WTO
World trade to grow by 8.5% in 2004
Global trade is set to grow by 8.5% in real terms in 2004 despite soaring oil prices, the World Trade Organization (WTO) has said. Growth this year was boosted by trade and output expansion in China, Latin America and Africa, and a stronger-than-expected recovery in Japan. On the other hand, the high price of oil and other commodities may affect output in 2005. WTO data shows trade in merchandise rose by 4.5% in 2003, up from 3% in 2002 and a decline in 2001. "Strong demand is behind rising prices for oil and other commodities (in 2004), and markets appear to be handling this well," said WTO director-general Supachai Panitchpakdi.
ITALY
Strategies to penetrate the Chinese market
Assomac has organized a training course for 17 young Chinese graduates. In September, after three weeks of classes in China, the students travelled to Italy where for a week they were guided and taught by experts in marketing, finance and shoe industry contracts. These young people now have their futures assured due to the success of the course, as various companies have offered them work. The objective of the classes is to train the apprentices in the sales and promotion of Italian machinery in Eastern markets.
Falling Numbers
The Office of Federal Statistics of Bosnia Herzegovina has announced that during the first nine months of the year, the leather industry declined by 3.3% compared to the same period in 2003. In the same vein, the Statistics Office of the Czech Republic announced that the production of leather and leather goods fell by 2.2% in the first eight months of the year. By way of comparison, export sales of Czech products increased by 10.6% in the same period corresponding from January to August.
PAKISTAN
Government protection measures requested
The Pakistani Leather Garments Manufacturers Association (PLGMEA) has asked its government to allow the retroactive reintegration of customs duties levied on the export of leather garments. They also requested the restriction on exports of rawhides and wet blue, so as to protect the local industries manufacturing leather goods and garments. The Association maintains that the export of leather garments suffered a sharp fall. Between July and September it fell 17.43% to US$79.6 million, when in the same period of 2003, exports totaled US$96.4 million. They also pointed out that the export of leather in the first quarter of this financial year had climbed by 14.58% to US$61.5 million. If this trend continues, thousands of jobs will be put at risk.
Argentina to Negotiate Access to Chinese Markets
The November visit to Argentina by President Hu Jintao will meeting point on the access of agricultural and livestock products from the South American country.
A Foreign Ministry source told Telam news agency that Buenos Aires and Beijing will also define sectors for attractive investment, and study Argentina’s anti-dumping measures in force from 2002.Among the products under consideration are fresh and processed cow meat and entrails, frozen bovine semen, and live cattle for reproduction, plus fruits (citric, pear and apples) and leather. Poultry supplies will depend upon the installation of export plants.
An ad hoc commission will identify the sectors sensitive to future investments following the accord signed during the July visit to Beijing of President Nestor Kirchner, and the protectionist measures Argentina adopted to stop the inflow of Chinese goods. Another workgroup for agricultural technology and bio safety will continue to discuss the terms for the continuity of transgenic products exchange.
A workshop of activities linked to the leather industry was held in September in Libya with the purpose of spreading knowledge and promote the advancement and development of this sector in the region. Representatives from Algeria, Burkina Faso, Chad, Mali, Morocco, Mauritania, Nigeria, Senegal and Tunisia were present. The programme included new technology and the processes available for the treatment of leather, both subjects presented by experts from African and Arab nations. The Islamic Organization for Education and Culture of UNESCO cooperated in the setting up and running of the seminar.
Vietnam: shoe sales increase
The Vietnamese Ministry of Commerce has announced that footwear exports increased by 15% in September 2004, compared to the same month in 2003, to reach US$250 million. The Ministry also forecast that sales in October could reach between US$250 - US$270 million. The main importers of Vietnamese footwear are the US, the EU and Japan, although certain African countries have shown keen interest in recent months.
Rumania: counterfeit sports shoes incinerated
Around 100,000 pairs of counterfeit or pirated sports shoes were burnt in the town of Medigia. The shoes had been imported from China and had an estimated value of US$2.2 million. The organizers of the bonfire invited a lawyer of the Puma sports wear company to witness the event. Genuine shoes from Puma, Nike, Adidas and Reebok were donated to local orphans as a token of thanks for the government action against pirating and contraband goods.
Asian Technology Conference
The sixth conference in this series took place from 18th - 22nd October in Japan and will be attended by experts from China, Japan and South Korea. New technological advances will be discussed for the production of leather and skins as well as fresh developments in materials and chemical processes. At the end of the conference, there was a presentation on the situation of the industry in the five most important cities of Japan.
Europe: business on wheels
JD Power has published a study predicting that around 3.1 million vehicles in Europe will have leather seats and upholstery by 2007. Currently, consumers consider this material as a luxury item, while the manufacturers see it rather as just another viable option for car seating. They consider that demand will grow as it becomes more popular. At the moment, 1.84 million cars with leather seats are produced per year, representing 11% of the total manufactured.
