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- 20+ Indian Leather Industry Executives Head to Russia and ACLE Fair to Begin Next Week
20+ Indian Leather Industry Executives Head to Russia and ACLE Fair to Begin Next Week
PUMA appoints Indrajeet Sen as the New Chief Sourcing Officer and IFLMEA to Host 41st AGM on 5th Sept 2024.
Arshad Leathernews.org
September 01, 2024
Good Morning & Welcome to our weekly newsletter! Here, we bring you the entire week's global news, insights, market research & analysis, expert insights and facts from the "leather, footwear, and leather goods" industry.
In a simplified and easy-to-understand manner, saving you time while keeping you informed and updated.
In case you missed it, here’s a look at what happened in the Global Leather & Footwear Industry last week.
LEATHER NEWS
The Indian Finished Leather Manufacturers and Exporters Association (IFLMEA) is gearing up for its 41st Annual General Body Meeting (AGM) on Thursday, September 5, 2024, at the Madapam Hall, Hotel ITC Welcome Chola Sheraton, Chennai.
This pivotal event, beginning at 6:30 PM, will feature the review of the year's activities, financial reports, and future plans, while also focusing on innovation in the tanning sector.
Highlights include the presentation of awards to top-performing tanneries and CETPs, followed by a panel discussion on cutting-edge technologies like Dytan Biodegradable Tanning, Novel Dyeing Technology, and Efficient Spraying Technologies. The AGM is set to be a cornerstone event for the leather industry, driving both recognition and technological advancement.
The All China Leather Exhibition (ACLE) is returning to the Shanghai New International Expo Centre from September 3-5, 2024, cementing its status as the premier event for the global leather industry.
Since its inception in 1998, ACLE has become a vital platform for international companies seeking to tap into China's burgeoning markets. The 2024 edition will feature over 1,200 exhibitors from 28 countries, covering 9,200 square meters of exhibition space.
The event is expected to attract 28,000 visitors, offering a unique opportunity for global tanneries to showcase their products to a targeted audience, including domestic footwear and automotive leather importers. With innovations spanning leather, chemicals, tanning machines, and more, ACLE 2024 is set to be a key event for industry professionals looking to explore new markets and forge valuable partnerships.
The Rwandan government is actively pursuing investors to develop a tannery park in the Bugesera Special Economic Zone, aiming to bolster the local leather industry and reduce reliance on imported tanned hides and skins.
Initially announced in 2021 but delayed due to funding issues, the project now shows renewed progress. The proposed park, requiring a US$15.1 million (Rwf 19.7 billion) investment, will include an integrated leather processing plant and effluent treatment facilities.
The government has already allocated land in Bugesera District and is in discussions with potential investors, with the African Development Bank funding feasibility studies. Local entrepreneurs have expressed concerns about the high cost of locally sourced materials compared to imports, highlighting the importance of this initiative in addressing these challenges and advancing Rwanda's industrialization goals.
A delegation of over 20 executives from India's leather industry is set to visit Russia from August 26 to 28, aiming to attract investments and expand exports in a market currently valued between USD 60 million and USD 80 million annually.
The delegation will participate in the Euro Shoes Premier Collection in Moscow to explore collaborations in tannery operations and product manufacturing.
Despite the potential, the path is complicated by Western sanctions linked to the Russia-Ukraine conflict, which have disrupted payment processes and led to a downturn in exports, dropping from USD 16.34 million in April-June 2023 to USD 14.21 million in the same period of 2024.
In response, India and Russia are discussing alternative trade mechanisms, including transactions in local currencies and reducing non-tariff barriers, as part of broader efforts to increase bilateral trade to USD 100 billion by 2030, up from the current USD 67 billion.
FOOTWEAR NEWS
In June 2024, Brazil's footwear industry faced a significant challenge as imports of Chinese shoes surged by 261%, totaling over 705,000 pairs, according to the Brazilian Footwear Industry Association (Abicalçados).
This contributed to a broader trend of rising imports, with Brazil bringing in 3.3 million pairs of footwear during the month, a 63.7% increase compared to June 2023. Vietnam also saw a notable 57.8% growth in footwear exports to Brazil.
Over the first half of 2024, Brazil imported 18.72 million pairs of shoes, up 11.4% from the previous year, while exports plummeted by 25.5%, with only 48.45 million pairs shipped abroad.
The influx of low-cost Chinese footwear, often sold below market value and produced under questionable labor and environmental standards, poses a serious threat to Brazil’s domestic market, particularly in Latin America, where Brazilian exports to key countries like Argentina and Paraguay have sharply declined.
The international leather and footwear exhibition, held from August 19th to 22nd, 2024, brought together over 150 global companies, including major players from Italy, China, and Turkey, to showcase the latest innovations in leather goods, footwear, and processing technologies.
The event featured a wide range of leather products, from office bags to sportswear, along with cutting-edge machinery like laser and press machines.
Aimed at enhancing international collaborations, boosting exports, and introducing new technologies, the exhibition significantly positioned the industry for future global growth and innovation.
The Department for Promotion of Industry and Internal Trade (DPIIT) has announced the opening for the prestigious position of Managing Director at the Footwear Design and Development Institute (FDDI).
This key role, with just one vacancy, seeks candidates with a Bachelor's Degree and at least 10 years of administrative experience, preferably in Leather Technology or the Leather Industry, with a maximum age limit of 55 years.
The position offers a competitive monthly salary in the Pay Level-14 category, ranging from Rs. 144,200 to Rs. 218,200, and is appointed on a five-year deputation basis. Interested professionals must submit their applications offline within two weeks of the official notification.
PUMA has appointed Indrajeet Sen as the new Senior Vice President of Sourcing, succeeding Chief Sourcing Officer Anne-Laure Descours, who has opted not to extend her board contract.
Sen, who joined PUMA in 2016 and previously served as Vice President of Sourcing and Development Footwear, will now oversee global sourcing and development across footwear, apparel, and accessories, as well as operations and sustainability, reporting directly to Chief Product Officer Maria Valdes.
Based in Xiamen, China, Sen brings a wealth of experience, including his pivotal role in navigating supply chain challenges during the COVID pandemic.
PUMA's CEO, Arne Freundt, praised Sen's forward-thinking approach and dedication, while also acknowledging Descours' significant contributions, particularly in establishing PUMA's sustainability strategy, which has garnered international recognition. Descours will continue to support PUMA as an external advisor on sustainability.
Leather Goods News
French luxury brand Hermès reported strong financial results for the first half of 2024, with consolidated revenue reaching €7.5 billion, marking a 15% increase at constant exchange rates compared to the same period in 2023.
The company achieved a recurring operating income of €3.1 billion, representing 42% of sales, and a net profit of €2.4 billion, equating to 32% of sales. In the second quarter alone, Hermès saw a 13% sales increase, driven by a 19% surge in its Leather Goods and Saddlery division, fueled by expanded production capacity and high demand for iconic products.
The company also announced new investments in production, including the upcoming opening of the Riom leather goods site in September 2024 and the construction of two additional sites in France, set to open in 2025 and 2026. Despite a complex economic and geopolitical environment, Hermès remains confident in its growth trajectory and commitment to quality craftsmanship.
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