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Buyer Seller Meet for Leather and Leather Products in Moscow, Russia
November 22 & 23, 2010
By Ali Ahmed Khan, Executive Director, CLE
Introduction

russia has come a long way since the deep economic

crisis period of the 1990s. today, we see many positives
happening in this country, be it the average per capita
income, the exports from russia and also the imports into
russia. the average per capita money income of russian
population has increased from 2281 roubles in 2000 to 16887
roubles in 2009. also, the population living with money
incomes below subsistence minimum level was decreased
from 49.3 million in 1992 (33.5% of the population) to 18.50
million in 2009 (13.10% of the population). the minimum
wages in russia has also increased from an annual average
of 107.80 roubles in 2000 to 4330 roubles in 2009. Yes, the
global economic slowdown affected Russia too in 2009 but
this is one market which one cannot ignore in the long run.
India was exporting substantial quantities of leather
and leather products to the erstwhile USSR but after the
disintegration of Ussr, the share of India in russia came
down drastically due to a combination of factors like
economic crisis, weak banking system etc., however,
considering the importance of russian market, the Council
for Leather exports has been organizing various export
promotion activities so as to enhance bilateral trade in
leather sector between India and russia. the activities
organized in the past include:

Organization of Buyer seller Meet in Moscow

during august 25 & 26, 2003 in which 7 companies
participated.
Organising participation of 2 members in the June/July
2005 edition of Le show Fair (for Leather Garments and
accessories) in Moscow and organization of a Common
display Pavilion in the June 2006 edition of this fair in
an area of 24. sq.mtr.
Organization of India Pavilion in 2003 in Mos shoes
Fair (for footwear) with the participation of 7 memberexporters and follow-up participation in the sept/Oct.
2009 edition of the fair.
Organization of India Pavilion in the hipposphere Fair
(for saddlery and harness items) held st. Petersburg
during May 2007 with the participation of 9 memberexporters.
Participation in the India trade exhibition organised by
ItPO during sept 2009 in st. Petersburg.

Market Potential in Russia

a look at the statistics of export of leather and leather
products (including footwear) of russia indicates that the
exports of both the value added products as well as leathers
have come down in the last fifteen years, as shown in the
following table.

(exports of russia - value in Billion Usd)

Item
Leather raw materials, fur
and articles thereof
% share in total exports
textile, textile articles and
footwear
% share in total exports

1995

2000

2004

2005

2006

2007

2008

2009

0.3

0.3

0.4

0.3

0.4

0.3

0.4

0.2

0.4%

0.3%

0.2%

0.1%

0.1%

0.1%

0.1%

0.1%

1.1

0.8

1.1

1.0

1.0

1.0

0.9

0.7

1.5%

0.8%

0.6%

0.4%

0.3%

0.3%

0.2%

0.2%

Think Leather
Think India
(Photos by Mr. Ivan Pavlov)
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From the above table, it may be seen that the export of

leather and leather articles (excluding footwear) has more
or less remained stagnant in the last 15 years with exports
hovering between USD 0.3 and 0.4 billion from 1995 to 2008
and falling to USD 0.2 billion in 2009 due to global crisis.
However, in the case of textile, textile articles and footwear,
though the exports have remained in the range of USD 0.8
1.1 billion mark from 1995 to 2008, the percentage of share of
these items in the total exports from Russia have come down
from 1.5% in 1995 to a mere 0.2% in 2008, thereby indicating
that the textile and footwear sectors have not grown much
when compared to the other manufacturing sectors.
A look at the flow of foreign investments in the manufacture
of leather, leather products and footwear reveals that the
leather sector in Russia has attracted only negligible amount
of foreign investment, as detailed below.

