Internationalization of Kolkata Leather Cluster: A Case Study

Abstract

In today’s competitive world, business excellence is important for the survival of all kinds of business enterprises, including micro, small and medium enterprises, especially in India. The learning of these enterprises will be enhanced as the span of their markets becomes broader. It is important for small and medium enterprises to enter into the international market in order to enhance their potential, capabilities, as well as for their growth. This paper focuses on the internationalization of the Kolkata Leather Cluster. It is highly desirable for the leather sector to enter into the international market in order to increase market share as well as to enhance their scope to develop as per the requirements of the international markets. In 1919, the Indian Leather Technologists’ Association was formed. The Chinese migrants who settled in Kolkata during the 1940s set up tanneries in Kolkata and started manufacturing shoes. The revolutionary development of Kolkata Leather Cluster happened during the late 1970s. However, there has been no significant improvement in product design and technology until now. Thus, there exists is a scope for improvement of the Kolkata Leather Cluster with a view of entering into the international markets. The aim of this case study is to determine those factors which were important for checking the growth of this sector, understand this sector from the ground level (shop floor), and provide an idea about the opportunities available for this leather sector in the international market. This study will come out with an innovative idea through which the internationalization process can be carried out in a smooth and efficient manner and the primary leather units will be benefited. There is ample demand for leather products in the international market. By customizing these products though process improvement, the export performance, as well as the contribution to Indian economy, of these clusters would improve. After appropriate identification of cluster units and ascertaining the required skills, a case protocol will be designed with the help of secondary literature that is available from different sources. Primary data will be collected using extensive interviews in a structured manner. The technique of Focus Group Discussion (FGD) would be used to identify hidden problems. Case evidence will then be analyzed, using appropriate statistical techniques wherever necessary, to check for the robustness of results. The expected findings from this case study are: (i) identification of those reasons which are hindering the internationalization of firms in this cluster, (ii) an understanding of the gaps between the initiatives of the government and the initiatives of the cluster, and (iii) identification of areas of intervention which would positively impact the internationalization of the Kolkata Leather Cluster and provide access to international markets for its products.