Federal Democratic Republic of Ethiopia
Ministry of Trade and Industry of Ethiopia
Ethiopian Leather Industry Development InstituteEthiopian Leather Industries Association

Ethiopia
Industrial Promotion Project(Export Promotion) (Phase 1)
Final Report

November 2020
Japan International Cooperation Agency(JICA)
Foundation for Advanced Studies
on International Development (FASID)

Map

i

ii

Activity Photographs

Photo 1: Exhibit of the partner company’s products at thenational reception at the Japanese ambassador’s residence(Dec. 2019)

Photo 2: Preliminary survey at ELICO Awash Tannery(Mar. 2018)

Photo 3: Tanning technology support at Bahirdar Tannery(May 2018)

Photo 4: Tanning technology support at ELICO Awash
Tannery (May 2019)

Photo 5: Technology support for finishing at ELICO Awash
Tannery (Jul. 2019)

Photo 6：Patterns used by the company. Could not be used
due to severe damage.

iii

Photo 7: Pattern improved by expert guidance

Photo 8: Inspection before shipping the first sample. The
difference in leather piece’s size on the right and left
handle attachments (Dec. 2018)

Photo 9：Improvements through guidance on gluing and sewing: Left - before the guidance was given; Middle – expert
sample; Right - after the guidance was given

Photo 10: Soles not attached properly.
Left: curve Right: Not center

Photo 11: Presentation of inspection results to company
representatives (Aug. 2018)iv

Photo 12

Photo 14

Photo 13

Photo 15

Photo 12-15: Sample production process. After reviewing the design sketch (12), models are made from cloth and thefabrication procedure is verified (13). Next, the methods for constructing the parts are considered with using leather, if
necessary (14), and then the first sample is completed (15).

Photo 16: Product development support at Tikur Abbay
Shoes (Apr. 2018)

Photo 17：The expert from LIDI PDC explains designs
to company representatives (Apr. 2018)v

Photo 18: Concept board submitted by a partner company

Photo 19: Business workshop (May. 2018)

Photo 20: 3day-Brand Management Workshop (May. 2019)

Photo 21: On-site inspection in Bahirdar Tannery for EHL
Certification (Jun. 2019)

Photo 22: On-site inspection in ELICO Awash Tannery for
EHL Certification (Jun. 2019)

Photo 23: Awarding EHL Certificate to ELICO Awash
Tannery (Aug. 2019)vi

Photo 24: Awarding EHL Certificate to Bahirdar Tannery(Aug. 2019)

Photo 25: Customer service at EHL booth at the trade
show in France (Sep. 2018)

Photo 26：ETH booth at Premiere Classe Paris (Sep. 2018)

Photo 27: EHL booth at Who’s Next in Paris (Sep.
2019.9)Photo 28: Vegetable-tanned leather products on display at
Who’s Next (Sep. 2018)

Photo 29: Tie-dyed leather products and other goods
exhibited at Who’s Next (Sep. 2018)vii

Photo 30: A panel explaining the brand concept (left), a pane explaining contribution to SDGs (center), and a panel
explaining characteristics of EHL using the results of comparative studies (right) at the EHL booth at Who’s Next (Sep.
2019)

Photo 31: Wax finished leather products exhibited at Who’s
Next (Sep. 2019.9)

Photo 32: EHL booth at Project Womens at MAGIC in Las
Vegas (Feb. 2020)

Photo 33: EHL booth at Footwear Sourcing at MAGIC in Las
Vegas (2020.2)

Photo 34: A video introducing the partner company’s
factory was shown at the EHL booth of Footwear Sourcing.

viii

Photo 35: EHL seminar held at All African Leather Fair (Nov.
2019)

Photo 36: EHL booth at All African Leather Fair (Nov. 2019)

Photo 37: A showroom was set up at the Ethiopian Embassyin France when the delegates visited France for the trade
show (Jan. 2020)

Photo 38: Technology transfer at the shoe factory (Mar.
2020)

Photo 39: EHL brand sandals launched in Japan (Jun. 2020)

Photo 40：Presentation at International Coffee Day (Dec.
2018)

ix

Photo 41-42: The brand logo was presented at the Coffee Sector Stakeholders Conference. (Aug. 2019)

Photo 43-44：Ethiopian Coffee booth at SCAJ2019 (Sep. 2019.9)xContents
Map ......................................................................................................................................... i
Activity Photographs ............................................................................................................. iii
Abbreviations ....................................................................................................................... xiii
Executive Summary ............................................................................................................. xv
Project Outline............................................................................................................... 1
1.1 Background of the project .................................................................................... 1
1.2 Objectives ............................................................................................................ 1
1.3 Ethiopian implementation organizations .............................................................. 3
1.4 Target area ........................................................................................................... 4
1.5 Basic policies ....................................................................................................... 4
2.

Activities: Overall Project Plan and Operation........................................................... 5
2.1 Plan and overview of the implementation ............................................................ 5
2.2 Dispatch of experts .............................................................................................. 8

3. Activities of the Ethiopian Highland Leather Component ........................................... 9
Output 1. Production of high-quality EHL brand leather materials and products ....... 9
3.1 [Activity 1-1] Strengthen product competitiveness of selected companies (product design,
product quality, production line management, and marketing) ................................. 9
3.2[Activity 1-2] Strengthen technical and training capacity of LIDI and ELIA (productdesign, product quality, and marketing) .................................................................. 25
3.3[Activity 1-3] Analyze Ethiopia's leather value chain bottleneck and propose

countermeasures.................................................................................................... 26
Output 2. Proper management and international recognition of the EHL brand ...... 31
3.4 [Activity 2-1] Development of the brand strategy (target market, budget, products (appeal
point, item, design), pricing, and promotional materials) ........................................ 31
3.5 [Activity 2-2] Reinforcement of the brand management system (personnel, finance,
intellectual property registration) ............................................................................ 38
3.6[Activity 2-3] Establishment of brand certification criteria and system............. 40

3.7 [Activity 2-4] Creation of guidelines for brand usage (criteria for use of logos, tags, etc.)............................................................................................................................... 52
3.8 [Activity 2-5] Comparative study on sheep leather for scientific evidence ......... 52
3.9[Activity 2-6] Brand promotion (promotional materials, website, trade show, journal, anddisplay) ................................................................................................................... 54
3.10

Meetings ........................................................................................................ 70

4. Activities: New Champion Product Component ......................................................... 71
Output 3. Development of a new champion product brand ..................................... 71
4.1 [Activity 3-1] Promotion of champion product approach .................................... 71
4.2 [Activity 3-2] Identification of potential champion products ................................ 71

xi

4.3 [Activity 3-3] Investigation of the characteristics and market of potential champion
products.................................................................................................................. 73
4.4 [Activity 3-4] Development of the brand concept of the selected champion product bysharing EHL experience ......................................................................................... 74
4.5 [Activity 3-5] Unify national branding activities ................................................... 77
4.6 [Activity 3-6] Analysis of bottlenecks in export promotion and proposal ofcountermeasures.................................................................................................... 77
5. Achievement of the Project Objectives ....................................................................... 79
5.1 Progress............................................................................................................. 79
6. Activity Plan in the 2nd Phase ....................................................................................... 81
6.1 Activity Plan in the 2nd Phase ............................................................................. 81
7. Appendices .................................................................................................................... 85xii

Abbreviations
ALLPI

Africa Leather and Leather Products Institute

AGOA

African Growth and Opportunity Act

ATA

Agricultural Transformation Agency

COMESA/LLPICommon Market for Eastern and Southern Africa/ Leather and Leather Products
Institute

COVID-19

Coronavirus Disease 2019

C/P

Counterpart

CP

Champion Product

New CP

New Champion Product

CPA

Champion Product Approach

CPA1

Policy Dialogue on Industrial Development in Ethiopia (Phase 2) Study on
Implementation Support of 'Champion Product Approach'

CPA2

Champion Product Approach Implementation Assistance Survey in Ethiopia (Phase 2)

DFID

Department for International Development

ECelectronic commerce

ECEA

Ethiopian Coffee Exporters Association

ECTA

Ethiopian Coffee & Tea Authority

ECRA

Ethiopian Coffee Roasters Association

EHL

Ethiopian Highland Leather

EIB

European Investment Bank

EIC

Ethiopian Investment Commission

EIPO

Ethiopian Intellectual Property Office

EKI

Ethiopia Kaizen Institute

ELIA

Ethiopian Leather Industries Association

ELICO

Ethio-Leather Industries P.L.C.

EP

Enterprise Partners

ETB

Ethiopian Birr

EU

European Union

EUIPO

The European Union Intellectual Property Office

EUTM

The European Union Trade MarkIC

Implementation Committee

ICR

Inception Report

ICT

Information and Communication Technology

IPDC

Industrial Parks Development Corporation of Ethiopia

JICA

Japan International Cooperation Agency

JCC

Joint Coordination Committee

LIDI

Ethiopian Leather Industry Development Institute

LIDI TWG

LID Technical Working Group

MLC-CETP

Modjo Leather City Common Effluent Treatment Plant

MOFA

Ministry of Foreign Affairs

MOTI

Ministry of Trade and IndustryNGO

Non-Governmental Organization

xiii

OJT

On-the-Job Training

PDC

Product Development Center

PDM

Project Design Matrix

POP

Point of Purchase Advertising

PPE

Personal Protective Equipment

SCAJ 2019SCAJ World Specialty Coffee Conference and Exhibition 2019

SDGs

Sustainable Development Goals

SNS

Social Networking Service

TBD

To be determined

TTF

Transformation Triggering Facility

UNIDO

United Nations Industrial Development Organization

USD

United States Dollar

VAT

Value Added Tax

VMD

Visual MerchandizingxivExecutive Summary
Project Outline
The Ethiopia Industrial Promotion Project (Export Promotion) has been implemented to carry out analternative export promotion method, different from existing mass-market promotional activities, which isa promotion of Ethiopian products with a unique identity and high quality to premium/niche markets. This
project has been composed of two components: “Ethiopian Highland Leather (EHL) component” and “NewChampion Product (New CP) component.” The project has been implemented in two phases: Phase 1 (June2017 to November 2020) and Phase 2 (December 2020 to January 2022).
From the Ethiopian side, the three implementation organizations/agencies have taken responsibility
for the project, i.e., the Ministry of Trade and Industry of Ethiopia (MOTI), the Leather Industry Development
Institute (LIDI), and the Ethiopian Leather Industries Association (ELIA).

Activities of the Ethiopian Highland Leather Component in 1st Phase
EHL Material and Product Development
In Phase 1, the project provided technical supports with an emphasis on producing samples meeting
the requirements and quality standards of developed countries’ markets as well as on transactions withbuyers and participated in trade shows held in France in September 2018, September 2019, and January
2020, and the trade show in the US in February 2020 to put them into practice. After the first trade show,
both the quality of samples and customer service was improved, leading to improved results at thesubsequent trade shows. Nevertheless, only a few sample orders have developed into subsequent orders for
actual products, suggesting the continued need for technical support.
For tanneries, the project provided support for technologies that add value through eco-friendly
processing and upcycling, including finishing techniques taking advantage of the characteristics of EHL
and tie-dyeing using vegetable-tanned leather and low-grade leather. Through this technical support and thetrade shows that were held, it became clear that products with a strong message, such as vegetable tanningand tie-dyeing, attract high levels of demand in overseas markets. This highlighted the importance of sales
strategies in line with the target market.
For manufacturers, the project provided technical supports to improve the quality of their sheep leather
products and their customer service. Although some companies received orders for samples in promotional
activities in the previous phase, the number of sample orders that led to the order of actual products was
extremely limited due to the poor quality of the samples, the delivery delays, and inadequate
communications with the buyers. Based on these lessons learned, experts were dispatched to thosecompanies to provide technical supports. As the result, the number and certainty of orders for samples
received at the trade show exceeded those in the CPA2 as a result of the creation of samples tailored to thetarget market, support for business negotiations, and detailed promotion plans. Unfortunately, the spread of
COVID-19 has caused the cancellation of many sample orders, but this has highlighted issues that need tobe addressed in Phase 2, such as adapting to the increased international prevalence of electronic transactions.
EHL Brand Development and Management
Based on the EHL brand concept and brand story established in the previous phase, a brand strategy

xvthat leverages the brand value of EHL was developed with the C/P. After conducting the market research in
the EU and desk research on the other potential trade shows, it was decided to target Premiere Classe
Paris/Who’s Next in Paris.
To begin the enhancement of the brand management system, the project started to implement theregistration of EHL in the European Union Intellectual Property Office (EUIPO). After conducting thepreliminary survey that investigated the existence of any similar trademarks registered in the same region,
ELIA submitted the application form to the EUIPO. The registration of the trademark in the EU wascompleted in January 2020.
The EHL certification criteria for finished leathers were comprised of on-site inspection and physicaland chemical testing of sample leathers by LIDI. Although the standards were drafted followinginternational standards, given the current situation of Ethiopian tanners, the testing capability of LIDI, andthe non-existence of an international standard for sheep leather products, the standards, and its system wererevised in stages based on the results of the tests. Through the implementation of the tests for two times anda series of discussions with relevant stakeholders, the 3rd draft of the EHL certification criteria for finishedleathers was agreed with the C/P. Besides, ELIA awarded EHL certificates valid for one year to 2 tanneriesin August 2019.
The draft of certification criteria for EHL leather products was also developed and agreed with relevant
stakeholders. It was agreed that the leather manufacturers who wish to use EHL required to 1) submit areceipt from EHL certified tanneries, and 2) submit a quality control checklist before shipment. Before thetrade shows, the certification process was tested and conducted OJT on the usage of the quality check sheetwith quality control staff at partner companies.
Due to the spread of COVID-19, experts had to return home in the middle of their activities and it was
not possible to finalize both certification criteria agreed with the C/P and the partner companies, thefinalization of the certification criteria for EHL finished leathers and EHL leather products will be carriedout in Phase 2.
To scientifically prove the strength of EHL, a joint survey was conducted between LIDI and Tokyo
University of Agriculture and Technology. The result showed that one of the reasons Ethiopian sheepskinretains its physical strength is because of the difference in thickness of the papillary layer. The result wascompiled and used as one of the promotional tools at trade shows.
Activities: New Champion Product Component in the 1st Phase
Brand Development of the New Champion ProductBased on the discussions between MOT and industry organizations, the eight sectors were selected as
new CP candidates: Teff, sesame, chickpeas, red peppers, roasted coffee, beef, frankincense, and honey.
The project conducted meetings and visited related organizations, producers, and markets for detailed
information collection and discussion. The roasted coffee was then approved as a new champion productin March 2018. For activity operations for brand development, ECTA had a role in adjusting the opinionsof related stakeholders. ECEA and ECRA which have deep connections to ECTA compared with the otherstakeholders have been involved as members of the implementation committee.
The project participated in the International Coffee Day event in December 2018, to announce thexvinational committee for the brand and quality management. The Brand Logo candidates were selected aftera series of discussions and a competition, and finally, one was selected in the stakeholder meeting in August
2019. At the SCAJ 2019 held in Tokyo in September 2019, ECEA put up a booth of the Ethiopian Coffee,
and the project supported the presentation of national coffee brands at the trade show. Support was also
given for the creation of brand leaflets, the design and construction of the trade show booth. In addition to
the promotion at the booth, ECEA explained the background of the launch of the national brand, the valueof the brand, and the future brand management system, at the seminar on the country of origin. It has beenplanned that the certification criteria for Ethiopian Coffee would be developed and also the trademarks forthe brand logo would be registered in the national and international markets. The application would bestarted, after the Ethiopian Coffee Association would be organized and decided as the brand owner.
For the “Creativity in Motion”, a brand for the Ethiopian export industry including EHL, thepromotional film, and website were produced during CPA2. As of October 2020, the installation on the
hosting server owned by MOTI has been pending and the website has not yet been updated. This will beattended in Phase 2 with MOTI’s initiatives.
Achievement of the Project Objectives
One of the outputs of the EHL component is the production of high-quality EHL brand leather materials
and leather products. The test trial of the EHL Leather Material and Product Certification Criteria andOperation System (first draft) was conducted after May 2019. After the results were reviewed, the second
trial was carried out for the trade show in January 2020. Based on these results, it was aimed to complete
the EHL certification system by April 2020. However, the Japanese experts could not implement activities
in Ethiopia due to the pandemic of COVID-19 after the end of March, the activities were suspended. It is
expected to finalize the system when EHL certification is updated in Phase 2. Then, the project will receive
an application from partner companies, which will lead to the achievement of Indicator 1-1). Indicator 1-2)
was achieved. Due to the reports from the partner companies, a total of 57 sample orders have been
confirmed since the trade show in September 2018, exceeding the target figure, 30 orders. The second
output is the appropriate management and international recognition of the EHL brand. Both of the twopartner tanners were certified by the EHL brand in August 2019, which met Indicator 2-1). Indicator 2-2)
was not achieved. Of the 46 visitors to the EHL's booth at the trade show in France in January 2020, 11(24%) had known about EHL beforehand. This is probably because many of the answer persons stopped
by the booth by chance.
The actual value of exports of EHL materials and products by the partners is approximately USD 7,000of the two tanners (as of September 2019) (indicators 1-1), and the actual exports of bag and shoe
manufacturers totaled 7 orders of EUR 3,419.94 and 983.33 USD (as of June 2020) (indicators 1-2). Thus,
the indicators have not been achieved. Further efforts including diversification of promotion methods will
be made in Phase 2 to achieve the objectives. Two bag manufactures started communication with five newbuyers, but they have not yet received a firm order (Indicator 1-3).
Regarding the other component (New Champion Product), the expected output is the branddevelopment of a new CP. Coffee was selected as a new CP to be developed, and a logo was created as partof the branding. On the other hand, registration of Ethiopian coffee’s trademark in the country has beenxvii

delayed. There is a plan to set up an association to oversee various producers’ associations in Ethiopia, andthis organization may be the brand owner. After this is established, it will apply for the trademark
registration as the brand owner.
Activities Plan in the 2nd Phase
Regarding the 2nd phase, the project had several discussions with the C/P about the activity plan, andthe C/P mostly approved the plan. Then, the project proposed the plan to the participants in the 6th JCC
meeting held on October 14, 2020. In the meeting, the project explained the target figures at the start of the
2nd phase, target market and approach for each sub-sector, concrete activity plans in each market, and thenecessity of extension of 2nd phase duration. The participants agreed on the target figures and the directionof the activity and requested an extension of the duration. In the future, based on the discussions in themeeting and the requests from companies, the project continues to hold discussions with MOTI, LIDI, and
ELIA, and form a consensus between C / Ps on the specific activity plans.

xviii

Project Outline
1.1 Background of the project
During the 2012 policy dialogues, which was continued from June 2009 between Ethiopia and Japan,
the Champion Product Approach (CPA) was proposed as a specific step in export promotion. The CPA is a
strategy for promoting export through discovering unique (only one) and high-quality (best one)
“Champion Products” that reflect a country’s culture and historical background, and selling of those
products at overseas premium markets, thereby improving the images of the products and the country. And
it results in increasing the country’s exports, which is the ultimate goal.
The “CPA implementation support survey phase 1” (CPA1) was run from May 2013 through February
2014 to make the CPA concept clear and testing its efficacy. During the “CPA implementation support
survey phase 2” (CPA2) (Nov. 2014 - Mar. 2017), the leather sector was selected for pilot following market
research. As pilot activities, brand development, product development, and promotional activities targeting
Japanese markets were carried out. A brand specializing in sheep leather made in Ethiopia, “Ethiopian
Highland Leather” (EHL), was launched. EHL attended a trade show in Japan twice and engaged in businessnegotiations with over 340 companies in a total of six days. Although some orders for sample products wereplaced, a few contracts were signed due to the inadequate quality of the samples and late delivery, and otherreasons. Ethiopian Leather Industry Development Institute (LIDI) and Ethiopian Leather Industries
Association (ELIA) and the partner companies felt the possibility of success in the international market,
and becoming keenly aware of the demanded quality level, requested concrete technical support in design,quality, and production management.
Throughout phases 1 and 2, in tandem with assistance to the leather sector, another brand aimed atpromoting the Ethiopian manufacturing industry in a cross-sectoral manner: “Creativity in Motion” waslaunched with a promotional video and website. The Ministry of Foreign Affairs of Ethiopia (MOFA) andthe Ethiopian Investment Commission (EIC) are introducing these items when they welcome foreign
diplomatic and business mission representatives, and the Ethiopian Airlines shows the video on its flights.
Yet, the use of these items has been rather limited.
In response to the request from the Ethiopian government, this project is an export promotion support
for continuous implementation of CPA based on the results up to CPA 2 as described above. This project
stands as one of three components of the JICA supported Industrial Promotion Project agreed in July 2016.
Other components of this JICA project include the Industrial Policy Dialogue and the Investment
Promotion/Industrial Parks Development.

1.2 Objectives
This project aims to carry out an alternative export promotion method, different from existing massmarket promotional activities, which is the promotion of Ethiopian products with a unique identity and highquality to premium/niche markets. This project has been composed of two components; “EHL component”
and “New Champion Product (New CP) component.” The purposes of each component are as follows;1For EHL component:
To increase export of sheep leather (finished leather and final product)
For New Champion Product component:
To expand sheep leather case to other champion products
The project aims to build on CPA2, to carry out activities focused on sheep leather, and to establish
the efficacy of the CPA (“EHL component”). At the same time, the CPA will be introduced into new sectors
to facilitate medium-term industrialization in Ethiopia (“New CP component”). In this way, the project aims
to indicate the way to carry out activities in export promotion of Ethiopian products with a unique identity,
thereby contributing to industrial development in Ethiopia.
New Champion ProductComponent

Ethiopian Highland Leather
Component

2

3
Improve qualityof products andcompanies2

Mastermarketingmethods

Ministryof Trade

LIDI/ELIA

LIDI

Discover and Bring up
New Champion Products

Establish EHL Brand
1

Formulate andimplement
strategies

1Create structures for brandmanagement and brand marketing

Analysemarkets

LIDI/ELIA

Ministryof Trade3

implement
marketing activity
Ministryof Trade

To increase export of sheep leather.
To expand sheep leather case to other champion products.
Figure 1:

Two components of this project

Table 1:

Project summary

Project Title

Ethiopia Industrial Promotion Project (Export Promotion)

Duration1

1st Phase: June 2017- November 2020
2nd Phase: December 2020 - January 2022

Ethiopian
Implementation
Organizations

Ministry of Trade and Industry (Restructured from the Ministry of Trade in 2018)
Leather Industry Development InstituteEthiopian Leather Industries Association

Target area

The whole Ethiopia and international market

Overall Goal

To increase export as well as to expand the brand recognition through the champion
products approach and its promotion.

1 Initialy the duration was; 1st phase: June 2017 – June 2020, 2nd phase: July 2020 – January 2022. However, the 1st phase was

extended by 5 months due to the global expansion of COVID-19 from early 2020.

2

Project Purpose

Component 1 (Ethiopian Highland Leather)
To increase export of sheep leather (finished leather and final product)
Component 2 (New Champion Product)
To expand sheep leather case to other champion products

Outputs

Component 1 (Ethiopian Highland Leather)
1 Quality EHL branded finished leather and leather products are available
2 EHL brand is properly managed and internationally recognizedComponent 2 (New Champion Product)
3 Another champion product brand is developed

InputsEthiopian Side ︓ Counter parts’ focal person, Office space with the necessary
equipment, Activity cost
Japanese Side︓Experts, Activity cost

The Project Design Matrix (PDM) is attached as apendix1, which was agreed in the 4th Joint
Coordination Committee (JCC) meeting held in July 2019.

1.3 Ethiopian implementation organizations
There are three implementation organizations/agencies in this project, i.e., the Ministry of Trade andIndustry of Ethiopia (MOTI), LIDI, and ELIA. To meet the aforementioned objectives, they are expected
to assume the roles listed below.
Table 2: Roles and objectives of relevant organizations/agencies
Organization

Roles and Objectives

MOTI【Role】Promote the CPA as an export promotion strategy and identify other potential
champion products.
【Objective】Learn how to discover and back up a new champion product throughmarket research, strategy formulation (brand development), and promotional activity.

LIDI【 Role 】 Transfer technology to respective companies, to support promotional
activities, brand management, and marketing efforts.
【 Objective 】Learn how to support respective companies for the aforementioned
activities.

ELIA【Role】Implement the EHL promotional campaign as well as in brand management.
【Objective】Learn how to carry out the aforementioned activities / set up a structure
to ensure continuous marketing efforts and brand management.

Regarding the new CPA component, after the target sector decided to coffee in March 2018, MOTI
asked the project to work on brand development in collaboration with the Ethiopian Coffee and Tea
Authority (ECTA), which oversees the entire coffee industry value chain under the Ministry of Agriculture.
In consultation with ECTA, the project decided to organize an implementation committee (IC) including
the Ethiopian Coffee Exporters Association (ECEA), the Ethiopian Coffee Roasters Association (ECRA),
and the Ethiopian Intellectual Property Office (EIPO) to work on specific brand development activities,3

since the stakeholders in the coffee industry were diverse. As consensus across the industry, the project will
get approval in stakeholder meetings to finalize the brand development. For preparing to hold thestakeholder meetings and their preparatory meetings, a Technical Group was formed consisting ofpractitioners from each group participating in the IC in February 2019.

1.4 Target area
The whole of Ethiopia shall be a target area because locations of production of sheepskins are to beunspecified, upstream businesses in the leather industry will also be covered, and new sectors such as
agricultural products and other manufacturing businesses may be involved in the project period.
Besides, some developed countries’ markets are included in the export promotion. The project follows
up business meetings, trade shows, and other promotional activities in those countries.

1.5 Basic policies
The CPA2 wrap-up meeting in December 2016 reviewed CPA2, considered the next actions, and built
a consensus among concerned parties on the EHL brand strategy. As for the assistance to the leather sector,
it is important to be mindful of the consensus when formulating strategies and to encourage the Ethiopianside to take initiative on all sorts of occasions. The basic policies of this project are laid out as follows;
Table 3: Basic policies of the project
Basic Policies in Terms of Technical Aspects

Share the CPA concept among concerned parties.
Set a tangible target (i.e., trade show participation) and thereby increase the efficacy oftechnical assistance.
Leverage the channel of communication to a wide range of stakeholders and try to create
spin-off effects.
Quote EHL as a success story and promote the CPA.

Basic Policies in Terms of Administrative AspectsThe counterparts are the subject of activities.
The project ensures coordination with industrial policy dialogues to bolster the efficacy of the
project.
The project coordinates with other partners working in Ethiopia’s leather sector in TWG
arranged by MOI and based on the Strategy Paper by COMESA/LLPI.
The project adds and/or replaces experts if needed for a flexible implementation to achieve
objectives.

42.

Activities: Overall Project Plan and Operation

2.1 Plan and overview of the implementation
The following activities related to the project’s operations were implemented, while the activities
related to the EHL component and the new CP component are reported in Chapters 3 and 4.
(1) The installation of the project office as well as procurement and management of officeequipment and supplies
During the first dispatch of Japanese experts in July 2017, the establishment of a project office wasdiscussed with the main counterparts ELIA, LIDI, and MOT, among others. As a result, the project office
was set up in the secretary's office of Mr. Hailekiros, the deputy director of LIDI. Following theestablishment of the project office, the items listed in table 4 below were purchased and installed. The
procured equipment has been operating properly and it is expected to be utilized continuously during the
2nd phase to be started in December 2020. In May 2018, another space was also provided inside the officeof the Ethiopian Coffee & Tea Authority (ECTA) in the Mexico area for project operations. New equipment
for this space had not been procured.
Table 4: Office equipment (Locally Procured)
Operating
Equipment name (manufacturer
and model number) and quantity

Purchase Price

Status (as of
September
2020)

Laptop PC (Toshiba C50, C55- 1,425USD

In operation(as of September
2020)
To be used in the
2nd phase

COREI5): 2 units
Stabilizer 1,500 W: 1 unit

Management Plan

1,150ETB

In operation

To be used in the
2nd phase

Multifunction printer (Toshiba E- 37,499.99ETB

In operation

To be used in the
2nd phase

STUDIO 2802AF): 1 unit

(2) Establishment of the implementation structure and the holding of regular meetings
Consequent to consultation with the stakeholders in Ethiopia, the project decided to hold the Joint
Coordination Committee (JCC) meeting once every six months, the implementation committee regularmeeting (monthly) of the EHL component, and the implementation committee regular meeting (every otherweek) of new CP component to manage the project. The project has also organized the Technical Working
Group (LIDI TWG) within LIDI to discuss technical and instruction methods such as a design with LIDI
experts who guide partner companies with Japanese experts. The LIDI TWG is positioned as a technicalcommittee under the implementation committee and held biweekly meetings until July 2018. After that,
however, meetings are held on an as-needed basis. This is due to an increase in activity at each company asa result of continuous preparation for trade shows, and the higher efficiency of holding individual meetings
with representatives of each department. Furthermore, the collaboration with LIDI representatives who

5should participate in the TWG is a remaining matter that needs to be revisited in the implementation of the
2nd phase. In addition to the difficulty of providing on-site guidance to LIDI representatives who are in aposition to teach in each company, other factors have been identified as obstacles including payment fordaily allowances and travel expenses and ensuring adequate transportation for employees on working visits
to the companies in question, therefore, we can't say it was enough to bring out the ownership. At the sametime, the transition from OJT during the Japanese experts' visits to companies to other technology transfer
methods is also under consideration for the 2nd phase and to be decided through the discussion with the C/P.
As the new CPA, activities have been conducted with IC organized around ECTA and the relevantTechnical Group. Stakeholder meetings were held in August 2019, while meetings were held as needed for
the SCAJ World Specialty Coffee Conference and Exhibition 2019 (SCAJ 2019) organized by the Specialty
Coffee Association of Japan in September 2019.
(3) JCC meeting
A total of six JCC meetings were held during the 1st phase of the project. The summary of the meetings
is shown in Appendix 2.
(4) Collaboration with other components of the Industrial Promotion ProjectThis project is positioned as part of the JICA’s Industrial Promotion Project, and its progress has beenshared at management policy meetings held before dispatching personnel for on-site policy dialogues.
However, restrictions on the foreign currency holdings of each company have been constraining theobjective of this project, the expansion of export. Attention should be paid to policy and institutional issues
in export promotion, while items will be presented on the agenda for policy dialogues as necessary.
(5) Utilization of local consultant
The market research for the new CP component and the brand development after deciding on coffeeas the target sector had been outsourced to an Ethiopian advertising company. The company had beenworking on the development of a coffee brand book for the project and gave a presentation of the brandsignificance and the process of selecting the brand logo at the stakeholder MTG held in August 2019 to get
an approval of the brand logo. Besides, the completed brand book was re-edited and printed as a leaflet forexternal use and used for publicity at SCAJ 2019. The company also revised and printed the leaflet anddesigned the trade show booth wall of the EHL component, and worked on rebuilding the Creativity in
Motion website.
On the other hand, Ms. Bethel Dagnachew, who had been engaged in the management of ELIA's All
African Leather Fair and worked in a private company in the leather sector (operational management andPR), was hired as a project officer. From July 2018, Ms. Bethel was replaced by Ms. Azalech Solomon,
who had previously worked on a JICA project in the water sector and participated in a training course of
JICA in Japan. The project officers were mainly responsible for coordinating between the C/P and theconsultant team and liaising with the partner companies.
(6) PR activities
The public relations activities conducted throughout the project’s implementation period are shown intable 5.

