternefeld GmbH, P.O. Box 111249, 40512 Düsseldorf, GermanyTelephone : + 49 (0) 211 577080Fax : + 49 (0) 211 5770812E-Mail : [email protected]

Lederwaren ZeitungAddress : Umschau Zeitschriftenverlag GmbH, P.O. Box 110262, 60037 Frankfurt,

GermanyTelephone : + 49 (0) 69 26000Fax : + 49 (0) 69 2600666E-Mail : [email protected]

ITALYARPELAddress : ARS Arpel Group s.r.l., Via Nievo 33, 20145 Milano, ItalyTelephone : + 39 (0) 2 315951Fax : + 39 (0) 2 33611619

BELGIUMLederwaren TribuneAddress : Brussels Int. Trade Mart, Atomium Square p.b. 211, 1020 Brussel, BelgiumTelephone : + 32 (0) 2 4784989Fax : + 32 (0) 2 4786258

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DENMARKSko & LaedervarerAddress : Danmarks Skohandlerforening, H.C. Andersen Boulevard 48, Kopenhagen,

DenmarkTelephone : + 45 (0) 33 154608Fax : + 45 (0) 33 931708

THE NETHERLANDSTrend BoutiqueAddress : Blauw Media uitgeverij B.V., Postbus 1043, 3600 BA Maarssen,

The NetherlandsTelephone : + 31 (0) 346 574040Fax : + 31 (0) 346 576056E-Mail : [email protected]

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APPENDIX 7 TRADE PROMOTION ORGANISATIONS

INTERNATIONALInternational Trade Center (ITC)Market News Service (MNS)Division of Product and Market Development Address : Palais des Nations, P.O. Box 10, 1211 Geneva 10, SwitzerlandTelephone : + 41 (0) 22 7300111Fax : + 41 (0) 22 730 05E-mail : [email protected] : http://www.intracen.org

AUSTRIAAustria Federal Economic ChamberAddress : Wiener Hauptstrasse 63, 1045 Vienna, AustriaTelephone : + 43 (0) 1 501050Fax : + 43 (0) 1 50206250E-mail : [email protected] : http://www.wk.or.at

DENMARKThe Danish Import Promotion Office for products from developing countries (DIPO)Address : Danish Chamber of Commerce, Børsen, 1217 Copenhagen K, DenmarkTelephone : + 45 (0) 33 950500Fax : + 45 (0) 33 325216E-mail : [email protected]

GERMANYGTZ/PROTRADE, German Agency for Technical CooperationAddress : Dag-Hammerskjöld-weg 1-5, P.O. Box 5180, 65726 Eschborn, GermanyTelephone : + 49 (0) 6196 790000Fax : + 49 (0) 6196 797414E-mail : [email protected]

BFAI, Federal Office of Foreign Trade Information, Germany Berlin Office Address : Scharnhornstrasse 36, P.O. Box 650268, 13302 Berlin, Germany Telephone : + 49 (0) 30 20145200Fax : + 49 (0) 30 20145204Köln OfficeAddress : Agrippastrasse 87-93, P.O. Box 100522, 50455 Köln, Germany Telephone : + 49 (0) 221 20570Fax : + 49 (0) 221 2057212E-mail : [email protected]

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ITALYICE, National Institute for Foreign TradeAddress : Via Liszt 21, 00144 Rome, ItalyTelephone : + 39 (0) 6 59921Fax : + 39 (0) 6 59926900E-mail : [email protected] : http://www.ice.it

THE NETHERLANDSCBI, Centre for the Promotion of Imports from developing countriesAddress : P.O. Box 30009, 3001 DA Rotterdam, The NetherlandsTelephone : + 31 (0) 10 2013434Fax : + 31 (0) 10 4114081E-mail : [email protected] : http://www.cbi.nl

NORWAYThe Norwegian Agency for Development Cooperation (NORAD)Address : Tolbugaten 31, P.O. Box 8034 Deo, Oslo, NorwayTelephone : + 47 (0) 22 314400Fax : + 47 (0) 22 314403E-mail : [email protected]

SWEDENThe Swedish International Development Cooperation Agency (SIDA)Department for Infrastructure & Economic CooperationAddress : S-105 25 Stockholm, SwedenTelephone : + 46 (0) 8 6985000Fax : + 46 (0) 8 208864

SWITZERLANDSIPPO, Swiss Import Promotion Programme Address : Stampsenbachstrasse 85, 8035 Zürich, SwitzerlandTelephone : + 41 (0) 1 3655151Telefax : + 41 (0) 1 3655221E-mail : [email protected]

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APPENDIX 8 OTHER USEFUL ADDRESSES

