What has changed in the leather industry market today? What challenges does the leather value chain face? What will the future development of the industry show? Recently, the World Leather Industry Conference held in Shanghai has discussed the above hot issues. The World Leather Industry Conference is the first time to settle in China, marking China's increasingly important position in the development of the global leather industry.
Since the beginning of this year, the demand for leather in the footwear industry has decreased, and brands continue to use synthetic materials as upper and sole materials. But since the Asia Pacific Leather Show in April last year, the price of raw hide in the United States has fallen by about 30 percent, which should make leather materials more price competitive.
The switch to synthetic materials began in 2014, when leather prices soared beyond the market's reach, and cheaper synthetic materials successfully broke out of leather's dominance due to the collapse in oil prices. Since then, only the automotive and furniture industries have maintained strong demand for leather.
New car sales in China peaked in 2016 at 28 million units. Although the new car sales process will slow down in 2017, the industry's leather demand is definitely higher than in 2014 when leather prices were high.
In the case of soft leather prices, tanneries are expected to support leather demand. The continued high growth of consumer demand in China is enough to prove that China and its growing middle class remain a major market for quality design products. Meanwhile, regional political instability seems undeterred by stock markets in developed countries such as the United States and Europe, and optimistic consumers will continue to pursue well-made leather apparel, handbags and footwear.
With the progress of science and technology and the diversification of consumption, new materials have sprung up, shaking the leather market. The wavering of consumers and the market has confused the industry: "Leather, a material passed down from ancient times and flourished for thousands of years, will be replaced in the future?" "Leather is and will always be an irreplaceable natural material." Despite the challenges of the leather industry, leather materials still need to be further improved in the field of green environmental protection, diversity and other areas, but the participants of the World Leather Conference firmly believe that the leather industry will still have a bright future, leather this material will remain irreplaceable in the future.
At the World Leather Conference, leather manufacturers discussed the future of the leather industry, including the transfer of manufacturing capacity and changes in trade patterns in the global leather industry, the value of leather raw materials and the potential of leather to increase the added value of manufactured goods. The industry believes that the core competitiveness of leather comes from its natural value, it is a natural material, with other materials incomparable natural characteristics. At the same time, it is a fashion fabric, and following the trend will make it have diversified charm.