6

Table 5: PR activities
PeriodDetails1

November 2017

Publication of a related article in Leather Science, Volume 63, Issue 2(article by experts on activities of CPA 2)"Observation of the Reality of the Ethiopian Leather Industry" Michiro
Aihara, Makoto Matsumoto2

November 23, 2017

Trade show and explanation of leather products at the National Reception
held at the Japanese ambassador's residence in Ethiopia

3

December 2017

JICA Ethiopia Newsletter, October–November 2017: Publication of articles
on activities at the National Reception

4

March 2018

Japan Association for Nilo-Ethiopian Studies Newsletter, No25-3
Introduction of JICA project activities in the column“Champion product approach supporting export promotion by JICA“25

June 2018

Participation in All African Leather Fair held at Millennium Hall, Addis Ababa“Ethiopian Highland Leather”

6

June 20, 2018

Lecture for Japanese student "Product Development in Developing
Countries" by Institute of Developing Economies Advanced School, JETRO

July 11, 2018

Lecture in JICA’s training course “Developed Market Oriented Export
Promotion Strategy / Marketing Strategy (A)”“Champion Product Approach - Export Promotion & Marketing of Ethiopian
Products”

8

August 9, 2018

International Leather Maker (Publication on the website of a leather
industry magazine)“Ethiopian Highland Leather heading for Paris fair debut”39

August-September
2018

A web banner placed in eNews letter of International Leather Maker

10

December 6,
2018,

Exhibit and explanation of leather products at the National reception heldat the Japanese ambassador's residence in Ethiopia (photo 1)

7

2

11

March 27, 201912

August 201913

October 201914

October 201915

October 2019

Acceptance of 12 students from International Christian University HighSchool for overseas training at a partner company (visit to Ramsay Shoe
factory)
The national brand presented at the coffee sector stakeholder meeting
The Ethiopian Herald (English-language newspaper)
Capital (English-language newspaper)
Art TV news (TV news)
Trade show in France in September 2019
Contribution to the newsletter of the JICA Ethiopia Office
Trade show in France in September 2019
Contribution to Africa Hiroba’s Facebook page
Article on exhibitors at Who’s Next IMPACT in the French online magazine
Leather Fashion Design
https://leatherfashiondesign.fr/6-marques-6-demarches-smart/

http://www.janestudies.org/drupal-jp/sites/default/files/JANES_NL25_3_20180316.pdf (Accessed on 2018. 9. 19)3http://internationalleathermaker.com/news/fullstory.php/aid/5826/_Ethiopian_Highland_Leather_heading_for_Paris_fair_debut.

html (Accessed on 2018. 9. 19)7

16

November 2019

Lecture in 2019 JICA’s training course “Export Promotion and Marketing
Strategies for Developed Markets”

17

January 2020

Acceptance of a study mission from JICA Sudan office (project briefing andvisiting partner companies）

18

February 2020

Exhibit and explanation of leather products at the National reception heldat the Japanese ambassador's residence in Ethiopia

19

May 2020

The bags made by ShirShir Ethiopia are on sale at Green Rose, a selectshop in Nagoya, Japan, and were introduced on the shop’s blog.

20

June 2020

The sandals made by Kootkeet are on sale at Artwork Blue, a select shopin the Kanto area, Japan, and were introduced on the Facebook page of
JICA Private Sector Development Group.

21

July 2020

The articles of Kootkeet’s sandals being sold in Japan were posted on
Facebook and Twitter by JICA public relations office.

(7) Change in operational policies due to the spread of COVID-19
Since the first case of COVID-19 was confirmed in Ethiopia in March 2020, the number of cases in
the country has continued to increase as of September 2020. Japanese experts who had traveled to thecountry in March were forced to shorten their stay and return home. The original plan was to hold the 6th
JCC meeting in April 2020, with the 1st phase ending in June of the same year. However, due to restrictions
on travel to Ethiopia after March, it was decided to extend the implementation of the 1st phase of the project
until the end of November 2020 and postpone the 6th JCC meeting to October of the same year. When thedecision was made to postpone the meeting, it was assumed that the meeting would be held in Ethiopia,
however, since the spread of COVID-19 in Ethiopia had not yet been brought under control and that thetravel restrictions by JICA were still in place, it was decided to hold the JCC meeting online, and to holdthe preparatory meeting for the JCC meeting with the C/P online as well.
During the postponement of the 6th JCC meeting, a market survey of the global leather industry was
conducted by desk research. The results of this survey and the outcome of the trade shows that the project
participated as well as the global spread of COVID-19 infection have led to a reconsideration of the EHL
brand strategy. Also, the project did the follow-up support after the trade shows to partner companies by emails and made interviews with partner companies to discuss the impact of COVID-19 on their companies
and the feasibility of manufacturing personal protective equipment (PPEs). The status of each partnercompany under the spread of COVID-19 is described in Appendix 3, and the impact on activities related to
EHL brand management and certification standards is detailed on p.48, respectively.

2.2 Dispatch of experts
The dispatch period of the experts who traveled to Ethiopia and other countries throughout the project
implementation period is shown in Appendix 4.

8

3. Activities of the Ethiopian Highland Leather Component
Output 1. Production of high-quality EHL brand leather materials and products
3.1 [Activity 1-1] Strengthen product competitiveness of selected companies(product design, product quality, production line management, and marketing)In the 1st phase, the project provided technical supports with an emphasis on producing samples
meeting the requirements and quality standards of developed countries’ markets as well as on transactions
with buyers and participated in trade shows held in France in September 2018, September 2019, and January
2020, and the trade show in the US in February 2020 to put them into practice. After the first trade show,
both the quality of samples and customer service was improved, leading to improved results at thesubsequent trade shows. Nevertheless, only a few sample orders have developed into subsequent orders for
actual products, suggesting the continued need for technical support.
The field activities planned for Output 1 were completed in March 2020, when the Japanese experts
returned from Ethiopia following the spread of COVID-19. In the subsequent period of extension,
promotional support has been provided for the delivered products.
Technical support for tanneries
The survey conducted in CPA2 revealed that leading tanners in Ethiopia use chemicals from major
manufacturers in Europe and India and that their quality itself poses no problem. Since ELIA also purchases
basic materials such as lime and salt for tanners, the procurement of these chemicals was deemed to berelatively stable. Therefore, technical support was provided following a support plan developed based on
the premise that the procurement of chemicals was stable, focusing on high added value. In reality, however,since the tanners turned out to be reluctant to purchase chemicals used for new technology, the technicalsupport was limited to the types of chemicals that were relatively easy to procure. The method of vegetabletanning taught as part of the technical support provided complies with the requirements of developed
markets that are sensitive to environmental and health issues, so this attracted a high level of interest from
customers in France and the US.
While the softness, thinness, and durability of EHL are the hallmarks of Ethiopian sheep leather, its
production requires high-quality rawhides. However, it has been difficult to improve methods of rawhide
preservation and the distribution of rawhide in the Ethiopian supply chain. With the government’s decision
to eliminate export tariffs on semi-finished leather, the percentage of high-quality raw hides in the domestic
market is expected to be reduced further. In light of this situation, the project provided support fortechnologies that add value through eco-friendly processing and upcycling, including finishing techniques
taking advantage of the characteristics of EHL and tie-dyeing using vegetable-tanned leather and low-grade
leather. Through this technical support and the trade shows that were held, it became clear that productswith a strong message, such as vegetable tanning and tie-dyeing, attract high levels of demand in overseas
markets. This highlighted the importance of sales strategies in line with the target market.
Selection of partner companies
A support system has been incorporated into the project to create model companies by selecting

9

specific companies to be “partner companies” and providing them with intensive support. In 2017, 29
tanners were operating in Ethiopia. Three companies were selected in December 2017 from a list of
candidate companies based on selection criteria determined in discussions with the C/P.
Tannery Selection criteria① Being an ELIA member② Being a local affiliate in Ethiopia③ Having sufficient experience in and the potential for export④ Producing high-quality leather⑤ Having experience in sheep leather producing⑥ Holding quality control and environmental certificates (ISO9001, ISO14001, etc.).
Support target companies (partner companies)① Bahirdar Tannery4② ELICO Awash Tannery5③ Colba Tannery
However, Colba Tannery did not agree to a memorandum requesting its active participation in project
activities and provision of information for establishing a barometer, resulting in its withdrawal from project
activities.
In March 2018, the C/P and tanners attended a briefing session on the technical support policy.
Proposals were made regarding technical support for vegetable tanning and finishing techniques that could
add value to lower grade semi-finished leather.
Table 6:

Finishing techniques proposed to Ethiopian tanners

Name

Characteristics

1

Wax finishing, paper crush effectGlossy wax finish with crush effect2

Double face

Reversible leather with suede and grain sides finished in different
colors3

4

Pigment finishing with

Pigment finish with a glossy and transparent surface, as if

transparency lookfinished with aniline used for high-grade leather

Pigment finishing with soft-touch

Pigmented leather normally produced by tanners in Ethiopia
finished with a softer texture.

Subsequently, it was decided that technical support should be provided for wax finishing and pigment
finishing with a transparency look, which were in strong demand.
Technical support for leather production technology
In response to the above proposal, a visit was paid to each company to investigate the current situation

4 http://www.bahirdartannery.com/
5 http://www.elicoplc.com.et/(Accessed on 2018.1.10)(Accessed on 2018.1.10)10

(photo2). In addition to interviewing management team members and people in charge, a survey was
conducted on the production line and the quality of finish of the end products. The results indicated that
Ethiopian tanners were chronically overstocked with low-grade finished leather.
Low-grade leather is usually sold with a variety of surface finishes. The chemicals used for suchfinishing processes are less accessible in Ethiopia, and the end products often turn out to be unsellable due
to a lack of adequate finishing techniques. In the meantime, high-quality leather accounts for less than 10%of the total production of each tanner, even with collective sales of leather of grades 1-3, and the market
demand for this leather is so high that there is no need for promotional activity.
In the international market, chrome leather, which contains heavy metals, tends to be avoided. In
contrast, there is a growing demand for healthier and more environmentally friendly leather materials, suchas vegetable-tanned and chrome-free leather. In light of this situation, production techniques for vegetabletanning and processing techniques such as tie-dyeing and waxing, which add value to low-grade leather,have begun to be taught as part of the project. Vegetable tanning, as healthy and environmentally friendly,
adds value through making vegetable-tanned leather different from chrome leather. Tie-dyeing and waxing
can reduce the appearance of scratches on crust leather of lower grades (leather as intermediate material
before the finishing process). Project members and people in charge of LIDI visited partner companies toprovide technical support for vegetable tanning and learning about finishing techniques.
In addition to the transfer of technology described above, the tanners asked for assistance with thetypes of dyes, their characteristics, and compatibility, solutions to problems arising in daily operations, aswell as improvements in the flexibility and colorfastness of chrome-tanned leather. Technical support wasprovided for each request through lectures, experiments in the companies’ laboratories, and on-the-job
instruction (photo3-5).
Since the number of chemicals that could be used in this technical assistance was limited, technology
was transferred to people in charge of LIDI only through supplementary work, while the actual processfrom tanning to finishing was performed by the technicians at the tanners. Despite their knowledge of theory,the people in charge of LIDI had only a few years of experience in the field and lacked technical skills.
LIDI will need to enhance its approach to help its employees gain experience in the field (at tanneries) andtransfer their skills to the tanners to reproduce the same quality of leather by looking at samples.
Technical support for quality control
In parallel with assistance for production technology, technical support was provided for quality
control. First of all, an investigation on quality control standards and their system of operation revealed thattwo of the partner companies had their standards established based on ISO standards shared by LIDI. The
content of the standards was well regulated as ISO standards and was in line with the items produced bythose tanners. In addition to this grading, the inspection process also included the determination of thickness
and color differences checked against samples.
Although the grading and inspections were based on these clear standards, many customers
complained about color differences, variations in quality within the same grade, and differences in thickness.
These complaints seem to arise from discrepancies in the assessments of each person in charge. In quality
control, it is important to reduce discrepancies in individual assessments. To narrow the discrepancies in11

individual interpretations of the evaluation criteria, an Amharic translation of the criteria was distributed totanners to be placed on each inspection table.
Crust leather of lower grades (grades 5-6) needs to be sorted into more detailed categories again, as
there are various quality levels contained within the same grade. The selection of crust and wet blue leather(moist chrome-tanned leather as intermediate material) taking into account the finishing process will makeleather of grades 5-6 more competitive. Acceptable levels of damage for crust leather that can be used for
pigment finishing with transparency look and crust leather that can only be used for wax finishing vary, so
the selection process needs to be more rigorous.
Besides, the overall process had become quite complicated, often causing products of different grades(checked and unchecked items) to be mixed up. Improvements were proposed to provide clear guidelines
for the process from the determination of thickness and inspection to packing and pre-shipment samplinginspection.

Figure2: Inspection process performed by the inspection department of partnercompanies (left: current condition, right: suggestion for improvement)

12

Table 7: Table 7: Comparison of ISO Standards (left) and Ethiopian companies’ grading
systems (right)

Acceptable range:

No defect in any

90-100%sectionUp to 1 minor defectDefect in 1 section

Acceptable range:
75-89%

Defect in 2 sections

Acceptable range:
60-74%Up to 3 minor defects

Defect in 3 sections

Acceptable range:
45-59%Up to 5 minor defects

Defect in all 4 sections

Acceptable range:
25-44%Up to 10 minor defects

Acceptable range:

Overall defective

15-24%

13

In the meantime, the factories had become severely contaminated with paint used during the finishingprocess, while equipment such as sprayer machines was not being cleaned properly. These conditions did
not become a problem since these factories had mainly handled standard colors such as black and brown.
However, to produce light-colored leather, including more fashionable colors, it was necessary to put up
curtains to prevent dust from entering and to rearrange the position of the machines. Since this would
involve major modifications, the following suggestions were made as measures that could be put in placewith immediate effect.
① Always store finished leather with the grain side on the other grain side, to prevent contact
with shavings and dust on the flesh side.
② Make sure to filter prepared liquid soon to prevent contamination.
③ Clean the leather surface with a cloth before moving it to a spray machine for dyeing.
④ Check dyed leather for stains immediately after the dyeing process, and if a stain is found,
immediately report it to the spray booth, stop the machine, take measures such as cleaning,
and restart the process.
⑤ Add fluorescent lamps to increase illumination.
⑥ Use one sprayer for light colors and the other for dark colors separately.
⑦ Stop operation and clean sprayers and ironing machines at least once every six months.
After these suggestions were made, workers were observed cleaning leather before starting to work,
storing leather with grain sides facing each other, and cleaning the spray booth, and spray guns.
Nevertheless, continued support is considered necessary to ensure these actions become routine.
(2) Technical support for manufacturers of leather products, such as shoes and bags
Support was provided to Ethiopian manufacturers of leather products to improve the quality of their
sheep leather products and their customer service. Although some companies received orders for samples
when they attended the trade show held in Japan in the CPA2, problems arose in the quality and time taken
for delivery of the samples. Also, the companies were unable to provide accurate information in response
to customer requests. As a result, the number of sample orders that led to the order of actual products was
extremely limited. The poor quality of the samples was attributed to a lack of understanding of theirimportance, as the companies thought it was acceptable to resolve the issues at the mass production stage,
as well as a lack of technical competence to reproduce samples of the same quality as the exhibited products
without assistance. Delivery delays were mainly due to the time it took to organize the leather materials fordelivery.
Based on these lessons learned, experts were dispatched to those companies to provide technicalsupport as part of the project. Besides, the project targeted the European market, which is considered to beless demanding in terms of quality control of leather products than the Japanese market. As described in
section 3.1 (1), support was provided for tanners to differentiate their products without using high-grade
leather to tackle the problems with the quality of leather materials.
Since this was the first time for many companies to participate in this project, the level of technical14

support required was quite rudimentary. However, the number and certainty of orders for samples received
at the trade show exceeded those in the CPA2 as a result of the creation of samples tailored to the target
market, support for business negotiations, and detailed promotion plans. Every time project members
participate in a trade show, there is an increase in the number of continuing interactions with clients andsmall lot orders. Such transactions have also revealed problems that arise when customers make payments.
Unfortunately, the spread of COVID-19 has caused the cancellation of many sample orders, but this has
highlighted issues that need to be addressed in the 2nd phase, such as adapting to the increased international
prevalence of electronic transactions.
Selection of partner companies
As with the tanners, six firms were selected in December 2017 from a list of candidate firms based on
the selection criteria determined in discussions with the C/P. A memorandum was signed between eachpartner company and the project to formalize their commitment to participation in the project.
Manufacturer selection criteria① Being an ELIA member② Being a local affiliate in Ethiopia③ Having sufficient experience in and the potential for export④ Producing high-quality leather⑤ having experience in sheep leather manufacturing
Support target companies (partner companies)■ Bags and accessories① Kootkeet6② Yezichalem Meaza7 (declined the support in January 2020)③ Entoto Beth Artisan8④ Shirshir Ethiopia (joined in April 2019)9⑤ ELICO Universal Leather（joined in October 2019）⑥

Abka Leather (joined in December 2019)10■Shoes① Sheba Leather11 (declined the support in July 2018)② Ramsey Shoes (terminated the support after the discussion between the company
and project in September 2019)③ Tikur Abai Shoes12④ Ambessa Shoe13 (joined in May 2019)⑤ Natural Footwear Studio14 (joined in December 2019)6 https://kootkeet.com/(Accessed on 2018.1.10)
http://www.indezi.no/vare-leverandorer/yezichalem-meaza?tm=menyside (Accessed on 2018.1.10)
https://www.oliberte.com/pages/where-its-made-oliberte-gear/ (Accessed on 2018.1.10)
8
https://www.facebook.com/Entoto-Beth-Artisan-233271773470318/ (Accessed on 2018.1.10)
9https://www.shirshirethiopia.com/ (Accessed on 2020.10.22)
10 http://www.abkaleather.com/ (Accessed on 2020.10.22)
11
www.shebaleather.com (Accessed on 2020.10.22)
12
https://www.tikurabbayshoe.com/ (Accessed on 2020.10.22)
13 https://www.anbessashoesc.com/ (Accessed on 2020.10.22)
14 http://www.natural-shoe.com/ (Accessed on 2020.10.22)
715

■Garment①

Kinaff Leather15 (joined in June 2019)

Among the above companies, Yezichalem Meza decided to withdraw from the project after 2020 due todifficulties in covering the costs for manufacturing samples. At the same time, since the policy of support
offered by the project based on the CPA did not include the provision of markets requested by Sheba Leather,both parties agreed that support would be discontinued in July 2018. Support for Ramsay Shoe wasterminated after discussions, as the company’s representative deviated from the plan without consulting
project members during its participation in the trade show in September 2019.
Technical support for manufacturers of bags and leather products
Before the above selection, a visit was paid to each company to investigate the current situation.
Interviews with management team members and people in charge, as well as a survey, were conductedconcerning the production line and the quality of finish of the end products. As a result of the survey, thefollowing issues were identified as common to all the companies:① Variation in the size and shape of the finished product② Variations in the position of parts, brand logo, etc.
③ Damage to the leather material surface caused by the inadequate adjustment of thesewing machine④ Defective seams⑤ The adhesive on the surface of leather material and contamination such as dust on thelining material⑥ Poor storage condition of the finished product, such as horizontal stacking⑦ Production inefficiency
Many of these issues seemed to be caused by a lack of standards for maintaining uniform quality andthe fact that workers were performing tasks based on their criteria and judgments. Besides, due to a highrate of labor turnover, many companies have been unable to train skilled workers capable of instructing
other workers and managing and supervising the production line. These facts suggested the need for“promotion of visualization for the improvement of quality and productivity (standardization of operation
processes)” and “introduction of in-line inspection” to identify defective products at the earliest possible
stage and prevent them from being passed on to the next stage of the process. These measures seemed tobe more effective than the enhancement of individual technical skills in ensuring that companies see
improvements in a short period, with less susceptibility to changes in the retention rate of trained employees
and an improved level of consistency.
To ensure the implementation of the 3S and establish this as a routine before starting support for quality
control and productivity improvement, one of the partner companies (1) used a cleaning checklist, amanagement ledger for hazardous materials, and a tool management record (2) cleaned tables before and15 http://www.kinaff.com/ (Accessed on 2020.10.22)

16

after work (3) disposed of unnecessary items and (4) organized the warehouse continuingly. Since thecompany has approximately fifty employees, it was easy to communicate with middle management as wellas to see the results of these measures, which helped to improve motivation for the entire company to engage
in the 3S. Employees are now more aware of the 3S and have taken the initiative, for example of changing
the layout of their workspace and writing up each team's performance on a whiteboard before leaving work.

Table 8: Examples of improvement through implementing and becoming familiar with 3S
Before improvement

After improvement

Boxes and glue cans piled

Useless objects no longer

up randomly.

take up space.

Boxes of waste occupied

Waste has been disposed

the space.

of to organize the space
better. Space was turned
into the cleaning tool
storage area.

Boxes were randomly

Boxes are organized in

piled up.

line.

Some obstacles were

Unnecessary items were

blocking the way and it

removed and space waswas difficult to reach theorganized to facilitate staff

stock.

to take the stock.
* The photo was taken in
the process ofimprovement.

17

The area for cutting

Installation of a table forzippers was dark andcutting zippers (with alacked tables. Lengths

fixed ruler) ensured thewere uneven as theyfinished products were of

were cut on cardboard

uniform length.

The stock was not

Items are organized byorganized and it tookcolor (with labels) *Labeltime to find items.

letter-size needs to bechanged.

Hazardous objects wereManagement ofleft on the table

dangerous items withtools (pincushion/magnet)

3S was followed by an attempt to introduce in-line inspections. The project gave a presentation tocompare pictures of products with variations first to show employees the lack of uniformity in their products.
Subsequently, experts guided to make them aware of differences and errors during operations. Defects weremarked with the experts explaining why products were considered to be defective. Besides, the lack ofskills causing the production of defective products was identified based on the in-line inspection to provide
necessary technical guidance. At the same time, technical guidance was provided on the straight-cut method,correction and introduction of patterns, improvement of the gluing process, and adjustments to reducesewing machine traces, particularly focusing on the following basic aspects (photo6-9).
① Parts supposed to be symmetrical should be made symmetrical.
② Parts supposed to be straight should be straightened.
③ Parts supposed to be at right angles should be at right angles.
Through the above technical support, products are manufactured with a focus on centering andsymmetry. Awareness of in-line inspection and quality has certainly been increasing as workers share18

pictures of rejected products in the workplace and make voluntary judgments of quality in group work.
Employees shared the following problems, tasks, measures, and improvements (Table 9).

Table 9: Problems, tasks, measures, and improvements shared by employees
of bag manufacturers
Problems· Obstacles posed by lack of preparatory work
· Preparatory work assisted by sewers at their desks (inefficient preparatory work)· Insufficient repair and inspection (preparatory work level)· Lack of accessories· Shortage of machines (Some machines are shared by all teams.)

Tasks/measures· Employment of experienced personnel· Division of responsibilities and tasks by section· Cooperative use of machines

Improvements· Increase in the number of conversations and meetings related to work between
employees· Increase in the level of improvement through conversation

One company moved its factory during the project period. This company asked for advice on themaintenance of production lines in the factory to improve productivity. After the provision of support by
the project, the company began to receive positive feedback on its product quality from its clients. The
effect of the support offered by the project has become a business incentive, encouraging the company toinvest in expert advice.
Support for shoe manufacturers
A similar survey was conducted on shoe manufacturers. The results revealed that while most of thecompanies had sufficient space and were well-equipped, the following problems were identified in eachprocess.
① Variation of the color of left and right shoes caused by the failure to check the color and glossof the leather material② Variations in the shape of the toes and the heights of the heels caused by inaccurate visual
measurement of the material on wooden molds③ Variation in the position of the brand logo
④ The curve of the finished product is not smooth as the materials are not cut in the preparation
stage.
⑤ Asymmetry of Balmoral, Blucher, and the tongue⑥ Contamination such as un-erased silver lines and adhesive on the leather material surface⑦ Loose insoles caused by the lack of shaving the insole edge

19

In the past, the shoe manufacturers eligible for support were provided with Kaizen guidance by the
Ethiopia Kaizen Institute (EKI) and technical support by the EU Transformation Triggering Facility (TTF).
Despite such support, a lack of distinction between quality standards in the production line (standards todistinguish between Products A and B) emerged, as had been the case with bag manufacturers. Therefore,
although there was a risk of deviation from the quality standards demanded by the customers, the finishedproducts were inspected based on the quality standards required for the Japanese market. This resulted in ahigh rate of defective products. This was shared with middle management personnel and the people incharge to identify problems in the line. (photo10-11)
Table 10: Product inspection results based on Japanese mid-level quality standard
Defective part

Percent

Defective part

defective

Percent
defective

Asymmetry in the position of eyelets

100%

Sole peeling

15%

Asymmetrical facings

100%

Defective height (upper / heel)

40%

Asymmetrical tongue

100%

Poor appearance (defect / spot)

100%

Defective inner cut

100%

Sewing defect (skipped stiches /20%

misalignment)
Defective insole appearance

100%

Upper and inner wrinkling

60%

After guidance was provided on the above-mentioned problems which were revealed by the inspectionof the finished products, spot checks demonstrated a quality improvement. However, with the allocationsof employees varying by the status of inbound and outbound orders, it was difficult for staff to acquire thenecessary technical skills. This situation has prevented an improvement in the quality of the products.
Support for Product Development
The project provided the partner companies with product development support continuously forparticipation in the trade shows in France and the USA. As the bag manufacturers had little experience inproducing products using sheep leather, the project began by focusing on how to make the best use of thecharacteristics of the material. Likewise, although the shoe manufacturers had experience in handling sheep
leather, Japanese experts, the companies’ focal persons, and LIDI expert discussed designs focusing on thecharacteristics of the sheep leather material (photo12-16).
Sheep leather is thin, flexible, and elastic compared to cowhide, and since the grain side (the hair sideof tanned leather) is also delicate, highly skillful cutting, sewing, and molding techniques are required. For
this reason, the project also improved the production environment by preparing thinner needles and threads
than those normally used for cowhide.
In the process of sample production at shoe manufacturers, the focal person of the LIDI ProductDevelopment Center (PDC) was accompanied by experts on visits to the partner companies (photo17). The

20

partner company representatives, having initially been skeptical about the effect of support, began tocooperate in the procurement of intermediate materials such as shoe soles since they saw the samples madewith the expert support and were encouraged by the efforts of the company's personnel. Through being
involved in such support, the designs proposed by the focal person of LIDI PDC also improved.
It was difficult for other focal persons of PDC to coordinate with other assignments because theyusually worked in their office. Also, due to dissatisfaction with the amount of daily allowance andtransportation expenses, the focal persons were rarely accompanied by the experts to each company.
Furthermore, the technology transfer method in which the focal persons received support from Japaneseexperts in the partner companies’ workshops is also considered to be one of the reasons why PDC's
involvement was limited. Originally, the focal persons were in a position to provide designs to companies,
so they shouldn't have received supports from Japanese experts in front of the company staff.
The information of the completed samples was compiled in catalogs when we participated in eachtrade show. The catalogs were composed of product photos, prices, delivery, and size. Regarding the pricing,bag manufacturers, which mainly export to limited numbers of ethical brands in developed countries, tended
to offer higher prices than the same quality product distributed in overseas markets. Conversely, shoe
manufacturers that mainly produced mass products such as shoes for the domestic market, military shoes,
and safety shoes for the overseas market tended to offer cheap prices.
In each case, the basis for estimation such as raw material costs and factory production capacity is
ambiguous, and the expert team proposed the reexamination.
Also, regarding the delivery, both the shoe and bag manufacturers had set the period under thecondition that they could produce the product in the same productivity with products they had made andthat all the materials were available. If the delivery was short, the companies considered that the customer
would receive it well, however it was unlikely that the delivery would be met. So, the expert team proposed
the reconsideration for the delivery.
The sample development for the trade show in Paris in September 2018 was started in April 2018 when
we had completed the partner company selection and the concrete support plan had been approved.
The sample development for second participation in the trade show in Paris in September 2019 wasstarted from January 2019 (see p.58) based on lessons learned in the first participation. In the sample
development for the second participation, after the discussion about the design concept, the expert teamgave the partner companies some assignments as follows;① Read and check the exhibitor report in the Paris trade show in January 2019 and findwhich kind of competitors we have and which kinds of trend and demand are there.
② Determine the direction of design or technique you want to use, and present the expert
team your idea by utilizing the information you could collect such as photos.
③ In assignment 1 and 2, find THREE directions/designs/techniques which are common
among the exhibitors.
In April 2019, the project visited each company and received the assignment answers. Although there
were different methods such as "creating an imageboard", "summarizing in PowerPoint", and "submitting

21

a design picture," the proposed designs, such as ethical concept and small bags, reflected the international
market trend by utilizing characteristics of sheep leather. In the proposals, improvement in design ability
and thinking ability was recognized (photo18). From May, the partner companies started sample
development concretely in line with their design ideas in April. Until September, the companies had tried
improving the design level of the samples to be able to display at the target trade show. The expert teamprovided technical supports to make improvements while utilizing most of its strengths.
(3) Production control support for middle management personnel
As part of the technical support offered to the companies, production control support has been provided
to company representatives and department heads as liaison officers in each company. Besides, businessseminars and trade shows, which will be discussed in the next section, were also held to reinforce thecapabilities of middle management personnel.
Manufacturers of bags and leather accessories have improved the quality of their samples through theaforementioned technical support and participation in trade shows, and their samples have begun to win
actual product orders. Some of the department heads (and managers in SMEs) attending trade shows are
becoming more aware of the difference between the quality of their products and the quality expected indeveloped markets. Sharing these perceptions with the production line and drawing a clear line between
Products A and B will also help change the mindset of workers. In terms of communication skills withcustomers, after several trade shows, some companies have reached the stage where samples are being
considered by their customers, while others have managed to exchange emails and messages on an ongoingbasis.
Since tanners and shoe manufacturers tend to be large, it takes time for middle management personnel
to whom experts provide technical assistance to have their knowledge reflected in the company’s policies
and shared with production line workers. In the 2nd phase, as travel and periods of activity are still restricted,
it is important to consider the target markets and strategies described in “3.9. (7) Additional market research”
and focus on promotion to provide efficient support.
(4) Improvement of business transactions
The project held seminars on basic marketing knowledge, customer relationship management,
negotiation techniques, etc., to improve business transactions and practice for the trade shows. It was held
three times in September 2018 for the first trade show, and after that, it was held once before theparticipation in the trade show with the theme in line with lessons learned in the previous trade show
participation.
1)

1st Seminar “Marketing 101” (March 2018 / 7days)

The participants learned fundamental and important marketing tools and case studies by participatingin the workshop so that they could utilize them in the preparation for the trade show in Paris set as
Key Goal Indicator. The purpose of the seminar was for the participants from each partner company
to learn how to use fundamental marketing tools and maintain motivation as a group toward
participation in the trade show.
2)

2nd Seminar “Customer Relationship Management（CRM）” (May 2018 / 4days)

22

The second seminar focused on methods of preliminary approaches to possible customers based on
CRM methods requested of the participants in the first seminar. The participants analyzed the potential
customers in the European market using the marketing tools they had learned to begin actual approachactivities (photo19).
3)

3rd Seminar “Communication to Negotiation”（July 2018 / 3days)

The purpose of the final seminar was the acquisition of communication and negotiation skills. The
lecturer explained how language, tone of voice, and body language influenced the decisions of theother party so that the participants to be able to hold constructive negotiations with buyers in the trade
show, and a role-play training assuming negotiations with buyers was held in the final day.
4)

4th Seminar “Interfirm Collaboration”（August 2019 / 1day）

In interviews with each partner company before the 4th seminar, it was found that they were worried
about the difference between the project and their own sales strategy, prioritization between theiroperations, and participation in the project and cooperation with other companies. Therefore, theseminar was held to confirm the merits of interfirm collaboration and build a sustainable environment
for the collaboration, and set goals for each company that could be achieved through the project
activities.
Although the number of sample orders increased from 2018 to 2019, a lot of deals were terminated incommunications between the companies and clients. Such terminations were often caused not only bydelays in the response from the companies but also by the lack of response from the clients. It was thoughtthat the cause was largely due to the companies' stance to win sample orders forcibly, despite insufficientconfirmation of potential customer requests in business negotiations at the trade show.
5)

5th Seminar “connect sample orders to firm orders” (December 2019 / 1day)

The theme of the 5th seminar was to build a relationship with potential customers, which was necessary
to connect sample orders to firm orders. The experts shared their knowledge on how to makeappropriate proposals after disclosing customer needs in business negotiations in a booth of tradeshows. Besides, the interview sheet for the negotiations was improved according to the proposals fromthe experts so that more detailed information could be collected in the interview.

(5) Collaboration with other partners
In February 2018, a meeting was held to seek cooperation from and exchange information with themain donors supporting the leather sector. At the invitation of the EP, representatives from the JICA,
UNIDO, EU, and SOLIDARIDAD gathered to share information on their activities. The status of eachdonor's activities as of February 2018 is as follows.

23

Table 11: Activities of each partner for Ethiopian leather sector support (as of February 2018)
Partner

Project name

Activity details

EU

Modjo Leather

A preliminary investigation on feasibility is currently in progress. The

City Common

findings will be submitted to the European Investment Bank for financial

Effluent

assistance. The UNIDO will cooperate with the Industrial Parks

Treatment Plant

Development Corporation of Ethiopia (IPDC) at the implementation stage.

(MLC-CETP)
Transformation

Technical support has been provided by dispatching foreign experts to

Triggering

multiple shoe manufacturers to contribute to export promotion. The project

Facility

will be terminated unless the MoFEC requests its continuation

(TTF)
UNIDO

Cluster

The organization has been continuing to cluster together small andDevelopment

medium companies in each region of Addis Ababa. The organization has

Supportsupported, Mercato Cluster consisting of three groups, Teramaji, Tesfa,
and Rediet; Kirkos Network consisting of two groups, Lomi and Bela; andEFICOS involving shoe manufacturing companies in Yeka Michael.

SOLIDA

Green Tanning

A project funded by the EU and initiated by SOLIDARIDAD, a Dutch NGO.