(Value in Million USD)

Item
Total investments into
Russia
Manufacture of leather
and leather products
and footwear

2003

2005

2008

2009

29699

53651

103769

81927

13

On the other hand, when we look at the import scenario, it

may be seen that the imports of Leather raw materials, fur
and articles thereof has seen a steady increasing trend from
2004 to 2008 but fell down in 2009 due to the global crisis.
Further, the import of textiles, textile articles and footwear
has increased substantially from USD 2.6 billion in 1995 to
USD 11.7 billion in 2008 (with imports falling to USD 9.6
billion in 2009 due to global crisis)

(imports of Russia - value in Billion USD)

Item
Leather raw
materials, fur
and articles
thereof
% share in total
imports
Textile, textile
articles and
footwear
% share in total
imports

1995

2000

2004

2005

2006

2007

2008

2009

0.2

0.1

0.2

0.3

0.4

0.7

1.0

0.8

0.3%

0.4%

0.3%

0.3%

0.3%

0.4%

0.4%

0.5%

2.6

2.0

3.3

3.6

5.5

8.6

11.7

9.6

5.7%

5.9%

4.3%

3.7%

4.0%

4.3%

4.4%

5.7%

From the above, it may be seen that among leather and leather products, Russia imports significant amount of footwear, to the
extent of 90% of the actual sales in Russia. Another interesting aspect is that the average import prices of leather footwear
(per pair) has also increased from USD 8.3 in 1995 to USD 16.90 in 2009, as detailed below. These are only import prices and
the market prices may be higher.
(import prices in USD)
Item
Leather
footwear (per
pair)

1995

2000

2004

2005

2006

2007

2008

2009

8.3

12.7

14.5

14.9

15.5

15.3

16.0

16.9

According to market reports, the imports of footwear in

Russia has risen by 5-10% in terms of quantity and 1520% in terms of prices (in Roubles) in the first quarter of
2010. However, during 2009, the footwear market volume
in Russia declined by 25-30% with imports decreasing
from 285.80 million pairs in 2008 to 222.10 million pairs in
2009. The market intelligence reports also indicate that the
Chinese footwear exports to Russia may drop in future due
to factors like revaluation of Chinese national currency and
significant rise in prices of domestic raw materials in China.
Thus, the potential is very much there for Indian exporters of
leather products and footwear to significantly enhance their
market share in Russia.

commensurate when compared to the total imports of leather

and leather products of Russia which have risen from USD
413.49 million in 2004 to USD 3295.93 million in 2008. Thus,
Indias market share in Russia today is only about 0.40%.
Hence, the potential is very much there to enhance our exports
significantly to Russia in the coming years.

Import Duties in Russia

Chapter 41

According to World Tariff, the import of raw hides and

skins falling under tariff nos. 4101, 4102 and 4103 is duty
free while a 5% duty is imposed on other semi-processed
and also finished leathers.

Indias market share in Russia

Chapter 42

Indias export of leather and leather products to Russia

increased from USD 8.05 million in 2004 to USD 12.01 million
in 2008. However, the rise in Indian exports to Russia is not

There is a 20% duty on Saddlery and Harness items (4201)

and also for travelware, handbags etc., (4202) , while the
duty on leather garments is 10%.

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Chapter 64
In the case of footwear , the import duty is 10% while there
is no duty on footwear components falling under tariff no.
6406.

footwear produced in India. Considering this, it was decided

to organize a Buyer Seller Meet in Moscow, Russia with a
large scale participation of member-exporters.

The BSM

There was good response from the members for participation

in the BSM. Though 34 companies initially confirmed their
participation in the event, 6 companies could not participate
due to unavoidable reasons and eventually 28 memberexporters participated in the event. The list of participants
and the details of products displayed by them are given
below.

Though the Council has been organizing market promotion

activities in Russia from time to time as mentioned above,
it was felt that a large scale stand-alone event needs to be
organized in this country, so as to create awareness among
Russian buyers on the high quality leather products and
S.No.

Company Name

Place

Display Product

Alex Leather Exports

Chennai

Leather Hand Bags

Amit Leatherwear

New Delhi

Leather Jackets

Anchit Exports Pvt Ltd

Kanpur

Leather Hand Bags

Calico Trends

Kanpur

Upholstery Leather , Cut & Stewn Covers, Shoe Leather, Safety &
Casual Footwear

Cinturones Alvi India Pvt Ltd

New Delhi

Ladies Bags, Travel Bags, Portfolio Bags, Leather Belts, Wallets

Deepak Impex (Wasan Group)

