23 March 2022
We published a new edition of our Leatherbiz Market Intelligence report on March 22. Naturally, the news continues to be dominated by the war in Ukraine and the human suffering this is causing. In this context, focusing on mundane matters such as the leather pipeline is difficult, the report says. But, for what it’s worth, the leather industry is beginning to feel the effect of the conflict. Repercussions include a halt in the supply of raw and semi-finished lightweight cattle hides from Ukraine that are in demand in the high-end leathergoods sector, especially in Italy, and are difficult to replace with material from elsewhere. Automotive is also suffering from disruption to the supply of key parts from Ukraine and of raw materials from Russia. Sales of finished products to the affected areas are, of course, also disrupted. Even if trade can resume soon, devaluation of the trouble and reduced purchasing power mean the focus in Russia, previously an important market for many high-end brands, is likely to move more towards cheaper consumer goods.

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