GERMANY: A difficult year for the footwear industry

The Association of German Footwear Industry (HDS) announced that sector sales declined by 3.8% to around 3 billion euros in 2003. In the domestic market the fall was 6.2% to 2.1 billion euros but exports rose by 2.2% to 900 million euros. On balance, 27 million pairs less were sold. The number of footwear manufacturers also declined from 127 at the end of 2002 to 109 in December 2003, with overall employment in the sector also declining from 15,777 to 13,696 jobs. Shoe imports also rose by 10.6% year on year to 379.3 million pairs, with 90 million coming from China and 78 million from Vietnam.

No agreement between Argentina and Brazil

The meeting between Argentinean and Brazilian shoe manufacturers in Novo Hamburgo on 26th March ended inconclusively. It was the third round of negotiations initiated at the behest of both governments with the aim of establishing a framework agreement to reconcile the interests of the Brazilians with the crisis being lived out by the Argentineans. The Argentinean Footwear Chamber (CIC) requested that the Brazilian Abicaclcados limit their exports to 6 million pairs in 2004, even though Brazil proposed exporting 25 million pairs a year to Argentina, a figure that it has never reached.

The situation is rather complex: the powerful Brazilian industry wants to achieve its growth objectives, whilst Argentina after a terrible ten years when more than a thousand shoe factories closed, is trying to reactivate its industry as a whole so as to combat a 30% unemployment rate and a poverty level currently estimated at around 50%.

Hungary is suffering

The production of leather and leather products in Hungary fell by 17.5% in January compared to the same period in 2003. Sales have been falling in this country year on year and local producers are very concerned. In December 2003 there were 714,000 head of cattle, 56,000 less than in 2002.
   
Disappearing shoes in the Czech Republic

According to statistics published by the Czech Federation of Footwear Manufacturers, shoe production has fallen in the last 12 years from 75 million pairs to 8 million pairs per year. The sector itself provides some 8,000 jobs in 60 companies.

At the same time, imports have risen in the same period from 10 to 46 million pairs; the main supplier is China which exports more than 29 million pairs per year to this central European country. Shoe consumption is three pairs/person per year. Besides China, the other main supplires to the Czech market are Italy, Slovakia, Spain, Brazil and Portugal.
Mexico: “0” tariffs requested for component imports

José Antonio Salim Alle, President of the Footwear Chamber of Guanajuato State (CICEG) has asked the national Mexican authorities to eliminate tariffs on the import of raw materials and shoe components. In this way, Mexico “will have a more competitive product in world markets”, he added.
 
Argentinean leather goods in Hong Kong

The Argentine leather goods pavilion organized by the Leather Goods association (CIMA) had many visitors during the 2004 edition of the Asia Pacific Leather Fair. The association secretary, Raúl Zylberstein said that “there are not many fairs that offer the opportunity to make contacts with such a wide range of international buyers”. In addition, CIMA’ s President Marcelo Szarfmeser commented: “ We are selling medium to high end quality products. Our buyers are middle class with disposable income and for this reason we are obliged to offer real quality inspired by European styles and designs, and manufactured in top quality Argentine leather, backed up by its international reputation and two hundred year tradition.”
Brazil increases shoe exports

According to figures published by the Brazilian Footwear Association, Abicalcados, shoe exports increased to US$451 million in the first quarter of 2004, 17% more than in the same period for 2003. It is noticeable that there has been a change in export destinations and at the same time exports to the US declined by 13% (US$163.5 million in 2004 compared to US$187.4 million in 2003).

One of the countries that imported more Brazilian footwear was the United Kingdom (+35%). In 2003 Braziñain shoe exports totalled US$1,550 million, comprising 188 million pairs.
Tanning districts set up in Iran

Iran is fast developing as a leather, leather goods – especially garments manufactured from sheep skins – and footwear producer. Four special tanning districts have been set up in Tehran, Mashad, Tabriz and Hamedan, with a total of 40 tanneries most of which are in private hands. There are smaller tanning areas in areas such as Maragheh, Gorgan and Isafan.
According to government statistics, tanning capacity in Iran in 2002 was as follows: light leather 135,000,00 sq ft , heavy leather 82,000,000 sq ft and sole leather 3600 metric tones.
Diane Keaton with gloves on

The European Glove Association (EGA) chose the actress Diane Keaton as the Global Glove Wearer of 2004, leaving in her wake other personalities nominated as being particularly attractive while wearing fashion gloves. Such personalities left behind included Sarah Jessica parker, Madonna and Samuel L.Jackson.
 

Executives jailed for fraud in Just for Feet

Timothy McColl, Executive of Adidas America, was sentenced to four months in a federal penitentiary with a further four months of house arrest and a fine on US$10,000 for his part in falsifying the profits of Just for Feet Inc.

