27 October 2021

Leatherbiz Market Intelligence - Inflation fears could help boost leathergoods sales

The latest edition of our fortnightly newsletter, Leatherbiz Market Intelligence, went live on October 26. 

 


Prada at Selfridges

 

This issue of Market Intelligence pulls no punches. It says the leather industry still faces major challenges and that the coming weeks will certainly remain difficult.

 

“We need a quick recovery in demand,” the report insists, adding that consumers’ fear of inflation could even be a help, at least in the short term. Inflation is now reaching 3%-6%, depending on the country, it says, and this is not yet the end of the line. “It is safe to assume that prices will not fall again under any circumstances in the coming months,” it adds.

 

If people expect prices to rise they may prefer to buy now, it argues.

 

However, this does not change the core problem. Market Intelligence warns: “Without a renaissance for leather, there will be no real recovery. Simply buying raw material because it looks cheap is not a solution.” 

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