What happened this week: Last week, most of the trade had time to digest their trips to Asia and to take a break over Easter for a bit of relaxation. Many even decided that they had done enough travelling for the time being and skipped Lineapelle in Bologna, which took place this week. Many were, justifiably, complaining about the timing of the show. However, on the other hand, the dates ensured that the people who went were those who actually needed to go.

This edition of the show was like many past editions. The aisles were pretty empty the first day, but some stands were not. With fewer people wandering around, there was far more time to meet people and to discuss the situation. Tanners had enough time to focus on clients and other business associates that came to see them.

The second day was, as usual, pretty busy. There was no shortage of people around and the last day was also said to have been good for those who wanted to meet people after some had returned to their offices and factories. Those who expected a lot of news from the show were always going to be disappointed. However, those who took it for what it actually is, a pre-selection of leather fashion trends, must have been satisfied.

The large selection of fine and elegant nubuck leathers was eye-catching, as were the bright and colourful collections from the fashion trendsetters. It is almost a typical reaction when raw materials are as cheap as they are today and when times are difficult that people make more effort to grab the attention of leather buyers and designers. From the leather displayed, it was apparent that many tanners are focusing more and more on bags and accessories which is, at present, almost the only consumer segment that is virtually untouched by the general crisis. The number of brands and so-called brands offering ladies’ bags and opening one store after the other could be a worry for some. It remains to be seen whether all the lines on show will actually be sold.  

So far, it seems tanners and manufacturers are still optimistic and this was seen at Lineapelle. This is the good news. The other main segment traditionally shown at the fair is sole or, more accurately, vegetable leather. What we saw there was actually most worrying. Tanners were very pessimistic and their reports were really depressing with orders and productions extremely low. This is a bad sign for the upper end of the men’s dress shoe market. As reasonable as the shoe business might be, it cannot be so for the business classics.

Last but not least, we are still reluctant to talk about the upholstery sector, which might be stabilised, but on levels of anywhere around 50% of production and with the low season ahead. So, this week’s business was mainly focused on lightweight material and some bulls which are still supported by the low kill and the steady business for tanners that are using them. The heavier it gets, the more difficult it becomes. Prices were mostly steady. Cows were under pressure, ox/heifers were a fraction higher and bulls were steady. This suggests it is somewhat ridiculous that abattoirs are looking for more money at the moment.

The kill: The kill is still pretty low because of the Easter holidays, but weights are falling drastically. It seems this will be the situation for the near future.

What we expect: Our constantly prudent view on the market still seems to be justified. In Europe, business is now entering the low season and only a small part of the production can be said to be in balance with supply. Buyers are still able to choose from various options and we would be surprised if this changes quickly. Females will still face the bulk of the problems.

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