MILAN –Lineapelle saw a lower attendance, but the fair's result was generally positive, thanks in part to the postponement of the EUDR, and to the reported return of Asians, particularly Chinese, despite all the uncertainties surrounding the introduction of tariffs in the US.
Among tanneries, those working with the United States face significant planning challenges. Not only are US tariffs on European imports causing trouble, but there's also a need to triangulate operations with China, as many American groups continue to source finished leather in Europe and outsource manufacturing to Asia. In Europe, tannery production continues to evolve toward small quantities, high-quality service, and defense of EBITDA margins.
The Italian industry estimates a 4.5% decline in turnover in the first half of the year, and the beginning of autumn is confirming last year's slow trend.
In Arzignano, where more than 60% of Italian finished leather is produced, tanneries are operating at an average of 80% and are trying to capture the remaining 20% of orders to obtain full capacity, without success.
It appears the trend of groups/actors like Rino Mastrotto, transforming from a pure tanning group into an integrated solutions provider and having acquired or created textile companies from scratch, is here to stay. It will ensure what matters the most, keeping a direct relationship with the customer, as suppliers not just of leather but of every link in the materials and components chain.
The automotive industry shifting toward other materials, undoubtedly puts pressure on the raw hide and leather industry. We hope this will lead to a return to genuine leather as it did years ago in the furniture sector when bonded leather demonstrated its limitations. These are slow cycles, which relies on long-term planning and while we would prefer sooner, the timeline for a full boomerang is likely five years.
The trends? Judging by the pavilions, metallics and exotic prints are still on the go for AW26/27. There were still a lot of earth tones present but now also some purple and burgundy hues - lilacs to eggplant.
In conclusion, difficult months lie ahead, but various sectors are shifting strategies in order to push forward – more mergers and acquisitions in the Italian tanning industry is on the horizon.
