Market Intelligence: New volatility seems inevitable
For obvious reasons, renewed concerns over conflict and geopolitical tensions dominate the latest edition of our Market Intelligence newsletter, published on March 3. These are very likely to drive new volatility across the leather pipeline, unfortunately.
Energy and logistics costs are likely to suffer increases and lead-times are going to be longer.
On a more positive note, Market Intelligence says these challenges could spark a renewed debate about re-shoring and the shortening of supply chains.
This would come on the back of leather “visibly regaining some cultural and fashion relevance”, it says. The newsletter suggests that there are clear signs of consumer fatigue with synthetics and argues that this supports renewed interest in authenticity.
“Differentiation, character and quality can drive future growth,” it insists.