-RIDAD

Initiative

The 1st phase was operated as a joint venture with Stahl targeting Batu
Tannery, Wallia Tannery, and Sheba Tannery. This project focuses on moreenvironmentally friendly technologies and chrome-free tanning methods
based on cases in India. Market needs are also secured by cooperation
with buyers in the Netherlands, and the results seem to be promising.
Technical support, quality control, and other monitoring activities aresupported by the project team organized within LIDI.

EP

Market

The project is aimed at solving problems in economic activities throughout

Development

the leather sector. For leather materials, the organization cooperates with

Approachpharmaceutical companies such as STAHL, Schil & Seilacher, and BASF,
marketing companies, and organizations certified by Leather Working
Group. For promoting the export of leather products, the project focuseson marketing and technical support for bag manufacturers through input
supply chain management in partnership with Made By Ethiopia andEthiopian Industrial Inputs Development Enterprise (EIIDE).

The TTF, which is supported by the EU, completed its activities in 2019. The activities of the MLCCETP have been suspended since July 2020 due to the spread of COVID-19, which has prevented theofficials of the European Investment Bank from visiting factories, but the acquisition of sites is underway.
As acquisitions cost more than the available budget of the Oromia State Government, this may be includedin the European Investment Bank’s loan to the Ethiopian Government. A feasibility study has already been
conducted by the European Investment Bank (EIB), and the MLC-CETP will be managed by the MOTI

24

and LIDI. The most suitable technology for centralized wastewater treatment is currently underconsideration. As the EU will not bear the entire cost of construction of the facilities, Japan’s proposal may
be accepted. The division of roles among the partners remains undecided volatile and will continue to shift
between the UNIDO, MOTI, and LIDI. In the future, implementation of environmental measures andimprovement of working conditions will be prerequisites for the promotion of leather materials, andcooperation with the project of the MLC-CETP seems to be an effective option.
The UNIDO has been providing Cluster Development Support, and the member companies of theLomi cluster consisting of women entrepreneurs, including companies who are participating in the project.
The Lomi cluster also attended the MAGIC trade show held in the United States, where the project had abooth in February 2020. Since the project was seeking additional partner companies to participate in the
trade show at that time, information was shared with the representatives of the UNIDO to makearrangements to avoid duplication of companies.
The Green Tanning Initiative of SOLIDARIDAD holds workshops on environmental friendliness inwhich manufacturers also participate, and companies participating in the project also attend their workshops(6) Impact of COVID-19 on each company
As the spread of COVID-19 remains out of control in the partner countries and at home, the partnercompanies have reported a decline in sales due to a drop in demand for leather materials in the market. At
Bahirdar Tannery, although employees are taking paid holidays to continue production, production is down
to about a third of what it was in February 2020. In addition to the drop in customer orders, the inability of
Ethiopian Airlines to arrange cargo flights on time due to the priority given to transporting medical supplies
has caused the companies to lose customers. ELICO Awash Tannery is hedging its risks since it has a groupcompany that manufactures bags and shoes. The group company continues to receive orders for boots fromthe police and the military, with production reduced to about half the normal volume.
Manufacturers of leather products have also reduced their personnel and switched to the production offace masks and other products to maintain employment. The project has also provided support including
investigation on sales channels for face masks through the JICA Ethiopian office and provision of ideas forthe development of leather products to help combat infectious diseases. For more information on the impact
of COVID-19 on the partner companies, see Appendix 3.

3.2 [Activity 1-2] Strengthen technical and training capacity of LIDI and ELIA
(product design, product quality, and marketing)Technology transfer to partner companies by professional staff and experts from LIDI
and ELIA
In September 2017, the project sent a research team consisting of staff from LIDI and Japanese experts
to European countries (Finland, France, Italy, and Spain) to research for market selection purposes. Also,in the EHL certified tanners’ certification process, LIDI specialists were involved in brand establishment
and promotion activities, such as on-site inspections of each tanner. In technical support for tanners, tests
on levels of understanding and activity reports to LIDI’s upper management were performed in25collaboration with the representatives from LIDI, encouraging them to participate in the project.
In assisting manufacturers in the production of samples, LIDI staff have aimed to accompany experts
to learn how to support companies. However, this initiative has not been successful due to problems inmanaging schedules, transportation, and daily allowances. For the 2nd phase, it will be necessary to discusswith representatives of LIDI to determine a method of technology transfer other than OJT.
The ELIA welcomed Daniel Getachew as the new Secretary-General following the retirement of Mr.
Abdissa, Secretary-General, and Mr. Teshome, former Deputy Secretary-General, at the end of 2018. Under
the new administration, discussions are underway on brand management and effective marketing strategies
to ensure the promotion of the EHL brand on an ongoing basis. In particular, Daniel has participated in thedesign and implementation of the certification process for EHL certified tanners with the above-mentioned
experts from LIDI. He has also been actively involved in the planning and organization of seminars at
AALF.
(2) Collaboration with the Product Development Center of LIDI and the Regional Design
Studio of COMESA/LLPIThe COMESA Leather and Leather Products Institute (COMESA/LLPI), headquartered in Addis Ababa,
was reorganized as the Africa Leather and Leather Products Institute (ALLPI) by the general meeting held inJanuary 2018. This converted it into an organization that supports not only the member states of COMSA but
also the leather industry in the African countries at large. In 2021, the International Union of Leather
Technologists and Chemists Societies Congress will be held in Addis Ababa, hosted by the ALLPI.

In 2017, COMESA/LLPI prepared a strategy paper for the Ethiopian leather sector and attempted tomake adjustments amongst the donors concerned, but this has not led to any concrete initiatives so far. A
flagship studio was planned to be built on the premises of the headquarters in Addis Ababa at the start ofthe project, and the construction of the Regional Design Studio, which was to be linked to LIDI's ProductDevelopment Center (PDC) for design guidance, was not finished until the 1st phase completed.

3.3 [Activity 1-3] Analyze Ethiopia's leather value chain bottleneck and propose
countermeasures
During the 1st phase, the Ethiopian government tightened regulations on wastewater treatment oftanneries and suspended their operation, while in May 2019, due to a stagnation in imports, the government
abolished the high export taxes on semi-finished leather, such as crust leather and wet blue leather, which
had been in place for nearly a decade. According to an interview with the Secretary-General of ELIA in
September 2020, despite quality issues arising from this deregulation, exports of semi-finished leather to
India and Turkey have been on the increase.
Shortage of leather materials
In the leather industry, most leather goods manufacturers are small and medium-sized enterprises withup to fifty employees, while many of the shoe manufacturers have large production lines and hundreds of
employees. Common challenges faced by these businesses include raw material shortages, delays indelivery by tanners, and poor quality of leather materials. In particular, small and medium-sized enterprises

26order leather materials from tanners for orders from overseas companies, but the materials do not arrive on
time, causing delays in delivery of products to overseas clients and a lack of business continuity. Besides,
the delivered leather is often damaged and unusable. Even major shoe manufacturers with tanners in theircompany group complain about the quality of leather supplied by their tanners. This situation does not justreflect upstream industry issues, but also a lack of tanners with the finishing expertise capable of concealing
surface damage on lower grade leather and applying fashionable colors or unique textures. Before export
tariffs on intermediary materials such as wet blue and crust leather were increased significantly, Japaneseand European companies mainly purchased such intermediate materials and added value to their products
through the finishing process.


The response of the project

The above problems highlighted the need for support for tanners, leading to the implementation oftechnology transfer and provision of support in quality control for tanners to improve their finishingtechniques.
(2) Shortages of other intermediate materials
In many cases, companies with an overseas customer base are supplied with the necessary intermediatematerials by their customers as the orders come through. It seems possible to resolve the issue throughdeveloping relationships with the customers. Also, some companies design their products in such a way as
to avoid using intermediate materials, such as zippers, as much as possible. Shoe manufacturers also often
receive supplies of intermediate materials, including presentation boxes, from their overseas customers.
However, although both shoes and bags are leather products since many more types of intermediatematerials are used in shoes than in bags, they still face many problems in the procurement of materials foroutsoles and insoles. This is thought to be one of the main reasons for their low product planning capabilities.


The response of the project

The project members had an opportunity to have a meeting with the YKK and a joint-stock company
established within ELIA. ELIA’s joint-stock company, which has been taking part in the joint purchase ofchemicals for tanners, has bonded warehouses in airports with priority allocation of foreign currency. The
company wishes to start joint purchases of zippers for shoe companies in the future. In the meanwhile, theYKK decided to launch a factory in Ethiopia in April 2020, where its key challenge will be the expansionof its domestic sales channels. Cooperation with the two companies will continue to be monitored.
(3) Factors discouraging companies to improve quality in each company
The tendency of bag manufacturers is most of their sales come from export to developed countries andthey depend on a limited number of customers. Such companies’ clients are Western ethical brands such as
ABLE 16 , OLIBERTE 17 , and SAVANNA METRO 18 that develop the business online without having
physical stores. The quality demanded by these companies tends to not be very high, the unit price thecustomers buy is high. As a result, Ethiopian bag manufacturers are dependent on a small number of ethicalbrands, and some companies rely almost entirely on orders from a single company for their sales. Although16

https://www.livefashionable.com (Accessed on September 22, 2018)17 https://www.oliberte.com/ (Accessed on September 22, 2018)18 http://savannametro.no/ (Accessed on September 22, 2018)27

there are risks in being so dependent on one company, since they provide made-to-order products withdesigns, specifications, and accessories, there are few opportunities for the improvement of their productplanning skills.
In the meantime, shoe manufacturers have outlets in Addis Ababa and other main cities in Ethiopia,
and their sales in the domestic market are also large. As low-price and low-quality products are preferredin the domestic market, the production system focuses on speed and cost rather than quality. Military shoes
and business shoes exported to Sub-Saharan African countries are not required the quality high. Under thesecircumstances, even if technology transfer that contributes to improving the quality of production lines isprovided, it is difficult to establish the technology. Ethiopian shoe manufacturers also have the backing of
the domestic market as high tariffs are imposed on imported goods, and foreign-affiliated companies basedin Ethiopia are not allowed to sell finished products in Ethiopia in return for receiving preference. Thus,
even if the exports do not grow, there is no problem in maintaining the business of each shoe manufacturer,
and the companies’ motivation for improving the quality cannot be maintained.


The response of the project

During the production of samples for the four trade shows, those factories with relatively large productionlines were asked to organize sample production teams, with members given technical support to improve
the quality of their samples. This made it possible to ensure a certain level of quality for the samples to be
exhibited at the trade shows. At the same time, however, the companies have been unable to identify defects
such as sewing problems, pinhole damages, measurement differences, and colorfastness of products orderedat the trade shows without inspection by specialists. This suggests that inspection is an issue that needs tobe addressed in the future.
(4) Foreign currency transactions
In some cases where trial orders were placed, subsequent transactions were refused as Ethiopian
companies were unable to open a bank account overseas. In transactions assisted in the CPA2, Ethiopian
companies’ inability to remit foreign currencies to an overseas bank made it impossible to issue credit notes
for defective products. A credit note is a document that promises a refund, issued by the exporter to theimporter. Ethiopian companies that cannot issue credit notes have to deal with defective products by sendingout replacements. Since many tanners do not accept exchanges or refunds, on-site inspection by the ordering
customer is usually required.
Many clients in the U.S. and Europe, especially small firms, prefer to pay by credit card. Many
customers placing small orders with multiple partner companies for delivery at the same time also often
prefer shipment in a single package to reduce shipping costs. However, it is difficult to fulfill these requests
since payments to Ethiopian companies are limited to wire transfers, and the items shipped from eachcompany must reconcile with the payments made to the account of the company concerned. This is an
obstacle in terms of business with small companies.


The response of the projectInterviews with Japanese companies operating in Ethiopia through the JICA Ethiopian office revealed thatthe regulations allow for refunds and that some companies can refund money. Based on interviews withcompanies, payments of up to USD10,000 to Ethiopia using PayPal have been possible since December

28

2019. Also, electronic payments via VISA appeared to be possible in some banks (from August 2020).
(5) Water contamination
Difficulty in dealing with water pollution is a major obstacle to business continuity for Tanneries;
however, it is a necessary measure to penetrate the international market. Along with the improvement ofwater treatment facilities, the environment-friendly tanning technology that the project is working on will
be a desirable countermeasure in the international market.
In Addis Ababa, the five tanners located in the city have been asked to improve their wastewater
treatment facilities. This is to ameliorate water pollution and damage from odors in the surrounding area.
Companies that cannot comply will have their operations suspended. In January 2019, a similar ordinance
was issued in the city of Modjo in the Oromia region. The deadline before the suspension of business was
only a mere 15 days after the ordinance was issued, so four tanneries were suspended. Tanneries need to
pay in foreign currency to import the water treatment facilities. It is also related to the foreign currencytransaction issue described above.
The response of the project

Information was gathered on the development of the MLC-CETP, which is carried out by the UNIDO andthe EU with financing from the EIB.
(6) Changes in export controls
The closing down of tanneries due to the shrinkage of the market has resulted in a reduction in the
demand for rawhides in the upstream part of the supply chain. In addition to the abolition of export taxes
on crust leather, ELIA and rawhide producer organizations also held discussions with the government on
consent for exports of wet blue and pickle leathers, which are semi-manufactured goods in the upstream
part of the production process. In January 2020, the decision was made to abolish export taxes on wet blue
leather and pickle leather. Currently, it is unlikely that project partners with facilities up to the finishingstage will start exporting intermediate products at low cost following this decision. On the one hand, thegovernment's decision is a testament to the fact that the Ethiopian leather industry as a whole is facing amore difficult export situation, and that the Ethiopian nation overall is facing a more urgent need for foreignexchange reserves. On the other hand, these policy changes may hinder the distribution of good quality
leather in Ethiopia in the future.


The response of the projectAs part of the market study which started in March 2020, the export potential of semi-finished leather, suchas wet blue and pickle leathers, was also investigated. It has been nearly ten years since Ethiopia stopped
exporting semi-finished leathers, and it will take time to establish a new market for semi-finished leather.
Also, the distribution price of semi-finished leather is lower than that of finished leather. Even if a newmarket is established for semi-finished leather, it is unlikely to lead to a significant increase in sales.
(7) The popularization of electronic payments
The limited distances and travel time involved often challenge to build relationships with customers
at trade shows. With the growing number of platforms for virtual trade shows and marketplaces for b2btransactions, the trend towards electronic commerce seems unlikely to abate, even once the threat of the29

COVID-19 has subsided. In Ethiopia, participation in virtual trade shows and marketplaces is lessconstrained by time and distance and is seen as a powerful promotional opportunity, especially in theEuropean market, particularly in light of the small-time difference. However, to promote such onlinetransactions, it will be necessary to conduct promotional activities and also make payments online.
The response of the projectIn August 2020, Abyssinia Bank, which has its head office in Addis Ababa, Ethiopia, launched international
payment transactions with Visa. Advice will be provided to the partner companies to help them adopt theseelectronic payment systems and facilitate their transactions with foreign countries.

30

Output 2. Proper management and international recognition of the EHL brand
3.4 [Activity 2-1] Development of the brand strategy (target market, budget,
products (appeal point, item, design), pricing, and promotional materials)(1) EHL brand concept defined in CPA2 and the selection of target market candidates
Based on the EHL brand concept and brand story established in the CPA2(Table 12), a brand strategy
that leverages the brand value of EHL was developed with the C/P. The selection of the target markets(countries) was discussed at a meeting held in Tokyo in December 2016 at the end of CPA2, and the C/P
named countries and regions including Japan, Europe, the US, Russia, and Hong Kong as potential markets.
Besides, an agreement was reached based on the concept of the CPA to focus on activities in countries andregions where high-quality is a key requirement. Based on these discussions, the project decided to target
Europe (EU member states) for market research and to select target markets based on the research results.
Table 12: EHL brand concept developed in CPA2
Brand Name

Ethiopian Highland Leather

Brand Logo

Brand Concept‘Light, thin, and soft. Yet, strong and durable.
World’s Highest quality sheep leather made in the highlands of Ethiopia.’

Brand Story

Ethiopia is the birthplace of humanity 3.5 Million Years Ago.



26 Million Sheep live in the highland of Ethiopia.

Ethiopia’s highlands which reach up to 3000 meters have bred a
special type of hair sheep.

It can be thinned down to 0.35mm yet durable. It enables to create
more innovative products.



EHL comes in 100+ colors that are made from the Ethiopians' uniquesense of colors.

(2) Market research and determination of target markets in Europe
Finland, France, Italy, and Spain were selected as the four target countries for market research inEurope for the following reasons: 1) they are established as key markets for fashion, leather materials, andproducts in Europe, 2) they are the key markets in the north, central and south of the continent to identify
each one with different geographical characteristics, 3) there are important fashion trade shows in thesemarkets.

31

This research was conducted from September 13th to 27th 2017 with aims to identify the characteristics
of each region in Europe and markets suitable for maximizing the strengths of EHL, as well as todemonstrate research methods and networking methods to the accompanying LIDI staff through OJT. The
delegation was composed of 2 Japanese Experts, 4 LIDI staff who are members of TWG, in total 6 people.
The research results in each country are as follows.
1) Finland (Helsinki)
Trade show visited 1: HABITARE 2017
Summary

A large-scale trade show focusing on interior design. Top-class exhibitors not only from
Northern Europe but also from all over the world participate in the fair, where visitors can
get a glimpse of colors in fashion and the latest trends.

Period09/13/2017 – 09/15/2017

Frequency

Once a year

Number of exhibitors

136

Visitors

Professionals & Public (55,964 people, including those from Forma)

Venue (Organizer)

Messukeskus, Helsinki

Trade show visited 2: FORMA AUTOMN 2017
Summary

Finland's largest giftware, home decor, and home decoration trade show. As with Habitare,
Europe's latest color and design trends are introduced. Relatively many leather goods arealso exhibited.

Period09/14/2017 – 09/17/2017

Frequency

Twice a year

Number of exhibitors

574

Visitors

Professionals & Public (55,964 people, including those from Habitare)

Venue (Organizer)

Messukeskus, Helsinki

One of the reasons for visiting Finland's market is to seek a "new market" or a "less competitivemarket." Both HABITARE and FORMA mainly exhibit products related to interior design focusing on
furniture rather than on items that are traditionally made of leather, such as footwear and bags. However,many of the interior design products and much of the furniture are manufactured partially using leather. At
the same time, many products suitable for developing new products using leather (pillows and cushions)were also exhibited. Exhibitors were highly interested in our explanation of the EHL.
2) France (Paris)
Trade show visited 1: APPAREL SOURCING PARIS
Summary

Apparel-related international trade show for many different categories for men, women,
and children. It is characterized by networking engaging buyers and suppliers at the venue
more often than that at other events, creating opportunities for new suppliers and buyers
to exchange information.

Period09/18/2017 – 09/21/2017

Frequency

Twice a year32

Number of exhibitors

229

Visitors

Professionals Only (15,473 people, including those from Avantex)

Venue (Organizer)

Messe Frankfurt

Trade show visited 2: AVANTEX PARIS
Summary

A trade show focusing on textiles held next to the venue of the foregoing Apparel Sourcing
The event attracts exhibitors and buyers from Europe, Southeast Asia, East Asia, Central
Asia, and other regions.

Period09/18/2017 – 09/21/2017

Frequency

Twice a year

Number of exhibitors

69

Visitors

Professionals Only (15,473 people, including those from Apparel Sourcing)

Venue (Organizer)

Messe Frankfurt

The French market is very competitive and attracts buyers from all over the world. However, themajority of the buyers and suppliers at APPAREL SOURCING PARIS were from China, and althoughnegotiations were actively conducted at each booth, prices and quantities seemed to be more frequently
discussed than quality, designs, and standards. Meanwhile, the latest technology for materials and printing
on their surface was presented at AVANTEX PARIS.
3) Italy (Milan)
Trade show visited 1: MICAM
Summary

Shoes, bags, and other fashion items mainly made of leather were on display at the trade
show, where products of the highest level in the world are exhibited.

Period09/17/2017 – 09/20/2017

Frequency

Twice a year

Number of exhibitors

365

Visitors

Professionals Only (57,187 people, including those from MIPEL)

Venue (Organizer)

ASSOCALZATURIFICI (Italian Footwear Manufacturer Association)

Trade show visited 2: MIPEL
Summary

MIPEL is one of the world's highest-profile trade shows of leather products. It is known asa trade show that constantly incorporates the latest trend in leather products.

Period09/17/2017 – 09/20/2017

Frequency

Twice a year

Number of exhibitors

162

Visitors

Professionals Only (57,187 people, including those from MICAM)

Venue (Organizer)

Aimpes Servizi S.r.l.

Trade show visited 3: THE ONE MILANO
Summary

Focusing on women's clothing, this trade show attracts top-class accessories, leather,apparel, fabrics, and many other lifestyles and fashion industries.

Period09/22/2017 – 09/25/2017

Frequency

Twice a year

33

Number of exhibitors

174

Visitors

Professionals only (22,000 people, including those from The White Milano)

Venue (Organizer)

Ente Fieristico Mifur

Trade show visited 4: THE WHITE MILANO
Summary

Focusing on women's clothing, this trade show attracts top-class accessories, leather,apparel, fabrics, and many other lifestyles and fashion industries.

Period09/22/2017 – 09/25/2017

Frequency

Twice a year

Number of exhibitors

452

Visitors

Professionals Only (22,000 people, including The One Milano)

Venue (Organizer)

Ente Fieristico Mifur

Italy is also famous for being at the top of the fashion/leather industry. It was a remarkable gain for
the LIDI staff who attended the trade shows to be greatly impressed by the quality and design, and they
were motivated for future product planning. At the same time, however, some felt the big difficulty ofcompeting with those top products, understanding the current quality level of Ethiopian products against
the top international market. All the members of the survey team agreed that there was no choice but toadmit that it is unrealistic at the moment to hold a trade show in Milan, which had been a target market
strongly desired by LIDI and ELIA.
4) Spain (Madrid)
Trade show visited 1: MOMAD
SummaryThis is a trade show of shoes, leathers, bags, and other items covering fast and young
casual, contemporary, metro, and ethical fashion.

Period09/20/2017-09/24/2017

Frequency

Twice a year

Number of exhibitors

220

Visitors

Professionals only (18,545 people)

Venue (Organizer)

IFEMA

Trade show visited 2: BISUTEX
SummaryThis is a lifestyle-related trade show of jewelry, accessories, leather, bags, and textiles.

Period09/20/2017-09/24/2017

Frequency

Twice a year

Number of exhibitors

309

Visitors

Professionals only (42,354 people, including those from INTERGIFT)

Venue (Organizer)

IFEMA

Trade show visited 3: INTERGIFT
Summary

A trade show of various types of gift products, handmade products, textiles, and other
items

Period09/20/2017-09/24/201734

Frequency

Twice a year

Number of exhibitors

398

Visitors

Professionals only (42,354 people, including those from BISUTEX)

Venue (Organizer)

IFEMA

Ethiopian standards for quality and design seemed still premature also with those of
Spain. Some LIDI staff felt that Spain is still a potential target market when compared with
Italy. However, all the members of the study team agreed that the level of the Spanish market
was still too high as a short-term target.
5) Summary
The following points were discussed in the meeting held by the delegation after the market research.
① Since Italy's level is very high, it seems difficult to enter its market at the moment. Conversely,
the possibility of entering the Spanish market is higher than that of entering the Italian market.
The possibility of future entry into these markets should be explored based on a step-by-stepplan.
② In the French market, the entry itself did not seem to pose any significant difficulties, but theemphasis of exhibitors and buyers at the trade shows that the project visited appeared to beon "mass consumption and prioritizing cheap sales," which is not suitable for the targets of
EHL. In Europe, where the fashion industry is flourishing, there is a wide variety of trade showsin the same market.
③ The research revealed that the Finnish market, which offers a wide range of opportunities andis easier to enter, is the most suitable, as it seemed to be highly likely for EHL to be able todemonstrate its strengths in new fields (cushions, rugs, pillows, and furniture products).
④ Since it is important to offer value-added products with a story as well as improved quality tosell the EHL brand in Europe, the following aspects also need to be taken into account:

Ecological: An eco-friendly approach using vegetable-tanned leather and recycledmaterials



Ethical: 100% leather produced as a by-product of edible meat, contributing to the
Ethiopian economy

Original: Unique designs and handwork unique to Ethiopian companies

At the trade shows in Spain and France, while many people highly evaluated Ethiopian sheep leather,
there were also logistical concerns. In particular, it was pointed out that customs clearance operations wereconstantly delayed, making it almost impossible to deliver products on time. These raised problems arelikely to become one of the biggest obstacles to putting businesses on track in the future.
(3) OJT of LIDI staff on research and networking methods
The following four members of LIDI accompanied the market research:①

Mr. Sisay ABEBE (PDC bag and garment designer)

35

②
③
④

Ms. Dagnew NEGASA (Quality Control, Leather Engineering Department)
Mr. Kasahun Hailu ESHETU (PDC footwear designer)
Ms. Tinsae AFEWORK (Marketing Department)

Mr. Sisay and Mr. Kasahun, who belong to PDC, received guidance from product development experts
while discussing topics including how to judge the level of quality and which differences are remarkable
between European and Ethiopian products. In the meantime, Ms. Tinsae of the Marketing Department andMs. Dagnew of the Leather Engineering Department received guidance from marketing experts. By actively
communicating with exhibitors, they learned the basic idea of maintaining the quality of products andgained knowledge of color coordination and trade show methods at the trade shows they visited. At a later
date, the four members submitted a report on the market research (Appendix 5).
(4) Strategies for exhibiting at trade shows
Based on the results of the market research, the continuation of research on the Finnish andScandinavian markets as potential venues for future trade shows was proposed to the C/P (Appendix 6).
However, in subsequent discussions with LIDI and ELIA, there was a request to review the target markets
and trade shows, covering issues such as expanding markets to Europe without limiting them to Scandinavia
and exhibiting at large-scale events where the potential for acquiring new customers has been establishedbased on the knowledge gained from the previous marketing activities of LIDI and ELIA. To this end,
secondary research was carried out focusing on the three potential trade shows proposed by LIDI for the
September 2018 trade show (Table 13).
Table 13: Comparison between the candidate European trade shows proposed by LIDI
Premiere Classe ParisILM

MOMAD Shoe

GradingA

C

B

Duration7 - 10 September 2018

1 - 3 September 2018

7-9 September 2018

Location

Paris, France

Offenbach, Germany

Madrid, Spain

Visitors

50,000 (Professionals)

6,000 (Professionals)

18,000 (Professionals)

Exhibitors

750 brands

320 brands

220 brands

Items

Shoes, leather goods,

Leather goods, bags, andShoes, and other leather

jewelry, and other types

accessories

goods

Quality level: High - middle

Quality level: High standard

Quality level: High standard

standard

Major leather materials:

Major leather materials:

Major leather materials:

no dataCow(majority), Sheepof accessories.
Fact

Not only leather.

36

Exhibitor ratio: International

Exhibitor ratio: International

Exhibitor ratio: International

Entry barrier: Mid(local majority: no data)(Local majority)

Entry barrier: High

Entry barrier: Mid-High

One of the world-famous

Due to information on

The quality of the

trade shows in thethe website (limited

products is still too highfashion industry. Visitors

number of visitors andfor the EHL. Several

and exhibitors comeweb catalog and brandyear hardships to befrom all over the world,list), this trade show’s

expected if enter the

including Asia and Northquality threshold andmarket.

America. Due tocompetition with otherdiversification, this trade

exhibitors are expectedshow can be appropriate

to be higher and more

for the inauguration.

demanding than theother two trade shows.

The trade show selected from this research was Premiere Classe (held in February and September eachyear) in Paris, France, which was considered to have the highest potential as a target market. After
discussions with the C/P, it was decided that the project would take part in Premiere Classe Paris in
September 2018.
Based on the market research results, EHL brand strategies were established for the target markets to
prepare for product development and promotional activities (Table 14). The original plan was to conduct
research both in the US and European markets, but this was canceled following this decision.
Table 14: Setting EHL brand strategy toward Premiere Classe Paris
strategyMarketDecision

Trade show to participate ：Premiere Classe Paris（September 2018）（Place：Paris, France）

Target market：EU market

The trade show is expected to attract visitors not only from France but also from Europe andthe rest of the world. The project aims to expand into the European market, with France as theentry point.

Budget

The project will cover the entire cost for the trade show including the participants' travel fees.

Products



Ecological：Tanners will display vegetable and semi-vegetable tanned leather as an ecofriendly and health-conscious leather material. They also display semi-aniline, wax finishing,paper crush effect, and pigment finishing with transparency look as the unique upcycling
chrome tanning leather.



Original：The design and composition of the bag and shoe items will be decided by thedesigners from each company, LIDI staff, and Japanese experts, with consideration ofcharacteristics of each company as well as characteristics of each leather material. The color

37

range of the products will consist of earth colors.
Price



Since the major buyers in Premiere Classe Paris are targeting middle to upper-middle-classcustomers, the FOB price will be decided according to the retail price ranges from 200 to
300USD.

Promotional

Based on the market survey results, brochures developed in CPA2 is to be modified

tools



EHL brand tag, catalog, and EHL business cards are to be developed.

During the market research in Europe, there was criticism from some buyers about the picture of ayoung girl holding a lamb used in the brochure on the basis that it seemed hypocritical from an animal
welfare perspective. Therefore, a correction was suggested to the C/P. The photo was replaced and contact
information and the text in the document were updated (Appendix 7). These updates were re-commissioned
to an Ethiopian advertising production company (Krimson PLC) based in Addis Ababa. The subcontracting
company carried out various PR work, including the organization of EHL tags, brochure translation into
French, and the interior design of the trade show booth with panels summarizing the results of comparative
studies. These tasks were directed by experts to ensure quality.
To create greater visibility for the EHL brand, explanatory material (in English and French) about EHL
was created as a promotional initiative to highlight the brand management and its quality control efforts tobuyers at the trade show. This material was in three parts: 1) a description of EHL and the contact detailsof its partner companies, 2) an introduction to vegetable-tanned and tie-dyed leather materials as key
innovations of EHL, 3) a scientific rationale explaining the characteristics of EHL. This explanatory
material can be used on a stand-alone basis or in combination as a set. At the French trade show held in
September 2019, a hundred copies of this material were prepared in English and another hundred copies in
French. Around half of the copies in each language were distributed. At the MAGIC trade show held in
February 2020, information on four companies attending with the support of other donors was also included.
The project collaborated with other donors to create greater visibility for the brand. Two hundred copies ofthe material in English were prepared for the MAGIC trade show, with around half of these copies
eventually distributed to customers.
The CPA manual developed during the CPA2 was revised to be used as a reference outlining theexperiences of developing a series of brand strategies and attending trade shows. The content will befinalized following consultation and review by the C/P in the 2nd phase.

3.5 [Activity 2-2] Reinforcement of the brand management system (personnel,
finance, intellectual property registration)
To begin the enhancement of the brand management system, the project started investigating theapplicability of the European Union Trade Mark (EUTM) with the European Union Intellectual Property
Office (EUIPO) after deciding to participate in trade shows in Europe in March 2018. As the project wasconcerned that the Ethiopian government might be required to satisfy certain conditions (such as being amember state of the Paris Convention) to qualify for this, the project investigated the possibility of Japan
applying on behalf of the Ethiopian government. The results revealed that in Yirgacheffe, a coffee

38

production area in Ethiopia, there had been registrations under the Government of Ethiopia in the past.
Since Article 5 of the EUTM regulation19 specifies that "any natural or legal person, including any authority
established under public law, may be the proprietor of an EU trademark", the project decided to work
towards the goal of the application by the Ethiopian government.
To investigate the possibility of registering EHL’s trademark in parallel with the above, the project
requested an international patent office that handles trademark registrations in Europe to look into theexistence of any similar trademarks registered in the same region (Table 15). Although it turned out that
there were some similar trademarks in both trademark classes and thus a possibility of objection, it was stillthought likely that the registration of the trademark would be accepted. Therefore, the office recommended
the application and the project agreed with the C/P to proceed with the application.
Table 15: Details of EHL's preliminary research for the registration of the trademark in EU
TrademarkEthiopian Highland Leather

Classification

International Classification Class 18 - leather, bags, and the like
International Classification Class 25 - gloves, clothing, shoes, and the likeTarget countries

28 EU member countries

In May 2018, discussions were held with the brand owner, ELIA, taking into consideration the resultsof the investigation described above, to decide who would make the application. Based on these discussions,a decision was taken to proceed with registration in the name of the Ethiopian government, just as had
happened in Japan. A visit was paid with the EIPO with representatives of ELIA to request the submissionof an application. Although the EIPO agreed to cooperate, no further progress was made. Consequently, theproject members considered applying through MOFA, but as it also took some time for the parties involved
to make adjustments, finally the ELIA, the brand owner, decided to apply. The application was submitted
to the EUIPO through an international patent law firm in October 2019. After a three-month publication
period in the EU, the registration of the trademark in Classes 18 and 25 was completed in January 2020
(Figure 3).

