PelleITALIA Concept as a private initiative is an Italian top quality leather distribution and supply system. The idea is to provide high quality leather to all regional industries and crafts using leather in their production process including upholstery, fashion, automotive and aviation manufacturers. PelleITALIA is a new Concept currently operation in Serbia and Macedonia with an idea to extend its operations both in volume and markets in the area of the Balkans. The funding needed is to further support the leather sock volumes of 36 colors in 3 types of leather (Dollaro Americano, Madras and Classic) from the existing 400m2 stock per color in the iPELLI design LLC facility in Nis, Serbia to 800m2 and further opening of additional two to three leather distribution centers in Bosnia and Herzegovina, Bulgaria (NATO Member State and the only EU Member State from the group) and tentatively Albania (NATO Member State).
What We Need & What You Get
The estimation is that additional 500.000 USD of funds are needed to strengthen the existing stock in Serbia allowing stable and continual supply as well as opening of other two, tentatively three new leather distribution centers arriving to a leather distribution network of 4 to 5 centers in the Balkan’s area. As the Concept is already functional and successfully operative (www.pelleitalia.it) within he financial limitations currently at place, not reaching the entire goal is not an option. Donation or even an investment and partnership will strongly launch PelleITALIA Concept as top high qualityLEATHER SUPPLIER on the Balkans including the national markets of Serbia, Bulgaria, Macedonia, Bosnia and Herzegovina, Albania, Croatia, Greece, Montenegro and Kosovo.
The Concept will allow Balkan manufacturers an easy access to leather as a raw material and possibility to further strengthen, increase the competitiveness, export and grow with the positive impact to the employment and the regional economies in their path to complete Euro-Atlantic integration. The social-economic growth will give further input to the local democracies and by inclusion making Euro-Atlantic integration’s complete and stronger. The achieved results will be made public so donors can easily track the funds destination. On the other hand, in case of investments and loans the expected expansion of the operations in volume of sells and income will allow regular return and restitution of the loan with the defined interest rates preserving the financial interest of the investors.
Risks, Challenges and Opportunities
The risks in this business are mainly related to the turbulence regarding the available quantities and quality of row leather on the international markets as well as the price instability often tending to increase the costs of the leather in the last years.
We feel we can overcome these risks. By partnering the major leather producers systems possessing a worldwide long term raw-leather supply contracts, the greatest risk associated with our business such as lack of leather in quantities and quality needed to meet the increased demand is largely reduced. The turbulence on the international leather markets concerning the unstable prices due to the increased demand will be addressed by extending its local more capillary presence on the regional markets, increasing the volumes of sell, consequently meeting the profit targets even with lower prices and lower profit margins allowing staying still competitive.
Our biggest recognized opportunities are seen in the fact that due to much diversified leather demand by types, colors and thickness in the last years and the economic crises followed by lack of financial resources, the major part of the manufacturers tends to avoid large in-house leather stocks. They concede the leather supply to stable leather distributors meeting their most specific needs even in the minimal quantities leather producers often cannot afford. In this way they use this free capital for other needs rather than blocking it into lather stocks.
The PelleITALIA model of operation itself based on prompt rotation of the stock between the distribution centers according the changing demands on the national markets largely reduces the risks of keeping the stock blocked for a long time still addressing the challenges regarding the so much needed continuity in the leather supply that manufacturers cannot live without.
Other Ways You Can Help
The PelleITALI Concept is open to all interested parties and stakeholders for collaboration and highly appreciates support in marketing, distribution of our Concept’s idea to media, fundraising agencies, donors and interested investors.