Business News April 2017

TFL publishes every month business news with focus on the leather industry, on a worldwide basis.

Geox: Bigger turnover, smaller benefit

Italian shoe manufacturer Geox has increased its turnover in 2016 by three percent to 900.8 million Euros. Growth engines were wholesale with a plus of 12 percent and online trade with a plus of 30 percent. The company own retail, however, registered a minus of 2 percent. Mainly turnovers in Russia and Eastern Europe grew, but also Austria, Switzerland and Great Britain achieved two digit turnover growths. More than 90 percent of the turnover is achieved with shoes. Garment only amounts to a share of 9.5 percent. The number of Geox shops remained stable at 1,161. 104 openings faced just as many closures. Due to the strong influence of the Dollar rate and increased distribution costs, the net profit significantly declined from 10 to 2 million Euros. This year, Geox intends to expand its distribution in Europe, Russia and China.

I.L.M attracts more than 6,200 visitors

International leather goods fair I.L.M. stays on record track. I.L.M. Winter Styles, that took place from 4th to 6th March in Offenbach, attracted more than 6,200 visitors. “We have not only reached our target, we have even exceeded expectations”, Arnd Hinrich Kappe, Managing Director of the Fair Offenbach, said. At the 146th edition of the I.L.M 294 exhibitors (290 in previous year) 153 of which from abroad presented their offer structured according to product segments on a completely booked area of more than 13,000 square metres. The exhibitors reported brisk customer orders on each of the three fair days. Noticeable is the again increased number of foreign visitors. Besides customers from all over Europe, Offenbach registered clearly more dealers from Asia, the Middle East and South Africa. For a few seasons now, Italy has not only been showing its colours with an increased number of exhibitors. “Italian dealers have also discovered the I.L.M. and are placing their orders here”, Arnd Hinrich Kappe notices. Positive signals come also from inland and neighbouring countries: Beyond the leather goods trade, more and more customers from the textile and shoes sector visit the Offenbach Fair to complete their ranges with bags and accessories. In the meantime their share amounts to 15 percent. The trade mood was perceived as positive and open in general. “New things were being looked for, more courage for individual fashionable products was shown”, Dave de Boer from Fashion Solutions says. Metallics were wanted colours besides autumn shades like Rust or Forest Green. The “Logo Mania” is entering the next round with striking brand presentations and badges. Bags preferably come in middle to big formats. Functional properties and changeable solutions are indispensable for luggage.

Indonesia benefits from TTP end

Indonesia expects an increased of its shoe exports of more than ten percent this year. This was announced by the President of the Indonesian shoe manufactures associations Aprisindo, Eddy Widjanarko. He said this was due to the cancelled TTP treaty. Due to this shoes from Vietnam will be imposed duty of seven to nine percent and thus just as highly tariffed as shoes from Indonesian productions. Contrary to Vietnam, Indonesia does not belong to the transpacific partnership. The USA are the most significant importer of Indonesian shoes followed by Belgium, Germany, China and Japan. In 2016 shoe exports from Indonesia rose by six percent in total to 4.8 billion Dollars “thanks to the closure of many Chinese shoe factories”, Eddy Widjanarko says.

Deichmann achieves record turnover

The Deichmann Group has achieved a gross turnover of 5.6 billion Euros (4.8 billion Euros net) in 23 European countries and the US – the highest ever in the more than centennial company history. The plus in turnover after adjustment for currency effects is around 5.6 percent. In 2016 the enterprise group has sold 173 million pairs of shoes in its local branches and online shops – about one million pairs more than in previous year.

In total, Europe’s biggest shoe retailer operated at the End of 2016 3.857 shops worldwide and employed 38,252 employees. Thus the company has created almost 1,000 new jobs in 2016. In current year, Deichmann will invest roughly 232 million Euros in the international infrastructure. Despite the industry trend, Deichmann grew in Germany and will invest roughly 92 million Euros in 2017. This year, the enterprise group will open its first shops in France and Belgium.

Humanic on the march again

After successfully completing its reorganisation, the Leder & Shuh AG is again on the march and has opened even two big Humanic Stores in the latest design in the two state capitals Klagenfurt (930 square metres) and Linz (730 square metres). The store concept had been developed by the Austrian architect Heidemarie Kriz. Thus, Linz now has a premium store comparable to the one at the Stephan Square in Vienna.