19 http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32017R1001&from=EN

39(Accessed on 2018. 9. 23)

Figure 3: Trademark registration certificate in EU

3.6[Activity 2-3] Establishment of brand certification criteria and system(1) Certification criteria and system for EHL leather materials
From May 14-16, 2019, the project held the first brand management workshop, which was divided
into three parts--C/P, partner companies (tanners), and partner companies (shoe/bag makers) (photo20).
There, draft certification criteria for the EHL finished leather, leather products made from EHL-certified
leather, and their management systems and allocation of responsibilities were discussed. At each workshop,
ELIA gave a presentation covering 1) what is a brand, and 2) the current status of EHL brand management
and the importance of establishing EHL quality standards and an operating system. After that, experts
explained the gap between the current level of Ethiopian quality and global quality standards. After the
discussion about the minimum required quality standards attainable in quality inspection and brandmanagement in Ethiopia, the flow and division of roles in using these as a certification system, and theschedule going forward, we have reached a consensus on the 1st draft of the EHL certification criteria.
The EHL certification criteria were developed following international standards. In the meantime,
given the current situation of Ethiopian tanners, the testing capability of LIDI, and the non-existence of aninternational standard for sheep leather products, the standards were revised in stages based on the resultsof on-site inspections by LIDI staff and tests of sample materials. It was also agreed that the practicality ofthe operation of the certification process would be tested by reflecting the feedback from customers on the40brand at the trade shows. Through this process, the EHL brand certification criteria and the process would
be finalized by April 2020 (Figure 4).

2019
May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2020
Jan

Feb

Mar

Apr

Jun

Establish
certification
systemWho's Next Paris
For 2020 AW

Who's Next Paris
For 2020 SS

May(1)Review the trade show result(2)Finalize the certification
format, process, manual
W

Execution of the certification
process① (Trial)

Execution of the revised certification process②(Trial)Review the trade show result
Refine the quality management process
Develop refined certification process

Tanneries get EHL
certification
W

Finalize the certification
format and process

W

Simulate the certification process and get readyfor execution in Who’s Next Paris 2020SS(1)Commit to conquer the quality issue(2)Discuss the process to solve the issue(3)Reach to consensus to execute the process(4)Discuss whether all the participant of the trade show in Paris in September should
execute this process or not, for the necessary quality management of EHL.

Figure 4: The schedule for the establishment of the EHL certificate system
The 1st draft of the certification criteria for EHL finished leathers (Table 16) consists of 1) an on-site
inspection and 2) physical and chemical testing of sample leathers. In the first criterion, leather material isevaluated according to items on a checklist (Table 17), with a score of 70 or more required for a pass. To
avoid discrepancies in evaluation between different evaluators, each item is evaluated according to three
categories - Poor, Fair, Good - and the total scores are tabulated. In the second criterion, three leather
samples are collected during the on-site inspection to conduct the following tests (the test method is basedon ISO standards) in the LIDI laboratory.
i) Physical properties test
(tensile strength, tensile fracture elongation, tear strength, frictional fastness (dry and wet))ii) Chemical test (hexavalent chromium, formaldehyde, pH)41

Table 16: The 1st draft of certification criteria for EHL finished leathers(Agreed in May 2019)
No.

Category

Criteria

1

Eligible
ApplicantsCompanies which
produce finishedsheep leather●Tanning-Finishing machinery are equipped /operated●Waste water treatment plant are equipped/operated

2

Origin of
raw skin①hair sheep skin
②They aresourced fromhighland area in
Ethiopia●Check which type of raw hide and skin are used for EHL
production (hair sheep)●Check the procurement record of raw hide and skin
●Check whether tannery implements segregation system
according to their procurement area3

Physicaltest (lab)①Tensilestrength(N/mm2)●Shoe upper/bag/leather goods: more than 20●Garment: more than 25●Glove: more than 25●Veg. tanned leather: TBD●Suede: TBD

4

ChemicaltestStandard

6

Reference

Inspection visit by LIDI
using check sheet

check sheet will be
prepared by LIDI
(by 7th June)

ISO 3376②Elongation atbreak (%)

●Shoe upper/bag/leather goods: more than 40●Garment: less than 60●Glove: less than 50●Veg. tanned leather: TBD●Suede: TBD③Tear strength(N/mm)●Shoe upper/bag/leather goods:
more than 25●Garment: more than 35●Glove: more than 35●Veg. tanned leather: TBD●Suede: TBD④Rubbing
fastness (dry andwet)<Dry fastness>①pigment finish: at least 3-4 grade②Pale shade and natural finish: at least 3-4 grade③Dark shade and natural finish: at least 2-3 grade<Wet fastness>①pigment finish: at least 2-3 grade②Pale shade and natural finish: at least 2-3 grade③Dark shade and natural finish: at least 2 grade①Chromium VI●For adult (skin contract and non skin contract):
Not detectable at the time of test **A detection limit: 3mg/kg,

ISO 17075②Formaldehyde
and phFormaldehyde:●For adult (skin contract ): 75mg/kg●For adult (skin non contract): 300mg/kg
Ph:●≧3.5 (for all leathers)

Formaldehyde: ISO
17226-1(HPLC)or ISO 17226-2(colorimetric analysis)
ph: ISO 4045

③Use of REACH
certified chemicals

All the chemicals used for the leather productions are REACH
certified chemicals.

International Union for
Leather Technologists
and Chemists Society(IUP/IULTCS)
International Union for
Leather Technologists
and Chemists Society(IUP/IULTCS)

ISO 3377-2* double edge tear test

*Companies submit the REACH certificates upon request from
LIDI/ELIA or the buyers

5

Methodology

ISO 11640*Sample size: min. 3
pieces / leather article(random sampling basedon the company's
business deals)*Sampling will be doneby LIDI during theinspection visit

International Union for
Leather Technologists
and Chemists Society(IUP/IULTCS)

Japan eco leather label
http://japanecoleather.jp/english3/japan-eco-leatherstandard-jes/

Japan eco leather label
http://japanecoleather.jp/english3/japan-eco-leatherstandard-jes/

Check on the application
form
Check during theinspection visit●REACH regulation.:
https://echa.europa.eu/
web/guest/regulations/re
ach/legislation●Restricted Azo dyes:
http://exporthelp.europa.
eu/update/requirements/
ehir_eu15_02v001/eu/auxi/eu_cherest_entry43_annexXVII_r1907_200
6.pdf

-

-

Validatedperiod of
EHL
certificate-

one yearFee for
test

Inspection visit(12ppl)

Applicant companies pay cost (or (provide in-kind) for the visit:①air fare fee②Transportation③Lunch (if the inspection continued for 1 day)--Lab test①tensile strength: 200ETB②Tear strength: 200ETB③Rubbing fastness (dry and wet): 100ETB④Chromium VI: 258ETB⑤Formaldehyde: 258ETBTOTAL: 1,016 ETB/sample--

EHL certification lasting one year is awarded by ELIA to tanners whose results from both on-site
inspections and LIDI laboratory tests pass the threshold.

42

Table 17: Items on the checklist used for on-site inspection
Items (score)Contents

Checking Method①hair sheep breed①Visual confirmation②Raw skin sourced from Ethiopian②Verification by rawhidehighlands

procurement records

Production Quality Control

Production quality control for tanning,①Visual confirmation/Environment Management

finishing, and wastewater treatment.

②Verification by quality control

Raw skin (25)records (figures/indicators ）(25)
ISO and other①Acquisition of ISO9001 (Quality）、140001①Visual confirmation

certifications/ worker health（Environment）②Interviews and visualand safety (25)

②Provision ofconfirmation

Chemicals (25)

Procurement of chemicals from REACH-

visual confirmation of the chemical

certified chemical companies

warehouse, Verification byprotective gears to workers

chemical procurement records

The certification process was determined as follows: tanners apply for certification to ELIA and receivea certificate from ELIA after passing both inspections conducted by LIDI. Then they were allowed to export
their leathers as EHL-certified leathers overseas or sell them to domestic manufacturers (Figure 5).

Figure 5: 1st draft of EHL brand management system for finished leathers(Agreed in May 2019)
Following the consensus on the 1st draft of certification criteria for EHL finished leathers, on-site
inspections and sample leather testing were conducted at ELICO Awash Tanney and Bahirdar Tannery

43

(photo21-22). The results of the first on-site inspections at both companies exceeded the EHL criteria.
ELICO Awash Tannery scored 80 points and Bahirdar Tannery 81 points. The results also revealed points
for improvement. The inspection reports were shared with both companies and they were also visited
individually for feedbacks. While ELICO Awash Tannery was asked to renew ISO 14001 and ISO 9001,
Bahirdar Tannery was advised on the establishment of a quality control department in the production
process and monitoring of basic indicators for wastewater treatment to discuss future improvement
measures.
Three samples were picked randomly from the samples of the main and most commonly manufactured
types, colors, and grades of each company’s products collected in the on-site inspections. Physical property
tests and chemical tests were conducted on them in the LIDI laboratory. Although the samples mostly met
the criteria in the chemical tests, the results of the physical property tests revealed that the tearing andtensile strengths did not satisfy the criteria established in the 1st draft. This appears to be attributable to thefact that the strength criteria for each product (mainly cowhide products) were applied for the certification
criteria for EHL finished leathers due to the non-existence of international standards for sheep leather
products. Based on these test results, it was decided that the criteria established by an Indian research
institute that has an academic relationship with LIDI would be applied to the tensile and tear strength tests,
while the Ethiopian companies and their C/P agreed on the certification criteria for EHL finished leathers
shown in Table 18 (2nd draft). The revised parts are indicated in bold. Based on the results of the EHL
certification process described above, ELIA awarded a certificate valid for one year to ELICO Awash
Tannery and Bahirdar Tannery in August 2019 as EHL certified tanners (Figure 6) (photo23-24).
Based on the 2nd draft, 2nd on-site inspections were conducted in ELICO Awash Tannery on 3rd October
2019 and Bahirdar Tannery on 4th October 2019 respectively. The results from the on-site inspections were
not so much different from the 1st inspection however, these experiences provided opportunities to confirm
the certification flow and implementation methods among LIDI and ELIA, which helped them enhancetheir ownership of the branding activities. Concerning the physical and chemical tests on the leather samples,
only for the physical test, there was a slight variation from the criteria set in the 2nd draft due to different
characteristics in individual skins.
As a result of the discussions with C/P, the criteria were left unchanged, but the following points wererevised in terms of the operation of the certification system. Besides, to enable more objective and impartial
judgment of acceptance or rejection, the results of the on-site inspection and the scores of physical andchemical tests will be presented in a summary sheet (Figure 7), and only tanners who pass both tests will
be permitted to use the EHL brand for one year.

44

Figure 6: EHL certificate of registration

45

Table 18: The 2nd draft of certification criteria for EHL finished leathers(agreed in August 2019)
No.

Category

1

Eligible
Companies which
Applicants produce finishedsheep leather

Criteria

2

Origin of
raw skin①hair sheep skin
②They are sourced
from highland areain Ethiopia●Check which type of raw hide and skin are used for ●Inspection visit by LIDI
using check sheet
EHL production (hair sheep)●Check the procurement record of raw hide and skin
●Check whether tannery implements segregation
system according to their procurement area3

Physicaltest (lab)①Tensilestrength(N/mm2)

Finished leather for:
①Tensile strength●Shoe upper/bag/leather goods: more than 2015*●Garment: more than 2515**●Glove: more than 2515**●Veg. tanned leather: TBD●Suede: TBD②Elongation at break (%)●Shoe upper/bag/leather goods: more than 4035*●Garment: less More than 6040**●Glove: less More than 5040**●Veg. tanned leather: TBD●Suede: TBD

Test method:
ISO 3376International Union
for Leather
Technologists andChemists Society(IUP/IULTCS)*Indian Standard:
5914:1970**IndianStandard:11230-2003③Tear strength(N/mm)

Finished leather for:
③Tear strength (N/mm)●Shoe upper/bag/leather goods:
more than 2515*●Garment: more than 35●Glove: more than 35●Veg. tanned leather: TBD●Suede: TBD

Test method:
ISO 3377-2* double edge tear test

International Union for
Leather Technologists
and Chemists Society(IUP/IULTCS)*IndianStandard:5914:1970④Rubbing fastness(dry and wet)

<Dry fastness>①pigment finish: at least 3-4 grade②Pale shade and natural finish: at least 3-4 grade③Dark shade and natural finish: at least 2-3 grade<Wet fastness>①pigment finish: at least 2-3 grade②Pale shade and natural finish: at least 2-3 grade③Dark shade and natural finish: at least 2 grade

Test method:
ISO 11640*Sample size: min. 3
pieces / leather article(random sampling basedon the company's
business deals)*Sampling will be doneby LIDI during theinspection visit

Japan eco leather label
http://japanecoleather.jp/english3/japan-eco-leatherstandard-jes/①Chromium VI●For adult (skin contract and non skin contract):
Not detectable at the time of test **A detection limit: 3mg/kg,

ISO 17075②Formaldehyde
and phFormaldehyde:●For adult (skin contract ): 75mg/kg●For adult (skin non contract): 300mg/kg
Ph:●ph: ≧3.5 (for all leathers)

Formaldehyde: ISO
17226-1(HPLC)or ISO 17226-2(colorimetric analysis)
ph: ISO 4045

Japan eco leather label
http://japanecoleather.jp/english3/japan-eco-leatherstandard-jes/③Use of REACH
certified chemicals

All the chemicals used for the leather productions are Check on the application
REACH certified chemicals.
form
Check during the*Companies submit the REACH certificates uponinspection visit
request from LIDI/ELIA or the buyers.

②Elongation atbreak (%)

3

Physicaltest (lab)*dry 10cycle/ wet
10 cycle

4

ChemicaltestStandard

Methodology

Reference●Tanning-Finishing machinery are equipped/operated ●Waste water treatment plant are
equipped/operated

46

Check list

●REACH regulation.:
https://echa.europa.eu/web/guest/regulations/reach/legislation●Restricted Azo dyes:
http://exporthelp.euro
pa.eu/update/requirements/ehir_eu15_02v
001/eu/auxi/eu_cherest_entry43_annexXVII_r1907_2006.pdf

Figure 7: EHL Summary sheet for physical and chemical tests

47

<Major changes from the 2nd draft to the 3rd draft>On-site inspection
1.

(Leather sampling method) Three pieces of dark leather (black or brown) will besampled at random to check for rubbing fastness.

2.

Tanners that cannot confirm the traceability of raw skin (i.e. they cannot prove that
where their raw skins come from) are excluded from the EHL certification process.



The detailed of the summary sheet
1.

A minimum of 70 points out of 100 is acceptable for on-site inspection. Only tanners
which also meet the criteria for physical and chemical testing will be awarded EHL
certification for one year.

2.

(Physical test) For the tear and tensile test, when the average of the leather tests is up
to -10% of the certification criteria, it is considered acceptable as the margin of errors.
In total 70% or more is acceptable.

3.

(Rubbing fastness and chemical test) There is a great demand from customers in viewof the results of the trade show as well as a risk of damaging the value of the brand if
we receive any complaints from customers. Therefore, regarding the rubbing fastness
and chemical tests, they are only acceptable if the average score is above thestandard.

Table 19 shows that the 3rd draft of certification criteria was finally agreed upon with the C/P based on
the above after the 2nd on-site inspections. It was also agreed that the checklist for on-site inspections would
be revised based on the results of the trial (Appendix 9).
The initial plan was to finalize the certification criteria in the 1st phase, but due to the spread of COVID19, experts had to return home in the middle of their activities. As it was not possible to discuss, review,and finalize the 3rd draft of the certification criteria agreed with the C/P and the partner companies, thefinalization of the certification criteria will be carried out in the 2nd phase.

48

Table 19: 3rd draft of certification criteria for EHL finished leathers(agreed in December 2019)
No.

Category

Criteria

1

Eligible
ApplicantsCompanies which
produce finishedsheep leather●Tanning-Finishing machinery are equipped/operated ●Waste water treatment plant are
equipped/operated

Methodology

Reference2

Origin of
raw skin①hair sheep skin
②They are sourced
from highland areain Ethiopia●Check which type of raw hide and skin are used for
EHL production (hair sheep) 【Mandatory】●Check the procurement record of raw hide and skin
●Check whether tannery implements segregation
system according to their procurement area

●Inspection visit by LIDI
using check sheet

Check list

3

Physicaltest (lab)①Tensilestrength(N/mm2)

Finished leather for:
①Tensile strength●Shoe upper/bag/leather goods: more than 15*●Garment: more than 15**
●Glove: more than 15**
●Veg. tanned leather: TBD●Suede: TBD②Elongation at break (%)●Shoe upper/bag/leather goods: more than 35*●Garment: More than 40**
●Glove: More than 40**
●Veg. tanned leather: TBD●Suede: TBD

Test method:
ISO 3376*Indian Standard: 5914:1970**Indian Standard:11230-2003③Tear strength(N/mm)

Finished leather for:
③Tear strength (N/mm)●Shoe upper/bag/leather goods:
more than 15*●Garment: more than 35●Glove: more than 35●Veg. tanned leather: TBD●Suede: TBD

Test method:
ISO 3377-2* double edge tear test

International Union for Leather
Technologists and Chemists
Society (IUP/IULTCS)*Indian Standard:5914:1970④Rubbing fastness(dry and wet)

<Dry fastness>①pigment finish: at least 3-4 grade②Pale shade and natural finish: at least 3-4 grade③Dark shade and natural finish: at least 2-3 grade<Wet fastness>①pigment finish: at least 2-3 grade②Pale shade and natural finish: at least 2-3 grade③Dark shade and natural finish: at least 2 grade

Test method:
ISO 11640

Japan eco leather label
http://japan-ecoleather.jp/english3/japan-eco-leather-standard-jes/①Chromium VI●For adult (skin contract and non skin contract):
Not detectable at the time of test **A detection limit: 3mg/kg,

ISO 17075

Japan eco leather label
http://japan-ecoleather.jp/english3/japan-eco-leather-standard-jes/②Formaldehyde
and phFormaldehyde:●For adult (skin contract ): 75mg/kg●For adult (skin non contract): 300mg/kg
Ph:●ph: ≧3.5 (for all leathers)

Formaldehyde:
ISO 17226-2 (HPLC)(colorimetric analysis)
ph: ISO 4045

③Use of REACH
certified chemicals

All the chemicals used for the leather productions are
REACH certified chemicals.

Check on the application
form
Check during theinspection visit②Elongation atbreak (%)

Physicaltest (lab)*dry 10cycle/ wet
10 cycle【Mandatory】
4

Chemical
test【Mandatory】

Standard*Companies submit the REACH certificates uponrequest from LIDI/ELIA or the buyers

.

5

6

Validatedperiod of
EHL
certificate-

Fee for
test

Inspection visit(12ppl)●REACH regulation.:
https://echa.europa.eu/web/guest/regulations/reach/legislation●Restricted Azo dyes:
http://exporthelp.europa.eu/upda
te/requirements/ehir_eu15_02v00
1/eu/auxi/eu_cherest_entry43_an
nexXVII_r1907_2006.pdf

one year

Lab test--

Applicant companies pay cost (or (provide in-kind) for
the visit:①air fare fee②Transportation③Lunch (if the inspection continued for 1 day)--①tensile strength: 200ETB②Tear strength: 200ETB③Rubbing fastness (dry and wet): 100ETB④Chromium VI: 258ETB⑤Formaldehyde: 258500ETBTOTAL: around 1,258016 ETB/sample

-

-

49

（2） Certification system for EHL leather products
The 1st draft of certification criteria for EHL leather products (Table 20) agreed upon at the first brandworkshop held on 14-16 May 2019 are as follows:① Submission of receipt to verify that products are manufactured with EHL-certified leather.
② Submission of a quality control checklist prior to shipment of the final product (Figure 8).
(e.g. whether or not exterior surfaces are clean, shapes and colors are symmetrical, accessories
are defective, nails and needles are properly managed and free of contamination, etc.)③ If products are manufactured using a combination of EHL and different materials, the ratio of
EHL shall be at least 50%.
Table 20: 1st draft of EHL certification criteria for leather products (Agreed in May 2019)
No.

Category

Criteria

1

Eligible
Applicants●Companies which produce shoes/leather
goods/garment etc. using EHL

2

Proportionof EHL totheproducts●More than 50% (shoe upper, bags,
garment, leather goods) if the products are
made with other materials

3

Valid term
for tag/hot
stamp●Purchased lot based on the application form

4

Fee fortag/hot
stamp●ELIA member: free●Non-ELIA member: TBD

Quality of
products●No defects in appearance●symmetry shape/color●Quality stitch and cut●No defective accessories●No nail/broken needles etc. contain in
the export products

5

Methodology

Check Item

Application form with EHL certificate
copy +receipt

ELIA check the application form, the purchase record(receipt issued by tanneries) and copy of EHL
certificate submitted by applicantsApplication form

ELIA check the application form

* Use of hot stamp machine is required the payment to LIDI

Copy of quality check sheet to ELIA
Inspection visit will be conductedupon the request from LIDI/ELIA

See check list

Quality Check Sheet for EHL ለ EHL ምርት የጥራት መፈተሻ ሰንጠረዥ
Company Nameየካምፓኒ ስምDefect Ratio（%) （③÷①)＊100）
Inspected byፍተሻ ያካሄደው ሰው

Delivery dateየማስረከቢያ ቀን

Submission DateቀንInspection Result የምርት ፍተሻ ውጤት
Body / Lining
አካል/ሽፋን
Inspectiondateፍተሻየተካሄደበት
ቀን

Style No.
ስታይል ቁ.

Color
የምርቱ
ቀለም

①QTY
②QTY
③QTY
Inspected
Accepted
Rejectedፍተሻ
QTY orderተቀባይነትን ተቀባይነት
ብዛትየተካሄደበያገኘ ምርት ያጣ ምርት
ት ምርት
ብዛት
ብዛት
ብዛት

Shape ቅርፅStain(leather),
Scratches, Wrinkles,
Asymmetry / DistortedFold,
Shape, Incorrect size
Glue stain/Glueየተዛባ ቅርፅ የያዘ፣overflowያልተስተካከለ መጠንቆሻሻ፣ ጭረቶች፣
ያለውመጨማደድ፣ እጥፋት፣
የማስትሽ ተርፎ መታየትSewingስፌት
Accuracy/Defective
Thread trimmingበትክክል መሰፋቱን
ማረጋገጥከስፌት በኃላ የክርአቆራረጥ/መከርከም
ስህተት

Metal Accessoriesብረት ነክ መለዋወጫዎች

Rust, Scratchesዝገት፣ ጭረቶች

TOTAL
ጠቅላላ

Remarksአስተያየት

Figure 8: Quality check sheet for EHL

50

Movement is smooth?
(magnet, straps, Zipper)በጠሩ ሁኔታ ላይ ይገኛል?
(የቁልፉ ማግኔት፣
ዘለበቱ፣ ዚፕ)Brand markየብራንድ ምልክትIncorrect
position/size/shapeበትክክለኛ ቦታ ላይ/መጠን/ቅርፅ
ያለመቀመጥ

Signature

Figure 9 is the 1st draft of the EHL certification process for EHL leather products. Each company
submits an application to ELIA for the use of the EHL brand and a receipt for the leathers purchased froman EHL-certified tanner. Once permission is granted, the companies loan the EHL branding hot stamp andstart manufacturing their products. After the products are finished and inspected, the companies submit thequality control checklist (Figure 8) to ELIA and receive EHL tags and brochures from ELIA.

Figure 9: EHL certification system flow for leather products (agreed in May 2019)

In the trial run of the certification process before the trade show in September 2019, the companies
were unable to conduct final inspections using the quality control checklist due to the delay in the deliveryof leather. This reduced the time they could spend on preparing samples. Therefore, the quality control
checklist was used by some companies during the second trial run for the trade shows in January andFebruary 2020. Besides, the production process of the samples ordered after the trade show included 1) thesubmission of the application for borrowing the EHL branding hot stamp, 2) the application for use of EHL
tags and booklets, 3) inspection of products using the quality control checklist and 4) support for brandmanagement. To perform the inspection described in 3), technical transfer was done by the Japanese experts
who oversee quality control to conduct final inspections of products through OJT before they were shipped,
and instructions on how to fill out the quality control checklist were provided to them.
Many small companies do not record the type and number of defects they find as part of their quality
control checks. Since some people in charge of quality control are not used to writing numbers in charts,
many companies have difficulty in recording the numbers. The checklist has been updated in Amharic tomake it easier to use, but until this is established as a routine, it is important to continue OJT training at thecompany.
As for the application procedures described in 1) and 2), some companies complained about having to51

make an application for each order and asked if each company could purchase an EHL branding hot iron.
These requests and the future operating system will continue to be discussed in the 2nd phase with ELIAand Ethiopian companies to consider how to create a brand management system that is easy for morecompanies to use while maintaining the value of the EHL brand.

3.7 [Activity 2-4] Creation of guidelines for brand usage (criteria for use of logos,
tags, etc.)
As part of the promotional strategy to increase awareness of the EHL brand and encourage more
Ethiopian companies to use the EHL brand, the project decided to provide free use of EHL tags, brochures,and logos to ELIA member companies during the pilot period of the EHL certification system. At first, only
partner companies were eligible for using EHL tags and logo during the pilot period, however, there wererequests to use EHL tags, brochures, and logos from companies overseas other than trade show purposes
through the partner companies who were actively promoting EHL to their existing customers. In responseto this request, in addition to submitting the application mentioned above in 3.6, concluding an MOU
between the companies and ELIA regarding the use of the EHL logo was considered. This topic will be
discussed continuously in the 2nd phase.
As for the cost of printing and content revision of tags and brochures, securing financial resources
within ELIA and establishing a royalty system was discussed with ELIA. After the completion of the 1stphase, details of the royalty system will be discussed in the 2nd phase. The content of the brand book createdin the CPA2 will be revised once the brand certification criteria have been finalized. Eventually, the brandbook will be made available for download on the website in the 2nd phase.

3.8 [Activity 2-5] Comparative study on sheep leather for scientific evidence
A joint survey was conducted to perform a comparative analysis between the skins of sheep raised in
the highlands, lowlands, and other areas of Ethiopia to discover Ethiopian Highland Sheep Leather
scientific characteristics by Japanese participants (Scleroprotein and Leather Research Institute of theFaculty of Agriculture of Tokyo University of Agriculture and Technology, Tokyo Metropolitan Leather
Technology Center, and Sapporo General Pathology Laboratory) and a participant from Ethiopia (LIDI
Research Lab). One of the objectives of the study was to summarize the results of this survey andscientifically demonstrate to buyers the reasons why Ethiopian Highland Sheep Leather was thin, soft, andstrong at the trade show in September 2018.
In March 2018, the project dispatched Professor Yoshihiro Nomura of the Faculty of Agriculture ofTokyo University of Agriculture and Technology to Ethiopia for field research and sampling, but due to theunstable condition of the country, he was unable to travel to Oromia Region. Therefore, at a later date, LIDI
staff visited the highlands (2959 m) in Northern Oromia and lowlands (797 m) in the south and conductedsampling. Menze specimens sampled in the northern highland area and Wankae specimens sampled in thesouthern lowland were sent to Japan preserved in formalin and ethanol. Analyses including electrophoresisof collagen, amino acid analysis, electron microscope observation, elastin staining, collagen staining, andglycosaminoglycan staining analyses were performed. Some of the same specimens were also used to52

perform electron microscope observation and physical property tests such as tear strength at the LIDI
research laboratory.
According to the results of the electron microscopic observation, the collagen fiber density and thecollagen fiber diameter of Menze seemed to be thick, but the collagen density was higher in Wankae, andthe study conducted in Japanese research institutes revealed no obvious difference between Menze andWankae species. Likewise, the study conducted at LIDI's research laboratory did not find any significant
difference in physical strength, and scores were higher in Wankae species in some tests. Sheep from
Hokkaido, north Japan, exceeded the data of Ethiopian sheep. Based on these findings, the plan todemonstrate the characteristics of Ethiopian sheep leather to buyers at the trade show in September 2018
based on scientific evidence was deferred.
Leather’s strength depends on the thickness and density of the reticular layer, which starts from thebottom of the papillary layer. Viewing the cross-sectional structure with an electron microscope showedthat the thickness of the papillary layer of the Ethiopian sheepskin was 40% when the sample was reduced
to 0.4mm, which was the lowest, and we observed that enough of the reticular layer thickness was left tomaintain that strength. For the 0.4 mm thick samples, the papillary layer was 100% in the Indonesian sample
and 60% in the South African sample (Photo20-22). From this experiment, we could posit that one of thereasons that Ethiopian leather can maintain strength even when it is as thin as 0.4 mm is because of thedifference in thickness of the papillary layer.
The results of the comparative study were shared with LIDI and ELIA (Figure 10). After discussion,
they agreed that since the experiment had clearly shown that that Ethiopian sheepskin retains its physicalstrength even when finished thinly because of the thinness of its grain side layer, this should be used for
promotional purposes.

Ethiopia

South Africa

Papillary layer

0.40mmPapillary layer

Ave. 60%

Tensilestrength (MPa)

0.4

28

0.7

35

changerate (%)

-20

Ave.
100%

Ave. 68%

reticular layer

Indonesia

reticular layer

Tensilestrength(MPa)13changerate (%)-49

26

Figure 10: Comparison among three countries’ sheep leather strength in thickness 0.4mm

Based on these results, panels and materials were prepared to explain the scientific reasons why

53Ethiopian sheepskin can be thinned while retaining its strength for promotion at the trade shows from
September 2019 onwards. The content of the panels has been simplified as much as possible and is mainly
used by the representatives of tanners to explain the characteristics of Ethiopian sheep leather (Figure 11).

Figure11:

Panel describing the characteristics of Ethiopian sheep leather
based on the scientific data

3.9 [Activity 2-6] Brand promotion (promotional materials, website, trade show,
journal, and display)
To promote the brand, the project participated in trade shows in the French market in 2018 and theAmerican market in 2019 as decided in discussions with LIDI and ELIA. The issues identified in the tradeshows were fed back to the technical support in the production of samples and business seminars to make
improvements for upcoming trade shows. The support was also aimed at learning methods of exhibiting
following the theory of visual merchandising and research on trends in the international market. In addition
to the representatives of each company, representatives from LIDI and ELIA as well as Japanese experts

54

attended the trade shows.
After several trade shows, there has been an improvement in the quality of products, promotional
methods, and staff’s negotiating skills with customers. As a result, the number of sample orders has
increased. However, only a few orders for actual products have been placed after sample orders. Support
was also provided in early 2020, focusing on methods of follow-up to suppliers and improvements in thequality of samples. The COVID-19 pandemic emerged just after the companies were starting to have a moreconsistent dialogue with customers about improving samples, with several companies beginning to receive
actual product orders.
(1) Participation in overseas events such as trade shows
In light of the results of the market research conducted in 2017 and the issues identified throughparticipation in the trade shows, three trade shows in France and one in the US have been held since
September 2018. Although activities in the U.S. market were not planned initially, since there was somediscrepancy with the markets that the shoe manufacturers were targeting at the trade shows in France, theproject attended Footwear Sourcing and Project Womens at MAGIC, a fashion industry trade show held in
Las Vegas in February 2020.
Premiere Classe Paris Porte De Versailles (Paris / 7~10 September 2018)① Formulation of promotion plan
In the second JCC meeting, the project obtained approval for the participation in the trade show inFrance in September 2018 and the preparation schedule. Although the project had to increase the numberof business trips of experts to provide technology transfer for finishing leather material, other major
activities were broadly carried out according to the schedule below.

