Market Intelligence: Caution is king
Spring, so far, has produced few signs of regrowth for the leather industry, particularly in Europe, according to our newest Market Intelligence report. The report, which went live on May 12, is available here.
It explains that geopolitical tensions are keeping energy, logistics and raw material costs high and, as a result, buyers of leather remain cautious, focusing mainly on immediate orders.
There is a dearth of encouraging news from China, the report says, because pressures on the property and automotive markets there are also affecting leather demand.
And in high-end leathergoods, upper-middle class people in particular are now buying “more selectively”, Market Intelligence says. This comes after years of this relatively broad and expanding segment of the global economy being “an important growth driver for many luxury brands.
With the traditionally slow season in the fashion supply chain now upon us, and factory shut-downs for summer holidays just around the corner, it concludes that signs of a broad recovery are unlikely before late summer.
Image: Consorzio Vera Pelle Italiana Conciata al Vegetale
