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- Exhibitors at Lineapelle 104 Report Mixed Reactions “We have Lost to Plastic” | Nike Appoints New CEO.....
Exhibitors at Lineapelle 104 Report Mixed Reactions “We have Lost to Plastic” | Nike Appoints New CEO.....
New CETP Inaugurated in Kanpur to Tackle Tanneries’ Waste & Uzbekistan’s Leather Industry Secures $2-4 Million Deal at Lineapelle.
Arshad Leathernews.org
September 29, 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 104th Lineapelle trade show, held from September 17-19 at Rho Fiera Milano, attracted 23,800 professionals, a 6% drop from February. Despite 43% of attendees coming from 112 countries, mixed reactions prevailed.
Lineapelle CEO Fulvia Bacchi noted concerns over economic complexities hindering expectations for a late 2024 recovery.
However, exhibitors voiced apprehension, Shamil Valitov a leather maker reported a 20-25% decrease in stands and visitors, citing rising costs and significant global shipping delays of 75-90 days.
“We, tanners, leather traders, raw hides traders, have lost—to plastic, fast fashion, propaganda”
Meanwhile, Bonaudo thrives on innovation, emphasizing quality amidst challenges.
A significant milestone in the Ganges River cleanup efforts has been achieved with the inauguration of a state-of-the-art 20 MLD Common Effluent Treatment Plant (CETP) in Kanpur, under the National Mission for Clean Ganga (NMCG).
This facility addresses long-standing pollution from tanneries, employing advanced technology to ensure proper wastewater treatment. The new CETP replaces an inefficient 36 MLD plant, offering improved operation and maintenance.
Manager Vikas Tiwari highlighted its dual-stream design for optimal capacity. This initiative follows the diversion of the Sisamau drain, which previously discharged over 140 MLD of untreated sewage, costing over Rs. 60 crore (~US$7.3 million).
Uzbekistan’s leather industry is making significant strides internationally, highlighted during the recent Lineapelle exhibition in Milan.
The event featured a delegation showcasing innovative footwear and leather goods, emphasizing the country’s strategy to boost export capabilities. Notably, the Peng Sheng factory attracted interest from international suppliers, including Tommy Hilfiger, focusing on sustainable products.
Key agreements included Hamkor Nur Savdo negotiating $2 million in exports with an Italian firm and Ulkan Laziz discussing a $2.5 million contract with Hungary's Tisza Cipo Group. Collaborations with Italy's Assomac aim to enhance local industry competitiveness and establish a service center, further positioning Uzbekistan in the global market.
Nike Inc. is set for a significant leadership transition as Elliott Hill takes the reins as CEO on October 14th, succeeding John Donahoe, who retires on October 13th.
Hill, a 32-year Nike veteran, previously served as President of Consumer and Marketplace, playing a key role in driving revenue growth to over $39 billion. Industry experts believe Hill's extensive experience and deep understanding of Nike's culture will stabilize the company amid recent market share losses and ongoing layoffs.
With an investor day approaching, Hill is expected to outline long-term strategies, including reducing overexposure of key product lines like Air Force 1 and Jordan 1.
The International Union of Shoe Industry Technicians (UITIC) has announced its 22nd Congress in Shanghai, China, from August 31 to September 3, 2025, focusing on the footwear industry's competitiveness and sustainability.
The event will emphasize the role of artificial intelligence in shaping future developments. Attendees can expect factory visits, networking dinners with local leaders, and conferences covering the latest technologies in footwear production.
A gala dinner aboard a luxurious boat on the Huangpu River promises an unforgettable experience. Participants will also explore trade fairs, ACLE and Moda China, showcasing innovations in the leather and footwear industries.
LEATHER GOODS INDUSTRY NEWS
The leather goods industry faces significant economic challenges, yet hope emerged at Mipel 126, held from September 15 to 17 in Milan, featuring over 200 brands across 4,000 square meters.
Claudia Sequi, President of Assopellettieri, highlighted that creativity is vital for survival amid a downturn where exports dropped 9.4% and domestic retail sales fell 0.8% from pre-pandemic levels. Alarmingly, redundancy payments surged 138.5%, with 1,832 jobs lost in H1 2024.
Despite these struggles, Mipel showcased innovation, including live shopping events, emphasizing the need for political support and strategic investments to safeguard Italy's renowned leather supply chain for a brighter future.
INDUSTRY INSIGHTS
Indonesia's Footwear Industry A Global Powerhouse on the Rise (Here’s How it is Set to Boost Indonesia's Economy)
Exciting news from Indonesia
The nation's footwear industry is experiencing significant growth, positioning itself as a major player in the global market.
Did you know?
Indonesia ranks among the top five footwear producers worldwide, producing 807 million pairs in 2023.
55% of production (~445 million pairs) were exported in 2023 and resulted in US$6.4 Billion in total export value.
Already, between January - June 2024, the value of footwear exports reached an US$3.7 Billion, setting the stage for an even stronger performance in the latter half of this year.
Also, the entire Indonesian footwear industry grew by 3.92% in the second quarter of 2024, compared to the same period in 2023.
Despite Indonesia’s export achievements, the domestic market remains largely untapped.
Out of the 807 million pairs produced last year, only 362 million pairs were sold locally
Which is relatively low given Indonesia’s population of 282 million.
On average, Indonesians purchase just 1-2 pairs of shoes annually.
This signals a significant opportunity for growth in the local market.
In a bid to support and further stimulate the growth of the footwear sector,
The Ministry of Industry has implemented a machinery restructuring program aimed at aiding local creative industries.
Under this program, entrepreneurs can receive
- 25% reimbursements for the cost of imported machines, and
- 40% reimbursements for machines produced locally.
This initiative is expected to foster the growth of local industries, enhance productivity, and further strengthen Indonesia’s position as a global footwear powerhouse.
At the end, I would just say that Indonesia's footwear industry is on a promising trajectory.
With strong government support and a focus on innovation, the nation is set to become a dominant force in the global footwear market and is set to elevate Indonesia’s economic standing on the world stage.
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