INTERNATIONALInternational Chamber of CommerceAddress : 38, cours Albert 1er, 75008 Paris, FranceTelephone : + 33 (0) 1 49532828Fax : + 33 (0) 1 49532942Internet : http://www.ecib.com

Food and Agriculture Organisation of the United Nations (FAO) Commodities and Trade DivisionAddress : Viale della Terme di Caracella, 00100 Rome, ItalyTelephone : + 39 (0) 6 57051Fax : + 39 (0) 6 57053152E-Mail : [email protected] : http://www.apps.fao.org

EUROPEEuropean Commission, Directorate General for External RelationsAddress : Rue de la Loi 200, 1049 Brussels, BelgiumTelephone : + 32 (0) 2 2991111Fax : no general telefax number

Association of the European Chambers of Commerce and industryAddress : Rue Archimède 5, P.O. Box 4, B-1000 Brussels, BelgiumTelephone : + 32 (0) 2 2310715Fax : +32 (0) 2 2300038E-mail : [email protected]

Bureau for official EU publicationsAddress : Rue Mercier 2, L-2985 Luxembourg, LuxembourgTelephone : + 352 (0) 49 9281Fax : + 325 (0) 49 5719E-mail : [email protected]

Eurostat, Statistical Bureau of the European Union Address : Rue Alcide de Gasperi, L-2920 Luxembourg, LuxembourgTelephone : + 352 (0) 4301 34567Fax : + 352 (0) 4301 3015E-mail : [email protected]

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Corporate Intelligence Group (CIG)Address : 48 Bedford Square, London WC1B 3DP, United KingdomTelephone : + 44 (0) 171 8143814Fax : + 44 (0) 171 6969004Internet : http://www.cior.com

THE NETHERLANDS

CBICentre for the Promotion of Imports from developing countriesAddress : P.O. Box 30009, 3001 DA Rotterdam, The NetherlandsTelephone : + 31 (0) 10 2013434Fax : + 31 (0) 10 4114081E-mail : [email protected] : http://www.cbi.nl

Belasting Dienst Douane (Customs)Dept. External and Internal CommunicationAddress : P.O.Box 50964, 3007 BG Rotterdam, The NetherlandsTelephone : + 31 (0) 10 2904949

Special information number + 31 (0) 800-143Fax : + 31 (0) 10-2904875Internet : http://www.douane.nl

Centraal Bureau voor de Statistiek (CBS)Central Bureau of StatisticsAddress : P.O.Box 4481, 6401 CZ Heerlen, The NetherlandsTelephone : + 31 (0) 70 3373800Fax : + 31 (0) 70 3877429

Ministry of AgricultureAddress : Bezuidenhoutseweg 73, 2500 EK The Hague, The NetherlandsTelephone : + 31 (0) 70 3786868Fax : + 31 (0) 70 3786123

Ministry of Economic Affairs (EVD - Trade Information)(to be mainly contacted through the internet)Address : Bezuidenhoutseweg 181, 2500 EC The Hague, The NetherlandsTelephone : + 31 (0) 70 3798933Fax : + 31 (0) 70 3797878E-mail : [email protected] : http://www.evd.nl

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Environmental regulations (Ministry of Housing, Spatial Planning&Environment/VROM)Address : Rijnstraat 8, 2515 XP The Hague, The NetherlandsTelephone : + 31 (0) 70 3394638Fax : + 31 (0) 70 3391296

Stichting Verpakking en Milieu (SVM)Foundation for Packaging and EnvironmentAddress : P.O. Box 95598, 2509 CN The Hague, The NetherlandsTelephone : + 31 (0) 70 3819091Fax : + 31 (0) 70 3819016

Greenbuss®c/o CBI, Centre for the Promotion of Imports from developing countriesAddress : P.O. Box 30009, 3001 DA Rotterdam, The NetherlandsTelephone : + 31 (0) 10 2013434Fax : + 31 (0) 10 4114081E-mail : [email protected] : http://www.cbi.nl

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APPENDIX 9 LIST OF DEVELOPING COUNTRIES

Please note that the OECD list of developing countries, as applied in this market survey,may include countries that are usually not considered as developing countries (e.g. SouthKorea). The countries indicated with * are ACP countries.

