A new Market Intelligence report has been published by @WTPworldleather. This report points out that the leather industry, as with most manufacturing sectors, faces sharp cost increases, mainly due to rising energy costs. [Market Intelligence: leather on the horns of a dilemma – leatherbiz.com]
The report states that due to rising energy costs it is essential for leather manufacturers to increase the price of finished leather.
However, this comes at a time when consumers are becoming increasingly cost-conscious and are already altering their shopping habits to focus on buying only on what is truly necessary and, when they do decide to buy, “will probably shift down one price level” when choosing products, the report says.
The report said one positive aspect of this is that products made from leather are a good buy in the long run because they last well and look good for a long time. This is the message that the industry has to try to drive home among retailers and consumers at this difficult time, the report says.
