The leather tanning industry and options for answering the pressure from fashion brands

Are we selling the “skin off our back”?
Thursday, April 12, 2016
The European House – Ambrosetti
Via Durini n. 27 – Milan.

Are we selling the “skin off our back”?

After nearly a decade of double-digit growth, the fashion sector has entered a phase in which growth will settle at a level of 5-6% overall. All leading brands are exerting major pressure to reduce costs along the entire supply chain, starting with cut-throat negotiations of raw material prices in which suppliers must concede an increasingly-high percentage of their own margins.

On one hand, in an era in which volumes are falling, brands are a driving force for the entire supply chain. On the other, we are witnessing initiatives involving aggregation of individual brands within larger groups that will not only make it possible to take advantage of synergies in terms of know-how, distribution and support activities, but also face materials and components suppliers backed by the “weight” of very significant cumulative volume levels. As a result, with the exception of leathers that are truly “unique” for which customers have no supplier alternatives, customers have the power to “blackmail” suppliers by threatening to shift significant volumes.

This is one of the reasons why it is useful to begin to think about the viability of considering potential aggregation initiatives among those working in this sector, and identify the drivers and explicitly evaluate the advantages and the risks.

Starting from its experience in this sector and specific competencies in the area of industrial aggregation, The European House – Ambrosetti is offering selected operators in the leather tanning sector an opportunity to meet and discuss this question.

h. 10.45 am – Registration
h. 11.00 am – Welcoming Remarks
h. 11.15 am – Scenarios and trends in the luxury fashion market: focus on leather goods and footwear and the impacts on the tanning industry
h. 11.35 am – Some statistics: where the sector is going, as reflected in major performance indicators
h. 12.10 pm – Round Table: options/types of aggregation to face the challenges
h. 1.00 pm – Review of the presentations and discussion (during which a light lunch will be served)
h. 2.00 pm – Networking coffee break
h. 2.30 pm – Meeting Close

Following the event, the Global Fashion Unit of The European House – Ambrosetti will be available to answer any questions.

Please confirm your attendance by contacting: loredana.urso@ambrosetti.eu
For additional information: cecilia.castelli@ambrosetti.eu

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