India Sourcing: Bags 2017

 

In India Sourcing: Bags 2017, buyers can find:

Verified exporters – 19 featured suppliers offering various bags

Products – Full-color images with specifications & prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

Export data – India-wide details and survey results from featured exporters

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewProduct featuresSupplier surveyPDF downloadSupplier list

India Sourcing: Bags 2017 Sector highlights

Industry overviewProduct featuresSupplier survey
  • India exported nearly $1.25 billion worth of handbags, trunks, suitcases and other containers under HS code 4202 in 2016.

  • The country is among the top three producers of cotton, jute and leather.

  • Most bag manufacturers operate on a small scale.

  • Genuine leather, cotton and jute are the common options for natural materials.

  • Production is semi-mechanized, with the degree of mechanization depending on the size of the company.

  • Prices depend on the design and the raw materials used.

  • To stay competitive, many bag suppliers will keep increases to a minimum.

  • The EU will be a key export destination for many suppliers, especially for those offering eco-friendly models.

  • Features enabling bags to perform multiple functions are anticipated in upcoming releases.

India Sourcing: Bags 2017 Suppliers & products

india-bags-banner

India Sourcing: Bags 2017

• Fashion bags • Business bags • Travel bags • Specialty bags

Our team has visited all India manufacturers featured here to verify their export capability. Each has a website on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.

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Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Fashion bags   
India-BagsIndia-Bags"India-BagsIndia-Bags
Travel bags   
India-bagsIndia-bagsIndia-bagsIndia-bags
Specialty bags   
India-bagsIndia-bagsIndia-bagsIndia-bags

India Sourcing: Bags 2017 Industry overview

India Sourcing: Bags Industry Overview

India Sourcing: Bags 2017

• Fashion bags • Business bags • Travel bags • Specialty bags

This section discusses key issues affecting export manufacturers in India, offering insight into industry composition and important supply centers.

 

India bag exportsCompetitive advantagesChallengesIndustry composition
  • India exported nearly $1.25 billion worth of handbags, trunks, suitcases and other containers under HS code 4202 in 2016.

  • Models with outer surfaces of leather accounted for more than 75 percent of the export value.

  • The US was the top overseas market, importing about $277.6 million worth of products.
  • India is among the top three producers of cotton, jute and leather.

  • The country has a large working-age population.

  • There are government and NGO initiatives to ensure that the country’s labor force have the necessary skills.
  • The GST is expected to push up the cost of leather, which is already high due to the cow slaughter ban in most states.

  • Labor-related expenses are also on the rise.

  • Amid high production costs, makers find it difficult to compete on price.
  • Most bag manufacturers operate on a small scale.

  • Annual sales of midsize companies, which employ up to 100 people, reach $124,000.

  • Large companies typically offer garments, bags and other products in addition to bags.

The abundance of natural materials and the existence of support industries enable India’s bags industry to provide a diverse selection of fashion, travel, business and specialty bags at various price points.

India exported nearly $1.25 billion worth of handbags, trunks, suitcases and other containers under HS code 4202 in 2016, according to data from the DESA/UNSD, United Nations Comtrade database. This figure represents an increase of less than 1 percent from 2015 exports, which amounted to about $1.24 billion.

Models with outer surfaces of leather accounted for more than 75 percent of the export value.Products with outer surfaces made of textile, plastic, vulcanized fiber, paper and paperboard accounted for the rest.

The US was the top overseas market, importing about $277.6 million worth of bags. The other major destinations were the UK, Germany, Spain and the UAE, which together accounted for $508.8 million.

India Bags Industry Overview Exports

Competitive advantages

The variety of manufacturing inputs that can be procured within India comprises natural and synthetic fibers, as well as textiles.Most bag suppliers source materials from domestic providers.

The country is the top producer of raw cotton, accounting for more than 25 percent of global output, according to the website of the Cotton Corp. of India Ltd. Among the largest cotton-producing states are Gujarat, Punjab, Haryana, Karnataka, Maharashtra, Madhya Pradesh, Telangana and Rajasthan.

