Producing finished leather goods, therefore, can be a profitable industry for developing countries, especially for those that already produce hides and skins. Instead of exporting hides and skins as semi-finished materials, these countries make higher profits by producing finished leather goods.

In 1997, developing countries supplied 339,515 tonnes, or 64 per cent of the total EU volume of imports, with a total value of US$ 2,767 million. All the leather goods except belts were sourced in developing countries, which supply more than half the gloves (out of which 91 per cent of the EU volume and 88 per cent of the EU value in 1997 for protective gloves), travel goods (especially rucksacks and sports bags), other bags/cases, briefcases and small leather goods to the EU. Travel goods represented 28 per cent of the total imported from developing countries in 1997.

Next to China, India and Vietnam, other important suppliers were Pabistan (gloves), Thailand (handbags), South Korea (bags), Indonesia (suitcases), Turkey (belts), Philippines (gloves), Morocco (handbags) and Tunisia (handbags)

The Netherlands imported 16,331 tonnes of leather goods from developing countries in 1997, with a total value of US$ 113 million. Between 1995 and 1997, Dutch imports of feather goods from developing countries increased in volume from 33 to 42 per cent. This was due to an increase in imports, mainly of briefcases and travel goods, from China, India, Indonesia, Vietnam, Malaysia and Tunisia.

Market Prospects
A healthier economy and increased optimism both stimulate consumer spending on non-essential items, either for first-time purchases or as replacements. As the countries of the EU become one market and competition increases, EU manufacturers and large importers/wholesalers increasingly look for production or sub-contracting in countries with low labour costs. However, exporters from developing countries should note that there are still large differences in demand between the countries of the EU.

Opportunities
The largest potential for growth is likely to be in travel goods (rucksacks, body-bags, sports bags), brief/document cases and office related cases/holders (i.e. for computers or mobile phones). More demand is expected for goods and made of combinations of leather and synthetic materials. Increased consciousness about fashion will force manufacturers to pay growing attention to style, design and the introduction of more extravagant models of leather goods.

In future, consumers in most EU countries are expected to be more conscious of quality and brands, especially in goods made of real leather. Buyers will carefully select the goods they buy, based on the quality of leather, defects, coating, shines and the print possibilities of cheaper kinds of leather.

As fashion changes twice a year and fashion items need to be exactly right in design and colour, it is very difficult for exporters to penetrate this market successfully. Exporters should seek the co-operation of EU manufacturers, particularly for the low - medium quality/price segment of the market for leather goods. In this way, EU manufacturers can take care of the sales/marketing and stocking side of the business, leaving exporters to concentrate on the production and delivery of the goods.

Constraints
The main problem to be overcome by developing countries wishing to export to the EU is competition from established EU suppliers. The EU already has experienced producers (Italy, France and Germany) with the specialised skills for fine leather craftsmanship and a comprehensive understanding offast-changing market needs. Protectionist measures may be brought to bear by industrialised countries when products are imported into the EU, so the quality of the product is extremely important and products should meet the safety standard Directive 92/59/EC. Consumers in some EU countries such as Germany, France and Italy prefer products made in their own country to those which are imported. Products from developing countries are likely to be affected by a growing consumer consciousness of environmentally friendly production methods for leather goods and their antipathy towards the use of child labour. Nevertheless there definitely are possibilities for exporters from developing countries to penetrate the EU market. The chances are particularly high if exporters take a step-by-step approach with a view to establishing a long-term business relationship with their partners in the EU. Hopefully this report can be of help to exporters from developing countries in deciding whether or not it is worthwhile to export to The Netherlands or to other EU countries, and that the information provided may assist them in taking the first concrete steps.