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Europe
The president of
the Italian Association of the Footwear Industry (ANCI), Rossano
Soldini, has accused the European Commission (EC) of supporting
the lobby of distributors and importers of footwear from
northern Europe and of prejudicing producers and consumers. At
the same time, the president of the European Footwear
Association, Rafael Calvo, is working against the clock trying
to convince different countries not to oppose limits on the
import of shoes from China and Vietnam. Many people are
concerned that at this time the European Economic Community may
be putting its “own life on the line”.
China
Sales of footwear
and leather goods continue to grow. China exported 68.1 million
pairs of leather shoes with a value of US$4.053 billion in June;
a figure that represents an increase of 4.8% in volume and 11.8%
in value compared to the same period last year. Global Sources
reported that exports of leather handbags and wallets from China
increased by 34% to US$2.3 billion in 2005. In addition, all the
manufacturers surveyed declared that they hope to increase
profits in 2006.
Exodus
Many shoe
factories from Wenzhou, China, are moving in mass to Chengdu
province. Word has it that more than 25% of footwear companies
from the area are planning to relocate in Chengdu in the near
future. Some 200 manufacturers of ladies footwear are making
such plans since Chengdu offers many advantages in terms of
costs.
Brazil
Exports of
Brazilian leather grew by 30% from January to July 2006 compared
to the same period in 2005, jumping from US$786.16 million to
US$1.010 billion. In July, embarkations increased by 28% in
volume compared to the accumulated total last year. Foreign
sales in the same month totaled US$150 million, or 30% more than
the US$106.6 million registered in July 2005. The information
supplied by the Brazilian Tannery Association (CICB) does not
specify details on the type of leathers exported.
Botswana
It has been
proposed to Botswana to increase its leather production. For
this reason, Samuel Kiruthu, a member of the East and Southern
African Leather Industry Association (ESALIA) paid a visit to
Botswana. His aim was to advise local industries about the
commercialization of the products they manufacture.
Mexico
In the first half
of 2006 the Mexican footwear sector grew by 14% compared to the
same period last year. This is an important recovery since, in
the last nine months, exports have fallen by 38% and those
destined for the US fell by 50%. Sector leaders attribute the
fall to “unfair competition” from China and this has triggered
the closing of many factories in their country.
Argentina
International
tourism to Argentina continues to increase. According to the
latest data published by the Statistics Institute, the second
quarter registered an increase of 19.6% of tourists arriving in
the country (716,723) compared to the same period in 2005. 22%
of the total came from Europe, 19% from Brazil, 15% from Chile
and 15% from the US and Canada. Several studies show that the
majority of tourists who come to Argentina purchase products
such as leather goods, shoes and leather jackets and coats.
Colombia
In the first four
months of 2006, the Colombian footwear sector recovered
production levels by 1.4% and sales in the local market by 6.4%.
The leather goods sector for the same period registered a fall
in production and sales in the domestic market by 10.7% and
15.9% respectively. These two sectors had poor results when
compared to the rest of Colombia’s industry which grew by 3.8%.
Bangladesh-Chile
The Bangladeshi
Minister of Commerce, Hafizuddin Ahmed, and the Chilean Vice
Minister of Economy, Carlos Eduardo Mena, agreed in Dhaka,
Bangladesh, to form an economic bilateral committee with the aim
of promoting trade and investment in both nations. Currently
Bangladesh exports a small quantity of products to Chile
including ladies clothes, leather and leather footwear.
Recently, Chile signed a Free Trade Agreement with China. With
these two initiatives, both Brazil and Argentina could see their
exports endangered to their South American neighbor.
India
The Indian
Minister of Commerce and Industry, Sri Kamal Nath has asked
manufacturers of leather and sporting goods, chemicals and
textiles to continue making a big effort to increase exports.
The government hopes to reach its target of US$126 billion in
exports by the end of this financial year. In order to achieve
this, emphasis is also being placed on fashion exports.
Lanxess
The All China
Leather Exhibition (ACLE) was the platform chosen by the German
company Lanxess to launch its new developments for the leather
industry. The new product range includes the agents Retingan ZF,
LubritanTM XB, XS and Tanigan SR-C, as well as the finishing
compounds Xtra.
Stahl
The Dutch company
supplying leather chemicals has incorporated two new fat liquors
into its range of specialty products to produce softer leathers.
According to the company both products possess excellent
resistance to light and “yellowing” due to the heat, and as such
are very appropriate for use in leathers finished in white or
pastel colors. Stahl recently organized a training course in
Mexico with the aim of informing about new technologies in the
production of fashion effects in upholstery leather and other
leather products.