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AfghanistanAlbaniaAlgeriaAngolaAnguillaAntigua and Barbuda*ArgentinaArmeniaArubaAzerbaijanBahrain BangladeshBarbados *Belize *Benin *BhutanBoliviaBosnia &Herzegovina Botswana *BrazilBurkina Faso *Burundi *CambodiaCameroon *Cape Verde * Central AfricanRepublic * Chad *ChileChinaColombia Comoros *Congo *Cook Islands Costa RicaCôte d'Ivoire *CroatiaCubaDjibouti *Dominica *Dominican Republic *Ecuador

EgyptEl Salvador Equatorial Guinea *Eritrea *Ethiopia *Fiji *French Polynesia Gabon *Gambia *GuatemalaGeorgiaGhana *GibraltarGrenada *Guinea *Guinea-Bissau *Guyana *Haiti *HondurasIndiaIndonesiaIranIraqJamaicaJordanKazakstanKenyaKiribatiKorea, Rep. of Korea, South Kyrghyz Rep.LaosLebanonLesotho *Liberia *LibyaMacaoMacedoniaMadagascar *Malawi *MalaysiaMaldivesMali *

MaltaMarshall Islands Mauritania * Mauritius *MayotteMexicoMicronesia, Fed.States of MoldovaMongoliaMontserratMoroccoMozambique * MyanmarNamibia *NauruNepalNetherlands Antilles New Caledonia NicaraguaNiger *Nigeria *NiueNorthern Marianas OmanPakistan Palau Islands Palestinian Admin.Areas Panama Papua New Guinea *Paraguay Peru Philippines Rwanda *São Tomé & Principe* Saudi Arabia Senegal *Seychelles *Sierra Leone * Slovenia Solomon Islands * Somalia *

South Africa Sri Lanka St. Helena St. Kitts-Nevis St. Lucia *St. Vincent and Gren.* Sudan *Surinam * Swaziland *Syria Tajikistan Tanzania *Thailand Timor Togo *Tokelau Tonga *Trinidad & Tobago * Tunisia Turkey Turkmenistan Turks & CaicosIslands * Tuvalu *Uganda *Uruguay Uzbekistan Vanuatu *Venezuela Vietnam Virgin Islands (UK) Wallis & Futuna Western Samoa *Yemen Yugoslavia, Fed. Rep. Zaire *Zambia * Zimbabwe *

APPENDIX 10 LIST OF NETHERLANDS IMPORTERS

Adventure Bags B.V.Importer of handbags, suitcases, travel goods, attaché cases, school satchels, beauty casesand shopping bagsAddress : De Rolle 5, 8381 CR Vledder, The NetherlandsTelephone : + 31 (0) 521 382957 Fax : + 31 (0) 521 382851

A.G.V.O.Importer of handbags and small leather goodsAddress : Heuvelstraat 18, 5101 TC Dongen, The NetherlandsTelephone : + 31 (0) 162 320710Fax : + 31 (0) 162 320712

Ahrends AgenturenAgent for handbags, suitcases, travel goods, attaché cases, shopping bags, beauty cases andsmall leather goodsAddress : Brinklaan 32, 8161 CZ Epe, The NetherlandsTelephone : + 31 (0) 578 628962Fax : + 31 (0) 578 628991

Arwa B.V.Importer of handbags, suitcases, travel goods, attaché cases, school satchels, computercases and small leather goodsAddress : Franciscusweg 227, 1216 SE Hilversum, The NetherlandsTelephone : + 31 (0) 35 6212757 Fax : + 31 (0) 35 6215791

Bagxs Agent for trendy travel goods, rucksacks, sports bags, body bags and shopping bagsAddress : P.O. Box 69255, 1060 CE Amsterdam, The NetherlandsTelephone : + 31 (0) 20 6153424Fax : + 31 (0) 20 6153424

The Bagsac CompanyImporter of handbags and rucksacksAddress : Kon. Wilhelminaplein, Berghaus Plaza IVV 2-4, 1063 HK Amsterdam,

The NetherlandsTelephone : + 31 (0) 20 6158873 Fax : + 31 (0) 20 6158885

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Beernink & Beernink B.V.Importer of small leather goodsAddress : Kerkenlaan 11, 6651 KN Druten, The NetherlandsTelephone : + 31 (0) 487 517278 Fax : + 31 (0) 487 517459

Black CatImporter of beltsAddress : P.O. Box 42, 5120 AA Rijen, The NetherlandsTelephone : + 31 (0) 161 224537Fax : + 31 (0) 161 227379

Bosboom International B.V.Importer of handbags, travel goods, school satchels, shopping bags and small leather goodsAddress : Nieuwgraaf 29, 6920 AB Duiven, The NetherlandsTelephone : + 31 (0) 26 3116444 Fax : + 31 (0) 26 3115549

De Bijenkorf B.V.Department store (owned by Vroom & Dreesmann)Address : P.O. Box 12870, 1100 AW Amsterdam, The NetherlandsTelephone : + 31 (0) 20 6526526 Fax : + 31 (0) 20 6973926

Cales, Gebr.Importer of small leather goodsAddress : P.O.Box 20, 5150 AA Drunen, The NetherlandsTelephone : + 31 (0) 416 372334 Fax : + 31 (0) 416 379502