Agra

Shoe Sandals & Boots

Discovery Leathers Pvt Ltd

Gurgaon

Leather Garments

FancyTex Global Pvt.Ltd.,

Gwalior

Leather Footwear, Footwear Component PU Soles

G P Exports

Kolkata

Leather Bags, Wallets & SLg

10

Inspire Exim Pvt Ltd

Delhi

Leather Garments

11

JJ Tradelinks Pvt Ltd

Noida

Ladies Leather Sandals & Mens Shoes

12

K.H.Arind Pvt Ltd.,

Chennai

Fashion Leather Gloves

13

Liberty Shoes Ltd

Karnal

Gents Leather Shoes/ Sandals/ Slippers,

Ladies Leather Shoes/ Sandals/ Slippers,
Ladies Leather Boots and Long Boots

14

Mehtab Export House

New Delhi

Leather Garments

15

N J Leather Enterprise

Kolkata

Finished Leather

16

Opal Tricontinental Ltd

Agra

Mens and Ladies Shoes and Boots

17

Pakkar Leather Export Co.,

Chennai

Gloves

18

Siddharth Exports

Noida

Mens/ Ladies Leather Footwear

19

Ramjee Leathers & Supplies

Chennai

Leather Garments & Bags

20

Rastini Leather Works

Gurgaon

Leather Belts, Dog Goods, English Saddlery, Hand Bags,

Accessories.

21

RR Leather Products Pvt Ltd

Chennai

Leather Jackets & Bags

22

Saroj International

Noida

Leather Garments

23

Scarlet Impex

Kolkata

Hand Bag, Wallets & Small Leather Accessories

24

Schuh Tech India

Chennai

Shoes & Gloves

25

SJM Exports

New Delhi

Leather Garments

26

Skin N Stitch Pvt Ltd

Kolkata

Leather Goods

27

Ultimate Fashion Maker Ltd

New Delhi

Leather Garments

28

Usha Enterprises

Chennai

Industrial Safety Gloves, Industrial safety Shoes, Leather Goods

Pre-event arrangements for the BSM

Organisation of stand-alone event in a country like Russia is itself a challenging task. Hence, meticulous planning was required to
finalize various logistic and buyer mobilization arrangements. Considering this, Shri Ali Ahmed Khan, Executive Director of the Council
undertook a pre-event visit to Moscow to have discussions with various marketing agencies and to finalize the venue. During this visit,
discussions were also held with Shri Munu Mahawar, Counsellor, Embassy of India in Moscow on the strategy for Russian market.

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after careful consideration. hotel Radission was chosen as

a Venue for the event, taking into account the availability
of a large hall which could accommodate more than 35
companies. the proposals received from the marketing
agencies were also extensively analysed. Considering
the factors like network with buyers, charges quoted for
mobilizing buyers, ability to undertake various logistic
arrangements etc., dr. Mallik, Consultant was engaged as a
marketing professional for the BsM. accordingly, dr. Mallik
undertook extensive pre-event publicity campaign for the
BsM which includes :
z

z
z

the Indian participants displayed their products in

attractively designed stands. Some of the products displayed
by the participants are given below.

Procurement of a database of 8500 companies including

importers, wholesalers, departmental/Chain stores and
retailers dealing with leather and leather products.
sending e-mail invitations to the russian buyers as per
the database followed by invitations through post.
telemarketing campaign with the russian buyers.
release of advertisement in the Leather & Fur world
Magazine.

Besides, the Council hosted the details of the BsM including

the list of participants and display products in its website
www.leatherindia.org both in english and russian. the
embassy of India also gave extensive publicity to the event
by hosting a detailed press note on the event in its website.

The BSM Event

the BsM event was held on November 22 & 23, 2010 from
10.00 a.m. to 6.00 p.m. the event was inaugurated by shri
anil trigunayat, deputy Chief of Mission, embassy of India.
after the inauguration, the Deputy Chief of Mission visited
all the stands of the Indian participants and interacted with
the members. shri dilbag singh, second secretary, embassy
of India was also present during the occasion.

Shri Anil Trigunayat, Deputy Chief of Mission, Embassy of India inaugurating

the BSM. Shri Ali Ahmed Khan, ED,CLE is in the middle

(Photos by Mr. Ivan Pavlov)

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Stands in the BSM

Some of the Stands in the BSM are given below.

