As Materials, Manufacturing & Technology (MM&T) starts today, 30 March 2016, the leather sector is facing a challenging outlook in the face of soft demand in all sectors except for the buoyant automotive sector. The industry is subject to a world economy seeking direction with growth forecast at 3.4% for 2016 by the IMF – down from 3.6% last October – and China’s National Congress setting a “battling” growth objective of between 6.5% - 7.0% this year.
Since last year’s event raw material prices declined by around 40% to their low in July 2015 and benchmark Texas steers are still around 35% off the peak in March 2015 indicating that prices are still treading water. As we noted at this stage last year – leather had succeeded in pricing itself out of the market and opened the door to cheaper oil-based synthetics. This is still the case as the crude oil price if now languishing under US$40 per barrel and large stocks of lower grade semi-finished leather are only just starting to stimulate demand at what are bargain prices, for example, for splits for sole leather.
The slowing Chinese economy has also muted demand for commodities across the board as prices slumped. Consumer demand in the world’s main developed western markets has also been muted such as the US and Europe – +2.2% and almost flat in Q4 2015 respectively. The shine has also gone from the Latin American economies that are primarily dependent on commodity exports such as oil, grains, copper, iron ore as well as beef and leather. However, luxury brands are still doing well as rich consumers continue to spend whereas statistically in the USA, real household income is now lower than at the turn of the century by around 3.5%.
This is the backdrop against which APLF - MM&T 2016 will be held. Supply, demand, prices, China - all will be discussed and business negotiations will take place in Hong Kong where the Meeting Place of the Global Leather Industry – or APLF - MM&T – will be held for three intense and searching days. APLF, a joint venture between UBM Asia and SIC, will offer business opportunities and a platform for diverse opinions from peers and competitors alike about how the leather sector is evolving with a dynamic ASEAN bloc coming to the fore and the giant Trans Pacific Partnership that is now ready to be launched in the near future.
Focus Country for 2016 - Turkey
Turkey has once again taken the strategic decision to participate at MM&T as Focus Country. In order to overcome the economic difficulties Turkey’s leather sector is facing, the country needs to lift its image and make the most of its presence at APLF which it is doing by being the 2016 Focus Country.
Turkey’s marketing approach this year is called “Art Meets Turkish Leather”. Turkey set out with the idea of bringing together artists and designers who had not worked with leather and doubleface and to give them the challenge of working with leather for the first time.
Prominent artists whose work is showcased in modern art museums and galleries, Kemal Tufan, Gunnur Ozsoy, Ebru Yilmaz and Yucel Kale, got closer to leather as a material and formed a strong bond with it. This extraordinary approach in the use of leather aims to elevate the perception of it as “leather”. It also creates an opportunity to form and enhance a "leather friendly" consciousness in the art and design world.
This is an initiative that can be seen for the first time at MM&T as leather continues to move further away from being a mere commodity to a precious and sustainable material now touching the world of art and design in countries such as Turkey.
As a must-attend event APLF - MM&T is for leather technologists, technicians, purchasing managers, designers and fashion professionals. These groups seek inspiration and innovation where material trends, manufacturing and machinery companies are present. MM&T is the definitive leather fair to find new suppliers for the complete spectrum of leather manufacturing.
This year there are 1,064 exhibitors from 48 countries and regions which include 24 group pavilions from 18 countries including Bangladesh, Brazil, China, Egypt, Ethiopia, France, Germany, Hong Kong, India, Italy, Japan, Korea, Pakistan, Spain, Taiwan, Turkey, UK and USA. Some 16,000+ buyers are expected during the three days of the fair.
The Organisers extend a special welcome to a new exhibiting country at this year’s trade fair – Zimbabwe, which includes five companies that will exhibit their leathers and leather products. Zimbabwe will now be present for the first time as a national unit. It is interesting to note that the background to the decision to exhibit on the international stage offered by MM&T in Hong Kong has its roots in the International Trade Centre (ITC) – a United Nations agency.
Fashion Access – Fall-Winter 2016-17 Collections
Sourcing and Subcontracting Fashion Accessories
With Fashion Access taking place concurrently with MM&T at the Hong Kong Convention & Exhibition Centre, finished product manufacturers exhibiting at Fashion Access can visit their suppliers sourcing their components and materials directly at MM&T. Conversely, the synergy between the two fairs onsite is strengthened as MM&T exhibitors can also go to Fashion Access view the latest fashion trends under the same roof. In this way APLF as a whole reflects the complete supply chain of the leather and fashion accessories manufacturing sector.
In addition, Fashion Access is the prime venue in Asia where to source mid-priced fashion accessories from both Asian and international suppliers. These accessories include bags, handbags, travelware, footwear, leather goods and their small leathergoods such as purses, phone cases and wallets.
But Fashion Access is not just about sourcing fashion accessories. The international buyers that visit the fair are seeking reliable outsourcing services from OEM manufacturers as well as ODM and OBM services to create high quality, fashion-driven collections from their own well-researched in-house designs.
Fashion Access offers much more…
In today’s competitive retail and design environment boutiques, retailers, wholesalers and even department stores need to discover inspiration and fresh design and style ideas for their upcoming collections. They need to be able to specify to their subcontractors exactly what they expect so that collections and individual products can be customised and manufactured to the standard required.
This is why Fashion Access offers more than just a regular trade fair where ready-made products can be sourced. It is an extra dimension where buyers input their ideas and inspiration to the expert subcontracting companies offering such services onsite.
There will be over 361 exhibitors, 7 international group pavilions from 25 countries. This international presence will be formed by exhibitors from Australia, Bangladesh, Brazil, Cambodia, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Korea, Madagascar, Malaysia, Nepal, Netherlands, Pakistan, Philippines, Saudi Arabia, Singapore, Taiwan, Thailand, United Kingdom, USA and Vietnam.
In Fashion Avenue – a space in the fair dedicated to design conscious accessories – there will be over 68 brands on show as well as in the Start-Up!, Design Studio and FA Atelier sectors for young and upcoming designers where they can show their creations to potential buyers.
In addition to the unique nature of Fashion Access for brands to source and sub-contract from OEMs and ODMs, a series of ancillary events will be held at Fashion Access such as the second edition of the Global Footwear Retail Conference to take place on the morning of 31 March 2016 with a focus on global trade and trans-pacific partnership, the millennial fashion consumer, and the future of footwear e-commerce.
There will also be two trends seminars presented by renowned trends forecasting companies from France namely Nelly Rodi to speak on S/S17 fashion and consumer trends and Lambert + Associates to speak on F/W 16 fashion Accessory trends making it a completely integrated event for the trade and fashion professionals that visit the fair.
Press release
MM&T
30 March 2016