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- Bangladesh Leather Exports Fall 11.65% to $62.48 Million in FY25 Due to LWG Certification & CETP Delays Leaving Exporters Vulnerable to Chinese Buyers
Bangladesh Leather Exports Fall 11.65% to $62.48 Million in FY25 Due to LWG Certification & CETP Delays Leaving Exporters Vulnerable to Chinese Buyers
Why Did the Pakistan Mega Leather Show 2025 Fail to Attract Global Buyers? | Brazil Exports 11.46 Million Pairs of Shoes in January 2025 Generating $88.3 Million & more...
Arshad Leathernews.org
February 16, 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
Bangladesh’s leather exports dropped 11.65% in the first half of the fiscal year, hitting $62.48 million. Industry leaders blame lack of LWG certification and poor environmental compliance, risking future global business, especially in Europe and North America.
Md Sakhawat Ullah: “Without LWG, we lose European market access.”
Bangladesh's leather sector is struggling due to the absence of LWG certification, which has restricted access to European markets. This failure forces reliance on China, where buyers drive prices down, exploiting the situation. CETP and waste management issues are key barriers to certification.
Mujibur Rahman voices frustration over government inaction, highlighting a 62% price drop in leather. Tannery owners demand immediate reforms to the CETP and waste management, urging domestic/foreign investment for long-term solutions.
“We need more than promises. Immediate action is critical for the sector's survival.”
Industry leaders remain skeptical about the government's commitment to resolving the crisis.
Residents in Kanpur Nagar, Kanpur Dehat, and Fatehpur districts face respiratory, neurological, and skin diseases linked to pollution from nearby tanneries. NGT's intervention reveals high levels of chromium and mercury in residents' blood.
With 400 tanneries near the Ganga River, this long-standing issue continues to threaten public health.
Union Minister Dr. Jitendra Singh has launched an industrial training program for women in Jammu & Kashmir to develop skills in leather goods manufacturing. Supported by CSIR-IIIM, CSIR-CLRI, and CEL, the program offers hands-on training in design, production, and marketing, aiming to boost employability and entrepreneurship in the region
The Pakistan Mega Show in Lahore left exhibitors and manufacturers disappointed, failing to attract international interest. Key issues include ineffective marketing, poor PTA representation, and insufficient support from TDAP. The leather industry has been in decline, worsened by monopolistic PTA practices and high fees that stifle small tanneries.
Tannery workers in Bangladesh will get a Tk10,000 (US$82) advance while wage talks continue. No agreement was reached on the new wage structure, but the advance will be adjusted once finalized. A key discussion is set for 20 February.
FOOTWEAR INDUSTRY NEWS
Tamil Nadu is becoming India’s top hub for non-leather footwear, contributing 38% of the country's output. New parks in Ranipet and Perambalur will create 1.3 lakh jobs, with 50% for women. Companies like Pou Chen and Hong Fu are expanding to meet global demand.
Government policies and collaborations, such as the Footwear and Leather Products Policy 2022, are supporting this growth, with the global non-leather footwear market projected to exceed $38 billion by 2030.
Brazil's footwear exports grew by 11.4% in volume to 11.46 million pairs, but revenue dropped by 2.7% to USD 88.3 million due to a 12.6% decrease in average price. Despite volume growth, sales remained below the five-year average. Imports also increased, with Vietnam and Indonesia dominating the supply.
LEATHER GOODS INDUSTRY NEWS
Gucci and YSL Parent Kering Revenue Drops 12% to €17.2 Billion in 2024
Kering's revenue for 2024 fell by 12% to €17.2 billion, with Gucci seeing a 23% drop and Yves Saint Laurent a 9% decline. However, Bottega Veneta posted a 4% increase. The group's net income was €1.1 billion, and free cash flow increased by 7% to €3.6 billion. Kering plans a €6 dividend per share. Despite challenges, strategic investments in leather goods showed positive results, with Gucci and YSL seeing gains in select products.
Here’s the Link to Last Week's Newsletter
Andhra Pradesh State Government Invests Rs 5.75 Crore (US$700,000) to Develop Leather Park | Paraguayan Leather Industry Reports $91.9 Million in Exports.
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Written & Published by Arshad | Leathernews.org
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