Castelijn & Berends Lederwaren B.V.Importer of small leather goods, handbags, travel goods, attaché cases, document cases,belts and rucksacksAddress : Altenaweg 16, 5140 AM Waalwijk, The NetherlandsTelephone : + 31 (0) 416 332003 Fax : + 31 (0) 416 331028

Coppens Lederwaren B.V.Importer of handbags, suitcases, trolleys, travel goods, attaché cases, school satchels andbeauty cases Address : Biest Houtakker, Biestsestraat 42, 5080 AB Hilvarenbeek, The NetherlandsTelephone : + 31 (0) 13 5051856 Fax : + 31 (0) 13 5054038

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Cossini B.V.Manufacturer and importer of handbagsAddress : Kempenbaan 10, 5121 DM Rijen, The NetherlandsTelephone : + 31 (0) 161 240480Fax : + 31 (0) 161 240481

Compunote Europe B.V.Importer of computer cases and document casesAddress : Oude Naarderweg 17, 1251 BJ Laren, The NetherlandsTelephone : + 31 (0) 35 5381042Fax : + 31 (0) 35 5381139

Crimson Lederwaren B.V.Importer of handbags, travel bags, suitcases, portfolios and small leather goodsAddress : P.O. Box 10, 5100 AA Dongen, The NetherlandsTelephone : + 31 (0) 162 313955Fax : + 31 (0) 162 317561

Delsey Benelux Importer of travel goods (distributor of the brand Kipling)Address : Bisonspoor 368, 3605 JX Maarssen, The NetherlandsTelephone : + 31 (0) 346 554604 Fax : + 31 (0) 346 571031

Eltine B.V.Importer of handbags, travel bags, suitcases, attaché cases, small leather goodsAddress : P.O. Box 3023, 4700 GA Roosendaal, The NetherlandsTelephone : + 31 (0) 165 562233Fax : + 31 (0) 165 562982

Eurofox B.V.Agent for suitcases, travel goods, handbags and small leather goodsAddress : Weteringstraat 23-25, 7041 GW 's-Heerenberg, The NetherlandsTelephone : + 31 (0) 314 674126Fax : + 31 (0) 314 667336

F&H AgenturenAgent for travel goods, rucksacks, small leather goods (agent for the brand Camel bags)Address : Scheldestraat 30, 7555WS Hengelo, The NetherlandsTelephone : + 31 (0) 74 2433003Fax : + 31 (0) 74 2433003

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F&M - Richard Tummers, Fashion&Mode AccessoriesImporter/agent of belts, handbags and small leather goodsAddress : Ambijerstraat Noord 162, 6333 ZJ Schimmert, The NetherlandsTelephone : + 31 (0) 43 3521474 Fax : + 31 (0) 43 3521473

Flying Dutchman B.V.Importer of handbags, travel goods and attaché cases,Address : Lagedijk 29C, 3998 ZR Schalkwijk, The NetherlandsTelephone : + 31 (0) 30 6012134 Fax : + 31 (0) 30 6011905

Gecona v.o.f.Importer of small leather goods and smokers' articlesAddress : Sprokenpad 5, 3813 DP Amersfoort, The NetherlandsTelephone : + 31 (0) 33 4728583Fax : + 31 (0) 33 4757203

Geeraerts LederwarenImporter of small leather goods, handbags and spectacle casesAddress : F. Bolstraat 43, 5900 AC Venlo, The NetherlandsTelephone : + 31 (0) 77 3513879 Fax : + 31 (0) 77 3546660

Geharo B.V.Importer of small leather goods and premiumsAddress : Rijksweg 24, 6996 AC Drempt, The NetherlandsTelephone : + 31 (0) 313 472707 Fax : + 31 (0) 521 471419

Van Gils Leather B.V.Manufacturer/importer of handbags, attaché cases, document cases and school satchelsAddress : Dortseweg 9, 4854 ZG Bavel, The NetherlandsTelephone : + 31 (0) 161 433456 Fax : + 31 (0) 161 432874

Goldkrone Lederwaren B.V.Buying group for leather goodsAddress : Laaggraven 5b, 3439 LG Nieuwengein, The NetherlandsTelephone : + 31 (0) 30 2801584 Fax : + 31 (0) 30 2802376

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H&H Trading V.O.F.Importer of tool casesAddress : Prins Alexanderweg 26-A, 3712 AB Huis ter Heide, The NetherlandsTelephone : + 31 (0) 30 6917000 Fax : + 31 (0) 30 6915626

Hema B.V.Department store (owned by Vroom & Dreesman)Address : P. O. Box 23220, 1100 DS Amsterdam, The NetherlandsTelephone : + 31 (0) 20 3114411Fax : + 31 (0) 20 3114000

