• Leather is still not a must-have, but an optional product
• Leather demand was already shrinking before ‘Liberation Day’ on April 2
• Tariffs, the war in Ukraine, the loss of consumer confidence, and the increase in uncertainty are currently determining consumer sentiment
• The prices for US raw materials are currently having to come down owing to the tariffs and are exerting corresponding price pressure on many other origins
• Pressure on prices for consumer goods made of leather will continue to increase accordingly
• The fundamentals have only deteriorated further as a result of trade policy.
• An improvement can only come from a reassessment of leather as a material.
MARKET INTELLIGENCE
The circumstances that have kept the global economy on tenterhooks since Donald Trump took office for the second time in January are having a greater impact on the situation in the leather industry than events and changes that are developing within the industry itself.
This has accelerated again since April 9 with the imposition of new tariff levels by the US. This means we are now having to focus more on macroeconomics and international politics than on developments along the leather supply chain. In fact, not much has actually changed in the basic parameters of the leather supply chain since the beginning of January. There is still not enough demand to keep all leather factories busy.
We celebrated World Leather Day on April 26. Of course, any activity that endeavours to improve the image of leather and revive understanding for the material is praiseworthy. But if you use the search engines to look up World Leather Day 2025, you will realise that even after several years, it is still an event for the industry itself.
One more general comment. At the moment, the European Commission is boasting about its adaptation to the EUDR and claims that the change will achieve a 30% reduction in bureaucracy costs for those affected in the EU. Of course, these are once again grand announcements and headlines intended to cover up failure in the matter. A poorly crafted law will not be improved by making a few cosmetic changes and then claiming that these will cut red tape by 30%.
As far as the leather industry is concerned, we
can only refer to a letter from a large number of associations, which was addressed to Commission president, Ursula von der Leyen, at the beginning of April. The problem with the deforestation regulation lies essentially in the fact that a basically good intention is implemented completely free of any expertise. Anyone who has taken a closer look at the facts will realise that the wishes, ideologies and arguments of NGOs can be found throughout the text of the regulation, which is probably due to the fact that the origin and the time of this regulation were still shaped by a social mainstream that was more concerned with ideology than with objective facts.
The core statements in the letter to Ursula von der Leyen regarding the leather supply chain deserve support. The Commission should remove hides, skins and leather from the scope of the regulation on the basis that they are not a driver of deforestation. It should remove sheepskin and goatskin products from any list of products for consideration for inclusion during the review process.
It is also explained in detail in the letter that this is not just about the economic interests of an industry. It is also the case that including these products in the first place was nonsensical. We don’t need to go into the details again, but one of the main problems with the regulation is simply that different products and regions have been mixed together in a common regulatory cocktail, which is neither correct nor applicable for large parts of the leather supply chain.
However, anyone familiar with EU bureaucracy will know that, in the best of all cases, further cosmetic corrections can possibly be expected. Of course, it would be a miracle if
PLATFORMS
TUESDAY, APRIL 29 2025
the leather industry were exempted in the end, or even that the entire regulation could be repealed or completely redrafted.
Let us now turn to the effects of current US trade policy. Mercantilism is nothing new and has always taken place in international trade relations. Seen in this light, the problem at the moment is not President Donald Trump’s intentions to reorganise trade relations between the US and other countries. The problem with him and his administration is that they clearly do not understand or do not want to understand the complexity of their decisions. In addition to the issue of tariffs, the main problem at the moment lies much more in the uncertainty and therefore the inability to make decisions for long supply chains. This particularly affects our industry, which can have very long supply chains from the raw material to the finished product.
At the moment, the focus is of course on the tariffs between China and the US, which have almost completely paralysed trade relations for this part of the leather supply chain. If you consider that around 30% of the cattle hides produced in the US regularly go to buyers in China, you can already see the impact this is having. If we then take the export of finished leather products from China to the US as an example, it becomes clear that large gaps in the supply of various products will appear.
This applies to furniture and to many other consumer goods. We do not want to go into analysing the impact on individual products at this point. However, it is clear that every day that there is confusion between China and the US, entire logistics chains are broken. More than three weeks have already passed and, in addition to production, the international transport chain is slowly beginning to feel the effects of the problems. More and more ships are no longer being unloaded, the planning of transport routes across the Pacific is almost impossible and there are reports from China alone that over 100 ships loaded with exports have already been stopped.
Anyone who remembers the times of covid19 will know how long it can take until a certain level of supply security is guaranteed again. The individual exemptions granted by Mr Trump for individual products are also of little help, as ships are not only loaded or unloaded because of individual products and containers. Either way, deliveries between China and the US will remain impaired for leather products for some time, which ultimately does not help the leather products business.
What solutions can be found for the problems? We can perhaps begin by noting the following. Approximately one-third, around 200,000 units, of the weekly US production of
cattle hides must either be re-valued, taking into account the tariffs in order to continue to find buyers in China, or sellers must look for new markets.
The price of cattle hides is not only influenced by the import duty on US products to China, but also by the proportion of leather products exported from China to America. Here, too, customs duties are incurred, which are also passed on proportionately to the raw material. If no agreement is reached between China and the US in the short term, new market potential will open up for countries that are burdened with significantly lower reciprocal tariffs. US consumers will still be there, even if they buy a little less. There could be many opportunities for other countries to take over the Chinese market share. You can already see this in the diversion of flows of goods and also the fact that there are some countries that are already responding to these opportunities.
Owing to the long supply chains and the associated time windows, transport logistics will
also play an important role in the decisions. In addition to the question of price, it is also crucial who, when and how much can be delivered to the US as a replacement.
