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- Bangladesh Leather Exports Reach $100 Million in December | Italian Footwear Industry Loses €1.4 Billion in 2024 | Tandy Leather Appoints New CEO
Bangladesh Leather Exports Reach $100 Million in December | Italian Footwear Industry Loses €1.4 Billion in 2024 | Tandy Leather Appoints New CEO
Vietnam’s Leather & Footwear Exports Set to Hit $27 Billion this year | Untapped Business Opportunities for Leather Manufacturers in India | Walmart's $78 "Hermès Birkin Lookalike" Goes Viral and Sells Out & more in this week's global leather Industry news
Arshad Leathernews.org
January 05, 2025
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 global "leather, footwear, and leather goods" industry.
In a simplified and easy-to-understand manner, saving you time while keeping you informed & updated under 5 minutes every Sunday at 11am.
In case you missed it, here’s a look at what happened in the Global Leather, Footwear & Leather Goods Industry last week.
LEATHER INDUSTRY NEWS
Tandy Leather Factory, Inc. has announced Johan Hedberg as its new CEO, effective January 6. With over 30 years of leadership experience, including his recent role at Fiskars Group, Hedberg will guide the company into its next chapter, focusing on growth and sales. He takes over from Janet Carr, who will stay through March 2025 for a smooth transition. Tandy also welcomes John (Rocky) Sullivan to its Board of Directors. The leadership changes signal Tandy's……
Bangladesh’s export industry continues to shine with merchandise exports up by 17.72% year-on-year in December. Exports hit $4.63 billion, up from $3.93 billion last year. The first half of the fiscal year also saw a 12.84% increase, reaching $24.53 billion. Leather and leather goods exports led the charge, growing by 24.19% to $110.90 million. Factors like the recovery of key markets and stabilized labor conditions are driving this positive trend.
The International Union of Leather Technologists and Chemists Societies (IULTCS) has appointed new leaders to three key committees. Dr. Giancarlo Lovato, Dr. Christine Anscombe, and Mr. Simon Neifer will guide the ISO, Training, and Liaison Committees, respectively. Dr. Lovato, known for his expertise in leather chemistry, will lead the ISO Committee. Dr. Anscombe, with over 40 years in the industry, takes charge of the Training Commission. Mr. Neifer, a seasoned professional, Head of Sales & Application Leather at Pulcra Chemicals GmbH, will head the Liaison Committee.
The 32nd Algerian Production Fair (FPA), held from December 19-28, showcased the growth of local businesses aiming to meet domestic needs and reduce imports. Notable participants, like the GITEX Group, presented diverse products including leather shoes, trainers, jackets, and more. The group also shared plans to open a new footwear and leather workshop in 2025, expanding its reach to the civilian market, currently focused on supporting the People’s National Army. Algerian-made goods are gaining ground, even amid competition from imports.
FOOTWEAR INDUSTRY NEWS
The Italian footwear industry is facing tough times in 2024, with a significant drop in key metrics. Exports fell by 9.2% in value compared to last year, and production activity saw an 18.9% decline. The industry’s turnover is projected to shrink by 9.3%, down to €13.2 billion. Employment also took a hit, with over 2,600 jobs lost and 144 footwear factories closing. However, shoes with rubber uppers showed some growth, with exports rising by 8.2% in volume.
Vietnam’s leather, footwear, and handbag sector is booming, thanks to Free Trade Agreements (FTAs) that have opened up new global markets. Ranked 3rd globally in production, Vietnam is set to earn $26-27 billion in export revenue this year a $3 billion increase from last year. North America leads as the top export market. However, new EU sustainability standards and stricter regulations are challenging businesses.
The Indian footwear industry is on an exciting growth path, targeting a market size of $26 billion by 2030, with $8 billion in exports. The focus is on boosting local manufacturing of footwear components, aiming for 50% self-sufficiency by 2028. Sanjay Gupta, President of IFCOMA, emphasized the importance of producing the 32 essential shoe components domestically. With government backing, new suppliers will join the industry, and BIS standards will raise product quality. Plus, India will introduce its own shoe sizes by April 2025, moving away from UK and US systems.
LEATHER GOODS INDUSTRY NEWS
Walmart’s $78 “Walmart Birkin” Sells Out Becoming a Viral Alternative to the Iconic Hermès Bag
The KAMUGO Leather Handbag, dubbed the “Walmart Birkin,” has gone viral, captivating social media with its striking resemblance to the luxury Hermès Birkin bag. Priced between $78-$102, the budget-friendly bag, made from cowhide leather, sold out within days due to its viral popularity. With a 4.7-star rating, shoppers are praising its quality, and the buzz continues to grow. The rapid sell-out signals a shift in consumer behavior, as more look for affordable luxury alternatives.
INDUSTRY INSIGHTS & ANALYSIS
How a Simple Makeup Bag Design Led to $1.5 Million in Sales in Just 18 Months
I recently watched an episode of Shark Tank US featuring a product that aligns with our industry.
Meet Meredith J., founder of Makeup Junkie Bags, pitched her patented & trademarked cosmetic bags for their smart, user-centered design.
