Project report for Leather bag

Introduction

The project report for handbag-puse manufacturing is as follows: The  burgeoning  middle  class  coupled  with  increasing  working  women  population,  increasing  media  exposure  and  access  to  international  trends  has  opened  up  an  array  of  opportunities  for  brands  with  women  specific  products.  Handbag  is  one  such  product  practically  inseparable  from  the  personality  of  a  woman across sections of the society in India.
The growth in ladies handbags is driven by urban conglomerations across Tier 1, Tier 2 and Tier 3 cities in  India  which  are  witnessing  changing  retail  landscape  and  bringing  brands  to  the  door  steps  of  the  consumers.  One  cannot  ignore  the  evidently  increasing  role  of  e-commerce,  which  is  enabling  further  reach to consumers across length and the breadth of the country.The  estimated  market  opportunity  in  ladies  handbag  based  on  the  consumer  survey  conducted  across  urban conglomerations is ~Rs 36 billion, with leading markets being 8 Tier 1 cities with market size of ~Rs 18 billion, followed by Tier 2 cities (41 cities) and Tier 3 cities (41 cities) cities at ~Rs 15 billion and ~Rs 3billion respectively.

The key success factors of this industry are design / style / fashion, Brand, Product Quality and pricing to name a few. However the industry attractiveness is also comes with the challenges such as lower product life cycles, influx of counterfeits and presence of large unorganized segment. The main categories in ladies handbag are leather and non-leather handbags. The presence of brands in leather handbags is limited as compared to higher brand concentration in terms of non- leather handbags. The leather handbag products typically have higher pricing as compared to non-leather goods, with limited consumer  base.  The  key  difference  as  observed  between  the  brands  from  leather  and  non- leather handbag brands is that the leather brands have a wider portfolio in terms of price point to cater to varied needs  of  the  consumers  in  contrast   to  brands  with  non-leather  products,  which  focus  on  narrow  pricing   based specific segments.

 


Scope of the project

The women handbags market in India is estimated at Rs 3600 crore. It is projected to grow at about 15 per cent annually in the next five years to Rs 6,000 crore. The key growth drivers are: increasing number of working women, their rising incomes, increasing fashion consciousness and aspiration levels, and growing influx of foreign brands. The Majority of the market (about 70 per cent) belongs to unbranded products, including local or regional brands. However, going forward the growth rate of the branded segment is estimated to be much higher (about 25 per cent) than the overall market. The key success factors of this industry are design / style / fashion, Brand, Product Quality and pricing to name a few. However the industry attractiveness is also comes with the challenges such as lower product life cycles, influx of counterfeits and presence of large unorganized segment. The main categories in ladies handbag are leather and non-leather handbags. The presence of brands in leather handbags is limited as compared to higher brand concentration in terms of non- leather handbags. The leather handbag products typically have higher pricing as compared to non-leather goods, with limited consumer  base

 


Location, Land , Building & Utilities

 

 


Product / Services & process

The firm is planning to introduce high quality ladies leather handbags, sling bags and clucthes . Handbags with vide variety of design, colour and size are considered.  The growth in ladies handbags is driven by urban conglomerations across Tier 1, Tier 2 and Tier 3 cities in  India  which  are  witnessing  changing  retail  landscape  and  bringing  brands  to  the  door  steps  of  the  consumers.  One  cannot  ignore  the  evidently  increasing  role  of  e-commerce,  which  is  enabling  further  reach to consumers across length and the breadth of the country.

Various coponents of the products are marked as per the pattern in leather and cut into different pieces. The edges of these /components are stained by hand to remove bulkness at seams. Then the components of lining are clicked. Once the leather has been tanned it is hand-rolled using a heavy rolling pin, which gives the leather a beautiful smoothness whilst maintaining it’s natural grain that helps give the leather it’s distinctive vintage feel.The leather is then ready to be hand-cut into each section of the bag using a variety of metal templates. The canvas lining is then glued on to keep it flat against the leather whilst it is double stitched together. This adds strength as well as allowing zip pockets and tablet or laptop sleeves to be added.Now each section is ready to be double stitched togetherOnce the general structure of the leather satchel, messenger bag or travel bag has been securely formed the straps and buckles and handles are then strongly riveted and double stitched on.The leather bag is now given a thorough final check to make sure it is perfect. Once the bag has been completed it is then given a coat of mustard seed oil, which helps nourish the leather, helps waterproof it and further deepens the rich tan colour. The decorative items like buckles; buttons, chains etc. are fitted. Then the bags are taken for finishing and removing different defects. Before taking the bags for marketing they are packed properly.