Apr

May

June

July

Aug

Sep

Product Development for the exhibition
Design support

Design support

Quality Improvement for Shoe/Bag
Technical Support

Technical Support

Technical Support

Quality Improvement for Leather Material
Technical Support

Technical Support

Set Working Environment / Introduce – Improve in-line inspection
Technical Support

1

Technical Support

2

Technical Support

3

Figure 12: Support plan for the trade show in September 201855

Premiere Classe (7-10 Sep)

Design support

Buyers’ FeedbackMar② Participation in the trade show
Premiere Classe Paris Porte De Versailles is one of the largest trade shows in the fashion sector in theworld. It is held in January and September each year, and exhibitors must pass a screening by the organizers
to be eligible to participate. The Premiere Classe Paris Tuileries, which has an even tighter limit on thenumber of exhibitors, is also held in March and September each year, coinciding with Paris Fashion Week.
Trade show
namePeriodVenue
No. ofexhibitors

Premiere Classe Paris Porte De Versailles
September 7 (Friday) - 10 (Monday), 2018 9: 00-19: 00 (close at 17:00 on the last day)Parc des expositions de la Porte de Versailles
1 place de la Porte de Versailles 75015 Paris HALL 3
1,400 (Including Who's Next held at the same time)

No. of visitors

43,500 (Including Who's Next held at the same time)

EHL booth

24 square meters

The business meetings held by the participating companies with visitors at their booths for four days
yielded the results described below. However, the number of business meetings held was smaller than at
the trade show held in Japan during the CPA2, suggesting that there were still many issues to be addressedin the approach to the new market (photo25-26).
No. of visitors
Business Type
Result110 (The number of visitors with whom we exchanged business cards and information)
Retailers 26%, Whole sellers 12%, Manufacturers 21%, Unchecked 27%, Others(Agent, designer, Media) 14%
Trial Order / Sample Order =13

Figure 13: Analysis of visitors to the EHL booth at Premiere Classe Paris by region

56

The breakdown of visitors by region is as described above. Although the number of visitors fromoutside the EU was lower than expected, visitors from France accounted for approximately 50% and there
were many opportunities to meet with potential customers from the EU, which is the target market of the
project.
③ Individual negotiations with French companies
In parallel with participation in the trade show, the project planned product development using EHL
branded leather materials at French companies to raise the profile of the EHL brand in the European market.
During the delegation, the project had opportunities to negotiate with the following two individuals andintroduced the leather materials to them.
Mr. Olivier Lapidus, designer and former artistic director at Lanvin
Although he rated the quality of the leather itself highly, he pointed out the quality of the finishingneeded to be improved. He also proposed coordination of gloves with a scarf based on the same motif bymaking full use of the softness and smooth texture of sheep leather. At the same time, given the difficultyof manufacturing bags with soft materials and the growing awareness of animal rights, he suggested thatthe project developed the concept of “Made in Ethiopia” to incorporate other materials, such as cotton andsilk, as well as leather products.
Mr. Jean-Marc Loubier, CEO of First Heritage Brands (Affiliates: Robert Clergerie, Delvaux)
He asked questions about the water treatment used at the tanners, as well as about the dyeing
techniques for bright and pale colors. He then exchanged opinions with all of the Ethiopian participants onwhat a brand was and how Ethiopian Highland Leather could differentiate the products from others.
④ Discussion in the wrap-up Meeting
The delegates shared lessons learned in the wrap-up Meeting held after returning to Ethiopia;① Need more information about sales point, price in EUR, leather material price of each
grade, and per Sqm, chemicals were needed to promote in the European market.
② Need a review of the line up (backpack, pouch, and removable tassel, etc. and research
for trend color and design.
③ The bag’s price is 20% higher than other exhibitors (same quality’s product).
④ Need enough preparation to start a business with European (especially French) buyers.
(Import VAT, Transportation cost (Cargo, DHL, and Ship, bank transfer cost)⑤ More Ethiopian motif in the booth to appeal “Made in Ethiopia” more.
⑥ Need symbolic products so that visitors can understand the products are made from Sheepleather.
⑦ Need giveaway, and welcome drink and snacks such as coffee and kolo.
Interviews conducted a week after returning to Ethiopia revealed that some companies had sent emails
to customers with whom they had exchanged information and started preparing samples according to theirorders, while others have still not taken any action.

57

Who’s Next held on September 6-9, 2019
① Promotion planning
Premiere Classe Paris Porte De Versailles has been merged with Who’s Next, which was held at thesame time. Who's Next has a new area called IMPACT, which features companies and products with ethicaland ecological concepts, and EHL decided to exhibit in this area in a meeting with the organizers in advance.
To structure the trade show under the concept of the trade show area, EHL began preparations in January
2019. It also shared its plans for differentiation by featuring vegetable-tanned and upcycled leathers suchas waxed and tie-dyed leathers and adding ethical elements with the companies, as well as LIDI and ELIA.
Table 21:
1. Concept Development

Preparation Schedule for Who’s Next in Sep. 2019
Jan. 2019 Start meeting to discuss the concept
Apr. 2019 Share the concept “Ethical + Ecological”
Apr. 2019 Start sample development

2. Concept EmbodimentApr. 2019 Start veg-tanned leather production
May 2019 Discussion with the organizer and select the venue

3. Brand Management
SystemMay. 2019 Brand Management Workshop (1)Jun-July 2019. Inspection activities for Brand certification
Aug. 2019 Brand Management Workshop (2)4. Skill Grade-up andJun. 2019 Business Seminar (1)Company Target Setting

Aug. 2019 Business Seminar (2)Figure 14: Image Boards to share the promotional strategy among the project members

58Due to the increase in the number of participating companies, the size of the booth was also expanded(36 sqm for 10 companies). In the previous trade show, the booth was made up of the minimum amount ofmaterials provided by the organizers for sustainability purposes post-completion of the project. In contrast,
the booth at this year’s trade show was decorated with pictures of landscapes of Ethiopia to represent thebrand’s concept and make the booth more attractive to visitors. The front panel described the brand conceptof EHL and how the EHL brand can contribute to the achievement of the SDGs (photo27-31). Participants
were also required to wear t-shirts and workshop coats with the EHL logo (female staff also wore ethnic
clothing). As novelties, collapsible animal figures such as elephants and lions made of pieces of leather
were distributed to the visitors with whom business negotiations were conducted.
② Participation in Who’s Next
As a result of the above improvements, enhancement of the quality of samples, and customer serviceof the companies, a total of 198 negotiations were conducted at the booths, up nearly 200% compared tolast year. The total number of sample orders also improved to about 40.
Trade show name

Who’s Next

PeriodSeptember 6 (Friday) - 9 (Monday), 2019 9: 00-19: 00 (close at 17:00 on the last day)Parc des expositions de la Porte de Versailles

Venue

1 place de la Porte de Versailles 75015 Paris HALL 1 & 2.2

No. of exhibitors

Approx. 1,400

No. of visitors

43,675

EHL booth36 square meters

Table 22: Number of negotiations conducted in each sub-sector in Who’s Next in Sep. 2019

9/6

9/7

Bag
Shoes

9/8

34
15
11
8
68

Garment

Material
total

9/9

20
10
7
12
49

28
14
6
8
56

9/10

total

8
6
6
3
23

90
45
30
33
198

2
2

France: 54% Other EU: 27% Asia/Oceania:8% Africa: 2% North America: 0.5% South America: 0.5%

Table 23: Segmentation of negotiation partners by sub-sector in Who’s Next in Sep. 2019
Whole
SellerRetailer

Shoes
Bag
Garment
Material
total

22
48
11
81

Manufacturer

10
10
1
2
23

Others

2
9
5
24
40

Designer

Consultant Agent

PR

Showroom

1
1

1
2
3

1
1

2
4
3

2
2
2

1

2

6

2

9

6

1

59

Since this trade show was held mainly for the spring/summer collection and finished products, it was
anticipated that leather materials would again struggle to create interest, since the number of businessdiscussions on leather materials at previous trade shows had been quite limited. To tackle this problem,
appointments were set up before the trade show, primarily with manufacturers of leather products. Overall,
11 negotiations were conducted both during and after the trade show (including with an organization of
manufacturers and a multi-brand shop selling finished products). The quality of buyers was high, and twotanners received sample orders.
These achievements reflect the benefits of a clear brand concept meeting market needs, as well as thedevelopment of booth design and samples under the concept, resulting in a consistent presentation of thebrand overall. In contrast, shoe manufacturers struggled to win deals, probably since they were not so wellmatched with the types of visitors at the trade show. There were many small retailers, and it was difficult
to conduct negotiations that would lead to the large orders expected by shoe manufacturers. According toboth exhibitors and experts, bright colors such as light blue, green, tie-dye, and vegetable tanning, whichwere the signature colors of the brand, were not seen as being in tune with trends in the French shoe market.
Since a large number of retailers visited the trade show as in the previous year, it was felt that better
strategies should have been put in place for the shoe manufacturers this year. At the previous trade show,
shoe manufacturers received more sample orders than bag manufacturers, so they had not focused on thismatter.
The nationalities and characteristics of visitors at the trade show overall were similar to the previous
year. Half of the visitors were from France and visitors from Europe accounted for 80% of the total, with
about 10% from Asia and almost no visitors from North America.
③ Points for Improvement
The following points for improvement were suggested by experts who attended the trade show and at
the wrap-up meeting held with ELIA and partner companies after returning to Ethiopia:① The relationship between the EHL brand and each company is unclear. The relationshipbetween the brand and each company should be indicated using methods such as theinstallation of a panel with the logo of each partner company under the brand logo and tag
line.
② The description of the SDGs attracted attention but it should be summarized more simply
as there was too much text.
③ Utilization of industry-government staff. It is necessary to assign specific roles.
④ The negotiation sheet has many points to follow that are unclear and requires more detailed
items.
⑤ Not many buyers returned to the trade show. The method used to make appointments
needs to be reconsidered.
The project decided to consider future measures for the shoe manufacturers, after returning to Ethiopia,
including participation in other trade shows and implementation of pre-matching.

60

Who’s Next held on January 17-20, 2020
Following the trade show in September 2019, the project exhibited at Who’s Next in January 2020.
Shoe manufacturers were excluded based on the lessons learned from the previous show, and thepromotional activities were focused on four bag manufacturers, one garment company, and two tanneries.
The trade show continued to attract customers’ interest in the concept of eco-friendliness and upcycling,exhibiting vegetable-tanned, wax finish, and tie-dyed leather products. However, there was a significant
drop in the number of negotiations to 70 due to the public transport strike that took place throughout mostof the period that the trade show was on.
Trade show name

Who’s Next

PeriodJanuary 17 (Friday) - 20 (Monday), 2020 9: 00-19: 00 (close at 17:00 on the last day)Parc des expositions de la Porte de Versailles

Venue

1 place de la Porte de Versailles 75015 Paris HALL 6

No. of exhibitors
No. of visitors
EHL booth

Approx. 1,400
42,565 * Although this number was announced by the organizer and almost thesame as the previous trade shows, the area around the EHL booth was quiet.
36 Square meters

As in the previous show, tanneries that had organized meetings with potential customers before thetrade show managed to conduct a certain number of negotiations, while bag and garment manufacturers
suffered a significant decrease in the number of deals. In contrast, some of the customers from the previous
show visited the trade show again and ordered samples. This kind of continuity in negotiations had neverbeen seen before. It was most likely the result of repeated participation in trade shows and business seminars.
Table 24: Number of negotiations conducted in each sub-sector in Who’s Next in Jan. 2020

1/17
Bag
Shoes
Garment

Material
total

1/18
5
２
12
19

1/19

1/20

8
1
7
16

5
2
6
13

total
15
0
7
22

In Sep. 2019
33
90
45
5
30
32
33
70
198

Table 25: Segmentation of negotiation partners by sub-sector in Who’s Next in Jan. 2020
Retailer

Bag
Garment
Material
total

Whole Seller

Manu-facturer

6(10)
0(1)
2(2)
8

17(48)
3(11)
2(0)
22

Others6(9)0(5)
29(24)
35*The numbers in brackets are the number of business meetings in the trade show in September 2019.

61

8(1)
2(0)
10

Footwear Sourcing/Project Womens at MAGIC held on February 4-7, 2020
Participation in Who’s Next showed that it was difficult for the shoe manufacturing industry to win
deals that would lead to large orders due to a large number of retail buyers. Therefore, secondary researchon trade shows specializing in footwear and interviews with experts were conducted to explore thepossibility of separating only shoe manufacturers and participating in different trade shows.

Table 26: Comparison of shoe trade shows in Europe and the USA
FOOTWEAR SOURCING
AT MAGIC

Gallery Shoe

Expo Riva Schuh

CMC LA MARKET WEEK &LA KIDS MARKETTHE ATLANTA SHOEMARKET

Duration

4-7 Feb 2020

08-10 Mar 2020

11-14 Jan, 2020

12 –15, Jan, 2020

15–17, Feb, 2020

Location

LAS VEGAS, USA

Dusseldorf, Germany

Riva del Garda, Italy

California, USA

Atlanta, USA

Organizer

UBM, Informa Markets

Igedo

Expo Riva Schuh

California Market Center

Southeastern Shoe
Travelers Association

Visitors

16,3009,800+

12,000+A few hundred

5,000

Exhibitors

1,200

400 (600 brands)

1,474

3,000+

800

Items

Shoes

Shoes (Mainly Shoes for
Women)

Shoes

Apelles, Shoes, leather
goods, and other types ofaccessories.

Shoes

Fact

Quality level: Medium(volume shoe)
Exhibitor: From 29+
countries (Mainly China?
Need to consider the FN
Platform at Magic?)
Entry barrier: Low
https://www.ubmfashion.
com/shows/footwearsour
cing

Quality level: Medium-High
Exhibitor: domestic 35%,
International 65%
Visitors: Germany, Italy,
Spain, Portugal, France andthe Netherlands
Entry barrier: Mid

Quality level: Medium-High
Exhibitor:
Visitors: Entry barrier: Mid

Quality level: Medium-High
Exhibitor: International
Visitors: Retailer
Entry barrier: Mid

https://gallery-shoes.com/

Quality level: Medium(volume shoe)
Exhibitor: China, India,
Brazil, Italy and other 35
countries
Visitors: 1.Italy, 2.Germany,
3.Spain, 4.France, 5. UK …
Entry barrier: Low
https://exporivaschuh.it/en

As a part of USAID and
UNIDO activities, the focal
person has richexperience to welcome
Ethiopian delegates.
Some Ethiopian shoe
makers has achieved
some orders in the
exhibition, so they havesome understandings
about the trend.

It is characterized by wellorganized categorizationand gallery format
exhibition (it is easy to
prepare but difficult to
express Ethiopian features).
The gallery shoes wasstarted after GDS wasterminated a few years
before, however the
downtrend has not beenchanged.

Riva Schuh is a trade fairconcentrating on mass
product on medium prices
shoes.
Main visitors come fromsouth European countries
where elegant design shoes
are popular. So, it would be
difficult for Ethiopian
companies to develop
samples which can win thevisitors’ interest.

The quality level would not
be difficult to enter but thesize of exhibition is smaller
than others and we could
not find clear information if
an area dedicated to shoe
was set up.

http://www.californiamarketcenter.com

https://www.atlantashoem
arket.com

One of the biggest shoe
exhibition in US market. It ischaracterized by wellorganized categorizationand gallery format
exhibition (it is easy to
prepare but difficult to
express Ethiopian features).

The research was conducted on trade shows specializing in footwear to be held in Europe and theUnited States by the end of this phase. Subsequently, the study focused on the above five trade shows whichwere of the ideal size to generate large orders required by Ethiopian shoe manufacturers and compared theirdetails.
After careful consideration, the project decided to participate in the “Footwear Sourcing” category of
the MAGIC trade show in Las Vegas, USA, based on the fact that the trade show was focused on products
for both men and women, that Ethiopian companies including the partner companies had experience inexhibiting at trade shows and an understanding of market characteristics, and that the US market was
already the largest export market for shoes in Ethiopia. Besides, since this trade show also targets shoes andthe materials necessary for their production, tanners also decided to participate. Moreover, MAGIC has
another category called “Project Womens”, which highlights apparel brands and accessories for women. It
was also thought to be a suitable venue for exhibiting EHL brand bags, so bag manufacturers also decided62

to participate. In the past, Ethiopian companies have participated in each of the MAGIC categories with thesupport of other donors, and EHL was the first Ethiopian brand to pass the screening criteria of “Project
Womens” for participation.
The US government’s decision to restrict air traffic from China to prevent the spread of COVID-19
has led to the withdrawal of hundreds of Chinese companies from the show. As a result, the Footwear
Sourcing and Sourcing categories were drastically reduced in size.
Before the trade show, it was thought that most of the visitors to Footwear Sourcing would bewholesalers. In reality, however, the majority of visitors were from the retail industry, including major
retailers and many small business owners selling their products online. While the withdrawal of a large
number of Chinese companies from the show may have been a factor explaining the low attendance bywholesalers, the fact that so many retailers who rely on e-commerce as their principal sales channel because
they lack a large domestic presence attended the event suggests there has been a shift in distribution
channels in the US in recent years. To attract more retail customers, it is important to offer promotional
materials and concepts that customers can use to market their businesses. It also appeared that thepreferential tariffs under the African Growth and Opportunity Act (AGOA) needed to be re-emphasizedand highlighted. It had been thought that the large wholesalers were already aware of these. The retailers
who came to Project Womens tended to be smaller than those who came to Footwear Sourcing. Theyrequested a credit card settlement and asked for samples from each company with their shipments.
According to advice from Japanese companies with sales networks in the U.S., there needs to be moreemphasis on the concepts behind the materials, such as eco-responsibility and upcycling (photo32-34).
Table 27: Number of negotiations conducted in each sub-sector in MAGIC in Feb. 2020
1/18

1/19

1/20

Total (sector)

Total (booth)

Shoes

10

15

13

26

64(TBC)

Leather

1

4

4

3

12(TBC)

Bag

-

27

18

2

47

Garment

-

10

5

4

19

total

11

55

40

33

142

76
66

Table 28: Segmentation of negotiation partners by sub-sector in MAGIC in Feb. 2020
Retailer (incl. EC)

Shoes
LeatherBag
Garment
total

26
1
39
13
79

Whole Seller(Distributor)

Manufacturer

11
2
0
1
14

Others

0
4
0
1
5

63

7
4 (designer)
1
1
14

unknown

21
1
7
3
32

There was a large difference in the ratio of the number of sample requests to business discussions foreach company at MAGIC. One of the participating companies received three sample requests from 13
negotiations. One company received one sample order from 19 discussions, while another achieved fivesample orders from nine negotiations. One company that had achieved a high ratio of sample orders fromits negotiations commented at the wrap-up meeting that it followed the business negotiation tips and tricks
it had picked up from the workshop organized by the project. The other companies asked for the materials
from this workshop to be shared again.
(2) Participation in All African Leather Fair
All African Leather Fair (AALF), which had previously been run by ELIA, was first managed by
Messe Frankfurt in 2019. The company is the world’s largest trade show organizer based in Germany andis managed by Trade and Fairs Consulting, the company’s official representative in East and Central Africa.
The project has also been participating in AALF as EHL until 2018, and this has been a useful way ofraising EHL’s profile in Ethiopia. Held in November 2019, the fair was focused on products and attracted
a lot of interest, particularly in the brand conference, “Trademark for Quality Assurance and Value Additionof Your Leather Products, ‘Ethiopian Highland Leather” (photo35-36). The conference was attended byabout 70 participants (full capacity), including tanneries and development partners. The first part of thepresentation was a talk by ELIA on the EHL brand. This was followed by a panel discussion between LIDI,
two partner tanners, and four Japanese experts from the project, moderated by a professor from Addis Ababa
University. At the conference, a first-time trial initiative defining and certifying the notion that “Ethiopian
sheep leather is good” as a brand theme was very well-received. Some development partners, such as
UNIDO, expressed a desire to explore collaboration possibilities, while the lively Q&A session, which went
on well beyond its scheduled time, showed there was a high degree of interest in EHL. During the fair,many Ethiopian companies expressed an interest in using the EHL brand, and about 25 companies became
new ELIA. Due to the pandemic, AALF 2020 has been postponed until next year.
(3) Post-trade show follow-up
Follow-up to tanners
At Premiere Classe held in September 2018, tanners eventually shipped three samples, but emailcommunication with customers petered out without any trial orders coming through. The main reason forthis was a failure to reach a final agreement on the price. In the meantime, the low number of negotiations
at the trade show also seems to have contributed to the failure to close deals, highlighting the need formeasures to increase the number of negotiations as a priority. Based on these lessons, support for finding
potential new customers was provided before the trade show in September 2019. Through an agent inFrance providing support for overseas participants at trade shows, various requests for meetings were sentout, focusing mainly on French leather clothing manufacturers. As a result, a total of around 30 negotiations
were conducted. The negotiations themselves were very successful, with two companies placing a total offour sample orders with a high possibility of product orders to follow. These included a large sample orderof more than 1,000 square feet. To build a lasting relationship with these customers, tanners set up a
showroom at the Ethiopian Embassy in France when they exhibited in January 2020 (photo37). During a64series of promotional activities, most of the sample requests received by the tanners were for anilinefinished chrome tanned leather, with only a few requests for samples of vegetable tanned hides althoughtechnical support had been provided for this at the trade show. In the meantime, buyers showed intenseinterest in vegetable-tanned end products, a trend that was also observed in the US. As in the past, while
there is strong demand for the smooth texture of chrome leather, reluctance to sell vegetable tanned leather
to tanners is also considered to be a factor here.
Follow-up to manufacturers
In September 2018, two shoe manufacturers and three bag manufacturers that exhibited at the trade
show in France conducted 65 negotiations and secured nine sample orders as well as opportunities forcompany visits after exchanging emails. However, only five of these nine sample orders were shipped. Onlya few of the negotiations led to continued email exchanges subsequently. The companies still seemedunaware of the importance of providing good quality samples, and many samples turned out to be defective.
Hence, many samples had to be remade or else replaced. This delayed shipments until December. The
importance of the quality of the first sample for securing follow-on orders and trial orders highlighted theneed for support to be provided to the companies after the trade show.
After the trade show in September 2018, discussions were held concerning the design and quality ofsamples, as well as issues concerning brand consistency, unfocused promotional strategies, and inadequate
preparation for entry into the French market. It was recognized that companies lack awareness of theimportance of the quality of samples and that this prevents them from producing samples of similar quality
to the items on display at trade shows without the benefit of guidance from and inspection by experts.
Based on these lessons learned, preparations for the trade show in September 2019 began with aconsideration of the themes behind the previous trade show in January that year. Samples and promotion
methods were also developed following these trade show themes so the overall approach would be more
attractive to buyers. As a result, 165 negotiations were conducted, exceeding the number at the previous
event, and the total number of companies placing orders for samples increased to around 30. After the trade
show, from late September to October, specialists were dispatched to follow up with the companies
concerning communication with their customers. After receiving orders for samples, each company needed
to make several corrections before shipping the products. This reflected the fact that some issues were only
detected by the experts in their final inspections, such as poor sewing quality, scratches, measurement
discrepancies, and colorfastness defects. Failure to detected these defects without inspection by experts is
one of the key quality control issues faced by the companies.
The quality of communication with customers regarding the production and delivery of the first sample
is also an important skill for subsequent transactions. However, some problems have been noted, including
delays in delivery of leather materials, failure to inform customers of potential delivery delays due to thedefects described above, delays in responding to customer inquiries, and the absence of any subsequent
responses from customers.
Following the shipment of samples after the trade show in September 2019, Kootkeet received anorder for 90 EHL-brand sandals, with delivery scheduled for the end of March (photo38). The order wasplaced by Prime Corporation, a Tokyo-based wholesaler operating directly-managed stores selling imported

65

items of different brands. The company has been operating stores in Tokyo and Kanagawa since June
(photo39). POPs were created in the stores to advertise JICA’s support, and information on the productreleases was also posted on JICA’s social media accounts. The company initially placed sample orders fora waist bag and two pairs of sandals. However, the order for the waist bag was canceled due to the poor
quality of sewing in the first sample. In the second sample, an order for one of the sandal pairs was also
canceled because differences between the color of the cowhide used for the straps and the sheepskin used
for the rest of the shoe were not properly addressed. An order was, however, placed for the other pair ofsandals. Shirshir Ethiopia completed delivery of 24 bags (four different varieties) to Green Rose, an importboutique in Aichi Prefecture. The company placed a small order without requesting a sample at the trade
show in France in September 2019. As Green Rose normally pays electronically for purchases from Europe
and Asia, experts were needed for assisting with the completion of the payment process by wire transfer atthe bank counter. Support was also provided for the delivery of samples and products, including tips on
using stiffening material and packaging techniques to prevent the products from being pushed out of shapewhen shipping. This kind of attention to detail will ensure that the samples remain intact when shipped, andwill reassure and convince customers and contribute to the development of the business.
Companies have reported cases of cancellation of orders during the preparation of samples due to the
COVID‑19 pandemic, as well as the sudden loss of contact with customers in the middle of email
discussions about specifications and cancellations of product orders mid-way through production. In themeantime, some companies have managed to complete and deliver sample orders by keeping their clients
informed of their progress while getting samples ready. Some companies have also been requested to getin contact with their customers once project activities resume; others have been asked about their plans by
the owner of a French leather fashion online magazine, which suggests that their promotional activities
have had some impact.
Immediately after participating in the trade show, tanneries received orders from their manufacturing
partners for samples and leather for the production of actual products. However, tanneries have been
struggling to respond to small orders, while quality and delivery times from the manufacturers, an area ofa complaint previously, still need to be improved. Tie-dyed products, which have been marketed as upcycled
leather at trade shows since fall 2019, is a technique that can be used for production in small batches.
ELICO Awash Tannery produces leather using this technique, and ELICO Universal Leather, a groupcompany, processes leather into bags and jackets. These have started to be sold in the domestic market.
(4) Awareness survey at trade shows
During the trade show, a questionnaire survey was conducted to find out about the profile of the brandin the market and evaluate the results of project activities. The survey consisted of interviews with visitors
at the booth. In three days, 46 people were asked if they had heard about EHL before they visited the booth.
In total, 11 respondents (23.9%) said they had heard of EHL. This was almost half of the target of 50%.

66

Did you know the Ethiopian Highland Leather before you came to this booth?
Visited the booth in the past
Who’s Next. or Premiere ClasseYES
11 (23.9%)

Others

10
1

NO
35

Figure 15: Result of the EHL Brand Awareness survey(5) PR activities for brand products
The project decided to advertise the brand according to the timing of the trade show in Pari in
September 2018. Among the leather industry magazines suggested by ELIA, the project decided to placean advertisement in the International Leather Maker 20 for its regional coverage, focus on digitaltransmission, and a large number of subscribers (17,823 subscribers (2017)). Since the profile of the EHL
brand was low and its brand value was not established, the project assumed that using print advertisingwould not be effective. Therefore, the project negotiated with the publisher and requested them to feature
the project and the French trade show in an article on their website. A web banner was also placed in the
newsletter published several times a week by the same publisher, and the banner was linked to the page on
the website of Creativity in Motion announcing our participation in the trade show. The article inInternational Leather Maker and information on the Paris trade show were featured in the Ethiopian media.
The above article was quoted on the websites and social media, including Twitter of newspaper companies,
Addis Standard and The Reporter, Semonegna, and LTV, as well as public media and ministries' websites
such as the Ethiopian News Agency and EIC.

20

http://internationalleathermaker.com/(Accessed on September 27, 2018)

67

Figure 16: Article in International Leather Maker"Ethiopian Highland Leather heading for Première Classe Paris trade show in Paris"

Figure 17: Web banner in International Leather Maker eNews Letter linked
to the special page on the website(6) Collaborative projects with European brands
Since September 2018, negotiations have been ongoing on the sale of collaboration products with
European brands. This has developed into plans to sell limited edition products in collaboration with an
Italian luxury bag brand as well as with a Paris-based Japanese artist who has worked with prominent luxury
brands.

68

The primary purpose of this project was to establish the status of EHL as a brand and to attract potential
customers for future trade shows, with discussions also held on developing negotiations into business deals
depending on the reputation of the products concerned. The initial plan was to provide bag brands with
EHL-brand leather materials and manufacture products at these brands’ factories. However, if the entire
manufacturing process could be completed at factories in Ethiopia, the technology used at the factories forthis process would most probably improve and the cost of manufacturing would be borne by Ethiopian
companies. For this reason, samples were produced by Ethiopian companies under the supervision of thebrand designers. Japanese designers considered having artists paint on the bags manufactured by Ethiopian
companies. Before the spread of COVID-19, discussions had been underway between brands and artists on
producing samples and the presentation of their work, but these discussions have been suspended.
(7) Additional market research
To make the 2nd phase activities effectual to increase the export figure of the Ethiopian leather industry,
it is important to expand the target markets and target items based on the experience of promotion activities
in the 1st phase. To consider the activities, additional market research was conducted from March 2020,
when the 1st phase was extended. In the research, we reviewed the markets, distribution channels,
consumption trends in each region and country of the world, and overviewed the leather sector in Ethiopia,
and examined the market strategy for the EHL and other leather materials and final products in the 2nd phase.
Trade statistics estimated the export potential of Ethiopia's leather sector to be close to $ 40 million.
Although Ethiopia lifted-up tax on the export of semi-finished leather, its unit price is low. So, even if thequantity increased due to the lifting, the export figure accumulated would be small. The export potential
was estimated also as small. It was about one-sixth of finished leather.
Regarding the finished leather, the export potential was recognized in China and Vietnam. To
contribute to the growth of the domestic shoe industry, a strategy was considered to promote shoe upper
leather in those countries first. China is the largest market for the Ethiopian leather sector. However, theproduction bases of multinational cooperation have already begun to move to other Asian countries, andthe growth margin as an export market for leather materials is small. Conversely, production needs in China
are still high due to the comparative advantage n high technological capability which Chinese
manufacturers have. Therefore, it would be necessary to propose such Chinese manufacturers quality- andfunctional leather, such as EHL and eco-leather.
To increase the export figure, it will be indispensable to enter the supply chain of multinational
cooperation. Due to the technical level of the Ethiopian shoe manufacturers and the domestic supply chainthat is still under development, it would be important to gradually enter the supply chain from shoe upper(intermediate products) suppliers for shoe manufacturers in North Africa. North Africa is one of the hubs
for offshore production of leather goods for European multinational cooperation. With the benefits of theAfrican continental free trade agreements, it would be useful to start entering the supply chain as a shoe
uppers and shoe upper leather supplier to African countries which has been functioned as production bases
for the European market.
Regarding the African market, it would be effective to promote exports of leather shoes, which have acomparative advantage on price in the South African market, where the retail market has been established.

69Regarding final products such as bags, due to the production scale, it would be difficult to make a substantial
contribution to the achievement of national export target figures. On the other hand, it plays an importantrole in establishing the EHL brand, and it is necessary to continue promotional activities for the final
products in Europe and the United States, the sources of fashion trends.
To support the industry, the Ethiopian government needs to conduct overseas market research onleather materials and final products to understand its position in the global market. To facilitate overseas
transactions of each company, it is necessary to relax foreign currency regulations and loan conditions forcapital investment and purchase of intermediate materials.

3.10

Meetings

See “2.1 (2) Establishment of the implementation structure and the holding of regular meetings” (p.5).

70

4. Activities: New Champion Product Component
Output 3. Development of a new champion product brand
4.1 [Activity 3-1] Promotion of champion product approach
The C/P for activities related to the new CP component is MOTI. To facilitate the smooth operation of
the project, the project and the project team of MOTI have been holding regular meetings about once every
two weeks, where they establish activity plans, confirm the progress of activities, and discuss the details of
the activities. However, after coffee was selected as the target sector, the focus shifted to meetings with
ECTA, which is the C/P in the sector nominated by MOTI as well as with focal personnel of ECEA and
ECRA. The project carried out a status report on the current situation to MOTI once a month and also
requested to participate in the implementation committee meeting of the coffee sector.
As the coffee sector has many stakeholders, there was a concern about the difficulty in summarizing
opinions. After consultation with ECTA, it was decided that there should be four members of theimplementation committee (IC) in the coffee sector as a representative: ECTA, ECEA, ECRA, and MOTI.
Table 29: Four organizations and major participants constituting the implementationcommittee in the Ethiopian coffee sector
Affiliation

Position

Name

MOTI Export Promotion
Directorate General

Director-General

Mr. Assefa Mulugeta

Director

Ms. Haimanot Tibebu Kassaye

Senior expert

Ms. Yodit Alemayahu

Deputy Director-General

Mr.Shafi Oumer

DirectorMr. Dassa Daniso

ECEA

General Manager

Mr. Gizat Worku

ECRA

President

Mr. Minilik Habtu

ECTA

4.2 [Activity 3-2] Identification of potential champion products
After the discussions between MOTI and industry organizations, the following eight sectors wereselected by MOTI and the project as new CP candidates (Table 30):
Table 30: New CP candidates and names of related industry organizations
No.