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bilateral trade relations with India. Considering the huge

market potential, it would be appropriate to set-up a
permanent display centre of leather products and footwear
in Russia.
Addressing the gathering, Mr. Ali Ahmed Khan, ED,CLE
stated that the Council has identified Russia as a focus
market and the objective of organizing the BSM is to create
awareness among Russian buyers and enhance exports to
Russia in the long run. Shri Khan invited Russian buyers to
the BSM.

CLE Information Booth

The Council had an Information Booth in the BSM. Through
this booth, arrangements were made for distribution of an
Information Kit to all visiting buyers. This kit contained a
CD on Indian leather industry in Russian language and a CD
containing profiles of the participating Indian companies in
Russian language.

Shri Ali Ahmed Khan, ED,CLE addressing the gathering at the Get-together.
To his right is Dr. Mallik, Consultant

Speaking on the occasion, Shri Dilbag Singh, Second

Secretary, Embassy of India assured the full support of
the Embassy for the business promotion efforts of Indian
exporters.

Shri Dilbag Singh, Second Secretary, Embassy of India speaking on the occasion
The Councils Information Booth

The Get-Together
The Russian Indian Chamber of Commerce (RICC) based in
Moscow organized a get-together of Indian entrepreneurs
settled in Moscow, the Russian buyers and the Indian
participants in the BSM in the evening of November 22,
2010. Shri Dhanesh Prasad, President of RICC ; Shri Dilbag
Singh, Second Secretary, Embassy of India, Moscow ; Shri
Ali Ahmed Khan, ED,CLE ; Dr. Mallik, Consultant and other
dignitaries participated in this Get-together.
Speaking on the occasion, Shri Dhanesh Prasad, President,
RICC stated that Russia is very much keen to revive the

Mr. Stanislav Matveich, Vice- President of the Light

Industry in Russia participated in this get-together and gave
insight on the Russian leather industry. Mr. Stanislav was
also a Deputy Minister in Russia earlier. Mr. Stanislav said
that before 1991, the USSR had good commercial relations
with India having business worth USD 100 million. Russia
was earlier producing lots of shoes but because of market
economy, the production has decreased by 8-10 times. Now,
Russian economy is growing and has already reached the
pre-crisis period levels. As Chinese items are now getting
costlier, there is opportunity for India but more awareness
needs to be created in Russian on the capabilities of the
Indian leather industry.

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Business outcome of the BSM
The BSM event held in November 2010 was the largest event
held in Russia for the Leather Sector with the participation
of 28 companies, the previous such event being the BSM
organized in 2003 with the participation of 7 members.
Despite the challenges involved in mobilizing buyers, the
event witnessed the participation of 141 Russian buyers.
As a follow-up to the BSM event, representatives of ECONIKA
, a leading Russian buyer of footwear have arrived in India
and visited Delhi during December 5-6,2010 and thereafter
proceeded to Kolkata during Dec 6-10,2010. The Council
arranged meeting between ECONIKA representatives and
Indian companies in Delhi.
Mr. Stanislav Matveich, Vice- President of the Light Industry of Russia

A view of attendees at the get-together

No

Company

According to the feedback received from the participants,

a total of 172 business meetings were held during the BSM,
resulting in generation of firm orders worth USD 15,15,000
and generation of immediate future business to the extent
of USD 13,00,000. It is a matter of satisfaction that the BSM
event was attended by some of the large Russian companies
including the following.

Think Leather
Think India
About company

Area

SNEZHNAYA KOROLEVA
Trade House

This company has largest network of fashionable,

branded leather garments in both Moscow and
St.Petersburg Snow queen has 50 shops

Fur, leather, lothes

Payana

Payana - Footwear company ispresented as a whole

salerin more than 30 cities of Russia. In Moscow, the
company has 9 retail outlets.

Shoes, bags,
accessories

ECONIKA

ECONIKA-the largest and one of the leading retail

operator of high quality fashionable footwear in Russia

Shoes, bags,
accessories

OAO Shoe factory Spartak

SPARTAK-one of the largest manufacturers of footwear

in Russia. Thisfactory is one of the top 10 manufacturers
in Russia andboasts of century old traditions.