Henzo B.V.Manufacturer/importer of attaché cases, school satchels and document casesAddress : Keulsebaan 510, 6040 AC Roermond, The NetherlandsTelephone : + 31 (0) 475 373366 Fax : + 31 (0) 475 340099

Herwalt's Tassenfabriek B.V.Manufacturer/importer of handbags, suitcases, travel goods, attaché cases, school satchelsand small leather goodsAddress : Aaltenseweg 2-4, 7130 AA Lichtenvoorde, The NetherlandsTelephone : + 31 (0) 544 371859 Fax : + 31 (0) 544 375925

Horsten Lederwaren B.V.Importer of handbags, small leather goods and premiumsAddress : Nobelstraat 6, 5050 AE Goirle, The NetherlandsTelephone : + 31 (0) 13 5349126 Fax : + 31 (0) 13 5341413

Hurkmans Lederwaren B.V.Importer of handbags and small leather goodsAddress : Industrieweg 16, 506666 ZG Moergestel, The NetherlandsTelephone : + 31 (0) 13 5132013 Fax : + 31 (0) 13 5133815

IGO POST B.V.Importer of small leather goods and premiumsAddress : Haverdijk 5, 5704 RC Helmond, The NetherlandsTelephone : + 31 (0) 492 530100Fax : + 31 (0) 492 530203

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Image Trading InternationalImporter of premiumsAddress : P.O. Box 287, 2910 AG Nieuwerkerk, The NetherlandsTelephone : + 31 (0) 180 331600 Fax : + 31 (0) 180 320617

Interlux LederImporter of handbags and small leather goodsAddress : P.O. Box 19, 5370 AA Ravenstein, The NetherlandsTelephone : + 31 (0) 486 412082 Fax : + 31 (0) 486 411047

Jago-Shawls - Jan van Gool B.V.Importer of belts, gloves and premiumsAddress : Jan Rebelstraat 2, 1006 GC Amsterdam, The NetherlandsTelephone : + 31 (0) 20 6199805 Fax : + 31 (0) 20 6199109E-mail : [email protected]

Jolly BagImporter of handbags, suitcases and travel goodsAddress : Koematen 5C, 8330 AG Steenwijk, The NetherlandsTelephone : + 31 (0) 521 515406 Fax : + 31 (0) 521 515485

Joss Mode - Accessoires B.V>Importer of beltsAddress : P.O. Box 69376, 1060 CK Amsterdam, The NetherlandsTelephone : + 31 (0) 20 6157479Fax : + 31 (0) 20 6152419

Kangaro KTC B.V.Importer of attaché cases, document cases and school satchelsAddress : Coenensparkstraat 17, 7200 AG Zutphen, The NetherlandsTelephone : + 31 (0) 575 594777 Fax : + 31 (0) 575 594750

Karibu African artAgent for travel goods, rucksacks and small leather goods from African countriesAddress : Agricolastraat 37A, 9711 TP Groningen, The NetherlandsTelephone : + 31 (0) 50 3181279 Fax : + 31 (0) 50 3181279

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Kemperman Lederwaren B.V.Importer of handbags, suitcases, travel goods, attaché cases, school satchels, beauty casesand shopping bagsAddress : Leuverinkstraat 10, 7011 EN Gaanderen, The NetherlandsTelephone : + 31 (0) 315 323361 Fax : + 31 (0) 315 323220

Kipling Nederland B.V.Importer of handbags, suitcases, travel goods, attaché cases and computer bags (distributorof the brand: kipling)Address : Bisonspoor 368, 3605 JX Maarssen, The NetherlandsTelephone : + 31 (0) 346 553005 Fax : + 31 (0) 346 553889

Klasse (Erwin van den Boogaard)Agent for handbags, suitcases, travel goods, attaché cases, computer bags and premiumsAddress : Klein Wolfslaar 16, 4854 PK Bavel, The NetherlandsTelephone : + 31 (0) 161 434009 Fax : + 31 (0) 161 434009

Knirps Benelux B.V.Importer of small leather goods and premiumsAddress : Van Lennepstraat 5, 5025 TR Tilburg, The NetherlandsTelephone : + 31 (0) 13 4632258 Fax : + 31 (0) 13 4672980

La Moda / Mod'Inez B.V.Importer of handbags, travel goods and shopping bagsAddress : Grotestraat 3, 5150 AA Drunen, The NetherlandsTelephone : + 31 (0) 416 320233 Fax : + 31 (0) 416 320234

Laimbock handschoenen en lederwaren B.V.Importer of handbags, gloves and small leather goodsAddress : Diamantlaan 10, 2130 KC Hoofddorp, The NetherlandsTelephone : + 31 (0) 23 5626565 Fax : + 31 (0) 23 5622770

