Authenticity and particularity of leather
A flawless leather… that’s not luxury ! Quinoa advocates the authenticity of the skin with the characteristics of their experience !!
PUBLISHED ON THE 28/03/2013 AT 15:43 / UPDATED ON THE 28/03/2013 AT 15:45
THE LEATHER, NEW STRATEGIC CHALLENGE OF THE LUXURY SECTOR
After the watch components, the race to securing the suppliesnow affects the high-end leather which is fought over by the luxury groups. The explosion of luxury bags sales in the world, causes tensions on the demand for high quality skins. / Archives photos/ REUTERS/Vivek Prakash
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By Pascale Denis
PARIS (Reuters) - After the watch components, the race to securing the suppliesnow affects the high-end leather which is fought over by the luxury groups.
The explosion of luxury bags sales in the world, causes tensions on the demand for high quality skins.
By buying back their suppliers, sometimes altogether, brands make sure that there is a priority supply of beautiful skins, looked for for their rarity (exotic leathers), the delicacy of their grain or their absence of defect (leathers of calf or lamb).
PPR (Gucci, Bottega Veneta, Saint Laurent), already priority of a majority of Italian Caravel’s capital, has just announced an acquisition of a majority stake in the company Crocodile France, one of the main French tanneries specialized in the treatment of crocodile's skins.
At the begining of the year, Hermès, already an exotics skins self-sufficient with four sites in France, the USA and in Italy, took a new step in buying back Annonay's tannery from Ardèche, one of its historical suppliers of high-quality calf skins.
In spring 2012, LVMH (Louis Vuitton, Fendi, Céline) acquired the Roux tanneries in the Drôme, specialized in calf leather. At the end of 2011, the group had already acquired a majority stake in the Singaporean company Heng Long International, one of the largest tanneries of crocodile skins in the world, valued at 92 million euros.
Skins, exotic or not, became as precious as watch components, noticed Marc Willaume, analyst at Raymond James.
The movement could not stop there.
"We will go to where it is necessary to go to ensure the uniqueness of our objects," pointed out Patrick Thomas, manager of Hermès, on the occasion of the presentation of the annual results of the saddler.
The rate of self-supply of Hermes in cattle skins, now less than 10%, will increase significantly thanks to its latest acquisition.
"The luxury groups have largely taken their marks on exotic skins. The debate is now shifting towards more classic leathers," comments Marc Willaume.
Because the shortage ticks off, in particular for the calf leather. The luxury leather store uses skins flawless, neither scratches, nor spots. In France in particular, it is the smoothest leathers which are looked for, whereas somewhere else, certain defects can be appreciated for their natural side.
Between an ever-increasing demand and a fall in meat consumption - which determines the quantities of skins collected - pressures increase on supply and prices rise Determines the quantities of skins collected - pressures increase on supply and prices rise.
According to Patrick Thomas, the rise reaches 4% to 6% per year on high-quality leathers, excluding exchange rates affecting imported exotic pallets
INCREASE OF THE QUALITY
However, according to the National Leather Center, it would be possible to increase from less than 10% today to about 30%, with the exception of skins of higher quality in the total production of calfskin
It would be necessary in order to make it compulsory to vaccinate cattle against ringworm, to extend the good practices of breeding animals and to take the necessary precautions when transporting and depopulating animals
Today; About 76% of the French raw hides are exported, mainly to Italy, which accounts for 70% of export amounts
France with 20 tanneries (treatment of bovine hides) and 27 megisseries (goats and exotic skins) boasts a leading position in the treatment of calf and precious skins (crocodile, aligator, lizard, snake, ostrich ) Most taken by luxury
The combined turnover of this sector, which employs 1,500 people in France, climbed to 29% in 2011 to reach 363 million euros.
Edited by Dominique Rodriguez