India is also the leader in raw jute production, accounting for more than 50 percent of the world’s supply. Jute-producing states include West Bengal, Bihar, Assam, Odisha and Andhra Pradesh.

In terms of leather, the country produces about 13 percent of global supply, according to the Make in India site. Tamil Nadu and West Bengal are key sources of the material.

Manmade fibers produced in India include nylon and polyester. Polyester is usually from Delhi, Gujarat, Punjab, Tamil Nadu and Maharashtra. Nylon is obtained from Maharashtra, Karnataka, Tamil Nadu, Telangana, Kerala, West Bengal, Uttar Pradesh and Tamil Nadu.

India’s large labor pool and initiatives to ensure that members of the workforce have the necessary skills is another factor aiding in the development of the bags industry and other manufacturing sectors. China and India accounted for 62 percent of the Asia-Pacific region’s working-age population in 2015, with 1 billion and 860 million workers, respectively, according to the 2016 Regional Human Development Report of the United Nations Development Programme (UNDP). The number of those aged 15 to 64 in India is expected to exceed 1 billion in 2050.

The government, along with a number of nongovernmental organizations (NGOs), offer programs to upgrade worker skills and thereby ensure that the human resource requirements of various industries are met.

The Leather Sector Skill Council (LSSC), which was formed in 2012 as one of the key sector skill councils approved by National Skill Development Corporation (NSDC), ties up with manufacturers to train facilitators, as well as advanced and entry-level workers. LSSC is currently focused on entry-level training in Andhra Pradesh, Bihar, Tamil Nadu and Rajasthan for the leather goods sectors.

NGOs such as Jute Artisans Guild Association and Kriti Livelihoods provide women training in making bags and other handicrafts.

Challenges

Makers are keen to expand market reach. Most companies, however, intend to strengthen their footholds in regions they are already exporting to. Entering new markets is a challenge, as they need to familiarize themselves with local laws, customs and requirements.

Rising raw material costs are compounding this challenge, as these places the price competitiveness of India bags at risk.

Amid fierce competition in the domestic and international arenas, bag suppliers often opt to sacrifice margins, leaving them limited funds to invest in R&D, marketing and other activities.

For leather bag makers, in particular, a key concern is the national ban on the sale of cattle for slaughter. The ban, which was recently suspended, prompted some tanneries to raise prices earlier this year, some by about 25 percent. If reinstated, it could press suppliers to use imported leather, which can cost double than local versions.Leather costs are already high due to the cow slaughter ban in most states.

The implementation of the Goods and Services Tax (GST) is expected to also push up rates for leather, as well as textiles and other manufacturing inputs. Tanned leather and cotton textiles, for instance, are subject to tax rates of 12 percent and 5 percent, respectively.

In addition, many companies find labor-related expenses increasing. Suppliers are having difficulty finding personnel for processes such as tanning, stitching and skiving as a number of skilled workers have gone to other industries that offer better pay or benefits. Consequently, companies are offering higher wages to retain and attract necessary personnel.

Industry composition

Small businesses, which have no more than30 employees, make up the majority of India’s bags industry. These operations occupy less than 2,000square feet and their annual revenue does not exceed $62,000.

Midsize companies employ up to 100 people, with at least three dedicated to QC. They operate factories of up to 12,000 square feet and generate annual sales of $124,000.

Producers with larger factories and workforces typically offer garments, footwear and other products in addition to bags. They generate more than $700,000 in revenue each year. More than 10 employees are assigned to QC.

Supplier locations map

The highlighted areas on the map show the locations of the head offices and factories of the bag suppliers featured in this report.

India Bags Industry Overview Locations Map

India Sourcing: Bags 2017 Product features

India Sourcing: Bag Suppliers and Products

India Sourcing: Bags 2017

• Fashion bags • Business bags • Travel bags • Specialty bags

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by India bag suppliers.

Buyers can also learn more about the materials used and the common price ranges of certain designs.

Sections


 
Materials & designsManufacturing & QCPricing
  • Both natural and synthetic inputs are usually procured within India.

  • Genuine leather, cotton and jute are among the common options for natural materials.