Lebanon: a good client
China is now the main supplier of footwear to the Lebanon, which imported articles for a value of US$29.63 million. Some 86% of pairs entering the country originated in China, Italy, Spain, Vietnam and France, with China having 47% of the total. The Lebanon exports sports shoes worth US$10 million per year, mainly to Saudi Arabia, France and Kuwait.
Chemicals to improve quality
Stahl International has just announced the incorporation of two new foams into its range of chemicals designed to improve the appearance of low quality leathers. One is RC-18-075, a compact foam resin which has as its base an acrylic dual polymer emulsion, which was designed to contribute to a visible improvement after being applied to the surface of the leather. According to the company, the products adds an extraordinary covering, creating a uniform grain without losing the softness of the leather. But one of the exceptional characteristics of this new Stahl product is the high level of filling it achieves. The other product is denominated RC-18-905, an emulsion designed for the finishing of full grain and upholstery leathers.
Changes and improvements at Reebok
After two years with the company, Jay Margolis resigned from his post as president, chief operating officer and director of the sporting goods company, Reebok International Ltd. His duties will be taken over by Paul Fireman. In a separate communiqué, the company announced that profits in the third quarter reached US$82 million, a figure that represents a 42% increase over the same period last year. Net sales increased by 12% to US$1,165 million.
Puma footwear in fish leather
The Argentinean company, Unisol S.A - licensee of the German brand Puma - will manufacture sports shoes using fish leather. The models, which will be launched on to the market at the beginning of next year, will be made from the skin of the shad, a fish found in the southern seas. The advantages of this leather of only 0.6 mm thickness is that it can be manufactured in bright colours and is flameproof, of high plasticity and twice as resistant as bovine leather. The shoes, however, are not cheap: the price is double that of top range shoes. The directors of Unisol maintain it is not the first time that they have used new materials and that on other occasions have manufactured footwear with leather from colts, kangaroos, pigs and animals typical from Argentina. “We always want to innovate,” they added.
More income for Timberland
The footwear and clothing manufacturer, The Timberland Company, has announced that net income registered in third quarter of this year increased to US$68.6 million, after it had been only US$53.5 million in the same period of 2003.
New posts at Nike
Hannah Jones was promoted to the post of Vice President with corporate responsibility for Nike Inc., replacing Maria Eitel who moves to be president of the Nike Foundation. Jones will have responsibilities at global level, while Eitel has the task of restructuring the Foundation in order to “give disadvantaged children in the world an opportunity to participate more in life”.
Strong sales at PPP
The French Group Pinault-Printemps-Redoute (PPP), owners of the Gucci and Yves St. Laurent brands, announced that third quarter sales rose by 4.8% to 5,630 million euros, due to the worldwide interest in luxury goods. Gucci’s business in particular grew by 9.8% to 641 million euros. “Recent collections were well received by both the media and the buyers: Orders are larger than last year in all major brands”, declared the company executive Serge Weinberg.
Adidas I: Denies fall in German market
After the publication of an article claiming hat the market share of football boots enjoyed by Adidas-Salomon AG in Germany had declined, the sporting giant denied that they were experiencing any difficulties in this division- The German magazine, Focus Money, informed that the fall had been 9% in the first half of 2004 and that the source of this data was the NPD Group. A spokesperson of this company said that they had experienced double digit growth in the market in the first half the year. “We are 17 percentage points ahead of Nike Inc. and continue being the leader in the German market”, he stated.
Adidas II: present in MLS
For 10 years Adidas will be the official sponsor of the MLS, the US Soccer League. The brand will have all the rights to clothing and sporting accessories used in the MLS. Rumours indicate that the sum paid for the contract was US$100 million.
Changes in Columbia Sportswear
Columbia sportswear announced the resignation of Ed Howell, who was responsible for the Sorel brand of footwear. No successor has been named for the time being. Howell’s post will be temporarily occupied by Sean Beers who will be in charge of Sorel production, and Mike Prendergast in charge of sales.
Growth at Lifestyle
The US importer of luggage and upholstery, Lifestyle Enterprises, announced that it is currently enjoying a period of fast sales and expansion in a wide range of its products.
New furntiure collection
The actress Jaclyn Smith and the Hickory Hill Furniture Company are developing a line of upholstered furniture, which will be launched on to the market in April 2005.
In order to ensure that the products in its line of leather upholstery will be of better quality, Thomasville Furniture will incorporate a new programme of cutting and sewing into the production process.
On to the exchange!
DeCoro, an Italian leather upholstery manufacturer based in China is about to take the necessary steps to make an IPO on the Hong Kong stock exchange, the Hang Seng.
The upholstery and luggage company Ferguson Copeland will purchase the intellectual rights of Guy Chaddock & Co.
Dunmore reopens production unit
The upholstery manufacturer Dunmore Furniture Industries has announced plans to restart production in its Maiden factory which has been inactive since 2002.
