THE CORONA VIRUS CRISIS IS AFFECTING GLOBAL LEATHER INDUSTRIES, so, WHAT IS THE WAY OUT?

Since the beginning of 2020, after the novel Coronavirus disease (COVID19) has been breaking out in Wuhan, China in 2019, The deadly virus has been rapidly spread on the rest of world and become a pandemic crisis within a couple months. This situation has had an immense impact on all social and economic sectors, including the textiles, clothing, leather and footwear (TCLF) industries. Quarantine measures, closure of retail stores, illness, and salary reductions have suppressed consumer demand.1

An unprecedented crisis affects not just only well-known brand company, Italian luxury fashion house Prada Group growth has already been interrupted and it is difficult to forecast the evolution of the epidemic,2 but also Small and medium-sized enterprises (SME) all over the world, the leather sector in Bangladesh could be losing an estimated US$ 100 million each month in the nationwide lockdown and the Bangladesh tanneries risking permanent closure.3 The leather industries in Thailand are struggling and suffering from the greatest impact of this global crisis as well.  As wider supply chain having come to a standstill, finished product delivery schedules were postponed, vast majority of workers keep staying home for their health while most factories are temporary closed.

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However, after worldwide lockdown policies were enforced for a while, China is the first country to unlock the quarantine and re-open the border, the Chinese tanners bought well over two million cattle hides from the US within just a few weeks, It could mean that they are seeing signs of demand in the domestic market and are confident of a global recovery this year.4 In the western side, Prada has partially reopened its leather goods industrial sites in Tuscany.5 Although, the global situation is getting back to normal quite soon but be careful and be prepared the second phase outbreak which might be happening and still have a negative impact to the business. One way which may escape or reduce the impact from this crisis for the tannery is e-commerce with less minimum order quantity.​​​

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​References
1.Just-Style. “Timeline: Timeline – How coronavirus is impacting the global apparel industry”.
2.http://www.leathermag.com/news/newscoronavirus-stalls-prada-growth-7838334
3.https://internationalleathermaker.com/news/fullstory.php/aid/8395/Bangladesh_tanneries_risking_permanent_closure.html
4.http://www.aplf.com/en-us/leather-fashion-news-and-blog/news/44251/leather-pipeline-demand-for-hides-raises-eyebrows-as-covid-19-repercussions-fester
5.https://internationalleathermaker.com/news/fullstory.php/aid/8386/Prada_resumes_leather_goods_production_in_Tuscany.html