Market Intelligence: Hides on the move as tariffs pause
The latest edition of our Market Intelligence report confirms how important the temporary suspension of US-China tariffs are, and that the industry will be waiting with bated breath the results of new talks in London this week.
While welcome, the uncertainty creates havoc with planning. Hides that had been cancelled or delayed when the original tariffs were announced have been rebooked. Business are potentially overordering to avoid new tariffs, or stockpiling while they wait for outcomes, while bottlenecks of containers also mean freight costs and times are difficult to calculate.
Mergers and acquisitions continue: after the announcement of Pasubio’s purchase of Antiba, last week Prada bought a stake in Rino Mastrotto. The author hopes the tanners’ expertise will remain a differentiating factor while under the influence of a bigger group: “A leather manufacturer has a lot in common with the designers who develop the collections. They must be given a lot of freedom, and creativity must not be restricted. If they are used solely as fulfilment for materials, the real appeal of leather in luxury goods will be lost.”
Elsewhere, Adidas' decision to ban kangaroo leather might be shortsighted, with valuable skins now likely ending up in landfill.
Generally, leather orders are low, while companies mull how to operate within a potential new landscape, with relocations, stockpiling and alternative products among the options. Perhaps it will also be a chance for companies to think more creatively, concludes the author; the leather sector has always found a way to reinvent itself.
Photo by Rinson Chory on Unsplash
