A tale of two markets
Exports of leather products from France to China have grown remarkably in the last two years, in spite of covid-19.
Figures for 2021 show that China imported leather products from France, especially accessories and footwear, with a value of more than €2.4 billion. This figure is greater than two-and-a-half times more (162%) than the corresponding figure for 2020, which was €938.6 million.
Compared to 2019, however, last year’s growth for French leathergoods exports to China was more than 370%. The figure for 2019 was €522.9 million.
These figures, which are from industry body Le Conseil National du Cuir, do not include exports to Hong Kong. It lists figures for Hong Kong separately and these show that a lack of tourism there, caused by covid-19 and social unrest, has led to a fall in French leathergoods exports to Hong Kong.
In 2021, the French leather sector exported more than €1.1 billion worth of accessories, shoes, gloves and other products to Hong Kong, a fall of 14% compared to 2020 and of 15% compared to 2019. Therefore, a decline in shipments to Hong Kong do not account for the sharp increase in shipments to China.
In 2021, France’s leather-sector exports to China and Hong Kong combined had a value of €3.6 billion, 59% more than the figure for 2020 and 93% more than the figure for 2019. The figure for China on its own in 2021 was higher than the combined totals for China and Hong Kong in the two previous years.
The contrast with exports to the UK is stark. In 2021, French leather-sector exporters shipped products worth €581.7 million, down by 31% compared to 2020 and by more than 50% compared to 2019.
It seems unlikely that covid-19 was a decisive factor in this decline because exports to other near neighbours, Germany, Italy and Spain, increased again after a drop between pre-covid 2019 and 2020. The ongoing decline in the value of leather-sector exports from France to the UK seems much more likely to be because of the UK’s departure from the European Union.
Brexit took effect on January 31, 2020, but trade and travel remained largely unchanged during a transition period that lasted until the start of 2021.
Image shows a new Louis Vuitton store in Chengdu, China.