Lecombi b.a.Buying group for leather goodsAddress : P.O.Box 616, 4870 AP Etten-Leur, The NetherlandsTelephone : + 31 (0) 76 5016110 Fax : + 31 (0) 76 5015960

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Leder Express B.V.Importer of handbags, suitcases, travel goods, attaché cases, shopping bags and smallleather goodsAddress : Zeverijnstraat 40, 1200 AK Hilversum, The NetherlandsTelephone : + 31 (0) 35 6232273 Fax : + 31 (0) 35 6215803

Leitmotiv B.V.Importer of beauty cases and shopping bags Address : Waterspiegelplein 10G, 1051 PB Amsterdam, The NetherlandsTelephone : + 31 (0) 20 6253366 Fax : + 31 (0) 20 6238207

Lejan koffer& lederwarenfabriekManufacturer/importer of handbags and travel goods Address : Jarmuiden 56 A, 1046 AE Amsterdam, The NetherlandsTelephone : + 31 (0) 20 4110411 Fax : + 31 (0) 20 4110622

Luijckx lederwarenfabriek V.O.F.Manufacturer/importer of western style belts and motorcycle bagsAddress : Wilhelminastraat 15, 5104 GA Dongen, The NetherlandsTelephone : + 31 (0) 162 312428Fax : + 31 (0) 162 314469

Marion Handelsondernemimng B.V.Importer of document cases, sports bags, small leather goods and premiumsAddress : Turfschip 191, 1186 XH Amstelveen, The NetherlandsTelephone : + 31 (0) 20 6438423Fax : + 31 (0) 20 6438423

Mars Agenturen B.V.Agent for handbags, small leather goods and premiumsAddress : Scriveriusmate 35, 8000 AB Zwolle, The NetherlandsTelephone : + 31 (0) 38 4653618 Fax : + 31 (0) 38 4652011

Meander B.V.Importer of small leather goods and premiumsAddress : Industrieweg 7, 2254 AE Voorschoten, The NetherlandsTelephone : + 31 (0) 71 5617642 Fax : + 31 (0) 71 5619741

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MercuraImporter of belts and attaché casesAddress : Alkemadelaan 5, 2371 EX Roelofsarendsveen, The NetherlandsTelephone : + 31 (0) 71 3317250 Fax : + 31 (0) 71 3317252

Van der Miessen lederwaren agenturen Agent for handbags, travel goods, attaché cases, shopping bags and small leather goodsAddress : Enkweg 10, 6880 AD Velp, The NetherlandsTelephone : + 31 (0) 26 3615251 Fax : + 31 (0) 26 3615030

Modana International B.V.Importer of glovesAddress : Diamantlaan 10, 2130 AM Hoofddorp, The NetherlandsTelephone : + 31 (0) 23 5622244Fax : + 31 (0) 23 5621182

M.P. International B.V.Importer of handbags, attaché cases, shopping bags and sports bagsAddress : P.O. Box 90, 1430 AB Aalsmeer, The NetherlandsTelephone : + 31 (0) 20 6570001 Fax : + 31 (0) 20 6570100

My Lady Trading B.V.Manufacturer and importer of handbags, portfolios and attaché casesAddress : Haansbergseweg 14, 5121 LJ Rijen, The NetherlandsTelephone : + 31 (0) 161 226308Fax : + 31 (0) 161 222170

Natural leathergoods store/NLS BijouxImporter of travel goods, shopping bags and small leather goodsAddress : Houtse Parallelweg 10, 5700 AN Helmond, The NetherlandsTelephone : + 31 (0) 492 535209 Fax : + 31 (0) 492 553442

Overdiek & Produkten B.V.Importer of rucksacks, shopping bags, small leather goods and premiumsAddress : Weverstraat 9, 5111 PV Baarle-Nassau, The NetherlandsTelephone : + 31 (0) 13 5076266 Fax : + 31 (0) 13 5078944

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Pacor lederwaren B.V.Agent for attaché cases, document cases and small leather goodsAddress : Marchandweg 19, 3771 ML Barneveld, The NetherlandsTelephone : + 31 (0) 342 404500Fax : + 31 (0) 342 404501

Pare B.V.Importer of handbags, travel goods, school satchels, rucksacks and small leather goodsAddress : P.O. Box 33, 9480 AA Vries, The NetherlandsTelephone : + 31 (0) 592 542825Fax : + 31 (0) 592 542805

Peakaboo!Importer of handbags and small leather goodsAddress : Konijnenburgweg 75, 4600 AA Bergen op Zoom, The NetherlandsTelephone : + 31 (0) 164 252877 Fax : + 31 (0) 164 235447

Pierro Erbacci B.V.Importer of handbags, travel goods, rucksacks and small leather goodsAddress : Birkstraat 101-A, 3768 HD Soest, The NetherlandsTelephone : + 31 (0) 35 6013030 Fax : + 31 (0) 35 6023078

