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With labour issues and increased wages driving up manufacturing costs in China's leather industry, Indian companies are benefiting as several American brands are looking to source their leather products from India say Indian media sources. Branded apparel retailers such as Calvin Kelin, Kenneth Cole and many others from Germany and other European countries are gradually moving from China (and Pakistan they report) to India.
"Pakistan and China were major competitors to Indian leather exports and leather garment makers, but now a lot of US brands are looking at sourcing from India. Over the next few years, a lot more brands will come and we need to be more aggressive with marketing," said Manoj Tuli of P&G Enterprises, an exporter of leather apparel.
Over the last year, manufacturing industries in China have been in trouble since many regions have seen double-digit increase in wages forcing manufacturers to perk up prices. Meanwhile, the sharp depreciation of the Indian rupee in September this year has made Indian companies more competitive, giving them to opportunity to attract customers away from China.
Source: India Business