Indian leather exports may not touch the targetted $2 billion during the current fiscal. The most optimistic industry estimates place exports at 90 per cent of this target.
Hence against an estimate of 5 per cent growth year-on-year, leather exports from India might shrink by 10 per cent during the current fiscal.
The main reason behind the scaling down of the export target is the change in consumer preferences in US and European markets.
Leather products, being a luxury item, have moved down the priority list even in high-spending markets like the US.
In fact, one of the largest leather product retailers in the US has closed around 40 per cent (around 300 stores) of its middle and upper range outlets and started concentrating on the lower price segment. This has become the trend in the western market.
Gilbert J, vice president (supply chain) of Hidesign, said,
