Thailand Leather Industry – A Major Force

As the first and only leather exhibition in Thailand, APLF ASEAN, together with the Thai Tanning Industry Association (TTIA), continues the mission to unite the Thai leather industry by gathering top leather tanners, chemical suppliers, and buyers under one roof.

30 major Thai tanners, including CPL Group, Interhide, Kongsiri, Chun Wang, and chemical companies such as Modern Dyestuffs and Allied Chemicals, will present their latest products at the exhibition, serving the local and regional footwear, leather goods, furniture, and auto manufacturing industries.

APLF and the Thai Leather Industry Join Hands to Support Local Talents

APLF, an international event organizer with a mission to support the development of local talent, invites 10 Thai companies to organize the Next Thai Leather Goods Designer Competition. Ten student teams*, preselected by an esteemed judge panel, including Vera Paris, Mynte Studio, Jakawa Studios, and TTIA, receive leather donated by the exhibitors to produce their leather bags.

The teams will display and present their prototype on October 26th, 2023 (day 2 of APLF ASEAN). Five awards will be presented to the winners, including the Online Favourite Design award, which is now open for public voting at 

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Thai Designer Brands – The Big Bang of Originality and Creativity 

Thai fashion designers, known for their creativity and craftsmanship, will once again be the focus of APLF ASEAN. Renowned Thai brands, including 31Thanwa, Fundao, Lunné, Nasha, Xotique, will not only display their iconic pieces at the exhibition but will also have their designers share on stage the entrepreneurial stories, the fun and challenges as designers, and their love of leather on October 25th (Day 1 of APLF ASEAN). 

The organizer has invited two renowned leather professionals from the UK – Mr. Karl Flowers, a leather technical consultant, and Mr. Yusuf Osman, designer and maker of YUSSICO – to conduct two courses, which offer an immersive journey that combines the technical and the practical, helping attendees confidently choose the right leather for their collections while clarifying leather’s sustainable credentials and dispelling common myths.

Thai Leather Artisan Talk – Leather Craftsmen United

Recognising the contribution and cultural significance of leather artisans to the Thai fashion industry, on the third day of APLF ASEAN, three local leather artisans are invited to share the inside stories that are unknown to the public, discuss the trends, challenges, and opportunities in Thailand’s leather business, and on why Thailand needs more artisans to export Thailand’s culture to the world.

Under the slogan “ASEAN in Action,” APLF ASEAN 2023 will bring together industry professionals, buyers and exhibitors from around the globe to explore new business opportunities, foster beneficial collaborations, and showcase the latest trends and innovations. In the previous edition of the event, APLF ASEAN has featured 200 international and local suppliers supplying leather (from raw to finished), chemicals, footwear components, fashion accessories, and finished products, attracting buyers of the tanning and fashion industries from 50 countries.

M.E.E.T.  – a Special Concept for the Thai and SEA Leather Community

This remarkable event goes beyond business, as it is also a big gathering of the whole Thai and Southeast Asia leather community – leather enthusiasts, workshops, and anyone who shows a love to leather. With an unique concept known as MEET: Matching, Education, Experience, and Tradeshow,  the exhibition aims to deliver a comprehensive and immersive experience for our audiences, ensuring valuable interactions and knowledge sharing. Under the M.E.E.T concept are three highlighted programmes as shown below.

The Next Thai Leather Goods Designer Competition 
Aiming to inspire and encourage design students in Thailand to explore the potential of working with leather. This competition serves as a platform for young talents to showcase their creativity and craftsmanship under the theme “Simple is Sustainable” while fostering a strong relationship between the design community and the Thai tanning industry. Through this competition, participants will not only gain valuable experiences but also contribute to the growth and promotion of Thai design and the local leather industry.

Collection Showcase and Story Sharing from Top ASEAN Designers 
Representing established leather goods designer brands, these top ASEAN designers will showcase their iconic bag collections during the fair, where attendees will be able to admire these masterpieces first hand. In addition, the designers are invited to share their success story and love for leather under the theme “Endless Possibility of Leather”.

Workshops for the Fashion Professionals
This course is designed for designers, buyers and store trainers who need to understand the characteristic of different types of leathers to design their products and educate their customers. Including in the one-day course are leather foundation course, how to promote leather sustainability, leather making class and Fall-Winter 24/25 Colour and Material trend tour guide.
Supporting Partners and the Edge of the ASEAN Market
APLF ASEAN 2023 has gained devoted support from leading tanning and footwear associations in ASEAN, including Thai Tanning Industry Association (TTIA), The Vietnam Leather, Footwear, and Handbag Association (LEFASO), the Indonesian Tanners Association (APKI) and Fashion Accessory Makers of the Philippines (FamPH). These partnerships help shed light on the exceptional sourcing opportunities available for leather and materials in the region.