The ISPO takes care of everything
Germany’s ISPO fair which is dedicated to sports clothing and articles, is maintaining its growth and the generation of services to companies involved in the sector. Positive signs of this are its fair in China and the attention it pays to new retailers wanting to break into the sector. More than 80 brand names have confirmed their participation in the next ISPO China event in 2005, which will take place in Shanghai from 14th - 17th March next year. Companies such as Lotto, Sigma Sport, Nordica, Salomón, Victorinox, Joma Sport, La Rocca, Hi Gear, Atomic, Ferrino and Head are some of those which could be present at this Chinese fair. On the other hand, the next ISPO Winter Fair, due to take place from 6th - 9th February 2005 in Germany, will allow the new generation of sports retailers to experience the atmosphere of a wide selection of goods as offered by ISPO for the first time. The ISPO Trainee Project exists since 2002 and has the objective of bringing “rookies” in the business to visit one of the most important fairs in the sector, and for them to take part in workshops held by experienced exhibitors.
Shoes, leather and textiles in Poznan
Poznan Fashion Week which covers shoes, leather and textiles attracted 10,000 visitors to Poland from 7th - 9th September. A total of 255 exhibitors from 11 countries registered for the shoe and leather fair, while 233 companies from 23 nations filled the area dedicated to textiles and manufacturing. The next event will cover the same sectors and will take place from 1st - 3rd March 2005, and is called Poznan Fashion days.
“Moda made in Italy” was a success
The 24th exhibition in the series “Moda made in Italy” took place from 8th - 10th October in Munich and closed on a successful note. The footwear selection attracted 3021 visitors, 26% more than the previous edition. In an 18,000 square meter exhibition area, 306 companies from Italy and other countries such as Germany, Austria, Switzerland, Finland, France and Spain presented 540 collections for the Spring/Summer season 2005.
Interview
Leather Press (LP) invited the General Manager of the Asia Pacific Leather Fair group, Michael Duck (MD), who is also General Manager of Fashion First, due to be held at Brussels Expo, Belgium from 31st January - 2nd February, to talk about the inaugural event of this important European fair. This finished products and fashion event will cover footwear, leather goods, garments and accessories right at the start of the news season.
Michael Duck
LP: What market gap did you identify to decide to launch Fashion First?
MD: Fashion First was launched in response to strong industry demand for a new exhibition that addresses the real needs of exporters to Europe: close proximity to the marketplace, good logistics and accessibility, ideal timing at the height of the buying season and first rate service - in a truly "democratic" forum. Fashion First is unique in satisfying all of these
requirements.
LP: How does Fashion First fit into the context of other footwear and finished goods fairs in Europe and how does it differentiate itself from other events?
MD: Fashion First is the first event ever for competitively priced footwear, leather goods, travel goods, leather garments and other related accessories, as well as being unique in specifically targeting multiple retailers, distributors and brand owners. We complement other European events that focus on higher end products, to serve the needs of small, independent shops.
LP: The acceptance of international buyers, distributors, brand managers etc. to Fashion First?
MD: The trade has been unanimous in endorsing both the location and the dates of the exhibition, which come at a peak in the buying season. Brussels is set at a major cross-roads between Europe’s key markets and buying centres, offers excellent travel connections, abundant accommodation, fine dining and Brussels Expo is only minutes away from the city centre and airport. With many exhibitors looking forward to a European debut at Fashion First, enquiries are streaming in, whilst visitors rush to take advantage of pre-registration on-line.
LP: How does Fashion First complement the current process of globalization of the footwear industry?
MD: Fashion First not only offers European importers, distributors and retail chains unprecedented ranges of trendy, innovative and uniquely affordable fashion goods, but also gives direct access to the world’s most competitive sources. This is an important opportunity for brand managers and manufacturers alike to reassess their key strengths and to forge partnerships that will drive their businesses forward into the future.
LP: Is it possible that Asian and Chinese manufacturers will dominate Fashion First?
MD: Fashion First is a truly global forum, showcasing exhibitors from more than 17 countries. Brazil for example is very well represented by some of the top names in the footwear industry. Not to mention a significant European presence, which includes exhibitors from Italy, France, Denmark, the United Kingdom and Belgium, without forgetting Turkey. As a major and highly advanced manufacturing base, Asia has a very important role to play at Fashion First and this of course includes China, which currently accounts for a little over 50% of global footwear production.
LP: Why such emphasis on competitively priced products in Fashion First?
MD: Today, European consumers demand products that are stylish, well made and above all affordable, putting retailers under considerable pressure to maintain margins, whilst offering fashionable, innovative and eye-catching products. Market trends favouring mass retail, centralised purchasing and consolidation are forcing prices downwards. Fashion First offers exciting new fashion accessories together with real value for money, from the world’s best sources, right at the start of the fashion season in 2005.
www.fashion1st.com
