European Union and raw leather

On 9th June in Lyon, in the headquarters of the CTC (French Technical Centre for Leather, Footwear and Leather Goods) a meeting was held to discuss the standards applicable to raw leather. Representatives from France, the UK, Italy, Spain and Germany were present, countries which possess the voting majority at the time of elaborating standards of this type. The object of this exercise is to fix benchmarks so as to facilitate agreements between buyers and sellers throughout Europe, since its main objective is to define hide quality specifications so that there is a consistent classification in all EU countries. After a full working day, not all the delegates had agreed on the need for such standards, particularly Germany and the UK, who will have consultations with tanneries in their own countries. The next meeting is scheduled for the first part of September.

United Status: increase in shoe sales

According to data published by the US Commerce Dept., footwear imports increased by 6.4% in the first four months of 2004, compared to the same period in 2003. This was announced by Kevin Burke of the AAFA (American Apparel and Footwear Association). China heads the list of importing countries with 644.7 million pairs of shoes, and at the same time it was stated that clothing imports from the same country fell by 0.6%.
PAKISTAN is looking to increase leather goods sales

Pakistan's Federal Bureau of Statistics informed that leather goods exports surged to US$546 million up the year ended on 4th March. However, the Pakistani Leather Goods and Garments Exporters Association (PLGMEA) and the Pakistani Tanners Association (PTA) are lobbying the government to continue to promote exports of leather goods. PLGMEA president, Fawad Ijaz Khan, declared that the rising costs faced by the industry, are a key factor which has prejudiced its competitiveness. He emphasised freight costs, rising crude oil prices and the fact that the Pakistan State Bank decided to lift interest rates for refinancing from 0.5% to 2% from June onwards. The other factor was the pressure to increase salaries in general.
Footwear: rise in Spanish exports

In the first quarter 2004, Spanish footwear exports reached 35.3 million pairs with a value of 570.5 million euros, with the average export price rising by 3.27%. Even though these statistics show a decline compared to the first quarter 2003 of 5.7% in pairs and 2.6% in value terms, they still effectively illustrate that the fall in exports has been halted. February and March evidenced a change in the trend and if this continues and is consolidated in the future, it could result in a moderate increase. France the leading buyer of Spanish footwear, increased its purchases by 20% in volume and 6.3% in value. Sales also improved to Portugal, Italy and Belgium, yet on the other hand the fall in sales to the United States continued.
   
Japan: consumption, work and production all rose

Consumer spending in Japan registered its most important increase in April in the last two decades: 7.2%. This factor together with the increase in jobs tied to a solid growth in production has strengthened the optimism of those who consider that the economic recovery observed as far back as two years ago has sound fundamentals. In April 240.000 new jobs were created which can be added to the 190.000 in March. This reduced the unemployment rate to 4.7%, the lowest level seen in the last three years.
 China: two way trade

According to statistics published by the China Leather Industries Association (CLIA), leather goods exports grew by 7.4% to US$4.9 billion, leather footwear exports by 8.6% to 356 million pairs or US$1.7 billion, leather garment exports by 3.5% to 12.7 million units reaching US$580 million. At the same time leather exports soared by 222.8% to 1005 tonnes or US$102 million. However, one should not disregard the level of imports: in the first quarter 2004 leather goods imports grew by 9.5% to US$1.4 billion, leather garments by 65% and leather gloves leapt by 476%. On the other hand, shoe imports only grew by 0.14% and leather imports increased by 17.7%.
Turkish exports on the up

Turkey's State Statistics Institute announced that leather sector exports are on the increase. In March sales of leather products were up 57% when compared to February, and up by 23% when compared to the same period 2003.
More action in Israel

Israel's Central Statistics Institute announced that leather and leather product imports reached US$5.4 million in the first four months of the year. This figure represents US$1.6 million more than in the same period last year. Exports only reached US$400.000 in the same period, compared to US$500.000 in 2003
 