Overview

• Sales grew 13.5% over 1H2022 to reach €16.9bn
• Gross profit increased by 14.1% year on year to €9.8bn 
• EBITDA increased 15.7% to €4.7bn
• Net income increased 40.1% to €2.5bn

Zara-owner Inditex was among the first retailers to raise prices in response to the rise of inflation but reports a 13.5% rise in revenue compared to last year for the period spanning from 1 February to 31 July, due to robust sales in the spring and summer collections. 

Inditex, which also owns Bershka, Pull & Bear, Oysho and Massimo Dutti, increased its prices back in 2022 but now finds itself in a stronger financial position and cited the increase in revenue to the execution on its business model and a “very satisfactory development both in stores and online.” Its brands saw double-digit growth, with Oysho and Massimo Dutti being the front runners reporting growth of 18.3% and 16.8%. The group’s biggest brand Zara, saw an increase of 13.1% to €12.36bn ($13.3bn), delivering a large percentage of Inditex’s revenue for the six-month period.

Inditex CEO Oscar Garcia Maceiras commented: “The 1H2023 results demonstrate that the talent of our teams continues to consolidate the improvements in the performance of our business model.”

Inditex enhanced its inventory levels through a “robust operating performance” and the stabilisation of supply chain conditions, resulting in inventory levels that were 6.9% lower as of 31 July compared to the previous year. Looking forward the group said its autumn/winter collections have also been well received and continue to see strong growth opportunities. “The ongoing commitment to creativity, quality and customer experience, as well as the determined progress in sustainability, drives a strategy that is taking our business to the next level,” said Maceiras.

“Inditex continues to dominate in the fashion market, with sales in H1 FY2022/23 rising 13.5% to €16.9bn, sitting 32.0% ahead of pre-pandemic levels. This is in stark contrast with the H&M group, which saw sales for the six months ending 31 May 2023 only marginally surpass 2019 performance, demonstrating Inditex’s superior ability to remain versatile and quickly respond to evolving trends. Inditex’s momentum has continued at the start of H2, with the group reporting a strong reception to its AW23 offering, with total sales between 1 August and 11 September up 14% in constant currency, pointing to a continued strong performance for the latter half of the year.

In 2023, Laforst introduced a footwear style which incorporates multiple designs that infringe upon five separate Skechers patents for its novel and highly successful Skechers Hands Free Slip-ins® footwear.

Michael Greenberg, president of Skechers, stated: “Skechers invests tremendous resources into product development to introduce fresh, unique and exciting footwear to its customers year in and year out. It is disappointing that Laforst has chosen to copy multiple Skechers- patented designs. While Skechers always prefers to compete in the marketplace rather than the courtroom, the Company has no choice but to seek legal recourse when competitors blatantly tread on our rights. Skechers will continue to aggressively police and enforce its proprietary rights to Skechers Hands Free Slip-ins® designs and technologies.”

LOS ANGELES–(BUSINESS WIRE)– Skechers, The Comfort Technology CompanyTM, announced that its philanthropic BOBS from Skechers division has donated more than $10 million since the program’s launch in 2015—funds that have helped save and support 1.9 million dogs and cats in need. To celebrate the milestone, Skechers is kicking off a year-long awareness campaign with the BOBS from Skechers Paws for a Cause Design Scholarship, which will give college creatives the opportunity to design styles that improve shelter animals’ lives.

“This $10 million achievement is thanks to the passionate pet lovers who have been part of the BOBS story for the past eight years. They saw BOBS from Skechers as a positive, practical way to save lives —and their purchases have made a tremendous difference,” said Michael Greenberg, president of Skechers. “Rising costs have created new challenges for animals in need and their organizations—but thanks to the community we’ve built together, we’re now in a position to do even more. From supporting shelters at home and abroad to funding flights that help pets reach their forever homes, BOBS will continue to find creative, ambitious ways to save millions.”

Over the past eight years, BOBS from Skechers has grown into a year-round movement—uplifting communities with round-up donations, vaccination events, check celebrations for organizations, and even animal transports to future homes. Through sales of BOBS footwear, apparel and accessories, the Company has funded pet

adoptions to help save over 1.4 million dogs and cats, and has nurtured 450,000 more at nurseries, sanctuaries and medical care facilities. The brand supports Petco Love’s network of 4,000 animal welfare organizations in the United States and Canada, as well as rescue pets in the UK through Woodgreen Pets Charity and shelter animals in Japan through Alma.

