ONLINE ISSUANCE OF RCMC                                                 

Inviting Participation in the Fashion Access Fair – Hong Kong, March 13-15, 2019 under MAI Funding

No: CLE/EXH/Fashion Access/March /2019                                              October 31, 2018

To

All Members

Council for Leather Exports

Dear Sirs,

Sub: Inviting Participation in the Fashion Access Fair – Hong Kong, March 13-15, 2019 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 APLF Leather for Raw Materials, Components, Chemicals, Machinery, etc and the Fashion Access fair for Finished Products, dedicated to Bags, Footwear Leather Garments & Fashion Accessories. 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.

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

As per the Post Show Report of the March 2018 Edition of Fashion Access Fair, Fashion Access concluded with a positive business outcome. Being held during the peak sourcing season for fashion and leather accessories , the three-day show attracted over 10,000 international visitors from 85 countries. 227 exhibitors from 20 countries and regions including well-known international brands such as Otto Kessler, LSR International, Cerutti – Massimo Cerutti, Simpson London, Regal, Impression Imtopia, as well as young enterprises and start-ups participated at Fashion Access and praised the show as one of the most effective trade platforms at this time of the year for the fashion industry.

About the Hong Kong Market

Hong Kong and India are each other’s 7th largest trade partners. Hong Kong is the fourth largest destination for India’s exports and is also re-exporter of Indian goods to mainland China. Leather and Leather products are one of the main sector exports to Hong Kong from India. Hong Kong has registered a hefty 40 percent increase in trade with India in the 1st half of 2017 at $18.30 billion, the highest growth rate among the gleaming financial hub’s top 30 partner countries that include China and US. The mainland has long been Hong Kong’s largest trade partner, accounting for about half of Hong Kong’s total trade by value.

India – Hong Kong Leather Trade: India’s export of leather & leather products to Hong Kong is to the tune of US$ 266.16 million in 2016-17. Presently, India accounts for a share of only around 4% in Hong Kong’s total leather import trade of US$ 8.45 billion

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 2019 under MAIS Funding : As per the positive feedback received from the Council’s Member participants in the previous March 2018 edition of Fashion Access-Hong Kong, the Council has proposed to organize Group Participation of member-exporters in the Fashion Access Fair, March 13-15, 2019 under Market Initiative Scheme of the DOC

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.4,00,200/- 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 2018 edition under the Market Access Initiative Scheme (MAIS).  The Council’s proposal for facilitation of members’ participation in Fashion Access Fair, Hong Kong March 2019 with funding under MAI Scheme has been approved subject to the participation of at least 40 members in the CLE Pavilion.

Accordingly, as against the cost of participation for a 9 Sq.Mt stand working out to Rs.4,00,200/; the subsidized cost of participation with MAI Funding Support for a 9 Sq m stand is Rs. 2,73,400/-only. The Cost of Participation for booths of different sizes is given below:

Booth Size Subsidized Participation fee Unsubsidized Fee for those who completed their participation more than three times under MAIS
9sq Mt. Booth Rs.2,73,400 Rs,4,00,200
12 sq Mt. Booth Rs.4,06,800 Rs.5,33,600
15 sq Mt. Booth Rs.5,40,200 Rs.6,67,000
18 sq Mt. Booth Rs.6,73,600 Rs.8,00,400
21 Sq.mt Booth Rs.8,07,000 Rs.9,33,800

 

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.2,73,400/- 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.44,467/-. 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 Rs1,33,400- per 3 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 13-15, 2019.

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 2019 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 November 15, 2018.

With best wishes,

Yours sincerely,

 R.Selvam, IAS

Executive Director