World shoe consumption

The US is the country with the highest per capita shoe consumption in the World, since each inhabitant buys an average 6.7 pairs a year. At the other extreme, are Asian countries, where demand is 0.4 pairs in Vietnam and 0.7 pairs in India. In Europe and in the case of Hungary, the yearly demand is around 4.8 pairs/year. In absolute terms, China has the highest consumption, due to its population of more than 1.3 billion people. Last year the Chinese bought a total of 2,656 million pairs, even though on average each person only buys 2.7 pairs/year. In the Middle east, the average is 4.5 pairs in Saudi Arabia and 4.2 in Israel, while in Asia the Japanese purchase 4.5 pairs each and the South Koreans 3.4 pairs. In MERCOSUR, Argentina's average is 2.2 pairs and in Brazil 2.8 pairs. In Canada, consumption is currently 3.8 pairs per year.
European Union: import control system

The European Commission (EC) has inaugurated a checking mechanism for European footwear imports. The system's design was handled by the Portuguese Association for Footwear, Components, Leather Goods and Associated Products, together with its contemporaries from Italy and Spain, ANCI and FICE respectively. The EC Rule 177/2005 published on January 26th, has introduced a mechanism which allows for the detailed tracking of imports and in this way, is able to define more clearly and justify any measure or restriction that has to be imposed. In addition, the authorities have access to constantly updated information, and not monthly as before, on the volume and type of product coming into this trading block. The president of ANCI, Rossano Soldini, declared that, " the complete dismantling of the quota system could bring serious consequences id we do not activate defense mechanisms".
Russia-Turkey: Commercial association so as to compete

The small and medium companies from Russia and Turkey are working together in the manufacture and export of leather and textile products for the automotive industry with the aim of gaining ground on, and competing with China. Representatives from both countries have met on several occasions to fix the main guidelines of this project. The plan is for Turkish companies to benefit from Russian technological expertise and will provide new installations and areas to develop the industry. Consulting and organizational services will be shared, and Turkey will be responsible for the marketing and promotion of the finished products.
    
CIMA's President Raúl Zylberstein: "APLF is the route to world markets"

The Argentine Leather Goods Chamber, CIMA, is exhibiting at APLF Fashion Access for the fifth consecutive edition. Raul Zylberstein was elected president of CIMA on 15th November 2004 and in our last interview with him in April 2004, he stated that "APLF is the route to world markets". Leather Press asked Mr. Zylberstein to explain the basis for this commentary. According the Mr. Zylberstein, it is more efficient to participate in Hong Kong than in the many local fairs in the world. Put simply, the visitors to APLF come from all corners of the globe and not just from Asia. CIMA has received buyers from the USA, Europe and Latin America in Fashion Access and the quality of the buyers is better since they have made the decision to come to Hong Kong to buy. In previous editions of the fair, CIMA has dome business with clients from Japan and Chile, as well as from Europe and the USA. CIMA web site: www.cuerocima.com.ar
Pakistan: the State to support the leather sector

The Pakistani government has decided to grant a 25% subsidy for the transport of leather garments for 2005. The objective is to improve the competitiveness of the local industry in the international market place at a particularly difficult time for the sector. The Pakistani Leather Association of Manufacturers and Exporters (PLGMEA) has announced that the export of garments fell by 28% to US$132 million from July to December 2004, when in the same period in 2003, they managed to export US$185 million.
India-Italy: governments promote cooperation

The Indian Minister for Commerce and Industry, Shri Evks Elangovan, has called for more cooperation with Italy in the leather, artisan and design sectors. The Minister declared that in a meeting with his Italian counterpart, Gianfranco Alois, they had discussed various ways in which they could promote cooperation and bilateral trade. India is in the process of establishing a design institute in Ahmedabad, and Alois suggested cooperating with Naples University, since from there they could organize development programs.
    

The European Union and the US smoked the "pipe of peace"

After the suspension of sanctions imposed by the EU on imports from the US, which included leather, the EU Trade Commissioner, Peter Mandelson, made a series of visits to the US in order to consolidate business relations. The sanctions implied a cost of US$4 billion per year for US exporters. The punitive tariffs suspended by the EU were 14% and their elimination is retroactive to January 1st 2005.