European Footwear Confederation (EFC) requests aid

The General Assembly of the EFC held in Tunis at the beginning of June decided to table a series of strong requests to various commissions of the European Parliament. A letter was sent to the EU Commissioner M. Lamy laying out the difficulties experienced by the sector in exporting to countries that have a 70% share of the world footwear market. They pointed out that especially duties in the US and Canada were blocking EU imports and assured him that the outlook for 2004 could be "catastrophic". With a prevision of the European Parliament to create an intervention programme, the General Assembly recommended assistance based on other measures, such as financial and logistical support, so as to be able to penetrate markets in China, Russia and Japan. A tightening on imports was also suggested to avoid the invasion of pirated products and outright copies coming through EU border controls, and at the same time strengthen import controls generally by beefing up specialized manpower. It is worth emphasising that using May as a reference, EU shoe exports as a whole fell by 20.9% in 2004 when compared to 2002. Main buyers were the US, Switzerland, Canada, Russia, Japan, Poland, Czech Republic amongst others. At the same time imports in the same period grew by 22.5% with the principal importers being China, followed by Vietnam, Rumania, Indonesia, India, Thailand, Macau, Taiwan, Slovenia and Tunisia.
Green light for tanning kangaroo skins in Australia

The Liberal Party of the Australian State of Victoria has announced that it will allow the tanning of kangaroo skins in the state. At the same time, agriculture spokesman, Philip Davis, announced a plan to create a new industry with the objective of making kangaroo meat more available for human consumption. Mr. Davis added that the prospect of processing kangaroo meat will open the doors for the export of leather and other kangaroo products. In other Australian States such as New South Wales and Queensland, the tanning of kangaroo skins is already permitted.
Livestock subsidies

When addressing the problems that face the livestock sector in developing countries, the Argentine Secretary for Agriculture, Livestock, Fisheries and Food, Miguel Campos, denounced subsidies which distort international trade in the sector. In a meeting held in Winnipeg, Canada, he stated that "developed countries stimulate meat production to the tune of US$41 billion per year, and then add to that US$800 billion in "soft loans" for exports and increased duties which protect their domestic markets".

Sadesa accompanies Argentine President in visit to China

With the aim of fostering closer relations with China and its market, Argentinean President Néstor Kirchner headed a mission to Beijing. The presidential entourage consisted of ministers, members of parliament, civil servants and 250 important business people. Representing the tannery sector were Andrés Galperín and Tomás Frankenberg from the Sadesa company. Sadesa is one of the largest tannery groups in the world and leads Argentinean exports in this sector reaching some US$180 million in 2003, or 20% of total leather exports. The company owns nine industrial plants employing 2,500 people, six of which are located in the Mercosur free trade zone (Argentina, Uruguay and Paraguay) and three in Asia (China and Thailand).


"Fuel tanning"

The British Leather Technology Centre, BLC, has just signed an agreement with Biomass Engineering, a company specializing in renewable energy technologies. The objective is to develop new fuels from the waste generated by the tanning industry. Biomass has developed a unique method to convert waste into gas which can be used in motors and turbines. So far, a pilot plant has been constructed to carry out tests.


Reebok combats pirating

Working with the port of Hamburg's customs authorities, Reebok has taken the offensive against pirate goods using its brand name. In recent weeks various containers have been found with pirated articles of clothing and footwear during strict customs inspections. The products confiscated come from China and were destroyed by customs officials.
Adidas renews contract with the FFF

The French Football Federation (FFF) and Adidas have extended their contract until 2010. France, former European football champions of 2000, World Cup winners in 1998 and still the number 2 team in the FIFA Rankings, first signed with Adidas in 1972. As well as the French selection, the Adidas brand also has contracts with Argentina, Canada, China, Germany, Greece, Hungary, Japan, Latvia and Spain.
Kampa sums up

Pascal Hens, member of the German National Handball team will be added to the other players exhibiting Kampa brand products on court. The company is well known in the handball scene thanks to the European title won by the German team at the championships held in Slovenia.


