Leather Pipeline: Leather must capitalise on new footwear opportunities
29/05/2018
“The rapid decline of raw material prices and the rising price of oil has made leather more competitive again,” the report says, although it admits that other factors such as production costs, lead times and supply chain rules are not necessarily in leather’s favour.
The Leather Pipeline points to the example of Russia and other Eastern European countries, where it says leather and footwear production capacities are being expanded. It claims there has been “solid and sustained investment” in these areas in recent years.
The report explains that one of the key motivations for this investment is that companies have seen strong growth in sales of leather shoes in this region. They also want to take advantage of competitive manufacturing conditions and the region’s proximity to important fashion markets in Western Europe.
It continues: “We believe fashion is cyclical and there has been a long trend of athletic and casual footwear made from plastic. Why shouldn’t we believe that a move back towards creative design, higher quality and sustainability is on its way?”
The report’s section focusing on footwear concludes with a prediction that “there are great opportunities for something new” after a period in which sneaker designs have changed little. It advises the industry and its customers “not to miss the train before it leaves the station”.
The full report is available here.
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