Clariant
Clariant, the well
known Swiss chemical company, took advantage of the recent All
China Leather Exhibition (ACLE) to present a new range of
products with distinct applications and functions.
BASF
BASF, the German
Chemical Company, announced that sales increased in the first
half of 2006 by 20% reaching US$25 billion. Sales registered in
the second quarter increased by 16%. The company also announced
price hikes due to the increased cost of raw materials and which
will continue to be adjusted depending on market conditions.
Valentino arrives in India
The Italian
fashion designer Valentino has opened a new outlet in New Delhi
in response to strong demand in the fashion and luxury goods
market. He will offer the Valentino Garavani collection placing
special emphasis on handbags, footwear and small leather goods,
belts and accessories. The Valentino Roma collection is also
available.
New
line of Crocs
Crocos Inc, a
designer, manufacturer and sales outlet of footwear in the
United Status presented its new collection, All Terrain, at the
Outdoor Retailer Summer Market, which took place in Salt Lake
City from August 10 – 13. The footwear is produced from leather
with a ridged sole which provides additional traction. It is
microbe resistant and ideal for any climate. The line includes
models for men and women.
Boehme is now part of DyStar
DyStar recently
completed the acquisition of the Boehme Group, a company based
in Germany and which employs 700 people world wide. The
acquisition includes all the installations in Argentina,
Australia, Austria, Brazil, Canada, China, Ecuador, Israel,
Mexico, South Africa, Thailand and the United Status.
Improvement at Louis
Vuitton
LVMH Moët Hennessy
Louis Vuitton, the French manufacturer of luxury goods,
announced profits of US$6.968 billion in the first half of 2006,
a figure which represents an increase of 12% compared to the
same period in 2005. In the Fashion and Leather Products
Division, profits came in at US$2.466 billion, compared to
US$2.196 billion last year.
Closures at Eagle Ottawa
Eagle Ottawa LLC,
a leather upholstery supplier for automobiles, has closed its
plants in South Africa and Grand Haven, Michigan, USA. Around
150 and 80 jobs were lost respectively in each plant. The Vice
President of Human Resources, Jim Wise, stated that the decision
was taken due to changes in clients’ needs and production costs.
Porsche grows in China
The German auto
maker, Porsche, has made big strides in the Chinese market,
illustrating the growth in that sector of the population with
high spending power. Porsche entered this country in 2001 and in
2005 managed to sell 857 vehicles. The company hopes to sell
1350 units in 2006.
Promotion at American Leather
Rico Berrios was
promoted to the post of national sales manager of American
Leather, a company specializing in upholstery.
Zocalo in Vietnam
Zocalo, an
importer of leather trunks, suitcases and upholstery from San
Francisco, has opened a warehouse in Vietnam in order to improve
service to clients in the region.
Leather for luxury aircraft
Two luxury
aircraft Bombardier CRJ900 which the Bombardier Aerospace
Company sold to SkyWest Inc. have all the seats lined with top
class leather. Of the total number of this type of aircraft
ordered by Sky West Inc., six will be delivered in the remainder
of 2006.
Adidas gets stronger in Asia
The Adidas Group
now has total ownership of its subsidiaries whose brand is
Adidas Korea of Adidas Korea Ltd. This measure took effect on
September 1st and was possible due to the purchase of
the remaining 49% of stock from its commercial partner. The
terms of the agreement were not made public. According to
Adidas, this operation dovetails with its strategy of supporting
its brands using its own subsidiaries in key markets. The group
maintains that this step will strengthen its presence in Asia.
New
mits from Wilson
The sporting goods
manufacturer, Wilson, has launched a new line of baseball mits,
A2K. Famous pitchers such as David Wright of the New York Mets
and Curt Schilling of the Boston Red Sox have already tried out
the mits and the results have apparently been good. Wright
remarked that the leather used is strong enough to absorb
shocks, and soft enough to be comfortable.
'Mr.
Ispo' retires
Jürgen Lohrberg
who was the fair director of Ispo for 57 editions, and hence
became Mr. Ispo, left the Munich Messe on May 1st
after 37 years and three decades dedicated to international
sporting goods fairs. Lohrberg, born in Berlin Schöneberg in
1942, was first employed by the Munich Messe in 1969, five years
after it was founded. The current director of Ispo is Tobias
Gruber.
Subsidies in Spain
The Spanish
Association of Sporting Goods Suppliers, Afydad, has announced a
subsidy of €804,236 from the Industry Ministry in order to
promote the development of the digital platform Sportmas.
Sportmas is intended to speed up the exchange of electronic data
between retailers and wholesalers. This could revolutionize the
way business is done in this sector. A total of 100 suppliers
and 400 retailers will benefit from this initiative.
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