Leather sector: We are all waiting for the revenge shopping

by | 21 Jul 2020 | A world of leather

Written by Attilio Ercoli

21 Jul 2020

The purchase of leather goods from China it’s starting because the revenge shopping, meaning the desire to buy to reward yourself after so much abstinence, but without waste money in good without real value 

There are some countries  with the first signs of reopening, starting in China where 80% of production activities are now on the way and commercial activities have also started selling again. Also in Europe, the German locomotive and some northern European countries are stimulating the reopening of economic and social activities, like School, restaurant and pubs.

The reopening, however, as expected, is not accompanied by an incendiary recovery of the sales and therefore of orders to the factories. At the origin of this phenomenon there are several factors.

Psychological factors. There is of course a prudence and fear that the virus will return again, that the infection is around the corner again, so the final consumer dont want to spend money; the commercial operators, they reconfirm orders or place new ones, only if they are sure, thus avoiding spending or investing resources in something that could represent a ballast in the future due to a further lockdown.

Logistic factors. Due to the lockdowns in the world, the lead time of production available to assort the shops have been reduced considerably so it will be not possible to respect the normal production cycle required for the logistics of distribution. Also the retails will ask new goods, mainly classic items, what they will be sure to sell, not too fashionable, possibly not markedly seasonal.

Liquidity factors. Due to the lack of sales many retails have not honored their payments to suppliers; so the factories at the base of the production chain will not produce new orders if they are not convinced of the solvency of the retail customers. Liquidity hopefully come either from the private (bank sector) or public system and it will be essential to limit the damage in the months of the immediate reopening. What will happen from September, will be closely linked to the return or not of the infection.

I have been able to see by myself and also through many friends that the solution for all operators in the leather sector seems to provide the product, quickly, at a better price and classic, therefore resorting to leathers that are already in stock , in the warehouses. In fact, it will be too long wait for the 4/5 weeks of the regular lead time of the tannery, for the lead time of the production for the finished product and the lead of distribution logistics. So in this phase the availability of immediate material will be a strategic factor to be able to fulfill the request for shortened deliveries.

If then this material will be cheap than the regular production, even better since it will allow you to confirm orders more safely.

However, what seems very marked is that the consumer want buy what actually has high intrinsic value and not the simple buying experience that has been pursued both online and offline in recent years: the consumer has evolved to the next level. 

If you want to evaluate the options on all the materials on the site at www.aworldofleather.it here are the various material options available:

Crocodile leatherPython leatherCalf leatherSheep leatherother
Price range3-8 €/cm15-23 €/mt15-72  €/sqmtr13-26  €/sqmt7-50€
Kind of articles availableGlazed and milleniummattMatt, shinnycavallino, dollar print, raggrinzito, full grain, bufalo, splitlining, nappa, madras, kid, lavatolapin
Quantity of items available89 items106 items33 items20 items4 items

If you are looking for some special item, we will send you the access to our special virtual showrooms.

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A WORLD OF LEATHER

The best leathers and components suitable for all type of manufacturing use

Written by Attilio Ercoli

Italian, he has been working in the leather and shoes business for 25 years; lived for 10 years in Leon, Mexico, a city that produces 130 million pairs of shoes per year, as general manager of one of the most important raw material companies for shoe manufacturers. 

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