The news for automotive leather remains strikingly upbeat
19/08/2014
We are warned that “nothing is certain these days”, but in the automotive industry, order books are still pretty full. In automotive, companies operate longer-term budgeting and our reports says none of the big automotive brands is likely to risk changing existing forecasts and budgets. “The big car companies have already given their target numbers for the entire year 2014,” it says. “Whatever they do in 2015, for this year they will just fulfil their predictions. These predictions are high and productions will run almost full, with leather demand remaining high accordingly.”
For other sectors the situation remains uncertain, the Market Intelligence report continues. The luxury market is still talking about growth, however the anti-corruption policy in China is making its mark on consumption levels, while tourism shopping from China is still good but far from the growth rates many were hoping for. Even if it is flat versus 2013, business is still pretty good and leather demand for luxury products will be too.
What has to be watched carefully is how the big brands deal with the record prices for leather they may have to pay when negotiations begin again at the end of the summer holiday.
Log into our Market Information section to read the full report, or click here to subscribe to read Market Intelligence in full.
Share this story:
