Business News August 2017

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

OutDoor achieves good result

More exhibitors, an expanded range of topics and again more than 21,000 specialist visitors: The specialist fair OutDoor closed with a good result in Friedrichshafen on the 21st June. The earlier date that for the first time has been moved up to June (about a month earlier) has been widely accepted by the participants, summarizes Klaus Wellmann, Managing Director of the fair Friedrichshafen. OutDoor division manager Stefan Reisinger is also satisfied with the fair result: “The early scheduling and the new sequence of days has further strengthened the relevance of the OutDoor. While the kick off on Sunday started rather slowly due to the ending Pentecost holidays and the long weekend, it proved true that the new sequence of days caused a redistribution of the visitor frequency. Thus, the subsequent days were visited more strongly.” In total 965 exhibitors and 21,412 specialist visitors (2016: 21,507) from 90 nations participated to this year’s OutDoor.

CCC continues to grow rapidly

Shoe retailer CCC S.A. (Poland) has achieved a growth in turnover of 32.3 percent and earned roughly 443 million Euros during the first half-year 2017. In the overall year 2016 it were roughly 750 million Euros. The turnover in E-Commerce literally exploded and rose by 137.2 percent. Thus, it participates to 17.3 percent of the turnover of the retail trade. At the end of June, CCC S.A., whose shares are listed on the Warsaw stock exchange, operated more than 900 stores in 16 countries.

Gabor: own hall at the Gallery Shoes

Gabor will rent a complete hall at the Gallery Shoes on the Böhler area in Dusseldorf from the 27th to 29th August. The “hall at the water tower” is directly interlinked with the biggest exhibition halls by a roofed Walkway. On 450 square metres the manufacturer will present more than 1,000 new articles of the brands Gabor, Gabor comfort, Gabor sport and rollingsoft. Furthermore, a big selection of immediately available models of the autumn/winter 2017 collection will be shown at the subsequent delivery counter. Besides shoes licensee Beheim International Brands will present its new handbags of the brand Gabor bags. “Even in our showrooms in the SOC’s we cannot show such a variety of products”, Achim Gabor emphasizes.

Bangladesh: record exports

In the fiscal year 2016/17 (30th June), Bangladesh has for the first time achieved the one billion dollar mark for exports of leather goods and leather shoes. According to information of the Bangladesh Exports Promotion Bureau, the country’s exporters have sold finished leather, leather goods and leather shoes worth 1.23 billion Dollars in total. Exports of leather shoes achieved a value of 536.96 million Dollars. This corresponds to an increase of 8.5 percent. However, the growth rates in the branch are the lowest in 15 years. Named reasons are the currency exchange rates as well as the Brexit. Great Britain is the third biggest sales market for Bangladesh.

Deichmann expands head office

Shoe dealer Deichmann grows and expands its head office in Essen by a new office and administration building. On the 13th July the foundation for the three-storey new building was laid. It will provide space for 150 new workspaces on 2,200 square metres at the Aktienstrasse. “With the new construction the enterprise secures its growth also structurally”, Company chief Heinrich Deichmann said at the cornerstone ceremony. Deichmann opens the first shops in France and Belgium this year, additionally the online business as sales channel will be focused on more strongly. Yet, the new construction phase is a commitment to the Essen site. The management in Essen already employs roughly 800 employees. The head office has gradually grown; the new building under construction is already the fifth construction phase. Heinz-Horst Deichmann, father of Heinrich Deichmann, laid the first corner stone in the year 1968. The building exists – after multiple modernisations – up to this day. The latest building is to be completed exactly half a century later, in the first half-year 2018. Deichmann plans to grow digitally as well as stationary. In the current year and in Germany alone, the enterprise will invest 92 million Euros in modernisations and expansions of the branch network as well in logistics and IT- infrastructure with the main focus digitalisation. The expansion of the head office with a volume of roughly 6 million Euros is a part of these investments.

Puma fitter than ever before

Puma products are in higher demand than ever before. Therefore the sports goods manufacturer from Herzogenaurach has revised its forecast upwards. The group turnover rose in the second quarter 2017 by 17.2 percent to 968.7 million Euros. The operative result (EBIT) rose to 43.4 million Euros (previous year 11.9 million Euros) during the same period. Considering this development as well as the positive business outlook for the current year, Chief Executive Björn Gulden expects a plus in turnover of up to 14 percent for the entire year. The Puma management expects the company profit to increase up to 215 million Euros.