  • Environmental friendliness, durability and functionality are key considerations in product development.
  • Production is semi-mechanized, with the degree of mechanization generally dependent on the size of the operation.

  • Most manufacturing stages take place in-house.

  • Among the product standards suppliers follow are India’s BIS and EU’s REACH.
  • Prices vary based mainly on the raw materials adopted and the complexity of the design.

  • Genuine leather models are typically positioned as midrange or high-end products.

  • Quotes are expected to increase in coming months, but most makers will keep adjustments to a minimum to remain competitive.

Materials & designs

India bag suppliers use natural and synthetic materials in fashion, business, travel and specialty bags. For the former, genuine leather, cotton and jute are some of the common choices. Synthetic options include polyester, nylon, and PU and PVC leather.

Cowhide, buffalo hide, goatskin and sheepskin are the common types of leather adopted by makers. These are typically obtained from the states of Tamil Nadu and West Bengal, where many of India’s tanneries are based.

Cotton, used as exterior material and lining, is sourced from various states, including Andhra Pradesh, Punjab, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Telangana.

Jute, a popular material amid rising demand for environment-friendly products, can be found in West Bengal and states near the Ganges Delta. Banana fiber, another eco-friendly raw material option for fashion bags, is acquired from Tamil Nadu, Maharashtra, Kerala and Rajasthan.

PU and PVC leather, meanwhile, are often procured from Delhi and the states of Uttar Pradesh, Haryana and Maharashtra. Polyester is typically from Delhi, Gujarat, Punjab, Tamil Nadu and Maharashtra. For nylon, bag suppliers look to Maharashtra, Karnataka, Tamil Nadu, Telangana, Kerala, West Bengal, Uttar Pradesh and Tamil Nadu.

When it comes to design, makers are adopting traditional embellishments such as sequins, appliques and embroidery to create geometric motifs and other contemporary patterns.

Durability and functionality are also key considerations in product development. In line with improving their bags’ performance, suppliers are adopting plastic and metal hardware from China, France and Italy. Efforts to enhance functionality have made adjustable and detachable straps a popular feature, allowing conversion of handbags to shoulder bags, sling bags or backpacks.

Manufacturing & QC

Bag production is semi-mechanized, with the degree of mechanization generally dependent on the size of the operation. Most processes are done in-house. Some suppliers subcontract tasks such as handsewing of buttons and zippers when they receive large orders. There are also makers that rent additional machines to increase production capacity.

At small factories, cutting of the raw material is done manually. Midsize and large manufacturers, on the other hand, usually employ die-cutting machines to process batches of fabrics and other materials.

The various sections of the bag are stitched by hand or using sewing machines. Large makers adopt semi- or fully automatic stitching machines. Once the desired form has been achieved, components such as zippers and buttons are sewn to the bag, usually by hand.

Loose threads and other unnecessary parts are then removed. Leather bags are polished or buffed.

Bags meant for export are typically based on buyers‘ designs, although there are some companies that send their own creations abroad under in-house brands. Sample development takes up to two weeks, and production lead time is about 45 days.

A number of suppliers follow ISO 9001 guidelines on quality management. Among the product standards suppliers follow are those of the Bureau of Indian Standards (BIS) and the EU’s regulation on the registration, evaluation, authorization and restriction of chemicals (REACH).

Most makers send products to an independent agency for chemical analysis and other tests to ensure that these meet buyer requirements. An inspector from the agency checks samples of the products before shipment, and compares the results against those of the laboratory tests.

Pricing

Across all product categories, prices vary depending on the materials and components used. The product’s design, including features such as multiple compartments and water resistance, is another key determinant of quotes.

Among women’s fashion bags, handbags made of jute or PU are available for less than $2. Cowhide and other genuine leather models with metal trims can exceed $50.

For business bags, messenger bags and briefcases below $40 are typically less than 15in wide. Goatskin and synthetic leather are the common raw material options in this price range.

Higher-priced designs are usually at least 15in wide. Choices include cowhide, buffalo hide, sheepskin and goatskin pieces. Synthetic alternatives are also available.