Added Greenberg: “Our BOBS animal-themed prints have been at the heart of our message, inspiring pet lovers to wear and share our collections. We thought it would be wonderful to feature personal designs from young artists who have experienced firsthand how shelter pets change lives. The BOBS from Skechers Paws for a Cause Design Scholarship is a special way that students can use their creative talents to produce unique cat or dog prints that can help save animals across the country.”

The BOBS from Skechers Paws for a Cause Design Scholarship will give two students the opportunity to see their shoe designs produced and sold in the 2024 collection, and will provide $10,000 scholarships from the Skechers Foundation, one-on-one corporate mentorships and donations to local animal welfare organizations. Open to students at United States colleges and universities who will be enrolled in the 2024/2025 academic year, the BOBS from Skechers Paws for a Cause Design Scholarship will accept applications from September 1 through October 15, 2023.

Skechers U.S.A., Inc. (NYSE:SKX), a Fortune 500® company based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. Collections from The Comfort Technology CompanyTM are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and over 4,700 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors.

“Partners like Koolaburra by UGG® are essential when it comes to making college dreams come true,” says Scholarship America President & CEO Mike Nylund. “As students head back to campus this fall, this kind of generous private-sector support helps them take the next step toward fulfilling their goals.”

Scholarship America® works to eliminate barriers to educational success so that any student can pursue their dream. Since its founding in 1958, the organization has distributed over $5 billion in scholarships—and it is now working to make a bigger impact on students in need. Scholarship America’s research has shown that scholarships have the greatest return on investment for students from historically marginalized communities who have significant financial need, but those exact students are the least likely to receive scholarships. That’s why the organization is working to award a majority of its scholarships to high-need historically marginalized students by 2027, helping them realize the benefits of a high-quality degree or credential. To help support this mission, Koolaburra by UGG® is donating $25,000 to Scholarship America to align with the launch of the brand’s newest back to school style, Tizzey.

Available now, Tizzey ($79.99 MSRP) is a must-have in anyone’s fall wardrobe. This wear-anywhere style features a faux fur collar, lining and sock liner to provide the ultimate comfort no matter where the day takes you. Available in an array of colors (black, chestnut, peach whip, wild dove) this back to campus favorite features an EVA sole that provides the ultimate versatility making it a go to wardrobe essential. This slipper is one of the many Koolaburra by UGG® season ready styles that feature the upmost attention to detail, quality, and value.

Deckers Brands Deckers Brands is a global leader in designing, marketing and distributing innovative footwear, apparel and accessories developed for both everyday casual lifestyle use and high performance activities. The Company’s portfolio of brands includes UGG®, Koolaburra®, HOKA®, Teva® and Sanuk®. Deckers Brands products are sold in more than 50 countries and territories through select department and specialty stores, Company-owned and operated retail stores, and select online stores, including Company-owned websites. Deckers Brands has a 50 year history of building niche footwear brands into lifestyle market leaders attracting millions of loyal consumers globally.

Source: PRNewswire

Sustainability, and in particular traceability, was once again discussed during the 98th edition of Expo Riva Schuh & Gardabags, in a Talk that brought together important representatives of the sector who have been working on these issues for some time. Deborah Taylor, managing director of the Sustainable Leather Foundation and consultant for Europe of the United Nations Economic Commission, as well as former director of the Leather Working Group for five years. Massimo Brandellero, founder and CEO of The ID Factory, a collaborative platform that maps the entire supply chain through the creation of digital IDs; Manfred Junkert, managing director of the Federal Association of the German Footwear and Leather Goods Industry.

On the subject of the new European regulations dedicated to sustainability and traceability issues already transposed by France and Germany: how are they changing the European production landscape and what prospects are they opening up for the world of production? 