However, it must also be borne in mind that individual tariffs with many countries are only suspended temporarily (for 90 days, initially, at least). Mr Trump is counting on bilateral negotiation successes, but no one knows at the moment with whom, when and to what extent these may be reached. The results of these negotiations could once again turn all assumptions and plans upside down. In any case, placing orders and receiving products in time for the winter and Christmas season will already be extremely tight.
Consumers around the world are already reacting to the uncertainty. Firstly, of course, especially in the US, where some products are being bought in advance. This is particularly noticeable for more expensive items such as cars, for which the tariffs could trigger significant price increases. Other items, on the
Excellent –Bisphenol optimized syntans to achieve high leather quality
other hand, are suffering because consumers are postponing purchases that are not absolutely necessary due to the uncertainty and expected price increases. If consumers expect everyday items to become more expensive in the near future, they will naturally postpone other purchases for the time being. As is so often the case, this also applies to leather products. All of these factors have a direct impact on consumption in the US and are therefore particularly important for those whose share of sales to and from that market is significant.
In addition to these facts, which are initially directly attributable to customs policy, we are also dealing with a number of other developments. These include, of course, the business development of luxury brands. Leather products play an important role for many of the large groups. Most recently, Kering reported a significant drop in sales for the first quarter of 2025 and the outlook for the coming quarters does not appear to be much better at the moment. Of the really big brands, only Hermès is actually able to escape the negative trend. There are also a few other smaller market players, but they do not play a significant role in the overall context of volumes.
In addition to general consumer sentiment, there is another, not insignificant problem on the horizon. At the moment, there is an increasing number of videos on Chinese social platforms questioning the value and price of imported luxury leather products and demonstrating that you could get equivalent products ‘Made in China’ for a fraction of the price. Although this is of course ‘propaganda’, its effectiveness should not be underestimated. If they disappear as quickly as they came, then it was just a shooting star. But if the idea catches on with consumers, it could very quickly become a problem.
Developments in the automotive industry on the Chinese market should serve as a warning example here. If the willingness to pay for ‘brand’ and ‘image’ decreases in China and people orientate themselves more towards value for money, this would pose a major problem for a large number of brands that are not icons. As a consequence, of course, this would also affect production and manufacturing in Europe.
Volatility in the financial markets has increased significantly. So far, the stock markets have still managed to recover from setbacks, but here too the clock is ticking. If there is no renewed reliability, then the profit forecasts of many companies will be impossible to maintain. The question of whether confidence in the US economy, and therefore also confidence in the US dollar, has been permanently shaken also remains to be answered. The US dollar has already lost 10% against many currencies and this is mainly due to the loss of confidence. Let us not forget that US dollar interest rates have risen at the same time, which makes the depreciation of the US dollar even more remarkable and the loss of confidence even greater.
So, let us summarise. Leather is still not a must-have, but an optional product.
Actual Slaughter Under Federal Inspection
demand was already shrinking before ‘Liberation Day’ on April 2. Tariffs, the war in Ukraine, the loss of consumer confidence, and the increase in uncertainty are currently determining consumer sentiment.
The prices for US raw materials are currently having to come down owing to the tariffs and are exerting corresponding price pressure on many other origins. The pressure on prices for consumer goods made of leather will continue to increase accordingly. Seasonally, we are currently entering the weak production quarters.
In our assessment, the fundamentals are therefore just as difficult and have only deteriorated further as a result of trade policy. Again an improvement can only come from a reassessment of leather as a material.
The market for leather from split is synchronised with the overall market. The influence of sales in the US has a correspondingly negative impact here. In Europe, the market for lime splits remains stable and firm because the supply from the leather industry remains small. However, this is less of a problem in terms of supply, as falling raw hide prices mean that more and more collagen is available from full hides for production today. The balance in the market for splits is likely to be severely disrupted again in the coming months owing to the potential global impact on leather production. If, for example, production in the Chinese leather industry were to fall further, this would of course also have a significant impact on the local split market too. We will be monitoring this closely over the coming weeks and months.
We do not yet see any major changes in sheepskin products. The niches and speciality products have not yet been affected by the general trend. However, we will probably see a shift in production from China here too. The market shares of Chinese producers in the US are extremely high for many finished products, which means that the pressure to relocate quickly is probably even greater than for cattle hide products. The season also plays an important role here, which is why quick and short-term decisions are probably even more important.
Finalised forecasts for the near future are not possible at the moment. The news situation changes on a daily basis and a lot can happen between the time this publication is written and published. However, this will probably only have a short-term effect on sentiment. In principle, the effect can only materialise after a long delay, because every day that passes causes too much damage in such a long supply
chain such as this one.
The industry is creative and will not let the current problems get it down. Overall, however, there will probably be more damage and losses for the time being.
US PERSPECTIVE
Sales of cured cattle hides for the period ending April17 were 184,600 pieces. The
figure for exports of wet blue was 222,500 pieces.
The most recent reports on hide prices showed falls, with Colorado-branded steers weighing 63-65 pounds down in price at $12 each, and heavy Texas steers weighing 60-62 also down at, again, $12 per piece.
Cow hide prices were still $12.50 for northern dairy cows, $12 for south-west dairy cows, $6 for northern branded cows and $5.50 for south-west branded cows, with weights of 50-52 pounds in each case.
The source of all these figures is the US Department of Agriculture. Please note that the prices quoted represent ‘ballpark’ figures.
Cattle markets USA
Fed prices are continuing to rise. Gains this past week are expected again this week as prices test the $220 area. This past week sales in the south were at $212-$213, with northern sales mainly at $215-$218 live. Dressed sales
were mostly $340. Fed supplies are tight and the conditions are favourable for short supplies to remain.
