No: CLE/EXH/Fashion Access/March /2016 November 2, 2015

To

All Members

Council for Leather Exports

Dear Sirs,

Sub: Inviting Participation in the Fashion Access Fair – Hong Kong, March 30-April 1, 2016 under MAI Funding:

About the Fair

APLF Ltd organizes two landmark concurrent leather events in Hong Kong during the end of every financial year i.e the MM&T Fair for Raw Materials, Components, Chemicals, Machinery, etc and the Fashion Access fair for Finished Products, dedicated to Bags, Footwear Leather Garments & Fashion Accessories. Today the Fashion Access Fair is increasingly being regarded as one of the key International Events dedicated to Bags, Footwear Leather Garments & Fashion Accessories in Asia.

The Fashion Access Fair-Hong Kong is the fastest growing international leather products fair and has become the must-attend international fashion fair for high quality, practical bags, footwear, plus small leather goods, lifestyle accessories, apparels and more. Held twice a year, the March edition of the Fair will show case collections for the upcoming autumn-winter season, while the September fair focuses on spring-summer offerings. With the event being located in the important global trading centre ie Hong Kong, both exhibitors and buyers gain instant access to one of the largest sourcing hubs in the world. Many Chinese companies & Stores also throng the Fair, and hence this event presents an excellent opportunity to exhibitors to establish mutually beneficial business contacts and partnerships.

Report on March 2015 Edition of Fashion Access Fair – The 2015 edition of the show was represented from 27 countries and region. Bags continued to be the Fairs’ main attraction, covering approximately 48% of the exhibits. The footwear sector, however, has increased in the past few years and has become a consistently strong performer. There were 140 first-time exhibitors from Asia and Europe, indicating the growing popularity of the fair that caters primarily to bag buyers. Close to half of the fair features contract manufacturers, mostly from China, as well as independent brands producing the full gamut of bag styles.

Display Products in the Fair, include Bags, Footwear, Fashion Accessories, Leather Garments, Small Leather Goods, Lifestyle Products and Travel wares.

About the Hong Kong Market & Import Potential: Hong Kong is the gateway to China- the world’s largest trading economy: and is Mainland China’s most important entry point, handling about one-fifth of China’s foreign trade.

Hong Kong is the 3rd largest importer of leather & leather products in the world. Hong Kong is becoming a significant market for leather & leather products with its imports increasing from US $ 8007.85 Million in 2009 to US$ 11590.70 Million in 2013, growing at a CAGR of 9.69%. Hong Kong accounts for a share of around 7% in the global leather import trade of US$ 172.68 bn in 2013.

India – Hong Kong Leather Trade: India’s export of leather & leather products to Hong Kong has increased from US$ 251.54 mn in 2009 to US$ 471.54 mn in 2013, growing at a CAGR of 17.01%. Presently, India accounts for a share of around 4% in Hong Kong’s total leather import trade of US$ 11.59 bn. Hence, there is scope to further enhance India’s export of leather & leather products to Hong Kong in the coming years.

Hong Kong which has been an important Trading Center for decades, is home to the offices of many international Brands & Buying Offices of large companies, retail chains, Stores etc. Hence, there is good scope for enhancing India’s export of leather and leather products to Hong Kong in the coming years

CLE Participation in Fashion Access Fair, March 2016 under MAIS Funding : As per the positive feedback received from the Council’s Member participants in the previous March 2015 edition of Fashion Access-Hong Kong, the Council has proposed to organize Group Participation of member-exporters in the Fashion Access Fair, March 30-April 1, 2016 to be held at Hong Kong Convention & Exhibition Centre, Hong Kong

Participation Costs for CLE Members- Considering the Cost of Space , Display Accessories, and other compulsory charges, the Cost of Participation for a 9 sq m Stand works out to Rs.3,50,000/- However, in order to support member manufacturers/exporters of leather goods & accessories, who are predominantly from the SME sector, to take part in this specialized fair for leather goods & accessories in Hong Kong, the Council had approached the Dept of Commerce to provide necessary funding support to organize participation in Fashion Access Fair, Hong Kong, March 2015 edition under the Market Access Initiative Scheme (MAIS). The Council’s proposal for facilitation of members’ participation in Fashion Access Fair, Hong Kong March 2016 with funding under MAI Scheme has been approved subject to the participation of at least 45 -50 members in the CLE Pavilion.

Accordingly, as against the cost of participation for a 9 Sq.Mt stand working out to Rs.350000/; the subsidized cost of participation with MAI Funding Support for a 9 Sq m stand is Rs. 1,50,000/- only. The Cost of Participation for booths of different sizes is given below:

S.no	Booth Size	Participation fee
1	9sq Mt. Booth- Subsidized cost	Rs.150000
2	12 sq Mt. Booth	Rs.257250
3	15 sq Mt. Booth	Rs.364500
4	18 sq Mt. Booth	Rs.471750
5	30 sq Mt. Booth	Rs.900750

Regarding MAI Support, Members may kindly note the following:

Ø Support under MAI scheme is admissible only for a 9 sq mtr booth to ensure equal availing of assistance under this scheme by all participants. Hence no additional booth for group companies will be allotted. The Participation Charges in the Fashion Access Fair has been initially fixed at Rs.1,50,000/- for 9 Sq m booth , with the final cost of Participation to be worked out as per costs incurred.

Ø In case an additional booth is required by companies in the same group, the same will be allotted at the actual cost based on various payments made towards Space cost, Registration fee, other charges payable to Fair organizer including stand construction charges and other organizing expenses. (In other words participation cost will be without funding support under MAI scheme).

Ø Similarly, members wanting to have more than 9 sq m space will be required to pay for the additional space and construction cost which will be without funding support of MAI scheme. This will again be based on actual payments made.

Ø According to the estimates, the space cost and stand construction cost per sq.mtr works out to Rs.35,750/-. Hence, those who desire to have more than 9 sq.mtr space have to remit the above mentioned Participation Charges for 9 sq m booth and Rs.35,750- per sq.mt for additional space taken. Space can be enhanced only in multiples of 3 ie from 12 sq m to 15 or 18 and up to a maximum of 21 sq mt.

Ø As participation in this Fair is being organized with funding support under the MAI scheme, no assistance under MDA scheme will be available to individual exporters.

Ø The funding pattern under the MAI scheme is mainly to encourage the small and new company’s participation in this important fair.

It may be noted that the MAI Guidelines stipulate that MAI assistance would be given for only up to 3 participations in a Fair. Hence Member exporters are advised to utilize this opportunity by participating in the Fashion Access Fair, Hong Kong March 30-April 1, 2016.

Stand Allotments in Fashion Access, Fair – It may kindly be noted that Stands to individual participating companies are allocated by Fashion Access Fair organizer themselves, considering the size & dimensions of stands, Hall layout & other technical aspects. Hence, Stand Allotments will not be done by the Council in Fashion Access Fair.

Member-exporters who are interested to participate in the Fashion Access Fair, March 2016 are requested to send the duly filled-in Application Form along with the full Participation Charges by Cheque/DD drawn in favor of Council for Leather Exports. This may be sent to either the Council’s Head office in Chennai or Regional Offices on or before December 15, 2015.

With best wishes,

Yours sincerely,

R.Ramesh Kumar, IAS

Application form for Fashion Access Fair – Hong Kong, March 30-April 1, 2016