Other ex- executives of Fila, Converse and Logo Athletic were also found guilty of the same crime. McColl admitted his guilt in the crime of conspiring to issue false statements in the audit of Just for Feet at the beginning of 1999 and also of falsifying the registration of the same company.
Airwalk becomes Pentland

The Pentland Grupo has acquired the licence for Airwalk in Great Britain and Ireland. The contract includes all product lines of the brand such as footwear, clothing and accessories. The business in Ireland and the United Kingdom will be headed up by Lou O’Connor, ex Sales Director of Kickers. The Pentland Group is also the owner of the licences for Ellesse, Kickers, Berghaus, Speedo, Red or Dead and Mitre.
Changes at Rusty

After a court decision, all imitation products marketed under the Rusty label will have to be immediately pulled out of the Spanish market. The judgement also established that the brand rights will revert to be property of Rusty and not of José María Matamoros, the previous owner.
Profits at Vans

Vans Inc. Profits recovered in the quarter that ende don 28th February to US$7 million or US$0.39 per share, compared to the same period last year when they posted a loss of US$9.2 million or US$0.51 per share. The better than expected results were due to a rise in sales both at wholesale and retail level.


More exposure for Interline Italia

The Italian upholstery maker Interline Italia has inaugurated three exhibition galleries of Sapziogetto, in the premises of Cardi’s Furniture in Swansea, Attleboro and Warwick.
Universal Leather in China

Universal Leather, a US importer and distributor of South American leathers will exhibit its leather in China thanks to an agreement with Jerry & Co., a furniture maker located in the south of the country. The owner, Jerry Jiaan, is also the proprietor of the upholstery maker Alison Furniture.
Design in Internet

The German upholstery company Design Intershop / Bruehl has launched a web site for its North American customers. In the web site www.bruehlus.com there are a range of 577 sofas and sofa beds, which are available in 255 different types of cloth materials or leather.		     

APLF publishes official visitor figures

Two weeks after the close of the 20th edition of the Asia Pacific Leather Fair (APLF) the Organizers have published the official visitor figures for the event that ran from 29th March – 1st April. The total number of visitors to the fair was 47,532, of which 28,770 went to Materials, Manufacturing & Technology, and 18,762 to Fashion Access.

As is usual, the APLF figures are previously examined before publication by the international auditing firm, Price Waterhouse Coopers so as to avoid press speculation with “preliminary figures”, which was the case in the past. A demographic breakdown and visitor profile will be released in early May.

The success of the event is due to increased business activity in the Asian region as well as the global visitor marketing campaign expertly run by the fair itself.

Modacalzado and Iberpiel on the up

More than 20,000 industry professionals attended the 14th edition of the International Leather Week that took place in Spain from 26th – 28th March. Modacalzado, the international shoe fair and Iberpiel, the leather and leather goods fair, were held at the same time in Madrid. Buyers from 67 countries visited 771 exhibitors from various countries. This year 15% of visitors came from abroad, 5% more than in the 2003 edition.
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Bayer Chemicals: the new comapany will be called Lanxess

Bayer has decided to found an independent company. The main part of its chemical sector as well as some business areas of Bayer Material Science will be covered by the name “Lanxess”. The activities included in the formation and creation of the new company which have been carried out since the announcement of the restructuring, will be under the provisional name “NewCo”. The denomination of the “Lanxess” name is meant to convey the international role of the future chemical enterprise that should be amongst the industry leaders. Dr. Axel C. Heitmann has been designated as President of the Lanxess Board of Directors.


Ecological Elmo Leather

Elmo Leather of Sweden has announced an ivestment of US$5.6 million in a new waste treatment facility in Svenljunga. Operations should begin in February 2005 and using the latest technology, it should be possible to reduce nitrogen emissions by 80% into the water.


Dupont to lay off 3,500 workers

The US chemical giant Dupont is tol ay off 3,500 workers worldwide and reduce its workforce by 6%. According to the company, this will take effect at the end of 2004 mainly in the US and Europe. The company plans to save around US$900 million (750 million euros) a year, 325 million thanks to the reduction in jobs and the remainder in general cost cutting.


Theft In Wittchen

The most important leather goods manufacturer in Poland, Wittchen, announced 2003 profits coming in at US$545,695. Last September, 45,00 pairs of gloves were stolen and although some were recovered in January 2004, the loss affected overall results. The company is aiming for profits of US$779, 508 in 2004.


The Xinrong Leather Company is aiming high

The Xinrong Leather Company tannery, a division of the Casen group based in Zhejiang, China, is planning to import and process more than a million bovine hides and 1.5 million sheep skins in 2004. The processed skins will then be re-exported to countries in the Asian region.


Clariant restructures its production

The German chemical giant Clariant has announced that operations at its Beverley plant in Great Britain Hill be transferred to its Selby factory at the end of 2005, with the consequent loss of 20 jobs. The closure of the facilities in Azo in Germany will also affect a further 71 jobs.