The balance between fed supplies and reduced processing volumes seem to have found a level. That level is far short of 600,000 head and is likely to place weeks of 600,000 head in the distant past. Even if demand improved, packers would likely give up all of the improved margin gained from higher box prices to cattle owners as they struggle to contain input costs.
The drought monitor continues to favour herd expansion. April rains have been generous across the plains. Computer modelling of weather patterns are done by several services and as AI programs interpret the data, those models will compete for accuracy and overall accuracy will improve. AI use in forecasting will push 5-10 day models to the level of current 1-5 and longer term forecasts will continue to improve.
Grain Futures. China announced it will not
need to buy any US crops this year. This sent grain prices downward. Trade policies are critical to our domestic crop production.
It is not unusual for corn futures to develop a two-track pricing in the spring and summer. Old-crop corn follows one track, and new-crop another. Rain patterns will influence the new crop prices while old crop pricing tends to follow government stock reports and farmer releases of grain from the bins. More farm storage makes it more difficult to ascertain on farm storage. Crop planting is in progress and reports of acreage and rainfall will begin to influence the prices of the new crop. Corn basis levels in Guymon, Oklahoma, are at $0.90, basis the May contract.
GERMAN PERSPECTIVE
This week: Our markets continue to be dominated by the general chaos surrounding the tariffs. The financial markets are reacting from day to day to the changing news
situation. There are currently many announcements, but nothing of substance has really changed in the last week.
Tariffs between China and the US are still active and possible adjustments have not yet gone beyond the announcements. It is in the nature of active international trade that, despite all the complaints and public media reports, companies are looking for solutions. In this case, a solution means looking for ways around the tariffs, and that can only mean rerouting the supply chain via countries that are subject to significantly lower tariffs. It may also be a not entirely unproblematic approach, as no one knows how the dispute between China and the US will develop and whether circumventions will suddenly become unattractive again.
In principle, however, it is still the case that there are the same number of consumers worldwide and despite all the immediate, major problems, it is still only a question of how many leather products will be bought in the coming months. If the demand is there, then there is a way to manufacture the product and get it to the buyer. Other materials are no different at the moment and therefore the competitive situation is no different to the situation before April 2, Liberation Day. It’s just a question of how strongly those involved in the chain are affected and how resistant they are to the short-term, negative influences.
Prices in the US are beginning to take account of the tariffs for China, the corresponding price adjustments are slowly taking place and are also being reflected in other markets. Wherever raw materials are interchangeable, it is only a matter of time before this will also become noticeable for hides from other regions. For us, the reactions in the Chinese market are still more of a theoretical nature at the moment; we are still unable to make any new sales in China. Even though Germany is internationally recognised as being free of foot and mouth disease again, the Chinese have not yet reopened imports for our hides.
In terms of sales, this week has also been rather quiet. Buyers in Europe are still waiting and there is currently no immediate need for action due to existing contracts. Internationally, there is no denying that the Indian subcontinent is becoming increasingly important. This also began before April 2, but the momentum is now continuing to increase. This is particularly noticeable in the footwear sector, and if the right goods can be made available to shoe manufacturers, new opportunities and sales channels are certainly opened. The price pressure from America has not yet fully reached us and therefore prices, if you wish to sell, have weakened slightly. The big truth for the market will probably not be known until the beginning of next month.
The kill: The kill is significantly lower than in the first quarter. This certainly has to do with the Easter holiday (April 20), but on the one hand the supply of cattle is relatively small and on the other hand the public holidays also play a role. Volumes will also be
Ox/heifers
LATEST HIDE AND SKIN PRICES FROM GERMANY
reduced again next week, as the public holiday on Thursday, May 1, will cut production by more than just one day.
What we expect: We continue to believe that forecasts at the moment are like rolling dice. The situation is difficult in the short term, sentiment is depressed and it is still completely unclear who will use which solutions. At the moment, the mood is being pushed around on a daily basis by the events and news of the day, and this is likely to remain the case until a certain level of confidence in the political situation perhaps emerges again at some point. The negotiations on a ceasefire in the war in Ukraine are probably just as important as the erratic decisions on trade policy by the US president. Under the current conditions, we maintain that there is a need for adjustment in individual main categories, and in our opinion this is more likely to be downwards. The defence of stability could become a challenge.
LONG READ
Leather
and the Circular
Economy: Circular Stories Fix up, look sharp
Fashion brands must find new ways to strengthen customer relationships while meeting growing environmental expectations, and one of the keys to this is to offer repair services, according to a white paper published by software platform Circulo. In ‘Repair as a sustainability cornerstone: Building business value through product care’, the authors cite a UK Fashion and Textile Association study that shows while 61% of executives believe their customers are more loyal than before the pandemic, only 20% of consumers agree. These figures, they say, show that businesses need to find ways to build those bonds, and connecting customers with repairers in a seamless fashion is a first step.
“When we talk about customer relationships, the conversation often centres on marketing and sales,” says Circulo cofounder Emily Rae. “But here’s a striking reality: brands are missing crucial touch-points when customers seek repairs elsewhere, losing both the emotional connection and valuable data that could improve future products.”
