Two tier leather market developing
Published: 09 Oct, 2020
The economic impact upon the world by Covid-19 is very well captured within the leather industry. At theSauerReport we see that previously high-in-demand leather fashion items, such as handbags and dress shoes are just not selling. Not so long ago, the higher end of the leather world was in some sort of bubble, immune to the normal economic pressures placed upon society. Those that had money to spend on high value items would always have money to spend, despite the ups and downs of the stock markets, even during the economic crash. High-end goods still sold well. But Covid has changed all that when we look at the fashion market; now we hear stories of the fashion houses cutting back production and closing inner city stores as they try to readjust to the smaller marketplace. Turnover airport stores are a shadow of their former selves, a place where many top end leather goods were sold on the back of the customers having the feelgood holiday factor. As a result, items such as calfskins are not selling, or at reduced rates, with tanneries citing that they have enough stock, and fashion houses reporting they have enough finished leather against vastly reduced new orders. All the while, the general domestic leather trade for upholstery and automotive is very buoyant, in fact many Chinese tanners are worried that with reduced slaughters, they will struggle to find enough hides at the right price to satisfy the finished leather demands. What a turnaround in the leather world Covid-19 has made.
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