“I have never seen something like that in all my life”. Downturn in the selling price of leather astounded Australia’s leather industry professionals: despite their being ready to deal with market cyclical trends, they look flabbergasted about such long-lasting and tough situation.
A long-lasting downturn
“The current downward trend has been going on for such a long time and downturn in the prices has been outstandingly remarkable”, commented Dennis King (manager at Australian Hide Skin and Leather Exporters Association) in The Weekly Times. The daily newspaper provided a few data, according to which prices have been dropping by 50 to 79% in one year.
Who is accountable for that?
“Global demand for hides and skins is low, mostly due to synthetic materials” – carried on King. Yet, however, this is just a cyclical trend: fashion will manage to revive and revamp leather again”. In the manager’s opinion, people opt for alternative materials because of several factors: among others, raw material lower price, not to mention pressure animal-rights activists apply to international fashion houses. “The selling price of shoes manufactured by using alternative materials is three times lower compared to leather products and items”, emphasized King, while focusing his attention on footwear industry.