Circulo was launched using the knowledge the founders, Ms Rae and Vanessa Jacobs, built in their previous business, The Restory, which connected repairers to brands and customers in the UK. They used “high levels of customer service, a love of craftsmanship and a passion for sustainability” to build a company “to whom the world’s leading brands could entrust their most important relationships”. The Restory partnered high-end footwear labels Manolo Blahnik and Nicholas Kirkwood as well as online retailer Farfetch to enable them to physically connect to people who had the skills to repair bags, clothes and shoes. However, the company went into liquidation after “changes” led the co-
Mulberry: 10,000 repairs per year
The UKFT report that formed the basis of Circulo’s white paper highlights the progress Mulberry has made with its Made to Last Manifesto, launched in 2021. The team at The Rookery, Mulberry’s flagship Somerset factory, is home to some of its most highly skilled artisans. They renew and repair over 10,000 bags a year and they maintain an archive of materials and hardware that goes back over 35 years. In recognition of this approach, Mulberry achieved B Corp Certification in August 2024, joining a global community of like-minded organisations focused on transparency and accountability.
The company has also launched a Buy Back Programme, where Mulberry bags are authenticated and appraised, with the opportunity to put this value towards a new purchase. The suite of services is now available online as well as in its UK stores, where customers can make an appointment for an appraisal, or discover its exchange collection.
founders to walk away in 2023; the company had external investment in 2022.
Digital foot forward
One year later, the pair launched Circulo alongside software developer Karm Khanna and Vipaasha Sheel, a former colleague. Circulo is a software-as-a-service (SaaS) solution that enables brands, retailers, repair providers and repair- focused start-ups to
Leather is a global business. Leather is a global business.
More than 95% of US hides are than 95% of US hides are exported, with value added across with value added across the globe. A strong leather the A strong leather industry bene昀ts us all. bene昀ts us all.
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build and manage repair businesses. “We are here to make repair profitable, scalable and seamless with smart software,” explains Ms Jacobs.
The founders identified a barrier to scaling repair is the absence of technology to address the demands of repair processes. Brands and businesses usually rely on manual ticketing processes or legacy systems that become out of date and inefficient, they say. This new platform allows users to create a customerfacing portal through their website or instore; automate courier bookings, shipping labels and logistics communications; and access dashboards to provide visibility on orders and performance metrics. It can also provide quotes based on digital assessments of goods or facilitate bespoke quotes based on physical assessments.
Research findings
In the new white paper, Circulo quotes research from consultancy Deloitte that found 75% of consumers would consider using repair services, and that 56% had repaired items instead of replacing them in the past year. It also found two-thirds of consumers take a product’s reparability or durability into consideration before making a purchase and 54% say they are more likely to trust refurbished goods from leading brands. “When brands don’t offer repair services, customers often seek independent repair options, resulting in missed opportunities to deepen emotional connections, enhance loyalty and capture valuable first-party customer, product and repair data,” says Ms Rae.
And our data-driven Life Cycle Assessment
And our data-driven Life Assessment ensures leather is the most transparently ensures leather is the most studied natural material countering studied natural material, misinformation from oil-derived rivals ‘rivals’.
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She adds they were repeatedly told it is impossible to scale repair services when they launched the Restory in 2017 but now the landscape has transformed dramatically. “Curry’s now operates one of Europe's largest repair operations with 1,000 repair experts under one roof. Luxury pioneers like Chanel have dedicated repair ateliers in London, Apple's iPhone 16 is the most repairable yet, and shoe brand Veja has a repair destination in Paris,” she says.
She also comments companies with effective service solutions see 6% revenue growth, customers are twice as likely to increase purchases when they feel heard, 82% of customers want help reducing time spent researching services, and 91% of executives know their loyalty programmes need better benefits. As incoming regulations will force
brands to take more accountability for endof-life for their products, the need to keep goods in circulation – with leather lending itself perfectly to this – will only increase. “The data is clear: consumers want to maintain relationships with brands through repair, but they need the right infrastructure and experience to do it.”
NEWS ROUND-UP
Denizli: a move that has not worked
Aninitiative to relocate tanneries in the Aegean region of Turkey appears not to have been successful.
For years, the city of Denizli enjoyed a reputation as an important centre of production of vegetable-tanned soling leather. Around 60 soling leather manufacturers were operating in Denizli in the early part of the century.
Three years ago, the city authorities launched a project to relocate these tanneries to a new, purpose-built industrial zone near Kakilik, 30 kilometres east of Denizli.
However, industry commentators have said that, at the last count, only five tanneries had completed the move and were now operating in Kakilik, sparking fears of the demise of soling leather production in Turkey.
Q1 results confirm difficult start to 2025 for Kering
Paris-based luxury group Kering has reported first-quarter revenues of nearly ¤3.9 billion. This represents a decline of 14% compared to the same quarter last year.
Its main brand, Gucci, saw revenues fall by 24% to reach ¤1.6 billion. At Yves Saint Laurent, the fall was less steep, with revenues reducing by 8% to reach ¤679 million.
At Bottega Veneta, however, growth continued. The group said the Italian leathergoods brand’s “cultural resonance and desirability” helped it increase revenues by 4% to reach ¤405 million.
Group chief executive, François-Henri Pinault, said he had been anticipating “a difficult start to the year”, but insisted the group would emerge from “the macroeconomic headwinds our industry faces” in a stronger position.
Actions Kering took during the first quarter included reducing its store-count by 25. It now has 1,788 stores around the world.
Puma collaboration features Charles F Stead suede
Puma has released a new version of its Suede footwear, using materials supplied by UK tannery Charles F. Stead.
Based in Leeds and founded in 1904, Charles F. Stead is known for its work with high-grade suede. The company’s materials feature in six variations of the updated Puma Suede, a style that first appeared in 1968 and has been reissued in many forms over the decades.
The latest version includes colourways such
as black, natural, baby blue, royal blue, pink and caramel. Each pair includes a suede hang tag bearing the Charles F. Stead name.