Manufacturing Process:
Various components of the products are marked as per the pattern in leather and cut into different pieces. The edges of these /components are stained by hand to remove bulkiness at seams. Then the components of the lining are clicked. Once the leather has been tanned it is hand-rolled using a heavy rolling pin, which gives the leather a beautiful smoothness whilst maintaining its natural grain that helps give the leather its distinctive vintage feel. The leather is then ready to be hand-cut into each section of the bag using a variety of metal templates. The canvas lining is then glued on to keep
it flat against the leather whilst it is double stitched together. This adds strength as well as allowing zip pockets and tablet or laptop sleeves to be added. Now each section is ready to be double stitched together Once the general structure of the leather satchel, messenger bag or travel bag has been securely formed the straps and buckles and handles are then strongly riveted and double stitched on. The leather bag is now given a thorough final check to make sure it is perfect. Once the bag has been completed it is then given a coat of mustard seed oil, which helps nourish the leather, helps waterproof
it and further deepens the rich tan color. The decorative items like buckles; buttons, chains etc. are fitted. Then the bags are taken for finishing and removing different defects. Before taking the bags for marketing they are packed properly.

 

 


Raw materials / Consumables

The following are the main raw materials used in the production of handbags

Leather Backers
Lining Adhesives
Sewing Thread Zipper
Hardware Logo
Jute Bag Edge Paints

Polyurethane (PU) is a composite material made of one or more layers of PU and a woven or non woven textile backing such as bi-cast or ground leather. This fabric provides the most realistic imitation of leather when it comes to its soft supple hand. It is also known to wrinkle like leather when gathered, stitched, or tufted. Its light weight body makes it inherently more breathable than PVC and allows it to adjust to body temperature more quickly. Its naturally rubbery characteristic guarantees a better stretch and performance in low temperatures. Although PU fabrics are not naturally flame resistant, flame retardants may be added to the material during manufacturing. Ofcourse, PU fabrics are much lower in price than genuine leather; they tend to be higher in cost than PVC. PU is known to be a greener alternative to PVC in both production and after-care. It does not require the same chemical plasticizers and will eventually degrade over time.

Polyvinylchloride (PVC), also commonly referred to as vinyl, is essentially a flexible plastic made from PVC resin, various fillers, and additives such as plasticizers to manipulate its softness, color and texture. Once the desired fillers have been added, PVC is used to coat one side of a knit or woven fabric backing and sometimes a center layer of foam. This versatile fabric provides a durable surface that is impervious to moisture and inherently flame resistant, making it ideal for marine, healthcare and high traffic hospitality and commercial environments. Despite its flame-resistant qualities, the addition of flame retardants is typical during manufacturing to meet fire code standards. Although PVC resin is comparatively inexpensive to genuine leather, the price is often determined by the cost of the additives used to make the finished product. The environmental effects of PVC have continued to improve over the years, lowering emissions and hazardous waste. Today, vinyl manufacturers recycle PVC waste back into the process to minimize the amount of non-biodegradable product in landfills.


Plant & Machinery / Equipments

The following are the list of machineries used in the production process

 

Piping, Handle trimming, Hot glazing machines Stamping machine for Upper
Hydrolic Ironing and Embossing press Skiving Machine
Strap cutting machine Micro computer belt cutting
Riveting Mechine  Industrial sewing machine


Market potential & Strategy

The firm have already analyzed the ground level information on Handbags selling and tied up with few retailers. Their Handbags prices are fixed according to market requirements and it has been discussed with retailers at ground level already. Most of the retailers in state are going to Delhi or Mumbai to buy Handbags. They are going to provide Top Notch quality Leather Handbags to retailers at the best price. They will also deliver it to their shops. 

The growth in ladies handbags is driven by urban conglomerations across Tier 1, Tier 2 and Tier 3 cities in  India  which  are  witnessing  changing  retail  landscape  and  bringing  brands  to  the  door  steps  of  the  consumers.  One  cannot  ignore  the  evidently  increasing  role  of  e-commerce,  which  is  enabling  further  reach to consumers across length and the breadth of the country.The  estimated  market  opportunity  in  ladies  handbag  based  on  the  consumer  survey  conducted  across  urban conglomerations is ~Rs 36 billion, with leading markets being 8 Tier 1 cities with market size of ~Rs 18 billion, followed by Tier 2 cities (41 cities) and Tier 3 cities (41 cities) cities at ~Rs 15 billion and ~Rs 3billion respectively.

The knowledge of  online market and the strong distribution network is the USP of the retailing the firm. The promoter is having expert knowledge in Online based sales and the personal connections in this field is an added advantage to the firm. They already planned for a mass camaign with printed brouchers to educate and make the user aware about the product and its quality. More over the deisgn trends and colours are very important, so that the company is keenly investing in that area to get moe attraction of users. By providing good margin to the resellers and by giving small ads in the media will help boost the brand image.

The key success factors of this industry are design / style / fashion, Brand, Product Quality and pricing to name a few. However the industry attractiveness is also comes with the challenges such as lower product life cycles, influx of counterfeits and presence of large unorganized segment. The main categories in ladies handbag are leather and non-leather handbags. The presence of brands in leather handbags is limited as compared to higher brand concentration in terms of non- leather handbags. The leather handbag products typically have higher pricing as compared to non-leather goods, with limited consumer  base.  The  key  difference  as  observed  between  the  brands  from  leather  and  non- leather handbag brands is that the leather brands have a wider portfolio in terms of price point to cater to varied needs  of  the  consumers  in  contrast   to  brands  with  non-leather  products,  which  focus  on  narrow  pricing   based specific segments.

 


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