THE STAGES OF SUSTAINABILITY AND TRACEABILITY

The issue of traceability is the first crucial point to focus on if one wants to act sustainably, according to Massimo Brandellero.  “Ten years ago, when the first major environmental associations protested and brought sustainability issues to everyone’s attention, brands began to investigate their supply chain, realising that it would not be easy to obtain information and transparency. The fashion supply chain, after all, is by no means built to reveal its secrets; on the contrary, it is structured to preserve and hide its know-how, because it is precisely in those techniques, skills and knowledge that the greatest added value of a manufactured product lines. Since then, however, everything has changed, says Brandellero. Everything that used to be kept secret, became necessary to share and investigate in order to be certain of the value of one’s suppliers and thus products. But until 2018, we do not see much change. It is from the following year that something begins to change, as the demands of the market become tangible and insistent (even if nothing is yet moving at the legislative level). If brands had been focusing on Corporate Social Responsibility, from that moment on, a new area of interest began to emerge and it concerned the world of materials, which involved the entire supply chain. “We realised,” continues Massimo Brandellero, “that the value chain itself generates 90 per cent of a product’s environmental, social and financial impact. From this consideration, the centrality of the traceability of the supply chain upstream of any sustainable approach was derived. Every aspect of sustainability and every thematic area cannot be separated from a transparent and traced supply chain, based on qualitative and verified data”. Today, for the first time in ten years after the first protest movements about the lack of sustainability in fashion, a change in approach to the subject is noticeable. Whereas before, sustainability was just a key value to talk about, today it means metrics, long-term projects that take into account the complexity and multifaceted nature it implies. For a couple of years now, the industry has become aware that the topic is an integral part of a company’s workflow, and dedicated departments are beginning to make a real impact on production flows.

NOW THE LEGISLATOR IS ALSO MOVING

It is Manfred Junkert who introduces the topic of the new European legislation that Germany has already adopted. The German Due Diligence Law goes back a long way: its process starts around 2011 thanks to talks with the United Nations concerning the observance of Human Rights; in 2016, Germany equips itself with a national action plan with the intention of taking concrete actions at the level of supply chains; in 2021, the draft law is ratified to become effective as of 1 January 2023. “The law stipulates that companies should progressively adopt a system for Risk Management, both environmental and social, and set up managers in charge of the supply chain. The measure primarily affects large companies, which are called upon to adapt quickly, but it will also progressively involve smaller companies”. At the moment, German companies seem particularly concerned that the new rules will entail a great deal of bureaucracy, as well as an additional cost. Above all, they fear that they will be forced to disclose the composition of their supply chain, which is often their main competitive weapon on the market. The positive aspects, on the other hand, are linked to the mentality of the companies, which are increasingly driven and convinced that working towards sustainable production is necessary. What are the points that manufacturers need to clear quickly in order to continue selling in Germany? Junkert answers: “If you have large German customers, for whom the new regulations apply as of now, you may be asked to report to your suppliers on the risks they are exposed to and what solutions they have adopted to prevent them. As an association, we have just published a 20-point questionnaire to help companies identify the important points to consider”. 

IS IT POSSIBLE TO TRACE SUCH A FRAGMENTED FOOTWEAR SUPPLY CHAIN?

It is well known that the footwear production chain is particularly fragmented in terms of the amount of processing and production locations. Is it realistic to think of being able to trace it? For Deborah Taylor it is difficult, but necessary to be able to trace the life of a product from its arrival in the shop back to the farms or raw materials of which it is made. “Right now, there is a lot of noise around the topic of sustainability, and this noise risks covering up the right and substantial words that should be considered: conscious production and consumption”, says Taylor. Sustainability, on the other hand, is not a box that can be ticked once and for all, but a change of mentality that questions productions day after day on how they could be less impactful on people and the environment. “A change of mentality”, continues Deborah Taylor, “that will also be driven by the various regulations that not only France and Germany are adopting, but that the whole of Europe will be called upon to adopt. I am thinking, for example, of the recent obligation for companies to present a Corporate Sustainability Report in place of the Non-financial Reporting that many large organisations have had to present to date. While for now these regulations only apply to companies in certain sectors and with more than 500 employees, within three or four years the measure will also involve small and medium-sized companies in many more areas, not just fashion”. The law does not require companies to be perfect, but to be transparent in communicating where they are located. They will have to indicate where their potential risks lie, what they can do to minimise them, and what their goals are. “It is essential to start taking concrete action, after all, the successful business of the future is one that is prepared today”.  

ACCELERATING SUSTAINABILITY

It is said that the pandemic, social pressure, big brands and new laws have accelerated the implementation of concrete actions aimed at sustainability. Truth or green washing? “It is undoubtedly true”, Massimo Brandellero believes. “Let’s say that those who have not already started thinking about it have to start now, because what we have seen happen in the last 7 months, we have not seen happen in the last 7 years. We also see a deeper level of enquiries from companies, denoting that there is much more quality in the approach to the subject”. We come back to traceability to illustrate the point: if until a few years ago brands considered it necessary to trace the value chain in order to exercise control over suppliers, today they interpret transparency as an incentive to improve every aspect of production and to be able to communicate, if not today then in the near future, with their customers. This implies that it is no longer just the department responsible for dealing with sustainability that is involved in this issue, but the entire company. 