Puma said the suede was selected for its soft texture and the quality of the tanning process used by the Leeds tannery.
The Puma x Charles F. Stead Suede collection will be available from April 25 through Puma’s website, its flagship stores, and selected retailers.
Shoe brands fall foul of Turkey’s advertising authorities
Theadvertising authorities in Turkey have announced fines for two footwear brands for putting shoes containing pigskin on sale in the country without notifying consumers.
On April 21, Reklam Kurulu, an advertising monitoring body connected to Turkey’s ministry of trade, announced a fine of around $45,000 for New Balance, and one of around $22,000 for Vans. It also told Camper that it had to stop advertising several of its models in Turkey.
QUAKER COLOR
A STEP AHEAD IN AUTOMOTIVE FINISHING
Reklam Kurulu said all three brands had made shoes available to consumers in Turkey without clear enough information about their composition. Turkey is a country with a large Muslim majority.
New leather workshop announced by Hermès Hermès has announced the opening of a new leather workshop in Colombelles (Calvados, Normandy), which will create 260 artisan jobs.
This marks the establishment of the brand’s tenth regional artisanal hub by 2028, continuing its commitment to increasing its production capacity in France.
The new Maroquinerie de Colombelles workshop will support Hermès’ leather goods and saddlery collections, reinforcing its artisanal model focused on quality, durability, and innovation.
The workshop joins three other sites currently under development in L’Isled’Espagnac (Charente), Loupes (Gironde), and
Supplying innovative finishes to the automotive industry for over six decades
Quaker Color is a division of McAdoo & Allen, with roots in the leather industry for over a century
Charleville-Mézières (Ardennes). It will become Hermès’ twenty-seventh leather goods workshop in France since 2010.
Hermès continues to focus on local employment, collaborating with the Caen-laMer urban community, Normandie Aménagement, and the Colombelles town council. Recruitment efforts will be supported by the École Hermès des savoir-faire, the France Travail employment service, and various local partners.
The workshop will also provide training opportunities through the École Hermès des savoir-faire, which is recognised as an apprenticeship training centre by the French Ministry of Education. The initiative highlights Hermès’ dedication to education, sustainable development, and contributing to regional growth while transforming a former industrial site into a modern, responsible workspace.
Operating profit falls in 2024 for Valentino
Italian fashion house Valentino announced a 22% fall in operating profit for 2024, citing
weaker global demand for luxury goods, particularly in Asia, as reported by Reuters.
The company said profit declined to ¤246 million ($280 million), also impacted by oneoff costs and continued investment in its directly-managed stores.
Revenue fell 2% at constant exchange rates to ¤1.31 billion, despite growth in Japan, the Middle East, and the Americas. Online sales rose 5%, in line with Valentino's strategy to expand its e-commerce business.
Chief executive Jacopo Venturini noted that the appointment of Alessandro Michele as creative director marked a significant shift for the brand. Michele, formerly of Gucci, joined in March 2024 after Pierpaolo Piccioli’s departure.
In 2023, Kering acquired a 30% stake in Valentino, with the option to purchase full ownership by 2028.
New LVMH role for Jonathan Anderson as Dior door opens
Luxury group LVMH has confirmed that Irish designer Jonathan Anderson has taken up
the role of artistic director at its Christian Dior brand.
Mr Anderson stepped down as creative director of the group’s Loewe brand in March, a role he had held for 12 years.
Simplifications will reduce cost of EUDR burden by 30%, Commission says
The European Commission claims to have simplified “the administrative burden” that operators and traders will face when the EU Deforestation Regulation starts to come into force at the end of this year.
In mid-April, the Commission published new guidance documents that it said contained “clarifications and simplifications” of the requirements, with updates to its guidance and to the important set of frequently asked questions (FAQs) relating to EUDR. It explained that these changes reflected input from member states, partner countries, businesses and industry.
It said these additions would “provide companies, EU member states’ authorities and partner countries with additional simplified measures and clarifications on how to demonstrate that their products are deforestation-free”.
The European Commission has calculated that these new measures will lead to a 30% reduction in the administrative cost and burden for companies. “This will ensure a simple, fair and cost-efficient implementation of this key piece of legislation,” it added.
Simplification measures include companies now being allowed to submit due diligence statements annually, instead of for every shipment or batch of products they place on the EU market.
Also, large companies downstream will be able to use the reference numbers of due diligence statements collected from their upstream suppliers for use in their own submissions.
The
plan at Hermès
is still working well
Luxury
leathergoods group Hermès has reported first-quarter revenues of more than ¤4.1 billion, an increase of 8.5% compared to the same quarter last year.
It achieved growth in all markets. Revenues in Asia were up by 5.1% to reach almost ¤2.4 billion. The figure for Europe was ¤857 million, up by 13.3%, while revenues in the Americas reached ¤695 million, also up by 13.3%.
It said the remaining ¤185 million had come from other markets, but placed particular emphasis on the market in the Middle East for this, giving growth there of 16.8% year on year.
Its leathergoods and saddlery division achieved sales revenues of ¤1.8 billion in the first quarter, growth of 11.4%. For its secondlargest category, ready-to-wear and accessories, which includes shoes, gloves and small leathergoods, it reported a figure of more than ¤1.1 billion, up by 8.3%.
Executive chairman, Axel Dumas, said Hermès was “strengthening its fundamentals
more than ever”, in a complex geopolitical and economic context. Explaining what these fundamentals are, he listed “uncompromising quality, creativity at the heart of all development, vertical integration, and a guarantee of preserving unique savoir-faire”.
He said Hermès customers trust the company and that its employees are committed to continuing their good work.
The company described the performance of its leathergoods and saddlery division as robust, driven by “sustained demand and the enrichment of collections”. Examples it gave of success new products included its Médor and Mousqueton bag models.
It pointed out that its efforts to increase its production capacity in France were ongoing and were paying off. A new leathergoods workshop will open this year at L’Isle d’Espagnac, another will open next year at Loupes and another the year after at Charleville-Mézières.
Developing and training new generations of artisan leathergoods craftspeople in France will keep Hermès anchored to its home country, the company said.
Modest growth across brands for Piquadro
Italian leathergoods group Piquadro reported consolidated revenue of ¤183.6 million for the 2024/25 financial year, an increase of 1.9% compared to the previous year.
Of the group’s three brands, Maison Lancel recorded the highest growth, with revenue rising 6.5% to ¤68.8 million. The Bridge generated ¤35.1 million, up 2.9%, while the Piquadro brand declined by 2.3% to ¤79.6 million.
Domestic sales in Italy accounted for ¤84.3 million, representing 45.9% of total revenue. Revenue from other European markets reached ¤93.4 million, up 7.4% year-on-year and making up 50.9% of the total. Sales outside Europe totalled ¤5.9 million.
For the fourth quarter ending March 31, 2025, Piquadro reported revenue of ¤49 million, a year-on-year increase of 0.4%.
European Union cattle population down
The official statistics office of the European Union, Eurostat, has published figures that put the European Union’s cattle population at the start of this year at 72.2 million head.
It said this figure was down by 2.3% from the total at the start of the previous year, meaning the 27-state European Union lost 1.7 million head of cattle in the course of 2024.
Commentators have pointed out that dry conditions in many parts of Europe over a prolonged period in 2022 and 2023 is one of the main factors in cattle herds reducing in size.
Bader – driving in style
Automotive group Mercedes-Benz marked Bernhard Langer’s final appearance at the Masters Tournament with a customised SClass, featuring an interior finished in crystalwhite fine nappa leather by Bader.
The vehicle, produced through the Manufaktur programme at the Sindelfingen facility, included 2,800 embroidered stitches forming Masters logos and Langer’s signature.
The design acknowledged Langer’s 40-year presence at Augusta and his two tournament victories.
Exhibition sows seeds of inspiration in Italian students
Theexhibition ‘Amici per la Pelle’ has begun its tour of schools in Italy, with the aim of inspiring students to work in the leather sector.
It began at the Banti middle school in Santa Croce sull’Arno, with the launch event attended by representatives of the tanners’ association.
The town’s mayor, Roberto Giannoni, commented that many students, inspired by the project in previous years, had sought work within the sector.
The exhibition then moved to the Leonardo da Vinci Institute in Castelfranco di Sotto.
In the coming weeks, it will head to schools
in Ponte a Egola, Fucecchio and Santa Maria a Monte.
Bentley employs AI to detect hide defects
Bentley Motors has invested in a hide inspection system that uses AI and cameras to detect tiny imperfections, reducing waste and optimising leather usage.
Around nine hides are required for a luxury Bentayga SUV interior but insect bites, holes and scars can affect trim quality, it said.
The program works alongside existing cutting processes to optimise leather use for over 200 trim parts per car. Bentley claims the strategy can reduce emissions, equal to 135.7 kg CO2 per car.
Andreas Lehe, member of the board for manufacturing at Bentley, said: “Hide Inspection showcases how cutting-edge innovation and Bentley’s traditional craftsmanship techniques can co-exist side-byside.
“It is just one of many industry-first innovations at our Dream Factory in Crewe,
makes it natural
where all Bentley models are built. Our Beyond100+ strategy will see the company reinvent its entire product range to support a more sustainable, electrified future.
“That includes Bentley’s new digital, zero environmental impact manufacturing and quality facility, as well as the development of our first BEV (battery electric vehicle).”
Stellantis backs Maserati amid slump and tariff pressure
Stellantis remains committed to its struggling luxury brand Maserati, despite declining sales and new U.S. tariffs adding pressure to the automotive sector, Reuters has reported.
Maserati CEO Santo Ficili said in a letter to the Uilm Union that the brand continues to be a priority for the group, even as it faces “fresh uncertainties” from tariffs and volatile global markets. The comments came in response to union concerns over Maserati’s future.
In 2024, Maserati’s output fell by more than
half to 11,300 vehicles, with a ¤260 million ($295.83 million) operating loss.
Stellantis has hired consultancy group McKinsey to advise on the impact of tariffs for Maserati and Alfa Romeo, both of which are currently reviewing future plans.
Maserati’s current lineup includes the GranTurismo, GranCabrio, Grecale SUV, and the low-volume MC20. No new models are scheduled, with its business plan on hold since last year.
‘Good resilience’ for leathergoods at LVMH in Q1
Luxury group LVMH has reported revenues of ¤20.3 billion for the first quarter of 2025, a fall of 2% year on year.
Its leathergoods division contributed ¤10.1 billion, down by 4% compared to the first quarter of last year.
LVMH said this division had shown “good resilience” with respect to the first quarter of 2024.
www.aplf.com
ASIA
China is an inspiration, Bentley CEO says
High-end automotive brand Bentley Motors remains optimistic about growth in China. Its chief executive, Dr Frank-Steffen Walliser (pictured), was present at the Auto Shanghai 2025 event and said in a press conference on April 23 that the company was “excited and motivated” by the future opportunities that the Chinese market offers.
“Our China customers and the luxury market here continue to inspire and push us to explore new boundaries,” he said.
His comments came at a time when trade tensions between China and the US show little sign of easing.
