German Perspective - 2.7.19
02/07/2019
The anti-leather campaigners might celebrate, but in their cocktail of misinformation and fake news they must admit that all the efforts against leather have had absolutely no effect on beef consumption.
For leather and related industries there are no winners. We are dealing with the simple logic of economics and this means investments will be shifted into areas with higher margins and better profits.
When non-leather products promise more profitable sales, they are the ones that are offered to the consumer. The industry has still not come up with a convincing strategy to make leather as a material attractive again.
However, leather will stay and will become a more prestigious and luxury material and so everyone who wants to stay in the market will have to find their own strategy. What we can say for sure is that things will be different.
The situation for specialists is slightly different. When leather became a commodity material it was difficult for creative makers and users of leather. Their position weakened when there was strong competition for the raw material. Those who survived are finding the market is significantly better. Many are speaking to suppliers they haven’t heard of for years. This allows developments that had been lying dormant for a long time. This applies not only to the leather makers, but also manufacturers who were looking for beauty, quality and specialties - they are finding suppliers and tanners are willing to listen again. For the next season at least, specialities have a bright future.
Even with all the noise about leather alternatives there is still a silent majority that loves and admires leather if they get the real thing. This is unlikely to be in the big brands and retailers where the marketing managers tell the CEOs that leather is a lame-duck and growth can only be achieved by promoting non-leather materials. Well, the final curtain has not yet been drawn.
In the meantime, the market has shown some life. Tanners in Europe are filling their last slots before the holidays, and some even think they can even book in orders for after the holiday, because prices for many grades cannot fall much more. So, why wait? Sales have been somewhat better, but demand was entirely focused on better-quality hides.
The kill: In Germany, the school holidays have begun. This means kill is down and will stay low for the next six to eight weeks. Weights are holding better than in the past and one can see the changes in breeding.
What we expect: We might see still some of the usual pre-closure activity in Europe. China will certainly depend on the results of the G-20 summit. We are not pessimistic for quality products while medium low-grade material is unlikely to find significant market support. So, not much change really.
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