Leather Pipeline: Satisfaction in luxury but market scrambles to find a level
22/09/2015
“Coming from Shanghai to Lineapelle was like changing from a nailbed to a soft down blanket,” they said.
Buyers confirmed leather is still in demand and the luxury sector looked strong at Premiere Vision Leather – although most deals will not be cemented until after the shows.
“We saw a lot of discussions about leather and strategies but very few serious price negotiations. In most cases tanners went home with a comfortable feeling that they will get leather orders, possibly at lower volumes than last year’s levels, but final discussions on price will be taken later.”
As far as raw material sales are concerned, prices are “jumping all over the place” and spreads of 10% for the same product and origin are not uncommon. “This is not only reflecting the different quality of suppliers and the experience of tanners, but it is also a reflection of the opinions and expectations of suppliers. In particular in Europe but also in the US, several suppliers are trying to safeguard their business by lifting asking prices. In most cases this has been in vain. There is barely any tanner in the world who can be convinced that he will find it difficult to cover his raw material needs in the near future.”
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