Shoes

ALBA

ALBA company began its activity in 1993 working as

a wholesale importer of Italian shoes to the Russian
market. 5 years later, the company launched its own
shoe brand ALBA, that means dawn in Italian language.
From the very beginning the company won customers
confidence and respect of competitors. Creating of
fashion shoes is not only the profession, it is also the
passion of ALBA shoemakers. ALBA shoes represent
absolutely feeling of Italian style, based on European
quality tradition. The main feature of ALBA brand is
its own distinct style. ALBA company makes fashion
shoes of high quality and for a good price, that provides
popularity and brand recognition.

Shoes

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Since 1998, the company has been developing its own

retail network, that fully respects the standards of
design, assortment and level of service of best European
stores. At this time ALBA company is operating over
60 stores in Russia, with 12 flagship stores in Moscow.
ALBA portfolio also includes brands Luca Stefani and
DUMOND. The product line includes a full range of
womens handbags, shoes, belts and men shoes.
In 2007 ALBA Company launched a new project SVETSKI - shoes
with bright fashion ideas at a comfort price. Designers of SVETSKI
find their inspiration in different countries and cultures. This
brand is for cosmopolitans and adventure people. Shine collection
makes a splash with colorfull and bright shoes that add a touch of
fun, love, relax or confidence to your image everyday, depending
on your mood. www.svetski.ru
6

Camelot

Camelot is a network(chain) of shops selling multi branded

items of clothes(jackets,trousers,shirts,dresses), footwear and
accessories,. gym shoes, sports shoes, boots of different types for
both men and women and thick sole boots in moderately priced
segment for youngsters.

Shoes, clothes,
bags, accessories

Analpa

Analpa-fashionable footwear manufacturer inmoderately

priced segment. Raw material is procured from leading
companies of Korea, Brazil, India etc.

Shoes

ALEF

ALEF- is one of the largest Russian enterprises specializing in

mens and womens wear from quality sheep skin. Since 2009
developed its own network of retail outlets-ALEF around 30 in
Moscow and Petersburg. Alef is also into high quality accessoriesbags, gloves, caps

Furs,clothes, bags,
hats

A red star

KIMRY-shoe manufacturer with century old traditions

Shoes

10

Bonopart

Bonapart - one of the biggest Russian manufacturer of high quality

garments of leather, fur and textile, operating since 1994

Leather, furs,
clothes

11

KONNIY MIR Company

Konny Mir-established in 1996 and manufacures and sells items

connected to Horses

Items connected to
Horses

12

ZAO Ostashkovskiy Leather

Manufacture

Ostashkov Tannery founded in 1730 is located on the coast of Lake

Seliger. Pure abundant waters of the lake were the key prerequisite
for the high quality and moderated cost of its product as well as
for the continuous growth of the output.
The Ostashkov leathers being always on big demand at the home
market were widely exported too.

leather

13

IVAGIO

Ivagio-one of the 5 biggest companies of leather and fur sales in

Russia. They have 17 saloons in biggest malls in Moscow and
other cities in Russia

Fur & Leather,

clothes

On the whole, we feel that it was a good beginning for us

in the Russian market this BSM has helped in generation of
contacts with many potential Russian buyers.

Sending/Carrying Samples to Russia

Normally the Indian exporters participating in overseas

events like fairs and Buyer Seller Meets carry their samples
along with them as personal luggage. However, in the case of
Russia, such samples carried without valid documents may
lead to seizure of the samples. Some of the Indian participants
who participated in the BSM event also faced this problem.
Hence, for future business tours, it would be advisable either
to send the samples in advance through air cargo or to carry
the ATA CARNET form along with the samples which is an
internationally recognized document for carrying samples.
In India, FICCI is authorized organization to issue the ATA
Carnet forms. For more details members can contact FICCI.

Conclusion
In fact, the Buyer Seller Meet organized by the Council
attracted sizeable number of Russian buyers and the
Indian participants were able to establish contacts with
the buyers.
Thus, our BSM held in Russia has helped in generating
awareness among Russian buyers on the potential of the
Indian leather industry and this is a good beginning for us
to penetrate further into this potential market. The Council
will firm-up further market promotion events in Russia,
with the guidance of the Indian Embassy in Moscow.
The Council for Leather Exports is thankful to the Indian
Embassy in Russia for all help and support provided for
successful organization of the BSM event.
Leather News India December 2010