Portugal: the shoe industry aims to export

The Portuguese Association for Footwear, Components, Leather Goods and Associated Products (APICCAPS), in conjunction with ICEP from Portugal and with the support of the PRIME Program, will promote the export of footwear to more than 15 overseas markets using a series of initiatives which need up to  10 million to implement. As part of this plan, 14 Portuguese manufacturers will participate in MosShoes in April, the main Russian footwear fair. For the Portuguese sector, this market of 143 million people is an open door to a world of opportunities, since the Russians buy footwear with an approximate value of  180 million per year.
Bangladesh: a new leather industrial centre is oponed

The Bangladeshi Prime Minister, Khaleda Zia, placed the first brick to start the building of Dhaka Leather City in Savar on February 15th. The projected cost of the program is around US$48 million and the tanneries which are currently functioning in Harazibag, will be relocated there. This modern industrial complex will cover 200 acres in Tetuljhara and will house 195 industrial units, and this will create both in direct and indirect terms, jobs for 100,000 people. The centre will include an effluent treatment plant with cutting edge technology, and will thus protect the health of the industrial workers.
France

The average size of the French foot has grown by 3 centimeters in the last 40 years, meaning that the most popular shoe sizes are now 41 - 43 for men, and 37 - 40 for women. This country continues to be one of the main consumers of footwear in Europe, with an average of 5.3 pairs per years, compared to the EU average of 4.8 pairs.
USA: Charles Myers leaves the LIA

Charles Myers has left his post as Leather Industries of America (LIA) president. His management functions will be taken over by Collier Shannon, a legal adviser who has several years working at the LIA. The administration will be assumed by Joan Wittenborn, who will continue to work in collaboration with the technical director of the Leather Research Laboratory, Nick Cory.
    



Lanxess expands production in China

Lanxess AG, the German chemical company formerly part of the Bayer Group, has expanded the production capacity of its plant located in Wuxi, China, and increased to 25 the number of employees, with the aim of satisfying the growing demand in the region. The new building was officially inaugurated on February 28th, even though production has started in January. The company is confident that all its products will reach the highest quality standards from the outset. "China is one of the most important markets for leather chemicals. Our aim is to continue growing as quickly as the market is, and this means that we have to expand out production capacity", Bernhard Wehling explained, the Senior Vice President of the Lanxess Leather Business Unit.

Military boots from Rocky Shoes

The US company, Rocky Shoes, has won a US$21 million contract for the manufacture of combat boots for the US Army. All the production will be done in Puerto Rico. The company markets footwear with the following brand names: Rocky, Gates, Georgia Boots, Lehigh, Durango, Dickies and John Deere.
    
Mod'8 relocates factory

The French manufacturer, Mod'8, has announced between 25 - 30 redundancies in Gironda, since production facilities are being moved to Bulgaria and Tunisia. This company is one of the most important manufacturers of footwear for babies and children, with annual sales of around  33 million.
New portal for footwear and handbags

Professional Uniforms Inc.has announced the launch of its Internet portal, Soleas.com where a Wide variety of shoes and bags of different brands Hill be on offer. These brands include: Ralph Lauren, Kenneth Cole, Ecco, Orvis, Clarks, Teva, Merrell, Born, Tommy Hilfiger, Chinese Laundry, Birkenstock and Timberland. The company expects new clients to be interested in this service of same day dispatch, and in the facilities granted to return or change products.
    


Mágnum grows

Mágnum USA, a division of Hi-tec Sports, is planning to increase its production by acquiring a shoe factory in Lewiston. Maine. Modern equipment with cutting edge technology will be installed and new employees will be contracted. This phase will be complemented by a new marketing strategy to win over new clients.
Cherokee and Target agree!

Cherokee Inc. Has announced that it Hill widen the license granted to Target Corp. for the sales of its products. The new contract stipulates that the concession will run intil 2007. Cherokee's business is commercializing garments, shoes, fashion accessories and furniture, amongst other things.
ShoeTalkers grows

ShoeTalkers will be selling its products in the United Kingdom for the first time in various large stores, which are currently under construction. They already have been taking purchase orders and are hoping for strong sales from the beginning.
Changes at Merrell

Alter rapid growth in recent months, the shoe specialist Merrell, has taken the decision to restructure and increase its sales force. One of the most important people to be named was Carten Richter, who will be sales manager for Germany from March 1st. Jacques Leroy will be national accounting manager.


New manufacturing unit for Mitchell

The upholstery manufacturer, Mitchell Cold Co. has purchased the former plant of basset. The area is 182,500 square feet in Hiddenite, North Carolina (NC), and is located just seven miles from the company's headquarters.
Innovation in Storis Management

Storis Management Systems has Developer a new software application which eliminates some of the delays and problems experienced by retail buyers when they order upholstery.