In travel bags, two-wheeled softside luggage sold for less than $20 come in cotton, polyester or nylon. More expensive designs include four-wheeled versions with leather exteriors. A number of these softside travel bags double as backpacks or duffle bags. Models above $20 also include hardside suitcases.

Price guide

Price guide: Fashion bags
Less than $2
Jute or PU; no lining; jute or PU handles or straps; plain or simple design featuring one or two colors
$2 to $6
Jute, cotton or PU leather; simple design; may come with lining; synthetic leather handles or straps; with multicolor pattern, fringes or metal trims
More than $6
Jute, cotton, or synthetic or genuine leather; with lining; genuine leather handles; adjustable and detachable straps; with embroidery, patchwork or sequins

Click image to enlarge.

India Bags product features Typical Components of fashion bags

Price guide: Briefcases
Less than $40
Synthetic leather or goatskin; canvas lining; less than 15in in width; adjustable and detachable shoulder strap
$40 to $50
Sheepskin or goatskin; canvas lining; 15in in width; may be handpainted; adjustable and detachable shoulder strap
More than $50
Goatskin, cowhide or buffalo hide; canvas lining; 15 to 17in in width; padded laptop compartment; adjustable and detachable shoulder strap
 

India sourcing bags product features Typical Component of business bags

Price guide: Wheeled luggage
Less than $20
Softside model; cotton, polyester or nylon exterior; two wheels
$20 to $30
Softside luggage; polyester or nylon; two or four wheels; convertible to backpack or duffle bag
Hardside luggage; PC; two or four wheels
More than $30
Softside luggage; nylon or genuine leather; two or four wheels; convertible to backpack or duffle bag
Hardside luggage; ABS, PC or PP; two or four wheels

India sourcing bags product features Typical Component of travel bags

Price guide: Outdoor backpacks
Less than $10
Daypack; nylon, polyester or cotton; up to 10L; feature one or two colors; adjustable, padded shoulder straps
$10 to $15
Daypack; nylon, polyester, cotton or PVC; up to 40L; feature one or multiple colors; adjustable, padded shoulder straps; with laptop compartment
More than $15
Daypack or midsize pack; genuine leather, organic cotton canvas or PU; up to 75L; feature one or multiple colors; adjustable, padded shoulder, chest and waist straps; with laptop compartment

India sourcing bags product features Typical Components of outdoor bags

India Sourcing: Bags 2017 Supplier survey

India Sourcing: Bags Supplier Survey

India Sourcing: Bags 2017

• Fashion bags • Business bags • Travel bags • Specialty bags

To give buyers first-hand information from active bag exporters in India, we’ve surveyed the manufacturers featured on this site.

Export pricesExport markets & salesProduct trendsChallenges
  • Many bag suppliers intend to raise prices but will keep increases to a minimum to stay competitive.

  • All of the surveyed companies with plans to raise quotes will be capping increases at 10 percent.

  • The recently implemented GST is the main reason for projected price increases.

  • Of interviewed suppliers, 84 percent are optimistic export sales will increase.

  • The EU will be a key export destination for many suppliers, especially for those offering eco-friendly models.

  • Several suppliers plan to boost exports to the Middle East, North America and the Asia-Pacific region.

  • Models combining traditional and modern elements are expected to increase.

  • Designs with eco-friendly inputs will also grow in number.

  • Features enabling bags to perform multiple functions are anticipated in upcoming releases.

  • The GST is expected to push up raw material costs.

  • Labor-related expenses are also on the rise.

  • Finding new export markets amid rising costs and the fierce competition in the market is also a major challenge.

Export prices

Quotes of bags from India are expected to increase in coming months due mainly to the recently rolled out Goods and Services Tax. Of the 18 India bag makers that answered the question on export prices, 72 percent intend to raise quotes to cover the GST rate to be levied on their products and the projected effect of the GST on the cost of raw materials.

Tanned leather, for example, is subject to a GST rate of 12 percent. For cotton textiles, the rate is 5 percent. Handbags, suitcases and other bags made of leather, textile or plastic are subject to a GST rate of 28 percent.