Frans J. PlevierImporter of handbags and portfolio'sAddress : Lammergors 15, 4761 VH Zevenbergen, The NetherlandsTelephone : + 31 (0) 168 355221 Fax : + 31 (0) 168 325810

Present Time B.V.Importer of small leather goods and premiumsAddress : Antennestraat 44, 1322 AE Almere, The NetherlandsTelephone : + 31 (0) 36 5358888Fax : + 31 (0) 36 5358800

Prime Marketing B.V.Agent for handbags, suitcases, travel goods, attaché cases, shopping bags and smallleather goodsAddress : P.O. Box 69064, 1060 CB Amsterdam, The NetherlandsTelephone : + 31 (0) 20 6171247Fax : + 31 (0) 20 6171247

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QuintinQuality / Double QQ V.O.F.Importer of handbags, suitcases, travel goods, attaché cases and small leather goodsAddress : D.S.V. Schuppenstraat 29-31, 3905 AE Veenendaal, The NetherlandsTelephone : + 31 (0) 318 515335 Fax : + 31 (0) 318 551002

Raayos B.V.Importer of handbags and small leather goodsAddress : Bouwlingstraat 64, 4902 AK Oosterhout, The NetherlandsTelephone : + 31 (0) 162 453276 Fax : + 31 (0) 162 436492

RevalonImporter of small leather goodsAddress : Boschstraat 50, 4811 GJ Breda, The NetherlandsTelephone : + 31 (0) 76 5213384Fax : + 31 (0) 76 5145881

RIMOImporter of rucksacks and premiumsAddress : Zandvoortselaan 18, 2042 XA Zandvoort, The NetherlandsTelephone : + 31 (0) 23 5718596 Fax : + 31 (0) 23 5730057

Rodelle S.A.Agent for suitcases, travel goods, sports bags, shopping bags and beauty casesAddress : Alb. Verweylaan 46, 1422 TS Uithoorn, The NetherlandsTelephone : + 31 (0) 297 531065Fax : + 31 (0) 297 531065

Ronia B.V.Importer of attaché cases, computer cases and document casesAddress : P.O. Box 1068, 1300 BB Almere, The NetherlandsTelephone : + 31 (0) 36 5492266 Fax : + 31 (0) 36 5323724

De Rooy lederwaren B.V.Importer of handbags, suitcases, travel goods, attaché cases, shopping bags and smallleather goodsAddress : Elzenweg 29, 5140 AK Waalwijk, The NetherlandsTelephone : + 31 (0) 416 332798Fax : + 31 (0) 416 340188

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Van Rooijen/RuboAgent for handbags, suitcases, travel goods, rucksacks, sports bags and small leather goodsAddress : Langbroekerdijk A 139, 3947 BG Langbroek, The NetherlandsTelephone : + 31 (0) 343 561298Fax : + 31 (0) 343 561298

Roveco Lederwaren B.V.Agent and importer for all kinds of leather goodsAddress : IJsselmeerlaan 4, 1382 Weesp, The NetherlandsTelephone : + 31 (0) 294 415277Fax : + 31 (0) 294 419958

Van Rijn's lederwaren V.O.F.Agent for handbags and small leather goodsAddress : Acaciadreef 54, 3137 BB Vlaardingen, The NetherlandsTelephone : + 31 (0) 10 4750557Fax : + 31 (0) 10 4750557

Sarlini Modeaccessoires B.V.Importer of handbags, gloves and beltsAddress : Archangelkade 31, 1001 LE Amsterdam, The NetherlandsTelephone : + 31 (0) 20 5860000Fax : + 31 (0) 20 5860001

Schellekens B.V.Importer of suitcases, travel goods, attaché cases, computer cases, shopping bags andsmall leather goodsAddress : Heuvelstraat 18, 5101 TC Dongen, The NetherlandsTelephone : + 31 (0) 162 312766Fax : + 31 (0) 162 321661

Silly GiftsImporter of rucksacks and premiumsAddress : Herfordstraat 18, 7418 EX Deventer, The NetherlandsTelephone : + 31 (0) 570 628388Fax : + 31 (0) 570 634620

Special Products HollandImporter of small leather goods and premiumsAddress : Paul Krugerstraat 76-82, 4380 AM Vlissingen, The NetherlandsTelephone : + 31 (0) 118 418008Fax : + 31 (0) 118 410322

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Timmermans-Lammers B.V.Importer of document cases and small leather goodsAddress : Klapbrugweg 4, 1300 BA Almere, The NetherlandsTelephone : + 31 (0) 36 5491030Fax : + 31 (0) 36 5323900