New CP candidate

Name of related industry organizations

1

Teff

Ethiopian Pulses Oil Seeds and Spices Processors & Exporter Association2

SesameEthiopian Pulses Oil Seeds and Spices Processors & Exporter Association

3

Chickpeas

Ethiopian Pulses Oil Seeds and Spices Processors & Exporter Association

4

Red peppers

Ethiopian Pulses Oil Seeds and Spices Processors & Exporter Association
Ethiopian Spices, Aromatic and Herbs Products Growers and Processors
Association (ESAHPGPA)

5

Roasted coffee

Ethiopian Coffee and Tea Development and Marketing Authority

6

Beef (meat)

Ethiopian Meat Producer-Exporters Association

71

7Frankincense

Natural Gum Marketing Enterprises/Association

8

Honey

Ethiopian Apiculture Board (EAB)

In August 2017, the project held a workshop to introduce the activities of CPA including EHL andbranding, and invited industry organizations related to MOTI and new CP candidates. The summary is asshown in Table 31. After the project team gave a presentation, each industry organization presented eight
new CP candidate sectors based on four perspectives, namely, 1) characteristics unique to Ethiopia, 2)
market competitiveness, 3) feasibility, and 4) industry environment. After the presentations, there were
lively discussions with questions and answers on topics such as how to increase added value by branding
Ethiopian products and how to apply EHL and other cases to Ethiopia.
Table 31: Outline of brand workshop
Date and time
Location
Chairperson

August 23, 2017, 10:00–16:00
MOT Head Office, 8F Meeting Hall
Mr. Assefa Mulugeta, Director of MOT Export Promotion Directorate

Number ofparticipants

Ethiopian members: 27, Japanese members: 4, total: 31

Main participants MOT (Minister of Trade, Export Promotion Directorate, Oilseeds and Pulses Marketingfrom C/P
Directorate, Information and Advisory Directorate)
Ministry of Livestock and Fisheries
Agricultural Transformation Agency (ATA)
Ethiopian Pulses Oil Seeds and Spices Processors & Exporter Association
Ethiopian Coffee Roaster Association
Ethiopian Apiculture Board
Natural Gum Marketing Enterprises/Association
Ethiopian Coffee and Tea Development and Marketing Authority
Allana (Meat processing company)
Project teamparticipants
AgendaJapanese experts (Okada, Fujinami, Suzuki, and Bethel)Krimson PLC
Morning: Presentation on branding
1. Introduction “What are brands?”
2. Case study 1 “Creativity in Motion”--Manufacturing branding in Ethiopia
3. Case Study2 “Ethiopian Highland Leather” --The first “Champion Product” brand under
the concept of “Creativity in Motion”
Afternoon: Presentation by 8 new CP candidate sectors
4. Introduction “What is Market Research?”
5. Presentation of “Potential Champion Products” (related Ethiopian organization)
6．Summarization and Comments

Based on the information on individual sectors obtained in the foregoing workshop, the project visitedthe following related companies and organizations to collect further information (Table 32). The project
also visited markets, producers, and industry organizations in the city of Addis Ababa selling honey, teff,
red peppers, and chickpeas to study products, prices, and sales situations.

72

Table 32: Visited industry organizations related to the 8 new CP candidate sectors
Organizations visited

Related new CP candidate

Information obtained

Ethiopian Commodity
Exchange (ECX)

Coffee, sesame

A value chain for domestic and foreign transactions inEthiopiaAKSEKER ETHIOPIACASING PLC Group（Allana Group）

Meat

Overview and issues of the meat industry in Ethiopia,
interviews on the export situation, and a visit to meatfactories

Natural Gum MarketingEnterprises/Association

Frankincense

Vegetation and types of natural gum, the grading
system, and interviews on the export situation

Ethiopian Coffee andTea Development andMarketing Authority

Coffee beans
Roasted coffee

The coffee export situation, the grading and inspection
system, and a visit to roasters

Warka Trading House

SesameInterviews on the export situation, the possibility ofprocessed products, and factory visits

4.3 [Activity 3-3] Investigation of the characteristics and market of potential
champion products
Market research in Ethiopia: selection of champion product candidates
The project conducted detailed market research (in-depth research) on the sectors selected as shown
above. The results of the survey in each sector were evaluated on a three-point scale for 6 research items asshown in Table 33 and overall evaluation was summarized based on the average of these items. Coffee was
ranked in first place and honey in second place.
Table 33: Evaluation results of the market survey on 8 new CP candidate sectors
Research Items
Market- Market size and growthCompetition- Competitiveness within theexporting countries
Environment of the sector- Difficulties
Industrial Environment inEthiopia- Institutional Support
Ethiopian Companies' General
Status- Possibility of Processing
Fitness with the Uniqueness
CPA
ImpactOverall Evaluation(average points)

Fresh
Meat

Honey

Chickpea Teff

Sesame Pepper

CoffeeNatural
Gum

3

2

3

2

2

1

3

1

1

1

2

3

3

2

2

2

1

2

2

1

2

2

2

1

2

3

2

2

2

1

3

2

2

2

3

2

1

1

2

2

1

3

1

3

2

1

3

3

3

3

1

1

2

1

3

1

1.8

2.2

2

2

2

1.2

2.5

1.7

Evaluation: 3=High, 2=Fair, 1=Low

73

Detailed market research: filtering potential candidates for champion products
Of the eight sectors subject to the market survey, for teff, honey, and sesame, the project implemented
by ATA21 had decided to start branding and international promotion support before and after the market
research. Following the process of sector selection in the previous phase, in-depth research was to be
conducted on the top two sectors. However, since support for honey by ATA had already been determined,a discussion was held on whether to select coffee as the sole single candidate at this point. This was thenapproved by JCC on March 19, 2018.

4.4 [Activity 3-4] Development of the brand concept of the selected champion
product by sharing EHL experience
After the coffee sector was decided upon, the project first had a meeting with the MOTI and confirmed
the activities with ECTA as the C/P. The project then had a meeting with Mr. Shafi, Deputy Director-Generalof ECTA, and agreed on the following points.
1.

Set ECTA as the C/P and also consolidate a contact point with JICA into ECTA, while ECTA
aggregates the opinions of other stakeholders.

2.

Organize kick-off meetings hosted by ECTA for ECRA, ECEA, Ethiopian Women in Coffee, andEthiopian Coffee Growers, Producers & Exporters Association, which are the main stakeholders.

3.

The activity scope of this project specializes in the creation of the coffee sector brand in Ethiopia,
and the project will be completed when this activity ends.

As described above, ECTA had a role in adjusting the opinions of each stakeholder. Since ECEA and
ECRA have deep connections to ECTA compared with the other stakeholders, ECTA requested the project
to involve them as members of the IC. The president of ECRA, Mr. Menelik, who has participated inseminars on CPA's activities as a representative of the coffee sector since 2013. Based on the experience,
he was selected as Chair of the Technical Group explained below, and had a principal role in branddevelopment activities.
On May 24, 2018, a kick-off meeting was held with representatives from each relevant organization,
MOTI, and JICA Ethiopia office, where the project explained this project and its background and agreed
on its purpose and scope of activities.
Announcement of the activity schedule for International Coffee Day
The International Coffee Day event was held on December 4-5, 2018, at the United Nations conference
hall. The goal in this event was, as the government, to announce the national committee for the brand andthe quality management. However, as of November, due to the delay because of government restructuring
and other reasons, it was clear that finalizing the brand logo would be difficult, so we switched the content
to present the importance of a national branding with high value-added in the Ethiopian coffee industry andfocused reporting about JICA-supported activities for the brand development. On the day of thepresentation (December 5), Mr. Minilik of ECRA, who is the IC’s secretary, served as the moderator, and
21 ATA is Secretariat of an Agricultural Transformation Council chaired by the Prime Minister, supported by the Bill &Melinda Gates Foundation.

74

three people, including from this project, gave a presentation titled "Opportunities in Value Addition." Mr.
Minilik brought up the issue of adding value to coffee in light of the current domestic situation vis-a-vis
roasted coffee (the difficulty of getting high-quality coffee beans, etc.). After that, Mr. Willem Boot, who
has been involved in coffee exporting in Ethiopia for many years, expressed the importance of using
marketing to clarify targets and create a strategy. Also, Ms. Kimberly Easson of the Coffee Quality Institutespoke about efforts to add value to coffee being a starting point for social responsibility. Mr. Dawit Lemmaof Krimson PLC (representative for the local subcontractor) represented our project with a presentation on
JICA’s CPA program (including Creativity in Motion’s promotional video) and branding efforts in the coffee
sector (photo40).
(2) Composition of the Technical GroupOn the Ethiopian side, due to limited opportunities for meeting with the management group from
ECTA, which is a core IC member, and due to their limited contribution to the project, Mr. Minilik of ECRA
and Mr. Gizat of ECEA suggested organizing a Technical Group composed from working-level officers,
and this group held two meetings this term. In addition to the members listed below, the project officer andthe local subcontractor joined.
Table 34: Technical Group members
Title

Name

Organization

Chair

Mr. Minilik Habtu

President, ECRA (also IC member)

Co-ChairMr. Gizat Worku

Secretary General, ECEA (also IC member)

Secretary

Ms. Mekdes Gizachew

Coffee Market Research& Promotion Expert, ECTA

Mr. Samson Tesfaye

Team Leader, EIPO

Mr. Berhanu Gezahegn

Coffee Quality Inspection & Certification Center, ECTA

(3) Decision of the Brand Logo
In September 2018, we conducted a field survey and held discussions with the C/P based on the core
brand values we collected. After that, ECTA/ECRA/ECEA held a competition, and discussions in the IC
narrowed down the 12 logos submitted by the four candidate companies to two logos from two companies.
In January 2019, IC tried to assemble over 100 stakeholders including exporters and manufacturers,
to make a final selection, but only about 10 people attended, so no decision was made. We received reportsthat ECTA’s delay in sending out a letter until the day before the meeting affected the number of participants.
Later, the stakeholder meeting was held on August 5, 2019. Over 150 attendees gathered to introduce
the activities of this project and to propose the final candidate for the national brand logo (photo41-42).
Although some attendees complained that the logo design was not shared until it was at the final stage andrequested revisions of the details of the design, stakeholders decided to proceed with the finalization andagreed to present it to overseas markets at SCAJ 2019 held in Japan in September 2019. The meeting was
also featured in Ethiopian media such as television and newspapers.

75

(4) Participation in SCAJ2019 as ECEA and holding of seminars
From September 12 to September 14, 2019, ECEA put up a booth at SCAJ 2019 held at Tokyo Big
Sight (photo43-44). The project supported the presentation of national coffee brands at the trade show.
Support was also given for the creation of brand leaflets, the design and construction of the trade show
booth (some of which were also covered by the Value-Added Forest Coffee Production and Sales Promotion
Project), and the invitation of ECRA representatives. In addition to the promotion at the booth, ECEA
Executive Director Gizat explained the background of the launch of the national brand, the value of thebrand, and the future brand management system, at the seminar on the country of origin. The seminar,
which more than the expected number of participants attended, attracted a great deal of interest.
Visitors to the trade show ranged from coffee roasters and wholesalers to coffee shop owners andcoffee enthusiasts, and their evaluations of the coffee were generally high. To increase the visibility ofnational brands, it is important to continue to display the brands at trade shows and to link Ethiopian
specialty coffees with the brand image. Some visitors expressed their desire to purchase Ethiopian specialty
coffee from small export companies and producer groups with proper management of the process, as wellas the quality of a national brand, to ensure a smooth export process.
At this trade show, tasting and cupping were performed for each specialty coffee, and the promotion
was very different from a conventional coffee trade show and display of green coffee bean samples. As aresult, various problems in booth management were observed, including issues with the preparation ofcoffee beans for tasting and with customer service. The brand promotion also encountered difficulties, suchas the failure of exporters to give a presentation to properly explain the relationship between national brands
and their brands. During the trade show period, workshops on brand management system construction andquality standard setting were held for ECEA, ECRA, ECTA, and exporters. The management system wasto be reconsidered after they returned to Ethiopia.
(5) Follow-up after SCAJ 2019
After the trade show, a follow-up meeting was held with ECEA and ECRA in Ethiopia (ECTA wasabsent). Based on the discussions at the workshops held in Tokyo, they decided to build the following
certification flow (Figure 18). Regarding the certification criteria, it was decided that the conventional
ECTA grading system would be used and that the cut line would be set by the Steering Committee,
consisting of ECTA and major producer groups, according to each year’s production of coffee beans. The
attendees also decided to register trademarks for the brand logo in each market in the world with the supportof their partners, starting with the registration of trademarks in Ethiopia with EIPO, and get registered by
the International Coffee Day held in Addis Ababa in November 2019, which however has not been
completed as of November 2020. There is a plan to set up an Ethiopian Coffee Association to oversee
various producers’ associations in Ethiopia, and it has been taking time to determine who would own thebrands.

76

Exporters (Applicant)Preparation for application form
Submission of application form
to ECTA or ECRA

ECEA and ECRA’s Role:
1st Quality Inspection

ECEA=Green Beans

ECRA=Roasted Beans

Check the grade andtrace the production area

Check the grade andtrace the production area
Cut line

Submission of certificate
application form to CLU

Items in the application form:
Export license, Production area, Beans Grade, Export
amount, Client Name (Country), etc.

CLU’s Role:
2nd Quality Inspection

Brand
Owner

ECTA / CLU

Check the grade and trace
the production area (CLU)

Cut line

Issue of certificate (ECTA)
Receive the certification

Steering Committee(ECTA, ECEA, ECRA, ECGA)

ECTA’s Role:
Issue thecertificate

Set the cut line based on
ECTA’s Grading system
SC’s Role:Control the brand criteria

ExportFigure 18: Certification flow of Ethiopian coffee national brand (proposal)

4.5 [Activity 3-5] Unify national branding activities
For the “Creativity in Motion”, a brand for the Ethiopian export industry including EHL, thepromotional film, and website were produced during CPA2. The brand was launched at the initiative of the
EIC, and it was expected that MOTI would take the lead in disseminating information about each sector
through its website and other means. The first step was to correct the information caused by the change ofthe responsible, such as transferring the contact information from EIC to MOTI. The project also asked
Krimson PLC to revise the website to improve the usability of the horizontal scrolling website and toprepare a format for smartphones. Although these tasks have been completed so far, the installation on the
hosting server owned by MOTI is pending and has not yet been updated. It is needed to continue checking
with MOTI staff to update the system in the 2nd phase.
Ethiopia's export industry-related brands include Land of Origin in the tourism sector and Ethiopian
Highland Leather in the leather sector, as well as Ethiopian Coffee, which the project supported thedevelopment of, and Go Ancestral, an agricultural product developed by the ATA. The Land of Origin inparticular has got a lot of exposure, and the Taste of Origin has been used as a variation of this brand in theoverseas promotion of agricultural products. These are national brands for agricultural (processed) products,
industrial products, and services aimed at export promotion, and MOTI has recognized the need for
improvement due to the lack of coordination between the brands.

4.6 [Activity 3-6] Analysis of bottlenecks in export promotion and proposal ofcountermeasures
Before beginning activities, the project investigated the issues in the value chain of the Ethiopian
coffee sector.

77

Table 35: Issues in the value chain of the Ethiopian coffee sector
Upstream

Since farmers prioritize fast cash generation and prefer to avoid the trouble of harvesting
twice, they pick together from unripe beans to overripe cherries (= strip picking).
In JICA's forest coffee project, two containers of orange cherries are classified as grade 2,
and a greater amount of grade 3 cherries are harvested per bag of red, fully ripe cherries
classified as grade 1. Changes including the improvement of access to agricultural
technical instructors and harvesting technology are being made, but their incorporation islimited.
Midstream
When coffee is processed by the washed method, the process must be started within 10
to 12 hours of harvesting, and the cherries must also be fully ripe. Strip picking by farmers
pointed out in the upstream section poses problems for such restrictions. Although washedcoffee beans are traded at a price 20% higher than dried beans in the international market,
the washed beans account for only 30% of the total export volume of Ethiopia, making it
difficult to add value. One cause of this is that loan conditions under the government’s
monetary policy prevent small producers' associations from operating washing stations.
Downstream After the Ethiopian Commodity Exchange was established in 2008, it has struggled to
implement traceability. This makes it difficult for buyers to specify detailed production
areas. Producers also have difficulty maintaining ongoing business relationships withoverseas customers who have been buying their products from specific regions,discouraging them to produce high-quality coffee. The profit allocation rate for farmers in
coffee-producing countries is generally 1 to 3%, but the income earned by Ethiopian
farmers is lower than the figure.
The successful examples of Colombia and Guatemala demonstrate that comprehensive
promotion in the global market requires the initiative of a nationwide producers'
association. Although there are many associations by region in Ethiopia, there has notbeen a nationwide producers' association with a high level of producers’ coverage, suchas the Colombian Coffee Growers Association and the National Coffee Association of
Guatemala.

The project conducted an analysis based on the information obtained during the activities, theindustrial policy dialogue, and investment promotion, and the industrial parks development project topropose measures to the Ethiopian Government.
Particular downstream issues raised from the project activities were shared with the Ethiopian side inmeetings with the C/P for brand management, it was shared that it would be necessary to pay particularattention to maintaining quality linked to the brand promise in the future.

78

5. Achievement of the Project Objectives
5.1 Progress
The project objectives, outputs, and indicators set in PDM ver.4 (revised in July 2019), and theirprogress as of the end of September 2020 are as shown in Table 36.
Table 36: Project progress
Project Purpose
Component 1 (Ethiopian
Highland Leather)
To increase export of
sheep leather (finishedleather and final product)

Indicator

1-1) Partner companies (tanners)’ export value of EHL
finished sheep leather to France, other European
countries, etc. increases by 880,000 USD by June 2021.
1-2) Partner companies (manufacturers)’ export value of
EHL branded sheep leather products to France, other
European countries, etc. increases by 164,500 USD byJune 2021.
1-3) New buyers increase by 60% in France and other
European countries, etc. by June 2021.

Progress 1-1) [Too early to verify, as the target time is June 2021] 4,200
USD and approx. 300,000-400,000 JPY (3 orders of 2
tanners), as of October 2019.
1-2) [Too early to verify, as the target time is June 2021]

3,419.94 EUR and 983.33 USD (7 orders of 2 shoe
manufacturers), as of June 2020.
1-3) [Too early to verify, as the target time is June 2021]

Component 2 (NewChampion Product)
To expand sheep leather
case to other champion
products

Indicator

Outputs
Component 1 (Ethiopian
Highland Leather)
1 Quality EHL branded
finished leather andleather products areavailable

Indicator

2 EHL brand is properly
managed andIndicator

2) Under the brand developed in this project, coffee isshowcased in trade show(s) in the target market by June
2021.

Progress 2) [Achieved] The national brand was launched in SCAJ 2019(trade show in the booth and seminar).

1-1) ALL of 8 partner companies (manufacturers)'
products (shoes, bags, and garments) can pass thequality criteria of the EHL brand by June 2021.
1-2) Partner companies can get 30 sample orders afterparticipation in international trade shows by June 2021.

Progress 1-1) [As scheduled] To be monitored after finalizing the EHL
brand certification criteria.
1-2) [Achieved] ① After the trade show in August 2018, 2
tanners got 2 sample orders, 3 bag manufacturers 3 sample
orders, and 2 shoe manufacturers got 3 sample orders.
②After the trade show in September 2019, 2 tanners got 2
sample orders, 4 manufacturers (bag and garment) got 9
sample orders, and 1 shoe manufacturer got 2 sample orders.
③After the trade show in January 2020, 5 bag manufacturers
got 7 sample orders.
④ After the trade show in February 2020, 6 manufacturers(bag and garment) got 20 sample orders, and 1 shoe
manufacturers got 2 sample orders.

2-1) All of 2 partner companies (tanners) get thecertification of EFL finished leathers by June 2021.

79internationally recognized2-2) More than 50% of visitors in the trade show inFrance in January 2020 recognize the EHL brand.
Progress 2-1) [Achieved] All of the 2 tanners got the certification of the
EHL brand in August 2019.
2-2) [Not achieved] 24% of the visitors to the EHL booth had
known EHL before at the trade show in January 2020 (46samples).

Component 2 (NewChampion Product)
3 Another champion
product brand isdeveloped

Indicator

3) The brand is registered in Ethiopia by June 2020.

Progress 3) [Not achieved] ECTA was at the preparatory stage forregistration in the country as of September 2020.

EHL (Component 1)
One of the outputs of the EHL component is the production of high-quality EHL brand leather materials
and leather products. The test trial of the EHL Leather Material and Product Certification Criteria andOperation System (first draft) was conducted after May 2019. After the results were reviewed, the second
trial was carried out for the trade show in January 2020. Based on these results, it was aimed to complete
the EHL certification system by April 2020. However, the Japanese experts could not implement activities
in Ethiopia due to the pandemic of COVID-19 after the end of March, the activities were suspended. It is
expected to finalize the system when EHL certification is renewed in the 2nd phase. Then, the project will
receive an application from partner companies, which will lead to the achievement of Indicator 1-1).
Indicator 1-2) was achieved. Due to the reports from the partner companies, a total of 57 sample orders
have been confirmed since the trade show in September 2018, exceeding the target figure, 30 orders.
The second output is the appropriate management and international recognition of the EHL brand. Bothof the two partner tanners were certified by the EHL brand in August 2019, which met Indicator 2-1).
Indicator 2-2) was not achieved. Of the 46 visitors to the EHL's booth at the trade show in France in January
2020, 11 (24%) had known about EHL beforehand. This is probably because many of the answer persons
stopped by the booth by chance.
The actual value of exports of EHL materials and products by the partners is approximately USD 7,000of the two tanners (as of September 2019) (indicators 1-1), and the actual exports of bag and shoe
manufacturers totaled 7 orders of EUR 3,419.94 and 983.33 USD (as of June 2020) (indicators 1-2). Thus,
the indicators have not been achieved. Further efforts including diversification of promotion methods will
be made in the 2nd phase to achieve the objectives. Two bag manufactures started communication with fivenew buyers, but they have not yet received a firm order (Indicator 1-3).
New Champion Product (Component 2)
The expected output is the brand development of a new CP. Coffee was selected as a new CP to be
developed, and a logo was created as part of the branding. On the other hand, registration of Ethiopian
coffee’s trademark in the country has been delayed. There is a plan to set up an association to oversee
various producers’ associations in Ethiopia, and this organization may be the brand owner. After this isestablished, it will apply for the trademark registration as the brand owner.

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6. Activity Plan in the 2nd Phase
6.1 Activity Plan in the 2nd Phase
The 2nd phase is scheduled from December 2020 to January 2022. We had several discussions with the
C/P about the activity plan, and the C/P mostly approved the plan. Then, we proposed the plan to theparticipants in the JCC meeting held on October 14, 2020, with the teleconferencing system. In the meeting,we proposed the new target figure based on the results of the 1st phase, the target markets and export
potentials in each sub-sector, approaches to derive them, and activities based on each approach.

(1) Target Figures at the start of the 2nd phase
Regarding the target figure for the 2nd phase, we proposed as follows. For the EHL branded leather
materials and EHL branded final products, we have not been able to achieve in the 1st phase. So, we
proposed to keep the figures as the target amount in the 2nd phase. Besides, we proposed the target amountfor the whole leather sector in line with LIDI's 2020/21 target. When I consulted with the focal person of
LIDI during we had considered the downward revision due to the achievement in the 1st phase and theinfluence of COVID-19, we found that LIDI also revised the target figure downward to 100 million USD.
Therefore, we decided to set the figure as the project target to contribute to the achievement of LIDI’s target
figure and proposed at the JCC meeting. We will continue to hold meetings with LIDI to check the monthly
export performance and market trends.
① EHL branded leather material

880,000 USD② EHL branded final products 164,5000 USD③ Whole Leather sector 100,000,000 USD(2) Target market and approach for each sub-sector
Based on the results of the additional market research conducted from March 2020 (see p.69), we
proposed some target markets where the export potential is recognized in each sub-sector and some markets
that would be important for establishing the EHL brand in the future. We also proposed some approaches
to utilize African continental FTAs, and, as a response to the market where e-commerce is accelerating, theutilization of the e-commerce platform and an approach to promote the EHL as an ethical brand.
Subsector

TargetExport Potential

MarketLeather

Vietnam

Sheep finished

Material Leather

Approach ideas
Promote Shoe Upper Leather
To promote shoe upper leather export could be on（23.1MUSD）

the top priority which can contribute to the growthof the Ethiopian shoe industry in parallel.
China

Promote High-Quality Materials
Although the production bases of MNCs havealready begun to move to other Asian countries, the81needs for “Made in China” are still high because of
its technological advantage. So, propose leather
materials with focusing on quality and functions
such as the EHL for Chinese manufacturers.
Sheep semi-

India,

Promotion for Wet-blue and Crustfinished

TurkeyThe international commercial flows may be different

Leatherfrom that before Ethiopia restricted the export, and（4.1MUSD）

thus a survey on the current commercial flows is
required.

Cow finished－

Statistically, there is an export potential of 1.5

Leathermillion USD; however, the actual export potential（1.5MUSD）

may be less to high domestic demand.

Final

Leather shoes

EU viaGradual Penetration in MNC’s SC

Product（11.3MUSD）

North

Start from shoe upper production base, and join

Africagradually in MNC’s supply chain. Shoe upper iseasy to produce and does not need to procuring
intermediate materials such as sole, last, and mold.

AfricaUtilize Regional Trade Advantage
It is possible to promote shoes “made in Ethiopia”,
which have a comparative advantage in price andquality, not only in East African countries but also inSouth Africa where the retail market has been
established.

Bags and other USA, EU

Establish the EHL Reputation

leather articles

The production scale of EHL cannot have a big（1.12MUSD）

impactonthegovernmental

exporttarget.

However, EHL promotion in the US and European
markets will be effective to establish the EHL brandreputation.
AfricanPromote the EHL as Symbol of the Continental
Unity
As the inauguration of the African continental FTA,
EHL brand products can be promoted as a symbolof unity.

(3) Concrete activity plans in each market
Based on the above approaches, to consider what kind of activities can be considered in each target
market, we proposed specific activity plans to the participants in the JCC meeting and asked for theiropinions about other activities that should be added.

821) Promotional Activity Plan in African Market (Leather material, Shoes, Bag, and Other
Leather Articles)
Since ELIA has already started promotional activities to penetrate the African market under thecooperation with MOFA, and it has been considered easier to start deals in the African market, comparedto other international markets, we first proposed the promotional activities in the African market as a shortterm activity.
① To hold seminars at Ethiopian Embassies in African countries for potential buyers, and set
the showcase in the embassies.
→As an extension of the activities, seminars, and showcases at Ethiopian embassies/
consulates in the US can involve the Ethiopian diasporas and their communities.
② To support equipment and VMD in ELIA duty-free shop (EHL goods and other leather goods)
at Bole International Airport.
③ To distribute EHL give-away at international conferences held in Addis Ababa (e.g. AU
general assembly).
2) Promotional Activity Plan in Other target markets (Leather material, Shoes)
To improve the export of Ethiopian leather products, it is indispensable to enter the supply chain for
multinational companies that deploy SPA (Specialty store retailer of Private label Apparel) strategy
worldwide. In addition to the activities for the African market, we proposed the following activities.
① Participate in the trade show to promote the leather materials and shoes, and penetrate
to European MNCs’ (Global SPA, Category killer) supply chain.
 Focus to promote shoe upper leather in this project.
 As commodities, Ethiopia has a competitive advantage in the time gap and geographic
distance to reach the European Market.
 Start as a supplier of shoe upper (intermediate items) for North African shoemakers② Invite European MNCs in AALF.
We proposed to focus on the promotion of shoe upper leather. Ethiopia has a comparative advantage
in access to the European market in terms of the time difference and geographical distance over Asian
production sites. Meanwhile, due to the technical level of the Ethiopian shoe manufacturers and thedomestic supply chain that is still under development, we also proposed a strategy to gradually enter the
supply chain from shoe upper (intermediate products) suppliers for shoe manufacturers in North Africa.
3) Promotional activities for EHL branded products in other target markets
By establishing the reputation of the EHL brand in the Western market, the value of Ethiopian leather
products can be increased. Therefore, we proposed to continue to promote to the Western market while
improving the way from the 1st phase.
① e-commerce promotion in the market
The spread of COVID-19 is accelerating the transition to e-commerce in the fashion business
transaction. On the other hand, it is necessary to respond to changes in market needs such as expanding
demand for interiors. We propose participation in virtual trade shows, the introduction of an e-commerce
platform, development, and promotion of new product categories to respond to the market changes.

83

② Brand strategy in line with the ethical story
In a virtual trade show, buyers need to evaluate a product without touching it. In such a promotional
venue, the story as an ethical brand and new visuals and video materials that appeal to the story are
indispensable.

(4) Discussion about the Activity Plan
Regarding proposals in target markets, approaches, and activities, due to the spread of COVID-19 has
stagnated people's movements and many transactions have been transferred to EC platforms, theparticipants agreed the plans of "utilization of EC platform" and "participation in virtual trade shows" as
indispensable activities. At the same time, there was a request for training for the utilization of the EC
platform.
Regarding promotion in African countries, MOFA positively stated that it was possible to support
promotion through embassies not only in African countries but also in European countries and the UnitedStates. Besides, the partner companies requested that we needed to implement the promotional activities
not only for leather materials and shoes but also for bags and garments. A focal parson of tanner commented
that he was confident that it was possible to penetrate the Western market through the 1st phase activities,
and expected that promotional activities in the market could be continued.

(5) The necessity of Extension of 2nd Phase Duration
Following the above proposals, we asked the participants for their views on the need to extend the 2ndphase duration. According to the current plan, the 2nd phase will be completed in January 2022.
Many partner companies commented that it was necessary to extend the duration about one year toachieve the project target figure because the export of their products had been suspended, contact withbuyers obtained in the 1st phase had been lost, and the business outlook was not clear for several months
due to the influence of COVID-19.

(6) Setting the Concrete Activity Plan to the Start of 2nd Phase
Based on the discussions and the requests in/after the JCC meeting, we will continue discussions with
LIDI, ELIA, and MOTI to reach a common understanding about the project export target figure, theduration extension, and the activity plans of the 2nd phase. The 2nd phase will be scheduled to start in
December 2020. Toward the start, it is necessary to elaborate on the activities and schedule for 6 months
until the expert dispatch can be started (it would be in April 2021 at the earliest).
During that period, we will focus on promotional activities in the African market, where the concrete
activities have been started by ELIA and MOFA, and activities that can be supported remotely. Meanwhile,
we will discuss and elaborate on activities related to technology transfer to ELIA and LIDI and brandmanagement, which details were not discussed at the JCC meeting.

84

7. Appendices
The appendices attached to this final report are as follows;
Appendix 1: PDM ver.4

87

Appendix 2: JCC meeting record

88

Appendix 3: The status of each partner company under the spread of COVID-19

95

Appendix 4: Dispatch record of Japanese Experts

96

Appendix 5: LIDI European market research report97

Appendix 6: EHL brochure

115

Appendix 7: EHL explanation sheet (English)

119

Appendix 8: Inspection visit checklist

123

Appendix 9: Comparison research report

127

85

86

87

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Appendix 2

JCC Meeting Record

The 1st JCC Meeting
Date, time,and location

August 3, 2017 9:00-12:00!
Conference Room, 8th Floor, MOTI Head Quarter

Ethiopianparticipants<Chairperson>!
Mr.Assefa Mulugeta, Director General, Export Promotion Directorate, MOTI
<Vice-Chairperson>!
Mr. Hailekiros Debesay, Deputy Director General, LIDI
Mr. Yigzaw Assefa, President, ELIA
<Participants>
Mr. Terefe Burka, Director of MOFA Business Diplomacy
Ms. Haimanot Tibebu, Director, Export Promotion Directorate, MOTI
Mr. Hailu Belete, Assistant Expert, Export Promotion Directorate MOTI
Mr. Lemma Feyissa, Director, EIC
Mr. Welay Yihidego, Senior Expert, Hide and Skin Improvement Department, Ministry ofLivestock and Fisheries
Mr. Teshome Besufekad, Deputy Secretary General, ELIA
Mr. Wubie Mengestu, Deputy Secretary General, Ethiopian Chamber of Commerce andSectoral Association
Ms. Selam Gebrehiwot, IP Development Directorate Director, Ethiopian Intellectual Property
OfficeJICA andConsult
Team
participants

JICA Ethiopia Office! Mr. Ken Yamada, Chief Representative
Mr. Hiroyuki Tanaka, Senior Representative
Mr. Emi Kurita, Project Formulation Advisor
Mr. Gebeyehu Tuji, Program Officer
Ms. Sara Sem, PR Officer
JICA Consultant Team (Mr. Nagai, Ms. Okada, Ms. Suzuki)
Project Officer! Ms. Bethel Dagnachew

Agenda

1.
2.
3.
i.
ii.
iii.
4.
5.

Summary

The purpose of the first meeting was to clarify the role of JCC and confirm the details of
this project to identify the role of each related organization. As the project involves thegovernment's major policy of export promotion and reflects the significant role of the leather
sector in export promotion, participants demonstrated a high level of interest and engaged inan active discussion.
The discussion led to the decision to hold the JCC meeting twice a year to monitor this project.