Competition, however, is anticipated to keep price adjustments to a minimum. Of the companies planning to raise quotes, 54 percent will cap adjustments at 5 percent and the rest will keep increases between 6 and 10 percent.

India Bags Survey Export Prices

Twenty-eight percent of the 18 respondents plan to maintain current quotes.

Export markets & sales

India bag suppliers have a positive outlook on export sales for the next 12 months. Among the 19 suppliers surveyed, 37 percent expect overseas revenue to increase by up to 10 percent, while 47 percent anticipate higher growth.

For some companies, one reason for this optimism is that they have already received orders from new clients in Australia and Europe. Other suppliers are anticipating that their increased presence on business-to-business (B2B0 and business-to-consumer (B2C) online platforms, and other promotional efforts will expand market reach.

The EU will be a key export destination for India bag suppliers, especially for those offering environment-friendly models. Additionally, makers have found clients there receptive to their prices, which are usually in the midrange.

Several companies are also keen to boost exports to the Middle East since it has less documentary requirements. In addition, buyers there often order in large quantities.

The remaining respondents are interested in strengthening their foothold in North America, the Asia-Pacific region and non-EU member countries.

India Footwewar Supplier Survey Export Forecast

Among surveyed companies, 37 percent will be focusing product development efforts on models combining traditional and modern elements to attract a wider market. For several suppliers, this means creating modern patterns using traditional embellishments such sequins and appliques.

For 21 percent of the interviewees, product enhancements will revolve around making designs more environment-friendly. According to these suppliers, demand for items that use jute and banana fiber are rising.

Another 21 percent of the respondents will concentrate on releasing more multifunction or convertible pieces such as bags that can be double as backpacks and handbags.

More than 10 percent of the surveyed companies plan on offering more contemporary designs. The remaining respondents will be enhancing product durability or aesthetics.

India Bags Survey Key Findings

Challenges

High production costs, fierce competition and finding new export markets are among the key issues that India bag suppliers contend with.

A number of companies expect the GST to push up rates for leather, textiles and other manufacturing inputs in coming months. Leather bag makers also continue to deal with the higher costs resulting from the cow slaughter ban in many states.

Besides dealing with rising raw material costs, manufacturers are having difficulty finding workers skilled in tanning, stitching, skiving and molding. Consequently, companies have been offering higher wages to retain and attract skilled personnel.

With their high production costs, and amid the fierce competition in the domestic and global arenas, many suppliers have limited resources to invest in activities that will let them enter new markets. A number are also still in the process of familiarizing themselves with the requirements of their overseas markets, having been in the export business for only a few years.

India Sourcing: Bags 2017 PDF download

India Sourcing: Bags

India Sourcing: Bags 2017

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Supplier & products

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  • Sample products
  • India bag suppliers

Industry overview

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  • Highlights
  • Competitive advantages
  • Challenges
  • Industry composition
  • India bag suppliers

Charts


  • Bags exports
  • Supplier locations map

Product features

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  • Highlights
  • Materials & designs
  • Manufacturing & QC
  • Pricing
  • Price guide
  • India bag suppliers

Supplier survey

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  • Highlights
  • Export prices
  • Export markets & sales
  • Product trends
  • Challenges
  • India bag suppliers

Charts


  • Export prices
  • Export forecasts
  • Key findings

India Sourcing: Bags 2017 Supplier list

India bag suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured on
Supplier statusFashion bagsBusiness bagsTravel bagsSpecialty bagsOthers
Aisha Leather ProductsActive
Antler LeathersActive
Associated International GroupActive
Bag HouseActive
Cecilia's Leather ArtefactsActive
Christ InternationalActive
Collagen TannersActive
Cosmos InternationalActive
Hiba Bag ManufacturerActive
JL CollectionsActive
Jute by DesignActive
Kuttu InternationalActive
Leather MarkActive
Leder HandcraftedActive
Navneet FabricationActive
Sai ExportsActive
Sreya Eco PackActive
ValmaxActive
VRPS HandicraftsActive