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KICL and ShoeTown to set up Two New Footwear and Component Factories in Tamil Nadu
This week's Global Leather, Footwear & Leather Goods Industry News & Updates
Arshad Leathernews.org
August 25, 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
In a significant move towards sustainability in the leather industry, the CSIR – Central Leather Research Institute (CLRI) introduced innovative cleaner technologies to tanneries in Kanpur’s Jajmau Leather Cluster from August 12th to 17th, 2024.
Sponsored by WWF India, the project showcased the enzyme-based unhairing process, which eliminates harmful sulphides, reducing environmental impact and enhancing efficiency.
Additionally, CSIR-CLRI demonstrated wastewater recycling techniques and Direct Chrome Liquor Recycling (DCLR) technology, which conserves water and repurposes chromium from tannery wastewater, making leather processing more sustainable and cost-effective.
This initiative is a critical advancement for the industry, particularly for tanneries in Kanpur facing environmental compliance challenges.
The African Union Inter-African Bureau for Animal Resources (AU-IBAR) and the African Leather and Leather Products Institute (ALLPI) have signed a groundbreaking Memorandum of Understanding (MoU) aimed at revitalizing Africa’s leather industry.
This partnership follows the recent validation of the COMESA Leather Value Chain Strategy for 2025-2029, addressing critical challenges in the sector.
The MoU focuses on enhancing the leather value chain by improving animal health, promoting sustainable practices, and adopting advanced technologies in leather processing.
The collaboration aligns with the Livestock Development Strategy for Africa (LiDeSA), aiming to boost productivity, market access, and value addition, ultimately enhancing incomes for smallholder farmers and contributing to Africa's socioeconomic development.
This strategic alliance is set to foster long-term growth, innovation, and sustainability in Africa's leather industry.
The Trade Development Authority of Pakistan (TDAP) has announced the inauguration of the International Pavilion at the 5th International Textile and Leather Exhibition, TEXPO 2024, taking place from October 23-25, 2024, in Karachi.
TEXPO, a flagship event since 2016, will focus on sustainability, showcasing innovative products made from recycled, organic, and biodegradable materials.
The exhibition offers significant B2B opportunities, including Texpo Talks, a Design Studio, and a Fashion Show. Exhibitors are encouraged to register by September 15, 2024, with participation fees starting at US$1,500 for raw space and US$3,000 for indoor shell schemes.
In June, Dr. Alfred J. Beerli assumed the role of CEO at OEKO-TEX®, bringing extensive experience in strategic management, IT, and sustainability.
With a background leading uniQconsulting ag and workfashiondotcom ag, and serving as a Board Member of amfori BSCI, Dr. Beerli is poised to elevate OEKO-TEX®'s commitment to sustainable and transparent practices in the global textile and leather industries.
His strategy focuses on collaboration with government bodies and trade associations, aiming to drive the industry's progress toward greater ecological responsibility and social justice.
FOOTWEAR NEWS
JR One Footwear Pvt Ltd, a joint venture between Phoenix Kothari Footwear Ltd and Taiwan-based ShoeTown Group, is making a significant investment of ₹5,000 crore (~US$600 million) to expand its operations in Tamil Nadu.
The company plans to establish two new manufacturing facilities and leather component clusters in the state, enhancing its presence and introducing more global footwear brands to the Indian market.
This expansion, part of their "China plus" strategy, includes a new factory in Perambalur dedicated to producing Crocs footwear, which has already created around 1,700 jobs.
The venture underscores Tamil Nadu’s appeal with its low labor costs and abundant manpower, positioning JR One Footwear as a key player in the global industry while driving local economic growth.
Sara Blakely, the founder of Spanx and the world’s youngest self-made female billionaire in 2012, has launched her latest venture, Sneex, aiming to revolutionize women’s high heels.
With a net worth of $1.3 billion in 2024, Blakely has invested nine years in developing the patented design for Sneex, which combines the comfort of sneakers with the elegance of stilettos, featuring 78mm heels, Nappa leather, and Italian mesh.
Priced between $395 and $595, Sneex offers three styles in multiple colorways, but initial public reactions have been mixed, with some praising the comfort and others criticizing the aesthetics, drawing comparisons to the once-controversial Crocs. Despite the polarizing feedback, Sneex may follow in Spanx's footsteps by addressing long-standing issues with high heels.
INDUSTRY INSIGHTS & ANALYSIS
During my recent visit to Portugal, I had the opportunity to meet with several leather traders who graciously gave me a tour of their facilities.
They also showed a variety of leather articles that they import from various countries.
One prominent trader shared that they sell top-selection goat suede leather for around €2.20 to €2.25 per square foot.
Apparently these suedes are imported from India, with prices ranging between €1.25 to €1.45 per square foot. Interestingly, the trader mentioned a preference for Nigerian suede over Indian origin suede.
When I asked why is it so?
They mentioned that the Nigerian suede is favored for its uniform and consistent thickness across the skin, a short & even nap and a superior writing effect on the surface.
Additionally, the price of Nigerian suede is reportedly lower than the Indian price range.
Another insight they shared was about the market demand for suedes in general Black suede is experiencing a bit of a downturn, whereas other colors of suede are selling quite well.
I haven’t had the chance to see Nigerian suede myself, but If you have experience with it, I would love to hear your thoughts on it, please reply to this email and let me know.
That’s all for now. In the coming weeks, I will be sharing more insights from my trip to Portugal..
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