It appears that Leather is becoming just another segment which is facing the heat of global economic slowdown… as the recently concluded APLF – Materials, Manufacturing and Technology, the world’s leading leather trade show held in Hong Kong, didn’t see much order enquiries coming in.
Ron Sauer, a market analyst said that most people at APLF feel that the show is slightly quieter compared with previous editions, reflecting a subdued market in Asia and across many parts of the world. The reasons are varied and complex with reduced demand from China and Russia, high retail inventories following mild winters and the ongoing substitution of leather with non-leather materials are all having an impact on the market.
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Industry experts are of the opinion that if China does not receive orders to manufacture sub-contracted leather products/footwear from brands in developed countries then leather demand will limp further as China is the leading exporter in this section. One of the tanners informed that last year tanneries were working at full capacity to fulfil orders required by brands to which they have been selling for over a decade. But so far this year, they have not received any order from the brands.
India is too among the nations like China, Vietnam, etc. that are witnessing low demand of leather products. A recently published report states that leather exports from India are further expected to decrease by 7-8 per cent in 2015-16 due to unfavourable market conditions and global economic slowdown.
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Leather Exports Councils Regional Chairman (South) P R Aqeel Ahmed told PTI, “Normally we have 10 per cent growth. But due to the recession we expect about 7-8 per cent drop in leather exports by March 2016, compared to last year,” adding, “Leather is a focus product under the ‘Make in India’ campaign. Foreign (leather) companies have to come and invest here because there will be flow of foreign currency into India. With that as a special area, we focus on five countries, USA, Brazil, China, Germany and Italy.”