The White House said on April 23 that the US would consider lowering tariffs on imports of goods from China in a bid to de-escalate the tension. As things stand, products entering the US from China are subject to tariff rates of 145%. In response, China has imposed tariffs of 125% on goods entering its market from the US.
Both markets matter greatly to UK-based Bentley Motors. In the most recent market figures the company has confirmed, which were for the first half of 2024, sales in the Americas and in China amounted to 3,577 vehicles.
This means these two markets together provided Bentley with 54% of its total vehicle sales.
Collagen and Leather journal gains international indexing
The journal Collagen and Leather, cosponsored by Sichuan University and the China Leather Association, has been indexed in the Emerging Sources Citation Index (ESCI) and the Engineering Index (EI) in 2024.
This recognition places the journal among a select group of publications in the leather sector acknowledged for academic rigour and research quality. It is expected to receive its first Journal Citation Reports (JCR) Impact Factor in June 2025, with an estimated score between 8.5 and 9.0.
According to the International Union of Leather Technologists and Chemists Societies (IULTCS), the inclusion highlights growing global interest in leather research, particularly in areas such as sustainability and material innovation.
Managing editor Ms Qixian Zhang said the journal aims to support global exchange and the advancement of leather science. IULTCS president Dr Joan Carles Castell congratulated the editorial team, calling the recognition a milestone for the industry.
China’s footwear exports down, but leather shoes fare better
Major footwear companies in China exported 1.5 billion pairs of shoes of all kinds in the first two months of 2025, bringing in export revenues of more than $7 billion.
The China Leather Industry Association said
these figures represented a fall of 6.7% in volume, and of 18.3% in value year on year.
There were less severe declines for manufacturers of leather shoes. These companies exported 90 million pairs in January and February, 2025, down by 2% compared to the same months the year before. These shipments brought in export revenues of $1.25 billion, a fall of 6.1% year on year.
Footwear imports into China were also down at the start of 2025. Importers brought in 30 million pairs, a fall of 13.8%. These had a value of $880 million, down by 14.7% year on year.
Chinese imports of raw, semifinished and finished hides up in volume
In the first two months of 2025, China’s tanners sourced 233,000 tonnes of raw hides and skins from other countries. They invested around $200 million.
The China Leather Industry Association (CLIA) has calculated that these figures represent an increase of 2.6% in volume, but a fall of 6.6% in value.
In the same two months, January and February 2025, China’s tanning sector brought 113,000 tonnes of semi-finished hides and skins into the country, paying $160 million.
According to CLIA, this shows an increase of almost 38% year on year in the volume of imports of semi-finished leather for these months, and a rise of 6.6% in value.
Chinese companies also imported 6,000 tonnes of finished leather in the first two months, with a value of $90 million, up by 3.8% in volume, but down by 7.6% in value.
Volumes up, values down at Stella International Footwear
group Stella International shipped 12.1 million pairs of shoes in the first quarter of 2025, an increase of 3.4% year on year.
However, the Hong Kong-based group’s revenues for the quarter fell by 1.8% to reach $320.5 million.
Its average selling price was down by 5% to $26.40 per pair.
Stella’s chairman, Lawrence Chen, said production facilities in which the group makes non-sports shoes are operating “at close to full utilisation”. He said new production facilities in Bangladesh and Indonesia would help it drive growth in quality.
China appoints new chief trade negotiator
With no sign of any rapprochement between China and the US in the global trade disputes at which they are the central antagonists, China has appointed a new chief trade negotiator.
Its ambassador to the World Trade Organization (WTO), Li Chenggang (pictured), is to step into the new role.
A former assistant minister at China’s ministry of commerce, Mr Li moved to Geneva
to become its ambassador to the WTO in 2021.
One of his last actions in his role at the WTO was to initiate on April 8 formal dispute consultations over the additional tariffs the US has sought to impose.
Altagamma prepares to celebrate Made in Italy at Osaka 2025
Luxury industry representative body
Altagamma has said it took “a testament to the value of Italy’s high-end craftsmanship, design and creativity” to Expo 2025 in Osaka. The world exhibition opened in the Japanese city on April 13 and will run until October 13.
Altagamma set up an installation of its own inside the Italy pavilion and the organisation said it would use its presence there as the venue for a celebration of National Made in Italy Day on April 15.
This will be the second year in which Italy has celebrate a day dedicated to the craftsmanship and artisan skills that companies use to make products on Italian soil.
President of Altagamma, Matteo Lunelli, said the presentation in Osaka would tell the story of Italian know-how through videos of workers in different parts of Italy “giving life to the beauty of our creations and the success of our enterprises”.
The special installation, the Altagamma Icosahedron, is a geometric structure built from walnut wood, inspired by the famous polyhedron designed by Leonardo da Vinci and drawn by Luca Pacioli. It consists of 20 triangles.
Leathergoods brands taking part include Bottega Veneta, Gucci, Prada, Dolce & Gabbana, Fendi, Ferragamo, Tod’s, Valentino, Sergio Rossi and Versace.
AMERICAS
Strong Q1 for Skechers, but uncertainty follows
Sports footwear group Skechers reported record sales of $2.41 billion for Q1 2025, a 7.1% year-over-year increase.
On a constant-currency basis, sales rose 9.0%. Wholesale sales grew 7.8%, while Direct-to-Consumer (DTC) sales increased by 6.0%. International sales were up 7.2%, with Europe, the Middle East and Africa (EMEA) posting a 14% rise, while Asia-Pacific (APAC) saw a decline of 3%. Domestic sales grew 6.9%.