Opening Remarks
Self-Introduction from the participants
Briefing Session
Role of the Joint Coordination Committee and Purpose of the First Meeting
Overview of Champion Product Approach
Outline of the Project: Purpose, Schedule, Activities
Discussion Session
Closing Remarks

88The 2nd JCC Meeting
Date, time,and location

March 19, 2018 9:00-11:45!
Conference Room, 8th Floor, MOT Head Quarter

Ethiopianparticipants<Chairperson>!
Mr. Assefa Mulugeta, Director-General, Export Promotion Directorate, MOTI
<Vice-Chairperson>!
Mr. Teshome Besufekad, Deputy Secretary General, ELIA
<Participants>
Mr. Yirgashewa Teshome, State Minister Advisor, MOTI
Ms. Yodit Alemayehu, Senior Expert, Export Promotion Directorate, MOTI
Mr. Kasahun Hailu, Lead Researcher / Designer of LIDI Footwear Directorate
Ms. Workaferahu Aklilu, Minister Counselor, Ministry of Foreign Affairs
Mr. Araya Gebreegziabher, Director, Ministry of Foreign Affiars
Mr. Minilik Habtu, President, ECRA
Mr. Adisu Tekle, Advisor, ECCSA
Mr. Dassa Daniso, Market Development, ECTA
Ms. Tigist Bufale, Representative, EIPO
Mr. Kiros Weldearegay, Executive, Natural Gum Association
Mr. Dawit Lemma, Managing Director, Krimson Aviation Consulting Media & Communication
PLC
Ms. Hellen Kassa, Krimson Aviation Consulting Media & Communication PLC
JICA Ethiopia Office! Mr. Ken Yamada, Chief Representative
Mr. Hiroyuki Tanaka, Senior Representative
Mr. Emi Kurita, Project Formulation Advisor
Mr. Gebeyehu Tuji, Program Officer
Ms. Sara Sem, PR Officer
JICA Consultant Team (Ms. Okada, Ms. Suzki)
Project Officer! Ms. Azalech Solomon
Project Officer! Ms. Bethel Dagnachew

JICA andConsultant
Team
Participants

Agenda1.
2.
3.

Opening Remarks
Self-Introduction from the participants
The progress of the EHL projecti.
Technical Support to the Partner Companies (Shoes & Bags)
ii.
Market Research Results for New Brandingiii.
The Project Activity Plan for the next term
4. Discussion and confirmation of the contents presented above
5. Closing remarks

Summary

The purpose of the second meeting was to report the activities of this project conducted
after the first meeting held in August 2017 to obtain consent for the future approach throughthe exchange of opinions.
Regarding the EHL component, an update was given on the progress of technicalassistance to partner companies since February 2018. In terms of the New CP component,
the market research results showing that coffee was selected as the principal new CP
candidate were communicated. After a discussion on selecting coffee as a new CP, approval
for conducting activities with coffee as a new CP in the future was obtained.

89

The 3rd JCC Meeting
Date, time,and location

November 22, 2018. 9:00-11:45
8th floor conference room, MOTI Head Quarter

Ethiopianparticipants<Chairperson>!
Mr. Assefa Mulugeta, Director General, Export Promotion Directorate, MOTI
<Vice-Chairperson>!
Mr. Teshome Besufekad, Deputy Secretary General, ELIA
<Participants>
Ms. Haimanot Tibebu, Director, Export Promotion Directorate, MOTI
Ms. Tinsae Afework, Market Research (Team leader), Market Directorate, LIDI
Ms. Munteha Jemal, Director General, Ministry of Foreign Affairs
Ms. Workaferahu Aklilu, Japan Desk Officer, Ministry of Foreign Affairs
Mr. Belete Moges, Q. gine inspector, Ministry of Agriculture
Mr. Tadesse Worku, Director, Ethiopian Intellectual Property Office
Ms. Tiruwork Tizazu, Women and youth business support and promotion division head,
Ethiopian Chamber of Commerce and Sectoral Association
Mr. Shafi Ouma, Deputy Director General, Marketing Development & Regulatory Sector,
ECTA
Mr. Tatek Girma, Team Leader, ECTA
Mr. Gizat Worku, General Manager, ECEA
Mr. Minilik Habtu, President, ECRA

JICA,
consultant
team andother
Japanese
Participants

JICA Ethiopia Office! Mr. Takeshi Matsuyama, Senior Representative
Mr. Yoshito Kikuma, Representative
Mr. Hiroyuki Amaya, Project Formulation Advisor
Embassy of Japan in Ethiopia Mr. Nobuhisa Edamura, Second Secretary
JICA Consultant Team (Mr. Nagai)
Project Officer Ms. Azalech Solomon

Agenda!"#"$"Opening remarks
Participant self-introduction
Business reports%"
Update on project activities%%"
Outcome of participation in Premiere Classe Paris (September 7-10, 2018, Paris,
France)%%%"Update on coffee-sector branding activities%&"
Schedule of coming activities'" Discussion
5. Closing remarks

Summary

The purpose of the 3rd JCC meeting was to report on activities that took place since March2018 and come to an agreement on how to proceed going forward. During the Q&A, mostquestions about EHL components concerned promotional activities (for example, the historyof trade show decisions, activities other than trade show exhibits, cooperation from MOFA).
There was also a question from EIPO about why a brand needed to be newly developed forthe new CP components instead of using the Ethiopian Fine Coffee brand. Although many IC
members, including from MOTI and ECTA, responded to this question, the discussion wasendless, so we decided to hold another discussion session for JCC members at a later date.

90

There was also a request to rethink the scope of activities of the new CP components. In
response to this request, both the project office and JICA’s Ethiopia office repeatedly
explained that the scope of this project’s activities went only as far as establishing the brand.

The 4th JCC Meeting
Date, time,and location

July 9, 2019. 9:00-12:45
8th floor conference room, MOTI Head Quarter

Ethiopianparticipants<Chairperson>!
Mr.Assefa Mulugeta, Director General, Export Promotion Directorate, MOTI
<Vice-Chairperson>!
Mr. Hailekiros Debesay, Deputy Director General, LIDI
Mr. Daniel Getachew, Secretary General, ELIA
<Participant>
Mr. Lealem Tilahun, Director, Ministry of Foreign Affairs
Ms. Haimanot Tibebu, Director, Export Promotion Directorate, MOTI
Ms. Yodit Alemayehu, Senior Expert, Export Promotion Directorate, MOTI
Mr. Ketema Welderufaile, PR Expert, MOTI
Ms. Desnet Belay, Director, Ministry of Agriculture
Mr. Tadesse Worku, Director, Ethiopian Intellectual Property Office
Mr. Shafi Ouma, Deputy Director General, Marketing Development & Regulatory Sector,
ECTA
Mr. Gizat Worku, General Manager, ECEA
Mr. Solomon Getu, ELICO Awash Tannery Quality Manager

JICA,
consultant
team andother
Japanese
Participants

JICA Ethiopia Office! Mr. Makoto Shinkawa, Chief Representative
Mr. Masaki Wakai, Representative
Mr. Hiroyuki Amaya, Project Formulation Advisor
Ms. Sem Sara, PR Officer
JETRO Addis Ababa Office Mr. Junki Yamashita, Senior Representative
JICA Consultant Team (Mr. Nagai, Ms. Noguchi, Ms. Kon)
Project Officer Ms. Azalech Solomon
1. Opening remarks
2. Self-Introduction of participants
3. Project reporti.
Overview of project activities
ii.
Progress of technology transfer at tanneriesiii.
Progress of technology transfer for manufacturer
iv.
Results of comparative studiesv.
Brand management support for tanneries and manufacturersvi.
Activities in the new champion product component (coffee sector)
vii.
Activity schedule for the next termviii.
Project monitoring
4. Discussion
5. Closing remarks! After the activity reports from October 2018 to May 2019 were made by representatives of
CPs and partner companies on the progress of the activities of the EHL component and the
new CP component, a question and answer session and discussion on the content of theAgendaSummary91

reports were held. Regarding EHL promotion, the question arose as to whether participationin the Paris exhibition was sufficient, in light of the failure to connect overseas exhibitions tohigh-volume orders. In response to the question, participants from the leather sector stressedthat it is important to gain the trust of customers through continued participation in the same
exhibitions and repeated business negotiations to attract high-volume orders in overseas
markets and that the goal of the project is to enter the quality market, which means that bulk
orders would be difficult to obtain but sales of products at high unit prices could be expected.
Mr. Assefa, the chairperson, said that brands without quality are ineffective, that trust once
lost is difficult to restore, and that it would take time for the promotion to bear fruit,emphasizing the importance of continued cooperation between government and industry
according to the methods laid out by the project.

The 5th JCC Meeting
Date, time,and location

December 12, 2019 9:30-12 :45!
8th floor conference room, MOTI Head Quarter

Ethiopianparticipants<Chairperson>
Mr. Assefa Mulugeta, Director General, Export Promotion Directorate, MOTI
<Vice-Chairperson>
Mr. Daniel Tadesse, Board Member of ELIA/ General Manager of Kootkeet<Participants>
Mr. Bekabil Lisanework, First Secretary, Ministry of Foreign Affairs
Mr. Bereket Yohannes, Export Promotion Expert, Export Promotion Directorate, MOTI
Mr. Ketema Welderufaile, PR Expert, MOTI
Mr. Berhanu Negus, Director, LIDI
Mr. Tsegaab Bekele, Quality Manager, LIDI
Mr. Desnet Belay, Director, Ministry of Agriculture
Mr. Tassen Negessa, Export Expert, EIC
Mr. Yesuf Ademmur, Secretary General, ECCSA
Mr. Minilik Habtu, President, ECRA
Mr. Solomon Getu, Quality Manager, ELICO Awash Tannery
Ms. Hirut Zeleke, General Manager, Shir-Shir Ethiopia
Mr. Dawit Lemma, Managing Director, Simply Black Advertisement Plc.
Mr. Yonas Desalgne, Manager, Simply Black Advertisement Plc.

JICA,
consultant
team andother
Japanese
Participants

JICA Ethiopia Office Mr. Takeshi Matsuyama, Senior Representative
Mr. Hiroyuki Amaya, Project Formulation Advisor
JICA Head Quarter! Ms. Momoko Suzuki
Ms. Shoko Hara
The Embassy of Japan in Ethiopia Ms. Tasmin Akbar, Second Secretary
Ms. Chiaki Shibayama, Third Secretary
JETRO Addis Ababa Office! Ms. Leyou Sirege, Project Coordinator
JICA Consultant Team (Mr. Nagai, Ms. Noguchi, Ms. Suzuki, Ms. Kon)
Project Officer Ms. Azalech Solomon

Agenda1.
2.

Opening remarks
Self-Introduction of participants

92

3.

Project Reporti.
Summary of Project activity and the report of the exhibition in Paris (Septemner
2018)
ii.
Promotion Activity of EHL Leatheriii.
The added value of EHL leather in the French market
iv.
Support for the exhibition “Footwear Sourcing at MAGIC” in Las Vegas
v.
Progress of EHL brand management activity
vi.
Activity in new CP componentvii.
Project monitoring and target setting
viii.
Activity plan in the 2nd phase
4. Discussion
5. Closing remarks
Summary

The progress of the activities of the EHL component and the new CP component was reportedby the C/P and partner companies, followed by a question and answer session and discussion
on the content of the reports. Regarding EHL component, it was argued that the 2nd phaseshould focus on strengthening the capacity building of C/P organizations in consideration of
the sustainability of the project activity. In addition, it was also suggested that it may bepremature to expand the scope of the project to include products other than sheepskin andcoffee. In response to this, JICA explained that the 2nd phase will continue to promote
sheepskin export and that the knowledge gained from this project should be applied to thepromotion of other leather materials as well. From the new CP component, a question was
raised as to why coffee was not included in the 2nd phase. JICA explained that the initial
purpose of the coffee brand logo had already been finalized and that they would only continue
to support the trademark registration of the brand logo in Japan.

The 6th JCC Meeting
Date, time,and location

October 14, 2020 10:30-11:50 (Ethiopian time)!
OnlineEthiopianparticipants<Chairperson>
Ms. Haimanot Tibebu, Director, Export Promotion Directorate, MOTI<Participants>
Mr. Assefa Mulugeta, Director General, Export Promotion Directorate, MOTI
Mr. Bekabil Lisanework, First Secretary, Ministry of Foreign Affairs
Mr. Moges Bekele, Head of Event Management Division, ECCSA
Mr. Minilik Habtu, President, ECRA
Mr. Tewodros Gebremariam, ECTA, Market Research & Promotion Team Leader(The following are from partner companies)
Ms. Addishiwot Kinde, Commercial manager, K&T Trading PLC.
Ms. Elleni Solomon, Duty Coordinator, Entoto Beth Artisan
Ms. Genet Abegaz, Managing Director, ABKA Leather,
Ms. Rahwa Aregawi, Communication Manager, Natural Footwear Studio
Mr. Wolde Migora, Production Manager, ELICO Awash Tannery
Mr. Terefe Alemu, Production Manager, Shir-Shir Ethiopia
Mr. Biruk Hailu, Commercial Manager, Davimpex Enterprise Bahirdar Tannery PLC.

93

JICA,
consultant
team
and
other
Japanese
Participants

JICA Ethiopia Office Mr. Takeshi Matsuyama, Senior Representative
Mr. Masaki Wakai, Representative
Mr. Hiroyuki Amaya, Project Formulation Advisor
JICA Head Quarter! Mr. Kenji Ishiduka
Ms. Rika Karikomi
Ms. Misako Uehara
The Embassy of Japan in Ethiopia Mr. Nobuhisa Edamura, First Secretary
Ms. Tasmin Akbar, Second Secretary
JETRO Addis Ababa Office! Mr. Takao Seki, Director General
JICA Consultant Team (Mr. Nagai, Ms. Noguchi, Ms. Suzuki, Ms. Kon)
Project Officer Ms. Azalech Solomon

Agenda1.
2.
3.

Summary

The main points of the discussion were 1) the export target figure for the 2nd phase, 2) the
activity plan for the 2nd phase and 3) the duration of the 2nd phase (whether it should be
extended or not). Regarding 2), participants from the partner companies agreed that it wasnecessary to use EC platform for the EHL promotion since many trade shows are now shifting
to the virtual platform due to the expansion of COVID-19. They also agreed the ideas of“utilization of the EC platform” and “participation in the virtual trade show” which were
proposed by the project side. In addition, they requested the project to provide training on
how to use those virtual tools. Mr. Bekabil, First Secretary of the Ministry of Foreign Affairs,suggested that the Ethiopian Embassy in not only African countries but also EU countries andthe US could support the promotion of the Ethiopian leather products. With regard to 3), many
partner companies mentioned that the duration of the project should be extended in order toachieve the target figure since there was a period when exports were completely suspended
due to the impact of COVID-19.
It was decided that the project will have another meeting with LIDI and ELIA to discuss thecontents of the JCC and the results of the discussions on a different day since the focal
person of LIDI and ELIA were not able to attend this meeting due to the problem of network
connection.

Opening remarks
Self-Introduction of participants
Reporting sessioni.
Summary of the 1st phase activities
ii.
Activity plan for the 2nd phase
4. Discussion
5. Closing remarks

94

Appendix 3:
The status of each partner company under the spread of COVID-19 (as of August 2020)
Company
Bag Company
1

Impact of COVID-19
࣭Half of the employee stay home.
࣭Cancellation of sample orders obtained at an exhibition in France.
࣭Sales at a shop in Addis Ababa in July 2020 fell to 20-40% of February 2020.
࣭Looking for a market of face masks.

Bag Company
2

࣭The factory is operating with a limited attendance of employees.
࣭The MasterCard Foundation decided to provide assistance with the company. It
includes: (1) 6 sewing machines, (2) 3 months’ salary for employees (5,000
ETB/person)
࣭A referral from an existing customer in the US let to and order for 200 bags fromanother customer in the US.
࣭Cancellation of a sample order from a new customer. In some cases, email contact
stopped before the order was confirmed.
࣭Looking for a market of face masks.
࣭The factory is operating as usual.
࣭Sales at shops in Addis Ababa in July 2020 fell to 20% of February 2020.
࣭After receiving an order from a customer in Spain and completing the production of
55 bags, the order was canceled.
࣭A total of 65 bags order was canceled by 3 customers in the US.
࣭Looking for a market of face masks.

Bag Company
3

Bag Company
4
Garment
Company

Shoe
Company 1
Shoe
Company 2

Shoe company
3
Tanner 1
Tanner 2

࣭Received bulk orders from government agencies (bags, laptop cases, wallets, etc.)
࣭Received an order of 250 cow leather bags from a customer in Denmark.
࣭Sales at stores in Addis Ababa have increased even under the spread of COVID-19.
࣭Cancellations from 4 domestic customers and 2 overseas customer
࣭There were no sales at shops in Addis Ababa in March-May 2020. Sales in June fell
to about 25%of February 2020.
࣭Looking for a market of face masks.
࣭35% of the employees are working at the factory and the rest stay home.
࣭Shoe production for June 2020 fell to about 40% of February 2020.
࣭Sales at shops in Addis Ababa in June fell to 30% of February 2020.
࣭25% of the employees are working at the factory and the rest stay home.
࣭Shoe production for June 2020 fell to 25% of February 2020.
࣭Received orders from customers in the US and Spain and produced samples.
Progress was checked by exchanging photos, but contact stopped before the order
was confirmed.
࣭Received shoe orders from government agencies continuously.
࣭Sales at shops in Addis Ababa in June 2020 increased to about 120% of February
2020. This was due to the fact that many other shoe shops had closed.
࣭Producing leathers for its sister companies that produce leather products.
࣭Many employees are on paid leave and the factory is operating with a limited
attendance of employees.
࣭Leather production for June 2020 fell to about 30% of February 2020.
࣭Cancellation from a customer in China.

95

96

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00

Appendix 5
Report on Euro-Market inspection trip

ETHIOPIAN LEATHER INDUSTRY DEVELOPMENTINSTITUTE

With
JAPAN INTERNATIONAL COOPERATION AGENCY (JICA)REPORT ON EURO-MARKET INSPECTION TRIP

Summited by :1. Dagnew Negasa
2. Kasahun Hailu
3. Sisay Abebe
4. Tinsae Afework

October 2017

1

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Report on Euro-Market inspection trip

Contents
1.

INTRODUCTION ..................................................................................................................................... 1

2.

EXECUTIVE SUMMERY OF THE TRIP ...................................................................................................... 2

3.

OBJECTIVE ............................................................................................................................................. 44.

SPECIFIC OBJECTIVES: ....................................................................................................................... 4

5.

TEAM PURPOSE ..................................................................................................................................... 5

6.

EXPECTED OUTCOMES .......................................................................................................................... 57.

METHODOLOGY OF INSPECTION .......................................................................................................... 6

8.

EXHIBITIONS OVERVIEW ....................................................................................................................... 6I.

HABITARE .......................................................................................................................................... 6

II.

FORMA .............................................................................................................................................. 7

III.

APPAREL SOURCING, AND AVANTEX ............................................................................................ 8IV.

MICAM and MIPEL ........................................................................................................................ 8

V.
VI.

MOMAD ........................................................................................................................................ 9
WHITE MILANO AND ONE MILANO ............................................................................................ 10

Product groups (one Milano): ............................................................................................................. 10
Product groups (White Milano): ......................................................................................................... 10
VII.

FILO: ............................................................................................................................................ 109.

MAJOR FINDINGS ................................................................................................................................ 11

10.

RECOMMENDATION ....................................................................................................................... 11

11.

FUTURE PROPOSAL: ........................................................................................................................ 1212.

UPCOMING ACTIVITIES ................................................................................................................... 13

13.

PROBLEMS ENCOUNTERED ............................................................................................................. 1314.

SUGGESTED ACTION PLAN (TENTATIVE) ........................................................................................... 1

15.

ANNEX PICTURES AND PRESENTATION ............................................................................................ 1

2

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Report on Euro-Market inspection trip

1. INTRODUCTION
In line with Japan’s ODA (official development assistance), JICA has been putting a lot of
resources on two areas of activities. The first is a range of activities that will broadly contributeto improving the business environment of Africa and the second area has to do with suchactivities that can directly encourage the activities of the private sector of Japan in Africa.
Marketing is one of the key segments in the business world, Periodic test and review for thenature of the market in the dynamic business is a known approach to appear and sustain oneself
in the business, Market for industrial commodities requires close and considerable attention tomeet its requirement of the need.
Ethiopian Highland Leather (EHL) remains silent to the owner though the world still
acknowledge for its incredible intrinsic natural qualities. Having been supported by JICA, great
effort has been exerted in branding EHL based on qualifying its attributes through scientificanalysis. Inspecting market test and trend for some destinations would unquestionably be helpful
to come forward and get into the market. Although East Asia is becoming potential market
destination for quality leather products, Europe and USA have also remained potential market
places particularity for high-line segment.
Sponsored by the Japan International Cooperation Agency (JICA), via its Champion’s ProductApproach in Ethiopia, establishment of legally protected patent and intellectual property rights
and promotion of Ethiopian highland sheep skin and products has already started. The patent andintellectual property rights protection has already been established in Japan.
To achieve the luxury Leather Products Export through engaging in to the niche, a market
inspection Project has been set to understand the trend and set strategy that’ll allow Ethiopian
local manufacturers enter in to EU and US markets. Taking this in to consideration, a teamcomposed of Ethiopian and Japanese experts has gone to EU to visit selected international trade
fairs so that Ethiopian team can learn from the experienced Japanese experts.

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2. EXECUTIVE SUMMERY OF THE TRIP
The inspection has begun from Finland (Helsinki). In here the two selected trade fairs werecalled Habitare and Forma. Habitare is furniture, interior design and design trade fair for
professionals and the public in Helsinki. Many international exhibitors present here the latest
trends, shapes and colors. In addition to hundreds of top-class exhibitors as the fair offersinteresting exhibitions and special stands on many different topics of the range furniture, interior
decoration and design. It was taken place from Wednesday, 13 September to Sunday, 17
September 2017. Forma on the other hand is also a big professional event in the giftware,household goods and home decoration branch in Finland. Visitors will find new colors, trends
and ideas from the world of giftware and home decoration it also enables exhibitors to find newcustomers and meet the present ones, bring their products to attention of both buyers and media
and strengthen their company image. It was taken place from Friday, 15 September to Sunday,
17 September 2017 at the same place where Habitare was held but with separate halls.
The second destination selected for the inspection was France (Paris). Paris le Bourget which
was more in to textile and garments. In here five different halls with the name “apparelsourcing”, “avantex”, “shawls and scarves”, “texworld”, and “tex world denim” were held inalmost similar dates. Paris le Bourget consolidates its position as the European leading sourcing
trade fair, offering wide and consistent supplying possibilities for clothing: knitwear, casual
wear, sportswear, outerwear and corporate wear. From entry level to top-of-the-range, the offer
covers ready-to-wear for men, women, children and accessories, providing solutions todemanding buyers. It was taken place from 18 – 21 September, 2017.
Next to Paris, the team went to Italy (Milan) where two exhibitions called Micam and Mipel
were held at Fiera Milano RHO. The MICAM is the leading international footwear fair,promoted by ASSOCALZATURIFICI ITALIANI, the Association of Italian Footwear
Manufacturers. The event is held twice a year in Milan, the fashion capital, in the modern andfunctional fair grounds of Rho Fiera. In spring and autumn, a sneak-preview of theautumn/winter collections and those for spring/summer of the following year were presented.
Mipel, on the other hand was an international leather-goods show where bags, luggage, sacks,
wallets and the full spectrum of leather accessories are presented. MIPEL has always been at the2100Report on Euro-Market inspection trip

fore front of the industry and in tune with the market. It is the most authoritative trade fair for theleather-goods industry.
The fourth destination was MOMAD shoes – international footwear and accessories trade showtaken place in Madrid, Spain. Certain categories, such as Urban & Young, Casual,Contemporáneo, Espacio Metro, Eco, Kids, Bags and Accessories, Point of sale services were allpresent.
Last but not list the team has returned back to Milan to attend the white Milano and one Milano
trade fairs. White Milano is a 3 day event being held from 22nd to 25th September 2017 at the
Via Tortona in Milan, Italy. This event showcases products like contemporary fashion and thecultural reference for the new generation of designers and artists. As a talent scout, season after
season, it dictates fashion trends through a scrupulous and constant selection of the coolest
collections on the market etc. in the Apparel & Clothing, Lifestyle & Fashion industries. It hosts
300 collections. National and international buyers from: Europe (UK, France, Germany), Russia,
Japan, Korea, China and the USA. “THE ONE MILANO” is the new international fair dedicatedto top-end prêt-à-porter women’s wear and accessories. This new event merges the knowhow
and experience of MIPAP (international trade fair), the prêt-à-porter show organized by Fiera
Milano, and of MIFUR, and the fur and leather exhibition organized by the Mifur Exhibition
Organization.

3

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3. OBJECTIVE
The general objective of the trip: is to grab some critical success factors (CSF) that would help
in launching of EHL in to EU market successfully so as EHL products will be positioned in themarket place accordingly.

4. SPECIFIC OBJECTIVES:Ø The product idea/trend from the aspects of color, design, touches fashion trend, price, &other attributes and come up with possible opportunities (if any) for EHL products in somemargent segments including material trend.
Ø Customer idea from the kind of products displayed and exhibiter’s converse
Ø To find out the best way to promote EHL products and raw materials in the distribution
channelØ Get acquainted with organizers who could possibly introduce EHL to potential buyers’ groupØ Prospect potential buyers that could be major revenue sources of EHL products in the near
futureØ To assess the Europe’s market test with respect to quality, design, To investigate and device
possible means for promotion of EHL products for the identified market line (segment)
Ø To expose and get acquainted oneself with international market inspection
Ø To find opportunities for buyers who could be possible revenue sources of EHL in the near
future.
Ø To analyze the gap between Ethiopian leather and leather product manufacturer to theEuropean.
Ø Using the uniqueness of the Ethiopian sheep skin to make advantageous of Ethiopian
leather and leather product manufacturer in European market.

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5. TEAM PURPOSE
In all moves the purpose is to serve on scanning of the renowned international
fair specially in EU market so as to gain knowledge on existing technologies,
trends, product test

relevant for global competition by using EHL for the

coming season and selecting appropriate market for Ethiopian leather andleather product manufacture’s by working Japanese will experienced expertise

6. EXPECTED OUTCOMES
Ø Industrial networking sources that would move the project forward.
Ø Comparison and selection of best suitable market place for EHL products.
Ø Potential buyers for preliminary talk.
Ø Updated knowledge, trend and experience about the potential European market.
Ø Knowledge and understanding to support and direct selected Ethiopian manufacturers ina way that they could produce a product appropriate for the selected market.
Ø Opportunities to reconsider current marketing mix such as pricing level, types ofpromotion, distribution channel, product attributeØ By studding the market to select which one of country market its best opportunities toEthiopian manufacturer
Ø what kinds of approaches should follow to get easily the EU market
Ø To have knowledge European potential customer what kind of product does preferred?
Ø For skill and knowledge transferring LIDI young expertise.
Ø General overviewing of display and visual merchandising technics for future.

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7. METHODOLOGY OF INSPECTION
Ø The inspection has been done through physically appearing to selected exhibitions,making observation on the displayed products, have a generic idea on the kind of design,material, color, feel and visualize the customer preference.
Ø By conversation with prospective exhibitors with regard to future business deal byshowing sample materials and products.
Ø Through searching feedback from samples and experience of business deals with
Ethiopian manufacturers and by exchanging business cards.

8. EXHIBITIONS OVERVIEWI.

HABITARE

products showcased include small quantity ofleather bag, footwear, bathroom equipment,

curtains, decorations, fireplaces, Furniture, kitchen furniture, lamps, saunas, stoves, tablecloths,
dining room fittings, tables, chairs, book shelves and wall units, office furniture, cabinets,
shelves, fabrics hangings and wall rugs, textiles, accessories for interior decoration, floor & wallcoverings and tiles, in the Architecture & Designing, etc.
Among the displayed products the team has focused on leather made furniture and furnishings,
such as sofas, chairs, bags shoes and accessories, rugs, cushions, lamp shades which are
specifically made and related to sheep skin however, it has been realized that the products thatwere made out of leather more pertain to cow hide and goat and major exhibitors were found to
be Scandinavians. Keeping general track of visitors was also part of the work that the team has
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Report on Euro-Market inspection trip

taken with such regard, it could be said that majority of visitors were individual consumers andnumber of professionals such as buyers were found to be less. Exhibitors were found to beapproachable in which the team has tried to have a discussion with, show sample materials andproducts together with feedbacks.
The design and color for the scene of exhibition in general and booth in particular are classic indetecting the type and nature of product under showcase. The color of leather based exhibits wasin trend for Autumn/Winter which comprising cow, goat and sheep leather substrates. Cow
leather products were the major ones as furniture products took the lion share for same products
under showcase. Quality of furniture leather was observed to be very high in terms of theapproach for finishing and feel of bulk property of the leather. Smaller articles made of sheep
leather have also been exhibited. Finished leather for leather product manufactures have beenfrom European tanners (mainly from Italy, Sweden, Denmark, Portugal, and Austria). It has been
happened to observe that eco-friendly leather viz. vegetable tanned, reconstituted leather, etc.
sound to the market revealing the eco-friendly conscious of the consumer. In general, finishedleather for each product was designed to render natural aesthetic feel and look. Some EHL
leather swatches have also been showcased to some of exhibitors and found interest for theirsuitability for chairs and other smaller leather articles.
Therefore, there would be good opportunity for chairs and smaller articles made of EHL leather
being produced with the intention of eco-friendly minded approach.

II.

FORMA

The fair was held at the same place where Habitare was held but with different halls. It is held
twice a year in autumn with several trade fairs. It is more focused on small yet luxurious
accessories, like baskets, candles, cards, ceramic products, Christmas items, clocks, crafts,
decorative items, furniture, gifts, glassware, home textiles, house wares, jewelry, mirrors,posters, pots, silverware, souvenirs, stickers, toiletries, toys, etc. The team realized that people
who came to visit Habitare would defiantly visit forma. There were also articles made out ofleather which was a concern for the team. Generally, the participants were found to be open
minded and showed an interest for the samples offered finally the team believes that there is an
opportunity in the market to develop and introduce variety of EHL products.
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III.

APPAREL SOURCING, AND AVANTEX

In events, fake leather/fur and leather products have been exhibited with textile clothing:knitwear, casual wear, sportswear, outerwear and corporate wear. From entry level to top-of-therange, the offer covers ready-to-wear for men, women, children and accessories products
displaying the major show. The overall scene of the exhibition was felt to be of high standard. In
both events, bags and jackets were major leather products exhibited mainly of cow substrate. The
quality of leather for associated products was up to the standard. Fake leather and fake fur
products mainly by Chinese and Korean have been displayed with the intention to overtake theuse of leather though the quality still far under par with genuine leather. The color of the leather
products are also within the trend, Autumn/Winter. .
Among the product groups, the team has focused on fake leather, fur and leather products
however, much couldn’t be found from the fair as it is more in to textile and garments.

IV.

MICAM and MIPELIn MICAM leather products like footwear in different categories such as luxury containing
emerging and international designers, contemporary, kids, and cosmopolitan. bags andaccessories have been displayed. Products under showcase were produced of cow, sheep andgoat leather with first substrate taking major share. Major Lady’s shoe and some collection of
Men’s shoe are made of sheep and goat leather with hand finish. Leather Products are of very
high quality where the types finishing being used were found to be highly suitable to theintended final product. Leather products exhibited were almost devoid of heavy finished leather.
Light finishing (aniline, semi-aniline), digital print, wax coat, brush off, foil print and perforation
are the main finishing approach undertaken eventually rendering leather with natural aesthetic
feel and look. To put in a nutshell, skillful finishing techniques have been utilized to explore
leather defects to have natural look and feel. Of footwear collections, dress shoe were founddominating. Besides black and white color, earthy colors are dominant ones which in deed are inline with fashion trend.

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In MIPEL event though dominated by various collections of bags, luggage, sacks, wallets andthe full spectrum of leather accessories Casual, fashion, party, contemporary, designer are ofhigher quality with quality of leather, too. Plat printed leather of various reptile skin pattern was
also observed to be used for some bags collection. In addition, sport and kids shoe were also
displayed. Leather products were found to rely on European tanners, mainly of Italian ones with
the intention of the having their brand in the European market.
MICAM and MIMPEL the two big events inspected in the first Milan trip. Alongside the usual
chrome tanned leather, vegetable tanned and semi-chrome leathers were still prevail in themarket exhibiting higher quality. Similarly, It was an appealing exhibition because of the many
innovations introduced, and the unique displays. The team has found out that it is of a high end
exhibition which was more in to “made in Italy” products and there might be a room for EHL
producers in the future to participate in the cosmopolitan category.
V.