WHICH FIRST STEPS A COMPANY SHOULD TAKE TO BE MORE SUSTAINABLE

“This is the key question we started with in the European project. We decided to set up a toolbox and standards that every organisation could adopt in order to start on the path to more sustainable production”, says Deborah Taylor. These are the steps she identifies as primary: make a clear assessment of what you know and don’t know about your workflow, then structure a risk assessment and identify the processes needed to mitigate them. “I suggest to everyone not to run away from any risks identified along the supply chain, but to work together with their partners to minimise them, so that the whole industry can grow in terms of sustainability. Also, because solutions are often found by combining different approaches, certainly not by acting as separate silos”. As far as the approach to consumers is concerned, for Taylor it is very important to carefully consider the information to be conveyed: “The consumer does not want to know the name of the animal from which the leather of a shoe is derived. He wants to be sure that the supply chain is verifiable and verified”. 

TRACEABILITY MUST NOT BURDEN PRODUCERS

Traceability is often pursued by means of audits that burden the manufacturers both financially and in terms of time. An unsustainable situation in the long run. For Deborah Taylor, “standards and third-party certification audits are the best tools we have today, but they risk being impossible to sustain for companies that have to spend resources of money and time to manage the different requirements that each individual brand demands. The process must be optimised to alleviate the pressure on companies.  With my foundation, for example, we have designed a Transparency Dashboard where we give an account of the certifications that each company has achieved so that each brand can access them and not duplicate their demands”. Another important point concerns standards. The large certification organisations, led by COTANCE, are working to harmonise standards so that they can identify a common one that is robust and reliable: what documents need to be exchanged, how, with what data and at what point in the supply chain to provide it. “The aim is to arrive at a new, specific ISO standard for traceability that aligns all certifiers to a shared pathway”.

FUTURE DEVELOPMENTS IN TRACEABILITY

Massimo Brandellero does not want to make fortune-teller predictions, but to analyse the movements already underway to imagine the future developments of the traceability issue: “It will be necessary, and it is already happening, to develop technologies and systems to trace the supply chains that are collaborative and can exchange information so as to avoid unnecessary duplication in this area as well, as for audits. It will be necessary to derive qualitative data from supply chains that can link and remain linked to products. Traceability, in fact, will also become necessary and functional for certain sectors that not many people think about today: in the growing rental sector of clothing and accessories, or in the increasingly frequent take-back of end-of-life products by brands (if the product carries all the information about the materials used, it will be easier to identify disposal or recycling methods).  Manfred Junkert concludes: “We are in the midst of a transformation process that will find companies prepared for major changes. The increasing pressure of European legislation will lead to greater co-operation between the different trade associations, which will have to lead to the identification of a classification system for the various aspects of sustainability that will enable the consumer to confidently and easily assess the sustainable value of the products he or she buys”.

Puma announced on Friday that it had appointed Chief Commercial Officer Arne Freundt as the new CEO from Jan. 1 after Gulden decided to let his contract expire at the end of the year, but did not say what Gulden’s plans were. Freundt, who has worked for Puma for over 10 years and was promoted to CCO last year, will receive a four-year contract.

Adidas confirmed on Friday that it is in talks with Gulden about possibly replacing Chief Executive Kasper Rorsted. Adidas has been looking since August for a successor to Rorsted, who plans to leave his post in 2023. Germany’s manager magazin, which first reported the move, said Gulden could not switch directly to Adidas due to a competition clause in his contract, and that Chief Finance Officer Harm Ohlmeyer would likely lead the company in the interim. Adidas shares were up nearly 20% after the report.

“Bjorn Gulden had a very high reputation as Puma CEO, had been instrumental to the turnaround of the company and Puma’s strong brand heat,” Stifel analyst Cedric Lecasble said, adding that he could help strengthen the momentum of the Adidas brand.

Problems have been mounting recently at Adidas, which cut its full-year forecast on Oct. 20, citing weaker expectations for China, lower demand in major Western markets and one-off expenses related to its exit from the Russian market. Adidas also ended its partnership with the artist formerly known as Kanye Westlast month, which it said would have a “short-term negative impact” of up to 250 million euros on net income this year. Global credit ratings agency Moody’s downgraded its outlook for Adidas to “negative” from “stable” on Friday.