Chief operating officer David Weinberg highlighted strong global demand across wholesale and DTC channels, with international markets accounting for 65% of total sales. The company continues to focus on growth opportunities in China, despite a slight decline in APAC sales overall.
Skechers’ Q1 gross margin stood at 52.0%, down 50 basis points, with operating expenses rising by 12.1%. Net earnings reached $202.4 million, slightly down from $206.6 million last year. The company also reported a decrease in cash holdings to $1.24 billion and a 7.6% drop in inventory.
Due to ongoing global trade uncertainties, Skechers has withdrawn its annual 2025 financial guidance.
New York listing moves closer for JBS
Meatpacker
and tannery owner JBS, is moving closer to securing a primary listing on the New York Stock Exchange, according to a filing with the U.S. Securities and Exchange Commission.
Reuters reported the dual listing would allow JBS shares to trade in both the U.S. and Brazil, broadening its investor base and potentially boosting its valuation.
The company said its board may meet around April 22 to call a shareholder meeting, tentatively set for May 23. If approved and the SEC clears its Form F-4 registration, trading in New York could begin as early as June 12.
JBS noted the timeline remains subject to regulatory approval. Last month, key shareholder BNDESPar said it would abstain from voting on the listing, easing concerns over potential opposition.
Rebranding exercise complete at PrimeAsia
Leather manufacturing group PrimeAsia has completed a rebranding exercise. It has created a new visual identity that it says “aligns with the momentum and innovation driving our business today”.
The group has tanneries in Dongguan in China and in Ba Ria-Vung Tau in Vietnam, and offices in Taiwan and the US, and representatives in Indonesia, Cambodia, India, the UK and Thailand.
It explained that the leather industry is undergoing a transformation at the moment, with new competitors, shifting consumer expectations and “a rapidly evolving sustainability landscape”.
It said this combination demands that brands “lead the charge” and that its aim is to show its willingness to meet this demand through the rebranding exercise.
Chief executive, Jon Clark, said: “This rebranding represents our promise. A promise to our customers, to our partners, and to ourselves, to push boundaries, embrace new opportunities and always stay ahead of the curve.”
Swathe of appointments at USDA
The US Department of Agriculture has announced 24 senior appointments, “selected to implement President Trump’s America First agenda”.
The appointments include Bailey Archey as policy advisor for marketing and regulatory programmes; Kelsey Barnes as senior advisor to the Secretary for Rural Development; and Bill Beam as administrator for the Farm Service Agency.
Aubrey Bettencourt has been named chief of the Natural Resource Conservation Service; Jordan Bonfitto appointed as chief of staff for marketing and regulatory programmes; and Trey Forsyth will serve as chief of staff for food safety.
Last month, Secretary of Agriculture Brooke Rollins announced a review of federal funding in California to “ensure that students do not fall victim to a radical transgender ideology”.
AFRICA
Ethiopian leather could benefit from US tariffs, suggests business director
The head of Addis Ababa Industry Development Bureau, Paulos Kussa, has told the Ethiopia Herald that the county’s comparatively low tariff rate places its export sector in a favourable position for exporting to the US, particularly for products including leather and textiles.
He said: "This is a golden opportunity for Ethiopian exporters. The comparatively lower tariff enhances our competitiveness in the US market, especially at a time when many global suppliers are facing steeper trade barriers.”
The newspaper reported Addis Ababa’s manufacturing sector is showing signs of revival, with 207 industries exporting to international markets, and 131 new businesses.
However, the United Nations Industrial Development Organisation takes a dim view of the tariffs.
Recent estimates indicate that 450 million people work in global supply chains. A rise in protectionism in advanced countries will slow down industrialisation efforts and impede poverty reduction by limiting job creation and economic opportunities, it said.
UNIDO director general Gerd Müller said: “Rather than erecting barriers to industrial trade, a fairer and sustainable global economy should be the goal.
“I just returned from West Africa where our partners and I discussed the current US tariff policy measures and the worrying impact on industrial and economic development, including on key industries such as textiles and food. UNIDO continues to stand with its member states, and to support them in diversifying their economies, strengthening local and regional trade and building greater resilience to external shocks, while promoting a fair global trade, that allows developing countries and in particular least developed countries to prosper.”
Private sector key to leather revival says UNIDO
The United Nations Industrial Development Organization (UNIDO) has highlighted the need for stronger private sector involvement to revitalise Ethiopia’s leather industry and boost its global competitiveness.
LISEC UNIDO Representative and Regional Office Director Aurelia Calabrò told The Ethiopian Herald that private sector participation is crucial for accelerating the sector’s recovery and integration into global markets. She pointed to the industry’s potential for job creation and economic growth, stressing the importance of investment and collaboration.
Ms Calabrò noted that ongoing economic reforms are helping to address key challenges, including import barriers. Despite a recent drop in exports, UNIDO continues to support women-led MSMEs, providing facilities and resources to strengthen local tanneries.
UNIDO’s long-term efforts include promoting cleaner technologies, improving wastewater treatment, and enhancing productivity. The organisation is also conducting studies to support the development of eco-friendly leather parks and improve environmental compliance in the sector.
Sustainable tannin solutions now online with NTE
South African wattle specialist NTE has launched a new website that brings its Mimosa and Bondtite product ranges under a single online platform.
The updated site aims to provide easier
access to product information, application insights, and the latest company developments across various industries.
For over a century, NTE has been producing natural tannins extracted from the Acacia mearnsii tree, commonly known as the black wattle. These plant-based products serve a wide range of sectors, including leather tanning, water treatment, adhesives, animal feeds, and ore processing.
The new website highlights the company’s continued commitment to sustainability and innovation in renewable, environmentally conscious solutions.