MOMAD

MOMAD is one of the biggest events showcasing the various collections of leather products
like leather footwear, bags, Textile and leather plus textile mix products were also exhibited. The
quality of leather for the products in the event was nearly similar to the one in Milan except
product design and some finishing technique a bit surpassed by the later. Footwear, leather
goods, accessories and services to sales point companies, Fast & Young, Casual, Kids, Bags andAccessories, Point of sale services etc. in here it could be said that majority of the products
displayed were “made in Spain” and material wise, were made out of cow leather. Majority ofthe visitors were professionals i.e. Agents, Specialized chains, Independent stores,
Manufacturers, Department Stores, Superstores, Importer-Wholesalers, Online shops. It has also
been happed to showcase EHL swatches for some of exhibitor and found good interest to procurein the future. Moreover, the intrinsic quality of EHL has been witnessed by some of exhibitor
who previously had attachment to our leather industry. BISTEX and INTERGIFT were the otherevents being surveyed Interior decor, various collections of gifts where leather made bags andpartial leather bags were among a few exhibited.

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VI.

WHITE MILANO AND ONE MILANO

Product groups (one Milano): In the former, leather bags, and footwear have been in
showcase though women wear, accessories and fashion accessories of fabric and other nonleather material origin dominated. Leather being used was of high quality rendering top line
products.
Product groups (White Milano): leather products looked contemporary and cultural reference
for the new generation of designers and artists. The team happened to scout an exhibitor towhom EHL has been known for so long. Despite the quality and delivery phobia of Ethiopian
tanner, the natural quality of EHL has been witnessed thereof. For the sake of completeness,

VII.

FILO:

FILO was the last event entertained though product from Apparel & Clothing, Gifts &Handicrafts, Textile, and Fabrics & Yarns.

VIII. General technical product overview

Technical things

Futures

Remark

Product design concept

Minimalist

Simple and functionally base withperforation

Product color

Naturalist (earthy colors )Light intensity color schema

Product category

All types of footwear basedon forecasted seasonal

Most of the product future ishandmade and hand finishedproduct

Product materials

Cow ,sheep, goat and nonleatherMen`s shoes mainly uses leather
sole

Product quality

High with hi tech finishingchemicals

Look simple but with big effort

Product hardware

Less number of accessories

Zip and buckle with perforation
ornaments

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9. MAJOR FINDINGS
Throughout the inspection, the team has come to know and understand the following points:
Ø There is high innovation capacity in product development.
Ø High display skills that support the marketing and branding of the particular product.
Ø Strong international/regional connection, image and fashion orientation
Ø Majority are highly skilled European manufacturers that tend to use European tanners
Ø Sizable domestic as well as regional market.
Ø High sales of luxury goods and leather furniture (upholstery) because of consumer’s
disposable incomeØ Major leather materials are cow.
Ø A decrease in the use of full leather material (rather textile or synthetics are combined)Ø No African players, but Morocco, staging
Ø Some market places were found to be less open to the new entry
Ø Very “Eco-Friendly” conscious All countries fairs are following the fashion forecast thatmeans seasonal, color trend, fashion trend, textures, material type, styles and shape of
the productØ There is very high creative skill based on the season trend.
Ø Large number of buyers are expected to come that could give the exhibitors more
opportunities
Ø In general product design concept fall in to minimalist and naturalist preferences.
Ø Very high competitive environment expected that could drive us to “price war” likesituation.
Ø The majority of buyers are Chinese nationals that give us less option for growth.
Ø European manufacturer are very high skilled to make luxury products.
Ø Some booths are not allowed to professional visitors such as designers.

10.

RECOMMENDATION

11

109

Report on Euro-Market inspection tripØ As has been stated entering in to EU market requires being highly quality conscious andwork on product development skills of factories, therefore JICA once selected Ethiopian
manufacturers to partner with has to deploy experts who can enhance the performanceaccordingly.
Ø Participating in EU market requires an intensive preparation including studying the kindof exhibition selected for participation, how to display products that has similar To be acompetent of in European market our manufacturer must have follow the fashion trendØ All Ethiopian manufacturers should understand what is niche market and producing the
product as per the market need.
Ø To get the EU market as a beginning Ethiopian leather goods manufacturer should
produce small articles such as male's and female's wallet, key holder, cravat, credit card
holder , coin purses, belt, watch strap etc. These small articles should be new, welldesigned, attractive, creative simple and easier to hold
Ø As beginning our market target is Scandinavian countries more suitable to Ethiopian
leather goods manufacturer.
Ø It is very high competitive environment place based on this Ethiopian leather goods
manufacturer should have Eco- leather products.
Ø Theme with the kind of product selected and other promotional materials such as flyers
and broachers.
Ø Even if the kind of market is subjected to have a strong regional connection, as EHL has
its unique feature, if supplied and very well supported by a creative design and display
the team believes that there still exist a room to get in to the market.
Ø In order to break in to the market especially with the leather supply, selected factories
need to be (or at least be willing to get certified as soon as possible) environmentallyfriendly such as having ISO and social compliance certification.
Ø EHL should be first introduced for EU market through promotion (Europeans has atendency to have full information before they perched anything )11.

FUTURE PROPOSAL:

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Report on Euro-Market inspection trip

The team has come up with the following proposal on the basis of the experience gained during
the mission:Ø Planning for Scandinavian countries market penetration and promotion throughinternational fair along with key industry partners to make enhanced businessdevelopment
Ø Comprehensively made preparation for designers fair participation as LIDI from Ethiopia
side to let visitors know there is such potential institute in Africa serving the sector.

UPCOMING ACTIVITIES

12.

Ø Selecting partner companies how are willing and committed to work on EHL for EU
marketØ Working deep market research on northern Europe area.
Ø Starting product development based on the rough market research result.
Ø Product development activity at LIDI on leather, footwear and Leather goods withcollaboration of partner companies.
Ø Deep following and acquiring the next seasonal design trends.

13.

PROBLEMS ENCOUNTERED

Ø Hotel location most of the time located outside of the city ,this create limited
information about the end user (consumer) behavior and preference in detail (design
and product aspect )Ø Very tight schedule.

13

111

112

Throw/detailed research of Scandinavian
marketComparison and selection of up to three
Scandinavian countries
Making a marketing mix strategy
Selection of three prominent trade fairs fromthe selected three countries

Giving feedback to designers and experts
supporting the manufacturers.
Planning and discussing on the design, costing
andmakingquotationanddisplay(preparation)
Participating accordingly.

4

8Collecting feedback and potential businessdeals.

Supporting the factories in dealing with thefirst international market.

11

12

10

9

6
7

5

Gap assessment
Deployment of experts to fill the gap by JICA

Activities
Selection of manufacturers to partner with
Nov

Dec

1

Duration in Months (November 2017 – November 2018)
Sep
Jan Feb Mar Apr May Jun Jul
Aug

SUGGESTED ACTION PLAN (TENTATIVE)

2
3

S/No
1

14.

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Oct

Nov

Report on Euro-Market inspection trip

15.

ANNEX PICTURES AND PRESENTATION

1

113

114

115

ูῧ 6

Appendix 6



116

ูῧ 6



117

ูῧ 6



118

ูῧ 6



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120

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9 (    #!    56%(Ave. 60%)
100%(Ave. 100%)
44%(Ave. 40%)74%(Ave. 68%)

26%(Ave. 32%)

121

Appendix 8

Ethiopian Highland Leather (EHL) Brand Certificate
Inspection Visit check list for Tannery
Compiled Date: XXXX
Inspection date: ________________________________________________________________Name of the Inspectors: __________________________________________________________<Applicant Company’s Information >Company Name:________________________________________________________________
Contact Person:_________________________________________________________________
Contact Person’s phone number:___________________________________________________
Production capacity (sheep skin):___________________________________________________
Main products:_________________________________________________________________
Export Destinations:_____________________________________________________________
I.

Origin of raw sheep skin (25pts)
1. Does the tannery procure `Ethiopian hair sheep` skin (highland sheep skin)?
(Check by observation +confirm the procurement record) ࠙Mandatory Criteriaࠚ
a. Yesb. No (If No, no need for further inspection)

Remarks:________________________________________________________________
2. Does the tannery keep procurement records according to the region/suppliers?
(check the records for the past one year) (poor: 1pt, fair: 2 pts, good: 3pts)
a. Yesb. No

Remarks:________________________________________________________________
3. Where are the main areas of sourcing sheep skins for the past one year?

123

(poor: 2pt, fair: 4 pts, good: 6pts)
Remarks:________________________________________________________________
4. How much is the procurement ratio (%) in each sourcing area for the past one year?
(poor: 1pt, fair: 2 pts, good: 3pts)
Remarks:_______________________________________________________________
5. How does the tannery implement the segregation system of raw sheep skins in order toensure the traceability? (poor: 1pt, fair: 3 pts, good: 5pts)
Remarks:______________________________________________________________
6. Is selection and grading done with respective origin? How does the tannery implement?
(poor: 1pt, fair: 2 pts, good: 3pts)
b. Yesb. No

Remarks:_____________________________________________________________
7. Is the selection and grading result communicated to the supplier?
(poor: 1pt, fair: 3 pts, good: 5pts)
c. Yesb. No

Remarks:______________________________________________________________

II.

Process quality control (25pts)
Production Process/ Section

Parameters Checked

Beamhouse (poor: 1pt, fair: 3pts, good: 5pts)
Tanning (poor: 1pt, fair: 3pts, good: 5pts)

Re-tanning

Crust

Finishing (poor: 1pt, fair: 3pts, good: 5pts)
Quality control (poor: 1pt,

124

Remark/objective evidenceProduction Process/ Section

Parameters Checked

Remark/objective evidence

fair: 3 pts, good: 5pts)
Effluent Treatment Plant
Primary
Secondary(5pts)* Check the records as well as by observation
III.

Implementation of Management System (25pts)
1. Does the tannery has the following certificates? (Confirm the certificates)?
(poor: 5pt, fair: 10pts, good: 15pts)
a. ISO 9001:2015b. ISO 14001:2015 c. Social compliance audit /other certificates

Remarks:______________________________________________________________________

2. If management System is implemented, check the due date of the certification.
(poor: 1pt, fair: 3pts, good: 5pts)
a. ISO 9001:2015b. ISO 14001:2015 c. Social compliance audit /other certificates

Remarks:______________________________________________________________________
3. What kind of measures are taken for the employees’ safety and health in the working area?

(poor: 1pt, fair: 3pts, good: 5pts)
Remarks:______________________________________________________________________

IV.
1.

Chemicals (25pts)
Which chemical company’s products are used in the tannery? (check by observation/by records)(poor: 2pts, fair: 6pts, good: 10pts)
Remarks:_____________________________________________________________________

2.

Do those chemical companies produce REARCH certified chemicals?
(poor: 5pts, fair: 10pts, good: 15pts)
a. Yesb. No
Remarks:_____________________________________________________________________

V.

Sampling (random sampling by the inspector)

125

Article: ______________________________________________________________________________
Type of finishing: _____________________________________________________________________
Grade: ______________________________________________________________________________
Color: ______________________________________________________________________________
Thickness:___________________________________________________________________________
No. of pieces: ________________________________________________________________________

VI.

Final Remark

Recommendation:_____________________________________________________________

In conclusion, XXXX fulfills XX% of the basic EHL brand requirements according to theoverall inspection findings. Hence, the company passes the EHL inspection criteria.
SectionPointsI. Origin of raw hair sheep skin25

II. Process quality control

25

III. Implementation of management system

25

IV. Chemicals

25
Total

Company’s score

100*The company which scores more than 70 points passes the EHL inspection criteria and fails
if otherwise.
End

Compiled by:_____________________________________
Leather Industry Development Institute (LIDI)

126

Appendix 9

Ethiopian Sheep Leather
Comparative Research Report

Takase K , Aihara M, Terashima M, Nakamura Y, Nomura Y, and Tsegaab B

127

Contents
I.

Characterization of Ethiopian Highland Sheep in Comparison with Ethiopian Lowland

Sheep ..................................................................................................................................... 1
1. Purpose ........................................................................................................................... 1
2. Sampling ......................................................................................................................... 1
3. Sampling Method ............................................................................................................ 3
4. Sample Processing Method ............................................................................................ 3
5. Analytical Methods .......................................................................................................... 3
6. Results............................................................................................................................. 4
1) Electron microscopic observation................................................................................ 42) Skin tissue staining observation .................................................................................. 83) Amino acid composition............................................................................................. 144) SDS-PAGE pattern of collagen from highland and lowland sheep skin. .................. 15
7. Discussion ..................................................................................................................... 15
II.

Physicochemical Property of Ethiopian Highland Sheep Leather in Comparison with

South African and Indonesian Sheep Leathers.................................................................... 16
1. Purpose ......................................................................................................................... 16
2. Materials and methods.................................................................................................. 161) Physical Test: Density, Specific gravity, Tensile strength, Elongation, Tear strength andSoftness test.................................................................................................................. 172) Chemical Test: Volatile matter, Chromium content and Fat content. ........................ 173) Electron microscope observation Test ...................................................................... 17
3. Result ............................................................................................................................ 181) Density and Specific gravity ...................................................................................... 182) Tensile strength ......................................................................................................... 183) Elongation .................................................................................................................. 194) Tear strength .............................................................................................................. 195) Softness ..................................................................................................................... 20
6) Chemical analysis ...................................................................................................... 20
7) Observation with scanning electron microscopy ....................................................... 20128

I. Characterization of Ethiopian Highland Sheep in
Comparison with Ethiopian Lowland Sheep
Yoshihiro NOMURA1

Tsegaab Bekele2
1.

PurposeFor the international branding of Ethiopian highland sheep leather, it is necessary tocharacteristic analysis of the raw sheep skin. It is difficult to physicochemical analysis of highland
sheep skin in the problem of equipment of Ethiopian laboratory. Ethiopian native sheepskin is
impossible to obtain in Japan with quarantine issues and Ethiopian government trade regulation,
so test material was sheepskin fixed with ethanol and formalin. In this experiments, we performed
amino acid analysis and histochemical analysis.
2.

Sampling

The sheepskins for the experiment were sampled in the location indicated in figure1.

Debreberhan altitude 2959m

Gadamyotu altitude 797m

Figure 1: Sampling Points
Professor, Institute of Leather and Scleroprotein, Agricultural Department, Tokyo
University of Agriculture and Technology (TUAT)
2 Lead Physical/Mechanical Testing Expert Testing and Research Laboratory /Co-MR,
Quality Assurance Manager of EHL brand / Leather and Leather Products Research Council
Secretary / Ethiopian Leather Industry Development Institute
1

1

129

Highland sheep skinØSpecies: MenzeØ

Sex and age: Male (One years)

ØPlace: Debreberehan, about 250km from Addis in Amhara regionØMainly feed on grassØMarketing age: 6 months and aboveØ

Debreberhan altitude is 2959m, LAT 9.38398/LON 39.33438

Ø

DMS: 9o14’4.14’’N/39o11’9.39 ‘‘EØ

Breeding environment: The sheep were raised by farmers on field.

Figure 2: Sampling of Highland Sheep
Lowland sheep skinØSpecies: WankaeØSex and age: Male (1 years)

ØPlace: Gadamyotu about 350km from Addis in Afar regionØMainly feed on grassØMarketing age: 6 months and aboveØGedamyotu altitude is 797m, LAT 9.73624/LON 40.45683

ØDMS: 9o3’46.2’’N/40o12’3.33o’’EØBreeding environment: The sheep were raised by farmers as member of a family in a smallmanger.

2

130

Figure 3: Sampling of Lowland Sheep
There was no normal slaughter house in the both site and the main slaughtering
way was traditional. There were collection sites of skins with salt a common preservation
technique. The slaughtering was implemented in Addis Ababa Kera Enterprise. The
lowland sheep skins were brought to LIDI and preserved in a refrigerator for two days
until the highland sheep were brought.

3.

Sampling Method
Samples were then taken from the two sides (one for Ethiopia and one for Japan) of

the back bone of one Wankae / Menze sheep skin from the head, belly and hip areas.
1)

Cut three parts of the head, belly, and hip part2)

Cutting area: 10cm * 10cm

3)

Cut hair4)

Cut quadrant5)

Dip two pieces in 30% ethanol solution

6)

Dip two pieces in 18.5% formalin solution

4.

Sample Processing Method
The samples were fixed with formaldehyde (Kashima Chemicals Co Ltd). Using theright half of a sheepskin, sampling was performed in 10 cm ×10cm square from 3 places of head,
belly and hip. Wool, meat, and fat were removed as much as possible and soaked in 30% ethanoland 18.5% formaldehyde solution. After that, it shipped to Nomura’s laboratory in TUAT by DHL.
5.

Analytical Methods
Protein, mainly collagen from ethanol fixed samples was extracted with 4M guanidine
3131HCl containing protease inhibitors. Extracted samples were analyzed by SDS-PAGE.
Formaldehyde fixed samples were hydrolyzed with 6N HCl, and were analyzed by amino acidanalyzer.
Formaldehyde fixed samples were analyzed by electron microscopic observation inTokyo Metropolitan Leather Technology Center, and were prepared of skin sample in Sapporo
General Pathology Laboratory Co., Ltd . Hematoxylin-eosin (HE, general), Elastica van Gieson(elastin), Masson’s trichrome (collagen), Alcian blue (glycosaminoglycan) stain was done.
6.

Results

1)

Electron microscopic observation
Electron microscopic observation of skin from highland and lowland sheep were shownin Figure 4 to 6.
Papillary layer and reticular layer from head, belly, and hip sheep skin were shown. In
reticular layer, the density of collagen fiber from high land sheep skin is denser than that fromlow land sheep skin. Especially, the density of collagen fiber on hip position from high land sheep
skin was denser.

4132

OverallPapillary layer

Reticular layer

Figure 4: Scanning electron microscope image of Head area on sheepskinfrom Ethiopia (Left: Highland, Right: Lowland)

5133OverallPapillary layer

Reticular layer

Figure 5: Scanning electron microscope image of belly area on sheepskinfrom Ethiopia (Left: Highland, Right: Lowland)

6134OverallPapillary layer

Reticular layer

Figure 6: Scanning electron microscope image of hip area on sheepskinfrom Ethiopia (Left: Highland, Right: Lowland)

7

135

2)

Skin tissue staining observation
In Fig. 7, skin tissue staining image were shown. HE staining was a general staining

image. In hip, epidermis of highland sheep skin was thicker than that of lowland sheep skin.
Elastica van Gieson stain, that is dark blue stain showed the elastin fibers in the dermis. Elastin
fibers were spreading in dermis. In lowland sheep hip skin, elastin fiber were strongly stained
than that of highland sheep hip skin. It is considered that lowland sheep have more activity thanhighland sheep. Masson’s trichrome stain show the collagen fibers in dermis. The staining
intensity of Masson’s trichrome of lowland sheep skin was stronger than that of highland sheep
skin. The collagen contents of lowland sheep skin was higher. Alcian blue stained
glycosaminoglycan in the skin. The intensity of Alcian blue stain was weak at all sites. So, there
was no difference.

8

136

head

belly

hip

Figure7: Haematoxylin-eosin stained image of sheepskin from Ethiopia (×200)(Left: Highland, Right: Lowland)

9

137

head

belly

hip

Figure 8: a van Gieson stained image of sheepskin from Ethiopia (×200)(Left: Highland, Right: Lowland)

10

138

head

belly

hip

Figure 9: Masson trichrome stained image of sheepskin from Ethiopia (×200)(Left: Highland, Right: Lowland)

11

139

head

belly

hip

Figure 10: Masson trichrome stained image of sheepskin from Ethiopia (×100)(Left: Highland, Right: Lowland)

12

140

head

belly

hip

Figure 11: Alcian blue stained image of sheepskin from Ethiopia (×200)(Left: Highland, Right: Lowland)

13

141

3)

Amino acid composition
Amino acid composition of sheep skin were shown in Table 1. Hidroxyproline is the

specific amino acid residue of collagen. The contents of hydroxyproline in lowland sheep hip skin
was higher than that in highland sheep hip skin. It is considered that the contents of collagen in
the lowland sheep hip skin was higher than that in highland sheep hip skin. The tendency was thesame as Masson’s trichrome stain.
Table 1: Amino acid composition of Ethiopian sheep skin (/1,000AA)
Highland Sheep
head

belly

Lowland Sheep
hip

head

Belly

Hip

Asp

68.5

70.5

71.3

66.6

65.2

61.3

Glu

106.2

111.8

109.4

113.3

108.2

103.3

Hyp

104.7

100.9

95.5

93.5

105.3

117.8

Ser

39

29.7

37.7

29.5

42.6

35.3

Gly

193.1

198.6

178.2

198.5

189.8

201.9

His

8.1

3.1

8.7

0

4.5

5.9

Arg

71

62.4

67.7

68.7

62.9

66.4

Thr

32.1

28.3

34.3

32.1

34

29.1

Ala

72.5

82.6

71.5

83.1

71.5

76.3

Pro

121.7

129.2

118.2

131.2

123.4

130.8

Tyr

0.8

1.4

1.6

2.2

1.1

1.1

Val

32.2

33.9

37.8

33.6

35.3

30.5

Met

11.3

10.4

13.3

4.3

12.8

10

Cys

5.7

6.4

6.6

5.3

5.6

5.4

Ile

21.1

19.7

23.2

21.8

21.1

18.5

Leu

43

40.3

47.5

44.7

43.1

37.2

Hyl

9.9

10.6

10

10.3

10.5

10.8

Phe

24.8

23.9

28.3

24.5

26

23.1

Lys

34.5

36.4

39.3

37

37

35.3

14

142

4)

SDS-PAGE pattern of collagen from highland and lowland sheep skin.
SDS-PAGE patterns of 4M GuHCl extracts from sheep skin was shown in Fig. 12. There

were no difference.
1st extracts
1

Highland2
3

1

2nd extracts
Lowland2
3

1

2

Highland3
1

2

Lowland
3

Mw
245
180

Collagen α2-chain
Collagen α1-chain

140
100

Figure 12: SDS-PAGE patterns of 4M GuHCl extracts from Ethiopian sheep skin
7.

Discussion
In this report, morphological observation was done. It is interested in the point ofreticular layer in hip skin. Collagen fiber was thinner and larger amount in lowland sheep hip skin.
It is not clear the difference of collagen fibers in hip skin, for the species, geopolitics, breeding
environment, etc. It is considered that the character of Ethiopian sheep leather has tensile strength
in thin leather. It is important to study the tensile strength of slice thinly leather from soft tanninghighland and lowland leather.

15

143

II. Physicochemical Property of Ethiopian Highland Sheep
Leather in Comparison with South African and Indonesian
Sheep Leathers
Takase K3, Aihara M2, Terashima M2, Nakamura Y4, and Nomura Y5

1.

PurposeIn this report, we show the characterization of highland sheep leather in Ethiopia.

Ethiopian sheep leather is the famous as golf gloves with thin and physically strong. The
physicochemical property of Ethiopian highland sheep leather was examined to compare thatfrom other sheep leather. So in this study, raw hides from different origins (Ethiopia, Indonesia,
and South Africa) were tanned in the same methods.
2.

Materials and methods
Sheep skins from Ethiopia, Indonesia and South Africa were purchased ten pieces eachfrom Tanner in Japan (FYSCO Co. Ltd). The five pieces each of 3 materials were split up 0.4 and0.7 mm at crust condition.
The sample collection site is shown in the figure 13. Samples for physical property test
were taken from the site specified by JIS K 65506. For chemical test samples, the surroundingarea of JIS K 6550 and the remnants subjected to the physical property test were used. Sample
for electron microscopic observation, was used a part adjacent to JIS K 65507.

3Tokyo Metropolitan Leather Technology Center

4

TFL Japan

5Tokyo University of Agriculture and Technology

6

The design of JIS K 6550 (Sample collection site) corresponds to ISO 2418:2002.
The design of JIS K 6550 (Sample collection site) corresponds to ISO 2419:2002.

7

16

144

Figure 13: Sampling Method1)

Physical Test: Density, Specific gravity, Tensile strength, Elongation, Tearstrength and Softness test
Density and Specific gravity were measured according to JIS K 6505 8 . The

measurements of tensile strength, elongation and tear strength were measured using auniversal material testing machine (5565 type testing machine manufactured by InstronCo.) according to JIS K 6550 9 . The softness test was measured by a softness tester(manufactured by BLC) based on ISO 17235: 2002 (IULTCS / IUP 36). The measurement
was carried out by fixing the sample to a metal ring having a diameter of 20 mm.

2)

Chemical Test: Volatile matter, Chromium content and Fat content.
Measurement of volatile matter, chromium content and fat content was carriedout according to JIS K 655010.

3)Electron microscope observation Test
The cross section of each sample was observed with scanning electron

microscope JSM-IT300 (Nippon Denshi Co., Ltd.). For the measurement of the crossThe design of JIS K 6505 (measurements of density and specific gravity) corresponds to
ISO 2589 and ISO 2402.
9 The design of JIS K 6550 (measurements of tensile strength, elongation and tear strength)
corresponds to ISO 2402 and ISO 3377-1:2002(E).
10 The design of JIS K 6550 (measurement of volatile matter) corresponds to ISO 4684:2005.
The design of JIS K 6550 (chromium content) corresponds to ISO 5398-1:2018(E). The designof JIS K 6550 (fat content) corresponds to ISO 4048:2008(E). In the extraction procedure, Nhexane was used instead of dichloromethane.
8

17

145

section of each samples in thicknesses of the papillary layer and the reticular layer, thecaptured image was analyzed using analysis software.

3.

Result
The average size of each sample is shown in the Table 2. The unit is squaredecimeter (dm2㸸Square decimeter). South Africa leather tended to be larger than thatfrom other areas (P <0.001).

Table 2: Area of leather from different origin(sstandard deviation)

1)

EthiopiaIndonesia

South Africa

0.4mm

41.2±3.1

43.0±3.1

61.2±4.5*0.7mm

45.0±4.537.8±1.975.0±8.2*

Density and Specific gravity
Density and Specific gravity is showed in Table 3. In 0.4mm leather, Ethiopia

leather tended to have a higher density than other production areas (P <0.001). It isconsidered that the fibers of Ethiopia sheep skin may be dense in the papillary layer ascompared to other production areas. Even at 0.7 mm, Ethiopia was shown to be more
dense than South African and Indonesian (p <0.001).

Table 3: Specific gravity of leather from Ethiopia, Indonesia and South Africa(sstandard deviation)

EthiopiaIndonesia

South Africa

0.4mm

28±1.0*26±1.426±1.20.7mm

44±1.438±1.946±2.6

Table 4: Apparent density of leather from Ethiopia, Indonesia and South Africa(sstandard deviation)

2)

EthiopiaIndonesia

South Africa

0.4mm

0.62±0.04*

0.59±0.03

0.59±0.01

0.7mm

0.59±0.03*

0.49±0.01

0.54±0.02

Tensile strength
The results of tensile strength in each production area are shown in Table 4. At

0.4 mm leather, there was no significant difference in tensile strength between
18

146Indonesian and South African (p = 0.7). Leather from Ethiopia was shown to besignificantly stronger than any other origin (p <0.01).
On the other hand, at 0.7 mm leather, the tensile strength from Indonesian
product was significantly lower than that of other origin. It is interested points that thetensile strength of South African leather has been decreased to about half, while that ofEthiopia leather was only about 20% lower. In other words, it is suggested that thetensile strength of Ethiopia leather is not likely to decrease even if it is made thinner.
For the Indonesia leather, the change in tensile strength between 0.4 mm and 0.7 mm
was not difference.

Table 4 Tensile strength of leather from Ethiopia, Indonesia and South Africa(sstandard deviation)

3)

EthiopiaIndonesia

South Africa

0.4mm

28±8.3*10±1.113±3.10.7mm

35±4.19±1.1

26±2.7

Elongation
The results of elongation are shown in Table 5. At 0.4 mm and 0.7 mm leather,

the elongation from Indonesia leather was lower than the other production areas. Thereis no significant difference in elongation of leather from the production areas.

Table 5 Elongation of leather from Ethiopia, Indonesia and South Africa(sstandard deviation)

4)

EthiopiaIndonesia

South Africa

0.4mm

72±5.348±3.965±6.10.7mm

76±4.458±5.274±5.7

Tear strength
The results of tear strength are shown in Table 6. At Indonesia leather, the tearstrength was significantly smaller in both 0.4 mm and 0.7 mm compared to otherproduction areas. The change in tear strength at 0.4 mm and 0.7 mm was confirmed,
whereas Ethiopia leather decreased by about 16% (P value = 0.28), while that from South
Africa leather was decreased by about 29% (P value = 0.0025). From these results, it was
shown that the tear strength of Ethiopia leather is not decreased even if it is made thin.

Table 6 Tear strength of leather from Ethiopia, Indonesia and South Africa
19

147

(sstandard deviation)

5)

EthiopiaIndonesia

South Africa

0.4mm

32±6.87±1.3

30±3.80.7mm

38±2.810±1.741±3.9Softness
Softness of leather from Ethiopia, Indonesia and South Africa is shown in Table

7. In both 0.4 mm and 0.7 mm leather, Ethiopian leather is inferior in flexibility
compared to other production areas.

Table 7 Softness of leather from Ethiopia, Indonesia and South Africa(sstandard deviation)

6)

EthiopiaIndonesia

South Africa

0.4mm

9.9±0.4

10.7±0.2

11.1±0.1

0.7mm

7.8±0.5

9.6±0.4

10.2±0.4

Chemical analysis
Chromium and fat content is showed in Table 8 and 9. There is no significant

difference of leather from Ethiopia, Indonesia and South Africa

Table 8 Chromium content of leather from Ethiopia, Indonesia and South Africa
EthiopiaIndonesia

South Africa

0.4mm

2.9

2.5

3.5

0.7mm

2.8

2.5

3.7

Table 9 Fat content of leather from Ethiopia, Indonesia and South Africa

7)

EthiopiaIndonesia

South Africa

0.4mm

10.6

9.1

14.2

0.7mm

8.9

7.6

11.6

Observation with scanning electron microscopy
The ratio of the papillary layer and the reticular layer of leather are shown in

Table 10. In both 0.4 mm and 0.7 mm leather, the proportion of reticular layers in
Ethiopia leather tended to be larger than that in South Africa. Indonesia leather was cut
off the reticular layer.

20

148

Table 10 Ratio of the papillary layer and the reticulated layer of leather from
Ethiopia, Indonesia and South Africa(papillary/reticular layer)

EthiopiaIndonesia

South Africa

0.4mm

60/40

100/0

68/32

0.7mm

46/54

100/0

48/52

Based on this result, the relationship between the ratio of the reticular layer
and the tensile strength was investigated. In Indonesia leather, since there were only
papilla layers at 0.4 mm and 0.7 mm, they were excluded from statistical treatment.
For the 0.4 mm leather from Ethiopia, the correlation between the ratio of the reticularlayer and the tensile strength was calculated. There is correlation between the reticularlayer and the tensile strength, extremely strong correlation with R2 = 0.91. That is, thetensile strength tended to become stronger as the ratio of the reticular layer became
larger. Other cases were similar. The tensile strength of Indonesian leather was weakcompared to other production areas, probably because there was not enough reticularlayer.
Ethiopia 0.4mm

Tensile strength (MPa)

Ratio ofTensile strength

reticular layer

(MPa)

1

0.445927.31

20.308818.82

30.258621.44

40.615832.75

Ave

0.403728.438

35
30
25
20
15
10
5
0
0.0000y = 37.04x + 9.9941
R² = 0.9058
0.20000.40000.60000.8000Figure 14: Correlation between ratio of reticular layer and the tensile strength(Ethiopian sheep leather 0.4mm)
In the figure 15, the ordinate represents the tensile strength (MPa), and the abscissa
represents the ratio of the reticular layer.

21

149

Ethiopia 0.7mm
Ratio ofTensile strength

reticular layer

(MPa)

1

0.542136.03

20.584841.95

30.2862

28.96

Tensile strength (MPa)
50
40
30
20

y = 37.366x + 18.337
R² = 0.8812

40.4354

34.89

10

5

0.435435.20

Ave

0.456835.40600.00000.20000.40000.60000.8000Figure 15: Correlation between ratio of reticular layer and the tensile strength(Ethiopian sheep leather 0.7mm)
South Africa 0.4mm
Ratio ofTensile strength

reticular layer(MPa)

Tensile strength (MPa)
25
20

1

0.233912.42

20.397112.95

30.2173

12.38

10

4

0.2041

10.23

5

5

0.541519.36

Ave

0.318813.46800.000015

y = 21.325x + 6.6699
R² = 0.8227
0.20000.40000.6000Figure 16: Correlation between ratio of reticular layer and the tensile strength(South African sheep leather 0.4 mm)
South Africa 0.7mm
Ratio ofTensile strength

reticular layer(MPa)

Tensile strength (MPa)
35
30

1

0.5341

30.35

25

2

0.4230

24.26

20

3

0.4643

24.79

15

4

0.532328.59

50.446523.47

Ave

0.480126.292y = 55.805x - 0.4973
R² = 0.8869

10
500.00000.20000.40000.6000Figure 17: Correlation between ratio of reticular layer and the tensile strength(South African sheep leather 0.7 mm)

22

150



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151