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This Week's News from the Global Leather, Footwear & Leather Goods Industry
Malack Mohamed Hashim Chairman of KH Group Passes Away | Ethiopian Ministry Approves CLRI’s Modjo Leather City Plan and Invites Team to PM Office Briefing | LWG Opens Public Consultation for New Leather Production Standard | Clarks Reports £901 Million in Revenue and Lays Off 1200 Employees in 2024 & more
Arshad Leathernews.org
July 06, 2025
Good morning & Welcome to our weekly newsletter! Here, we bring you the entire week's news, insights, market research, analysis, expert insights & 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
The Indian leather industry is mourning the loss of Malack Mohamed Hashim, Chairman of KH Group and one of its most respected leaders. He passed away after dedicating over six decades to the sector.
CLRI advances Modjo Leather City project in Ethiopia, securing ministerial approval and an invitation to present at the Prime Minister’s Office, marking a major step in South-South collaboration for sustainable leather development.
At its July 1st assembly in Milan, UNIC – Italian Tanneries warned that the EU Deforestation Regulation, if unchanged, could devastate Italy’s tanning industry and vowed stronger action in Brussels to defend bovine leather.
We are not against efforts to stop deforestation or environmental, health, and safety regulations. But we also refuse to be blamed for things we are not responsible for
Paycueros, a leading Uruguayan tannery, warns that global shifts and rising Asian competition make it unviable to maintain past production levels, signaling a long-term decline and a pivot to serving only regional markets.
Dr. Giancarlo Lovato has been appointed IULTCS Vice-President, while Dr. Patricia Casey is named this year’s Merit Award nominee for her outstanding contributions to the global leather industry.
LWG opens public consultation on its new Leather Production Standard, replacing Protocol 7 in 2026. Stakeholders can submit feedback on core environmental criteria until 26 August 2025.
Stahl has opened a new Center of Excellence in León, Mexico, strengthening support for Latin American customers with advanced labs, offices, and testing facilities to drive sustainable innovation in leather and performance coatings.
FOOTWEAR INDUSTRY NEWS
Clarks’ 2024 revenues fell 9.4% to £901.3 million, with over 1,200 job cuts, leadership changes, and continued retail struggles in key markets amid cautious consumer spending and margin pressure.
Nike reported a 10% drop in annual revenue and an 86% plunge in Q4 net income, driven by falling direct sales, digital decline, and higher discounting—despite returning $5.3 billion to shareholders in fiscal 2025.
INDUSTRY INSIGHTS
Why the Debate Around Kangaroo Leather Is a Wake Up Call for the Global Leather Industry? (Especially for the Indian Leather Industry)
I came across this article from Packer Leather Pty Ltd yesterday on International leather maker responding to the "Kangaroos Are Not Shoes" campaign.
I should admit, the whole situation is pretty fascinating from an industry perspective.
So here's what's happening
There's this campaign trying to shut down Australia's kangaroo leather industry
Recently adidas,Basics & mizuno ended the use of Kangaroo leather in their football shoes.
Packer Leather came out with some strong facts defending the industry.
For those who don't know, Packer Leather is one of Australia's established kangaroo leather manufacturer & exporter.
They have been in this business for years & are basically defending their entire industry here.
Some of the points from the article
They operate under Australia's strict federal laws with government-approved management plans
Only harvest about 3% of kangaroo populations annually (way below the 20% quota they are allowed)
All harvesters need mandatory training & must follow strict protocols
Export of kangaroo products is only permitted from facilities & supply chains that meet the highest standards of traceability & animal welfare
They argue it actually helps conservation by preventing overpopulation & habitat damage
Honestly, after reading their response
I think Packer Leather makes some solid points.
& I stand with them.
This whole debate got me thinking about our own Indian leather industry.
The pressure for transparency is real everywhere.
Consumers are asking more & more questions about
Where leather comes from,
How animals are treated &
What the environmental impact is.
We are seeing this in our export markets too.
As we move ahead, trust me the norms will be even more stricter.
What struck me reading this article is how detailed their regulatory framework is & they have clearly invested heavily in documentation, traceability & compliance systems etc.
For us in India, this is a wake up call.
Our international customers are going to expect the same level of transparency & ethical sourcing documentation.
The companies that get ahead of this trend will have a real advantage.
At the end this whole kangaroo leather debate got me thinking about how the global leather industry is changing.
The days of "JUST MAKING GOOD LEATHER" are changing I would say.
Now it's more about proving YOU MAKE LEATHER RESPONSIBLY.
Just wanted to share my thoughts & that’s it for now.
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❓ What do you think about this whole debate?
& more importantly, how ready is our industry for these kinds of transparency demands from international buyers? Would love to know your thoughts.
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Written & Published by Arshad | Leathernews.org
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