The leather product and craft industry in Sri Lanka is experiencing remarkable growth thanks to an increasing demand for high-quality, locally-made leather goods. This industry plays a pivotal role in Sri Lanka's economy, contributing significantly to export revenues. As such, it's crucial for leather businesses in Sri Lanka to understand the do's and don'ts of exporting leather products overseas.
In this guide, we'll explore the nuances of leather product exporting and why choosing DHL Express as your preferred international delivery courier is a smart move.
Understanding the international leather product market
Key markets and importers
Before delving into the do's and don'ts, it's essential to grasp the international leather product market landscape. Global Market Insights valued the global market at US$245 billion in 2022, with an estimated 9.5% CAGR from 2023 to 2032. The Sri Lanka Export Development Board has also reported the United Kingdom (US$15.41 million), Germany (US$13 million), United Arab Emirates (US$3.57 million), United States (US$3.26 million), and Hong Kong (US$3.16 million) as the top importers of leather goods from Sri Lanka and their respective market values in 2022.
Be it apparel, accessories, or furniture, these numbers suggest an overall optimistic outlook for leather businesses in Sri Lanka. The upward trend is attributed mainly to growing consumer demand for high-quality leather products, enabled by advancements in automation and machinery in the leather goods production process.
Consumer preferences and trends
The world of leather goods is not only diverse but dynamic, with changing consumer preferences and trends shaping the industry. For Sri Lankan exporters looking to thrive in this competitive global market, it's essential to understand these nuances and adapt their products accordingly to tailor to market-specific demands.
Some markets with a long history of leather goods may prefer classic, timeless designs with a focus on elegance and sophistication – emblematic of the traditional profile of the luxury consumer. In contrast, other markets may appreciate leather’s functionality and versatility, which may correspond to preferences for functional fashion or home goods.
Another consideration is customisation, which is especially critical in a global landscape where ‘affordable’ luxury is more visible, accessible, and aspirational than ever. Businesses that are innovative and creative with their designs have a better chance of appealing to consumers looking to buck traditional luxury trends and embrace a new side of leather goods.
Sustainability should form another pillar of your global business strategy, as the extractive nature of leather inevitably means closer scrutiny from consumers. Ethical sourcing and eco-friendly business practices are key considerations for companies hoping to gain or retain new customers while enhancing their own brand profile.
The do’s of leather product exporting
Market research
Comprehensive market research is the cornerstone of successful leather product exporting. To effectively tap into international markets, you must first understand the intricacies of your target customer base. This involves delving into consumer behaviour, preferences, and spending habits specific to the regions you intend to reach. By gaining insights into what appeals to your potential customers, you can tailor your product offerings to meet their expectations. Additionally, studying the competition is vital. Identify gaps and opportunities in the market to determine where your leather products can stand out.
Quality assurance
In the leather product industry, quality reigns supreme. Your products should not only meet but exceed international quality standards. Pay meticulous attention to the selection of high-quality leather and impeccable craftsmanship. Consistency in delivering superior quality items not only bolsters your brand's reputation but also fosters customer trust and loyalty. Quality assurance should extend across all aspects of your production process, from sourcing materials to the final product.
Compliance with regulations
Navigating the complex web of international trade regulations is imperative for smooth leather product exporting. Many countries have stringent regulations regarding the import of animal by-products, including leather. It's crucial to thoroughly understand and adhere to the import and export regulations of both your home country and your target markets. Non-compliance can lead to delays, fines, or even the seizure of your goods. Familiarise yourself with international trade laws and regulations to ensure your business operates within legal boundaries.
Strong relationships with key stakeholders
Exporting leather products goes beyond transactions; it's about fostering enduring relationships. Building and nurturing strong connections with key stakeholders is fundamental to success in the export business.
Cultivate robust relationships with retail shops and industry partners like the Sri Lanka Footwear & Leather Products Manufacturers Association to gain valuable insights into market trends and demands. Collaborate closely with suppliers in and outside of Sri Lanka to ensure a steady and reliable source of high-quality materials. Forge partnerships with logistics providers like DHL Express, who can efficiently handle the complexities of international shipping.
Improving customer satisfaction through exceptional customer service can also set your business apart from competitors. Prompt communication, responsiveness, and a commitment to resolving issues earn you a loyal customer base and drive repeat business. Building these relationships not only streamlines your operations but also enhances your brand's reputation and competitiveness in the global leather product market.
The don'ts of leather product exporting
Ignoring market dynamics
The world of business is in constant flux, and the genuine leather product market is no exception. Failing to keep pace with shifting trends and evolving consumer preferences can leave your business trailing behind or, worse, losing market share. Sri Lankan manufacturers need to familiarise themselves with what leather products are in demand, be it shoes and footwear, apparel, bags and purses, home goods, or other small leather accessories. Continuously monitor consumer behaviour, stay attuned to emerging fashion trends, and be ready to pivot your product offerings accordingly.
Compromising on quality
Never compromise on quality to cut costs. Subpar products not only erode your brand's reputation but also lead to dissatisfied customers. Use only the finest materials and packaging, and maintain stringent quality control measures throughout your production process. Regular quality checks and testing are also indispensable to ensure that your leather goods meet the highest standards.
Neglecting export documentation
Proper export documentation is the bedrock of international trade. Neglecting this crucial aspect or providing inaccurate information can result in a cascade of problems, such as delays in customs clearance, fines, or legal issues. Ensure that all documents are complete, accurate, and completed well in advance. A meticulous approach to export documentation will help keep your leather product export operations smooth and trouble-free.
Overlooking potential risks
Exporting comes with inherent risks, ranging from unpredictable market fluctuations to logistical challenges. As such, it's imperative to perform regular comprehensive risk assessments. Identify potential threats and vulnerabilities in your export operations, and then develop and implement robust risk mitigation strategies. This proactive approach ensures that you're better prepared to tackle unforeseen challenges and safeguard your leather product business in an ever-changing global marketplace.