BMW in China

90% of buyers of the 3 and 5 BMW model range produced in the factory opened in China seven months ago, prefer white or gold, whereas in Europe and the US darker tones predominate. The company announced that it has opened up a waiting list for Chinese buyers, who have shown keen interest despite the price tags that vary between US$48.000 and US$84.000.
Good flow of visitors for furniture fair

The number of visitors at the International Contemporary Furniture Fair rose by 6%. The event was held in the Jacob J. Javis Convention Center in New York and lasted four days finishing on 18th May. The attendees included retailers, designers and architects, amongst others.
New line in Brazil

The Brazilian furniture producer Sierra Furniture presented a new line in upholstery designed for the US market and called Santofficio American Collection. The new collection was shown for the first time in the Brazilian Furniture Fair, and covers a range of 15 models of chairs and 35 sofas.
McCreary Modern boosts output capacity

The upholstery manufacturer, McCreary Modern, will expand its factory by 40.000 sq. meters with the aim of tripling its productive capacity.
Cox Mfg. installs new plant

The upholstery specialist Cox Mfg. has moved to new factory premises where it plans to increase efficiency and productive capacity. The new facilities are situated in the Cline Industrial Park and consist of 100.00 sq. meters, compared to the old plant's 60.000


BACK ISSUES

    






Argentina presents its leather goods

CEMCA, the Argentine leather goods fair, will hold its next edition from 9th to 10th August in Buenos Aires. The previous edition held in February ended with positive results for the sector.

Both local and overseas buyers placed orders with the result of good business and new contacts which are reflected in various indicators; one of these is the growth in exports forecast at 10% for 2004.
The fair organizers, CIMA (Argentine Chamber of Leather goods) confirmed that the sector is going through an auspicious phase with a strong drive on the design front, supported by the traditional quality of Argentine leather.

With a strengthening domestic market due to the economic recovery taking place driven by tourism and exports, the CEMCA event has registered an excellent level of visitors in recent editions. These come mainly from Latin American and Caribbean countries, Canada and the United States, as well as countries as diverse as Denmark, France, Italy, Spain, New Zealand, South Africa, amongst others.

Key facts
CEMCA
Dates: Sunday 8th, Monday 8th and Tuesday 10th August 2004 from 14.00 to 22.00 hours Venue: Centro Costa Salguero, Buenos Aires, Argentina
E-Mail: mailto:cima@cuerocima.com.ar
Web.:
www.cuerocima.com.ar



Important matters discussed at Assomac's Assembly



The Italian Association of Machinery for Footwear, Tanneries and Leather Goods (Assomac) held its Annual Ordinary Assembly on 25th June. The president of the association, Giovanni Gaia presented a detailed report in which he spoke about "the current crisis of western industrial manufacturing, compared to the systematic advance of Far Eastern manufacturers, with China occupying pole position".

He explained that "Italian technology manufacturers are paying for the western client/industrial crisis, which suffered a 21% fall in production in 2003, and a 20% decrease in exports". In relation to Simac and Tanning Tech, Gaia confirmed that both fairs will still be held on an annual basis. Regarding the future, he warned that a restructuring of the sector is inevitable, from which companies that understand how to interpret change, will emerge in an even stronger position". Finally, he assured the delegates that, "to achieve this objective will be determined by companies in the sector being able to "construct systems".




"Magic Johnson" clothing and footwear on court

The legendary basketball star Earvin "Magic Johnson has teamed up with the sports clothing company Bash Sports to launch a collection of sporting goods and clothing under the trademark Magic32. The collection composed of two clothing lines as well as men's and children's footwear will be launched in regional sports stores and especially in sports shoe shops for the vacation period. "I am totally involved in the different stages of marketing, design and distribution", the former Los Angeles Lakers star told reporters.


IT shifts production to China

IT Holdings, the luxury goods group, plans to relocate some of its clothing production facilities to China so as to reduce costs and penetrate new markets. Nevertheless, it will only carry out such an operation if it manages to find a local partner who can comply with established quality and fashion standards. IT is the owner of brands such as Gainfranco Ferre and Malo, and manufactures clothing under concession for Dolce & Gabbana, Versus and Versace jeans.


Shoe supermarket

The children's footwear manufacturer The Stride Rite Children's Group Inc. has inaugurated the first of three "shoe supermarkets" called Shoe Buzz. The first outlet is in Massachusetts and the next two will be located in New York. All three "supermarkets" should be up and running by the end of the year.