Jurica entered seeking $200,000 for 15%, valuing the company at $1.33 Million.
Makeup Junkie Bags was founded by a true makeup junkie who was tired of wasting money on cosmetic bags that didn’t deliver.
- If they were wide enough, they fell over, sending cosmetics tumbling about. - If they were deep enough, they became a black hole where you couldn’t find anything you need.
- If they were pretty, the interior was not water resistant/washable & became dirty very quickly.
MJ designed her own pattern for the perfect cosmetic bag that lays flat on a surface eliminating the chances that the bag will fall over sending products everywhere.
Before she entered the show the products raked in more than $100,000 in gross revenue sales in the company's first 3 months and $1.5 million within 18 months.
Since 2016, the company has been producing 6,000 handmade makeup bags per month, crafted locally in Texas.
COGS
- Medium sized bag costed her $6.75
- Large sized bag around $7.50
She sold it for $24 dollars in wholesale and retailed at $50
Jurica got offers from Lori Greiner, Kevin O’Leary, and Sara Blakely.
Lori gave an offer for $200,000 loan plus a $1 royalty per bag in perpetuity & 5% of the company.
Meredith accepts Lori’s offer after Lori agrees to drop the royalty to $0.75 per bag.
But the deal didn’t go through post show due to differing views on manufacturing overseas.
Jurica decided to keep production local at her Texas facility, retaining 100% ownership.
Sales skyrocketed following the episode & the brand has expanded its lineup across the U.S.
These bags start from $36 now on her website & they even have these bags made out of leather which starts from $60
Till date they have sold Over 900,000 Bags and now in over 5,000 stores.
The CEO believes the lifetime warranty offered for each product & the fact that everything is still made in her Texas facility have given the brand the market edge.
Key Takeaway?
TV exposure (or any exposure as such) can be game changing.
Even without a Shark Tank deal, the visibility helped Makeup Junkie Bags build a strong brand identity, leading to sustainable growth & widespread recognition.
Isn’t it inspiring to see how a simple solution to an everyday problem can turn into such a success?
Untapped Business Opportunities for Leather Manufacturers in India (Here's Everything YOU NEED TO KNOW)
Recently Vasan Sai shared some fascinating insights on Leather News article title “How Can We Unite to Shape the Future of the Indian Leather Industry? 5 Strategies to Make it Happen”
Here’s a snippet from his article, highlighting key opportunities
Northern India has a wealth of exporters in regions like Delhi, NCR, Rajasthan, Western UP, Uttarakhand & Himachal Pradesh, all specializing in leather based home & office furnishings.
From Chairs, Working table, Table tops, Cupboards, Wall décor, Floor panels, Tables, cushions and many more.
But here’s the challenge
These exporters have immense potential to bag big orders.
But despite their potential, many of these exporters struggle to compete globally due to a lack of quality leather resources.
Many are forced to rely on traders who supply sub standard leather or stock lots, holding back their potential.
While they are part of the Export Promotion Council for Handicrafts (EPCH)
They aren’t represented under the Council for Leather Exports (CLE), meaning critical support and insights aren’t always accessible.
Here is the Opportunities Highlighted by Vasan sir:
Vasan sir’s experience helping factories enhance leather sourcing & quality is a prime example of how the right resources can transform these industries.
Did you know?
EPCH organizes two major shows each year in Greater Noida, showcasing handicrafts and leather products.
This show is attended by international giants like Ralph Lauren, Polo, Fendi and many renowned International Brands frequently attend these events.
This presents a great opportunity for Indian leather producers to shine by supplying high quality, compliant leather.
In today’s market, global brands prioritize LWG certified suppliers who meet stringent compliance & social audit standards.
Supporting these exporters with quality leather could unlock major business potential for India’s leather industry.
You can reach out to Vasan Sai sir to know more about this.
Read the whole article here for more insights How Can We Unite to Shape the Future of the Indian Leather Industry? 5 Strategies to Make it Happen
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❓ How can we better bridge this gap between potential & resources in the Indian leather industry? Share your thoughts
Leather News Hits 10,000 Website Visits Since Launch on March 9, 2024
In just under 9 months, we have published more than 270 articles including global leather, footwear & leather products Industry news, updates, expert insights & stories
So we have published almost 1 article per day on average
Hitting this milestone feels extra special it’s a perfect reminder of how far we have come together.
This wouldn’t have been possible without YOU
By YOU I mean to our readers thank you for your time, trust & encouragement.
To our contributors and experts, your insights have truly enriched the platform.
I’m beyond grateful for this journey and excited for what’s to come in 2025.
Let’s make it even bigger and better
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❓ As we celebrate this Let me know what topics or stories would you like us to cover next year? Drop your suggestions in the comments
Check out Leather News Website here
Here’s the Link to Last Week's Newsletter
Mongolia Invests $231 Million in Leather Industry Transformation & Brazil to Host CICB Sustainability Forum for the Leather Industry in March 2025
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Written & Published by Arshad | Leathernews.org
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