Toenga B.V.Agent for handbags, gloves and beltsAddress : Buitenlanden 16, 3274 ZG Heinenoord, The NetherlandsTelephone : + 31 (0) 186 604382Fax : + 31 (0) 186 604382

Treffina EindhovenImporter of travel goods, shopping bags and small leather goodsAddress : P.O. Box 7013, 5605 JA Eindhoven, The NetherlandsTelephone : + 31 (0) 40 2523535 Fax : + 31 (0) 40 2524535

Trend Design B.V.Agent/importer of travel goods, rucksacks and premiumsAddress : Hagemuntweg 10, 4879 NM Etten-Leur, The NetherlandsTelephone : + 31 (0) 76 5041490Fax : + 31 (0) 76 5041491

Trend Holland character merchandising B.V.Importer of rucksacks and premiumsAddress : Vening-Meinzeszstraat 9, 6710 BG Ede, The NetherlandsTelephone : + 31 (0) 318 635381Fax : + 31 (0) 318 621011

Vadobag - van Dongen van Alphen B.V.Importer of handbags, travel goods, rucksacks, sports bags, shopping bags and smallleather goodsAddress : Zetkinweg 5, 5004 BA Tilburg, The NetherlandsTelephone : + 31 (0) 13 5942323Fax : + 31 (0) 13 5942340

Vilenca lederwaren Importer of handbags, document cases and small leather goodsAddress : Theresiahof 30, 1216 MK Hilversum, The NetherlandsTelephone : + 31 (0) 35 6246104Fax : + 31 (0) 35 6234144

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Vissers itemsImporter of trendy handbags and rucksacksAddress : Tollenstraat 60, 1053 RW Amsterdam, The NetherlandsTelephone : + 31 (0) 20 6166501Fax : + 31 (0) 20 6166512

De Vries lederwaren Importer of handbags, travel goods, shopping bags and small leather goodsAddress : Lindenlaan 26, 2651 TK Berkel en Rodenrijs , The NetherlandsTelephone : + 31 (0) 10 5115998Fax : + 31 (0) 10 5112657

Vroom & Dreesmann Nederland B.V.Department storeAddress : P.O. Box 276, 1000 AG Amsterdam, The NetherlandsTelephone : + 31 (0) 20 5959111Fax : + 31 (0) 20 6926150

Wehkamp B.V.Mail-order houseAddress : P.O. Box 400, 8000 AK Zwolle, The NetherlandsTelephone : + 31 (0) 38 4216868 Fax : + 31 (0) 38 4973495

Willemen lederwarenfabriek B.V.Manufacturer of suitcases, attaché cases and document casesAddress : Kroonstraat 9, 4870 AD Etten-Leur, The NetherlandsTelephone : + 31 (0) 76 5020818Fax : + 31 (0) 76 5014907

De Winter lederwaren importImporter of handbags, attaché cases and document casesAddress : Herman Heyermansstraat 39, 3451 AL Vleuten, The NetherlandsTelephone : + 31 (0) 30 6772490Fax : + 31 (0) 30 6775473

Zurel Uurwerken B.V.Importer of belts and small leather goodsAddress : P.O. Box 1175, 1430 BD Aalsmeer, The NetherlandsTelephone : + 31 (0) 297 323255 Fax : + 31 (0) 297 340565

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APPENDIX 11 USEFUL LINKS

Leathernet: www.leathernet.comThis site provides information on the international leather industry, with the emphasis onfinished leather, in the field of market information, technical developments, trade partnersearch and international trade fairs. This site assists enterprises and organisations all overthe world in keeping up-to-date with the latest developments and to make new contacts.

Leathermarkets: www.leathermarkets.comThis site provides information in English, French, Chinese and Arabic on the internationalleather industry and on international trade fairs. It assists enterprises and organisations allover the world in keeping up-to-date with the latest developments and to make newcontacts.

Leather fairs: www.leatherfairs.comThis site provides information on the international trade fairs on finished leather andrelated products, such as leather goods. It assists enterprises and organisations all over theworld in viewing the latest schedule of the trade fairs in the world.

Euro banknotes and coins: www.ecb.int/This site is maintained by the European Central Bank and provides detailed information ina downloadable brochure in 11 languages, on the euro banknotes and coins. It assistsenterprises all over the world in becoming familiar with the colours, formats and sizes ofthe euro in order to develop new wallets, purses or billfolds. This site also gives the latestexchange rate of the euro.

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Mailing address: P.O. Box 30009 3001 DA Rotterdam The NetherlandsPhone: +31 10 201 34 34 Fax: +31 10 411 40 81

E-mail: [email protected] Internet: http://www.cbi.nlOffice and showroom: WTC-Beursbuilding, 5th floor

37 Beursplein Rotterdam The Netherlands