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Leatherbiz Market Intelligence executive summary: • • • • • • •
As at previous editions, February’s Lineapelle was a reminder of all that leather can offer to the world of high-end fashion Tanners associated with successful leathergoods brands must have been very satisfied with the outcome of the fair There were some interesting new developments in sheepskins at Lineapelle Certain lambskins are in high demand, including small, fine-wool and lightweight materials Short shorn, very fine, light and densely woollen materials are also sought after for high-quality, expensive end products There is still the hope that if these products catch on with consumers, the range of consumer goods using this material could expand Attentions now turn to Hong Kong and APLF, where big questions about another part of the market, volume production, will be asked.
MARKET INTELLIGENCE
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ou were probably all very excited about the outcome of the Lineapelle fair in Milan (February 25-27), and so were we. It remains the event that deals most intensively with leather as a product. It is not a trade fair for the mass market, but it remains the epicentre of what can be done with the raw material and what diverse results can be achieved. Nowhere else is there such a complete presentation of the combination of technical properties and performance and fashionable variety, elegance and beauty. It is no coincidence that this trade fair takes place in Italy, because nowhere else is there such a close connection between the production of leather and its use, even if French names have a high profile as well. A visit to Lineapelle must be seen in this light and less from the point of view of business and sales in the mass markets. Anyone travelling to Milan with these expectations and thoughts in mind will never be disappointed, and that was also true this time. From lunchtime on the first day, the aisles and stands were relatively well filled and everyone from the established exhibitors reported an intensive first day with goodquality visitors. There was perhaps a lack of new customers, but the established customers were there and immediately used the first day for the important discussions that had to be held with their leather suppliers. Day two was the day with the highest number of visitors, from late morning to early afternoon. Before and after, the aisles were not particularly well filled, but this is less important than the question of whether you
can meet the business partners you came to Italy to meet. If positive chance meetings are added to this, then everyone will have a good impression of their trade fair visit. Day three was like at all fairs. Exhibitors still attend their stands, but the number of visitors is very manageable. In the classic definition, trade fairs are there to showcase new products and attract new customers. That was certainly also the function of leather trade fairs in the past. Today it is perhaps more about hope; new customers are more the exception today. Leather is not a growing market at the moment, there are hardly any manufacturers who previously used other materials and now want to use leather instead or in addition. Of course, there are always one or two small players who are looking for something different and special and then use the trade fair to source the materials they need. However, the big business, the big new customer, is no longer to be found at leather trade fairs these days. So, the fair is about enabling leather users to find as many suppliers and business contacts as possible in one place. For the exhibitors, the same applies the other way round: they can meet several customers in a few days. For many companies, it is also an opportunity to give employees the chance to get a better overview of the world of leather outside the office or production area. In addition, human contacts and a day or two in Milan are certainly a form of recognition of employees’ work that should not be underestimated. There have been no revolutions in the development of new types of leather for a
long time now, which is why the focus is increasingly on the evolution of most articles. Colours, feel and, sometimes, improved technical properties dominate the ranges. In Halls 13 and 15, which are particularly characterised by the Italian leather manufacturers and their international colleagues, who produce special, elegant and therefore also higher-priced leathers with higher added value, it was very easy to see how the fashionable European leather industry is doing at the moment. All you really need to know is which fashion and luxury brands are still successful worldwide at the moment, then the trail is immediately laid to the well-attended trade fair stands. Those tanners who are associated with these brands must have been very satisfied with the outcome of the trade fair, the quality of their visitors and their numbers. It is doubtful whether everything conversation at these stands centred on new orders. You do not need a trade fair for these supply chains, because they are discussed in other places. Stable relationships, which are now based on trust and quality and have proven themselves, also have no worries about orders. For others, however, the situation is worse, which is why the gap between successful and less successful companies has become wider than ever. If you then remember that new business relationships are not really being sought at the moment, things are difficult for those who are currently serving less successful customers. Of course, there are always exceptions. Without naming names, there are still individual brands that are increasingly focusing on leather and therefore need additional suppliers if their standard suppliers are unable to support their growth. When these names knock on several doors, it sometimes gives the impression that the overall interest seems better than it actually is. In recent years, the supply of raw materials has always been the least of leather manufacturers’ problems. Almost everything was available in sufficient quantities, even if there was of course an abundance of some things and only just enough of others to cover demand. The problem is that even in the specialised markets, monocultures have formed in production and in the use of raw materials. Everything should be standardised, everything should be traceable and be the same. This very quickly leads to bottlenecks for one or two items when supply declines. The raw material supplier is happy, but it can quickly become an unsolvable problem for tanners if they don’t want or are not allowed to use alternatives. There are many indications