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BACK ISSUES

  

ANPIC latest edition

Leon is the city where the largest concentration of leather and footwear industries in Mexico, and the venue for one of the most important fair in the American Continent. The edition which took place at the end of February enjoyed a large number of international exhibitors and visitors from Latin America, and good contacts and business was done during the four days of the fair. Fashion and technology had the pride of place and many businessmen and company directors thought that the outlook for the sector is Mexico was good.


  

 The Middle East gets together in MOTEXHA

From 11th - 14th April, the MOTEXHA textile and leather fair will take place in the Middle East. The venue is the Dubai International Exhibition Centre in the capital of the United Arab Emirates. Various shows will be presented with the latest fashion trends and famous international brands. The organizers maintain that there will be 250 exhibitors from 20 countries. The first edition took place in autumn 2004 and was "an exhibition of world fashion brands looking for franchising opportunities".




Good results in Australian furniture fair

The Australian International Furniture Fair 2005 (AIFF) was held from 4th – 6th February in the Sydney Exhibition Centre and registered a record number of visitors, with 6,600 people coming from all over Australia and other countries. This is a 10% increase over the first edition held last year. “Our second edition was a real success. It attracted a large number of important people from the sector and the result was a substantial amount of business being conducted in the three days of the fair”, stated Martin Lewis, the General Manager of the Australian Furniture Industry Association.


 


SPECIAL REPORT

Atlas Refinery: commitment and constancy to the tannery sector

During the recent Anpic fair in León, Leather Press interviewed Steven B. Schroeder Jr., Vice President of Business Development of Atlas Refinery headquartered in Newark, New Jersey, USA.

Atlas Refinery is a family run business and started out in 1887 during the Presidency of Grover Cleveland who coincidentally was also born in New Jersey. Atlas is still managed by the fifth generation of the founder, Frederick Schroeder, and is fully prepared to provide the leather and textile industries with world class fat liquors and auxiliaries and has continually adapted its business strategy to the needs of the changing market conditions both in the leather and textile industries.

According to Mr. Schroeder, one of the main challenges for Atlas has been accompanying the transition in the global leather market. This has resulted in the company's production being earmarked more and more for exports. For example, ten years ago between 50% -60% of fat liquor production was exported and by now, in 2005, this has climbed to more than 70% and so Atlas's export strategy reflects the changes in demand and destinations as dictated by the global market place.

One of Atlas's original export markets was Mexico and sales to this country took off after the NAFTA (North American Free Trade Agreement between the US, Canada and Mexico) came into force on January 1st 1994. The main challenge for Mr. Schroeder's father, when he took over as President of the company was to "make Atlas global" and according to Mr.
Schroeder, this will also be his main challenge as he is in the front line of strategic market planning as Vice President of Business Development. In fact, it was Mr. Schroeder's father who took the decision to go overseas some twenty years ago and the result has been a US based company serving the needs of the market on all continents.

The move to serve the Asian market started around the same time some twenty years ago and the key to the company's success has been in building solid business relationships throughout the world. Atlas concentrates on finding the right agent in the country it is targeting, very often on an exclusive basis, so as to be able to service customers personally and above all efficiently.

Mr. Schroeder pointed out that they had done business in Venezuela and were looking to penetrate further into the Latin American tannery sector, with special emphasis on Brazil, Argentina and Uruguay. Atlas has placed a representative in Uruguay, Jens Schmidt based at Quimica Oriental S.A in Montevideo (jschmidt@atlasrefinery.com) and they are slowly seeing results coming from the important South American market. Mr. Schroeder is fully aware that the development of a new market takes time, as they gather information about it which helps in designing a successful sales strategy.

In recent years, the relative decline in the strength of the US dollar has helped Atlas become more competitive, especially considering that many of its European competitors are tied to the euro with the attendant disadvantages of its recent strength, making it more difficult to compete and therefore export with the ease they formerly had when the euro was around 85 US cents to the dollar.

China is considered a major priority for Atlas and in the case of some Southern Asian markets they have set up joint ventures to help in their efforts of market penetration and consolidation, bearing in mind the task of operating in different cultural climates.

All in all, Atlas has 17 representative offices world wide. For complete list click on the following link:
http://www.atlasrefinery.com
/international.html

The long term historical success of Atlas in the global market is based around what one could term as constancy and by simultaneously promoting the company's image and products in international leather fairs. For more information on Atlas Refinery and its product range go to www.atlasrefinery.com . Leather Press thanks Steven B. Schroeder Jr. for his time and information in this very interesting intervie.