23 February 2023

We published our latest Leatherbiz Market Intelligence report on February 21, just as the Lineapelle exhibition was getting under way.

While we wait for reports of the market movements that the Milan event will prompt, a number of significant messages still come out in this new report.

The first of these is that sellers of raw material for leather production have, at last, begun to notice an increase in demand.

Market Intelligence also points out that some production of leather for export markets has moved away from China to other countries during the interruption. A question arises now about the likelihood of increasing internal demand for leathergoods in the Chinese domestic market and if this domestic business can compensate Chinese tanners for lost export business.

On the question of internal demand, the report points out that the central government in Beijing seems keen to encourage consumption now, in the wake of severe restrictions because of covid-19. There is easy access to affordable credit, for example, and the streets, the shops and e-commerce sites are busy.

“If Chinese consumers are receptive to this, as they often are, China could once again become a driving force for the leather industry,” the report concludes.

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