How Israr Ahmed of Farida Group Sees the Indian Footwear Sector Transforming Over the 10 Years & More..

Inside Ethiopia’s Green Tannery Initiative Led by CLRI & Hermès Reports $3.99 Billion in Q3 and more

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Arshad Leathernews.org
October 27, 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 INDUSTRY NEWS

The global leather industry is shifting towards sustainability with the Green Tannery Initiative, a pioneering project launched in August 2024 to reduce environmental impact in Ethiopia’s leather sector.

Led by CSIR-CLRI and LLPIRC, in partnership with UNIDO and funded by SMEP, FCDO, and UNCTAD, the project replaces hazardous chemicals with enzyme-based alternatives, significantly cutting pollutants like sodium sulphide.

Key goals include reducing chemical usage, enhancing wastewater quality, and minimizing carbon emissions. By converting waste into valuable resources, the initiative offers an eco-friendly model with trials planned across five Ethiopian tanneries, promising to set new standards in sustainable leather production globally.

Uzbekistan is taking significant steps to enhance its leather and footwear industry by launching a comprehensive audit for enterprises seeking Leather Working Group (LWG) certification.

Following a presidential decree aimed at accelerating industry reforms, this initiative underscores Uzbekistan’s commitment to international environmental standards. Led by LWG experts, the six-month audit will assess Hamkor Nur Savdo LLC, focusing on 17 criteria, including environmental impacts, workplace conditions, and product quality.

Achieving LWG certification will not only boost Uzbekistan’s international competitiveness and attract investment but also enhance its reputation as a leader in sustainable leather production, appealing to eco-conscious markets.

The Africa Leather and Leather Products Institute (ALLPI) recently held a pivotal pre-pilot technical meeting in Bishoftu, Ethiopia, from October 21-22, 2024, focused on developing a hides and skins traceability and eco-certification system.

This event brought together representatives from 14 African countries, including Burundi, Kenya, and Uganda, to enhance transparency and sustainability in the leather industry. Under the RECAMP initiative, ALLPI aims to implement a Regional Certification and Marketing Program to track hides from livestock to finished products.

This project, commissioned by COMESA in 2020, emphasizes eco-friendly practices and includes support for businesses to meet international certification standards.

FOOTWEAR INDUSTRY NEWS

The Indian footwear industry is poised for unprecedented growth, with forecasts indicating a potential acceleration surpassing the last fifty years.

Industry leaders like Mr. Israr Ahmed from Farida Group highlight significant developments, including a new manufacturing facility for a major U.S. brand, set to produce nearly 1 million pairs of sneakers. Farida Group, employing 20,000 workers (95% women), anticipates long-term contracts with global brands.

Aston Shoes plans to invest ₹100 crore (approximately $12 million) to produce 10 million shoes annually, targeting a 10% share of the global sports shoe market. Consumer demand is projected to rise from 1.9 to 3.5 pairs by 2030.

Hoka, a rapidly growing brand under Deckers Brands, has achieved a significant milestone, surpassing $2 billion in revenue over the past 12 months.

President and CEO Stefano Caroti announced this during the Q2 earnings call, highlighting a 20.1% increase in net sales from $1.1 billion in Q2 FY2024 to $1.3 billion in Q2 FY2025. Net income also rose by 35.7%, from $178.5 million to $242.3 million.

As Hoka focuses on expanding internationally, it aims for a balanced sales split between the U.S. and global markets, further bolstered by new store openings in London and Paris ahead of the 2024 Summer Olympics.

The 6th edition of the Made In Nigeria Shoe Expo (MINSE 6.0) will take place in Abuja from December 4th to 6th, 2024, highlighting opportunities and challenges within Nigeria’s leather and textile industry.

Organized by LOGSAMES, the Expo aims to unite key stakeholders, including government representatives and artisans, to discuss strategies for growth.

With the theme "Harnessing Niche Markets in Nigeria’s Leather and Textile Industry," the event seeks to explore market penetration opportunities and promote cooperation among sectors such as tanneries and finished leather goods producers. By fostering partnerships, MINSE 6.0 aims to bolster Nigeria’s competitive edge in the global leather market.

Hermès reported robust financial results for Q3 2024, with consolidated revenue reaching €11.2 billion, including €3.7 billion ($3.99 billion) for the quarter, reflecting an 11.3% increase at constant exchange rates.

Despite challenges in the luxury sector, particularly in China, Hermès remains optimistic about long-term growth. Notable sales growth was recorded across regions: Japan (+23%), the Americas (+13%), and Europe excluding France (+18%).

The brand’s strategy focuses on premium product sales, resulting in a 17% growth in Leather Goods and Saddlery. Hermès continues to invest in China, opening a new store in Shenzhen and planning a flagship in Beijing.

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 Written & Published by Arshad | Leathernews.org

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