09 Years Of Global Leather Market Turbulence
Now is the critical time to look forward to the prospects for 2009. We must admit that the recent months have been turbulent. In the fourth quarter of 2008, the original leather market actually staged a serious jam of supply chain. Most of the companies in the industry were shrinking, and in 2009, they were still very pessimistic. Only Speculative Company / units have the ability to balance the imbalance between raw leather supply and planned demand.
The reorganization of leather industry is imperative. In this tide, a large number of production companies will be eliminated. Logically speaking, the reason is very simple, and the survival of the fittest is very good. If everyone will survive, the demand for raw materials will not be as bad as the market reflects.
If the restructuring of the industry becomes a reality, there will be a lot of factories going bankrupt in the near future. Survivors need replenishment of production materials, and demand for raw materials has rebounded sharply. This prediction, especially in the current grim situation, seems very unreliable.
However, more and more specious results show that industrial output will be adjusted to the real level of the market. It will be adjusted to below the level of 2007 and 2008 without considering the current bad forecast factors. This is the reason for the closure of the production plant. Generally speaking, the industry will feel this in discussing the continued decline in raw material prices, but we think the worst is always behind us.
It is expected that the most serious result is the significant decline in industrial production, as reflected in the retail market, as we had previously stated. Therefore, the original leather merchants are busy selling inventory in order to recover cash as soon as possible and minimize the risk.
This has nothing to do with any logical decision, but the difference is that the same budget investment can now buy two times or even three times the raw skin, and the risk is lowest, which will spread to the entire supply chain. The risk of the original leather business is bigger than before. This view comes from the cash flow information industry.
We also believe that the number of enterprises surviving in leather industry will be greatly reduced, but the internal quality of enterprises has been greatly improved. Those who believe they are about to die will lay a healthy foundation for their future comeback in the current cycle.
We hope that the industry will be able to handle the tough market situation of the raw leather market, and at the same time have the ability to draw a good blueprint for the development of 2009. We will not forget that every economic crisis is the beginning of recovery. Editor: vivi
- Related reading
- Management treasure | 2019 Summer Clothing Store Clearance Sale Promotion Slogan
- Management treasure | How To Write Advertisements At The End Of The Season? Clothing Clearance Promotion Advertising Slogan
- Management treasure | How To Write Slogans In Promotional Activities Of National Day Clothing Stores? From These Three Aspects
- Fashion shoes | Swarovski X Reebok Club C Brand New Joint Shoe Exposure, Only Do Not Sell!
- Fashion shoes | Adidas Nite Jogger Shoes, White Orange Gray Color Matching, Bottom Moss Password To Seize The Mirror.
- Fashion brand | Naked & Famous X "Dragon Ball Z" New Denim Joint Ride Series Complete Version Released
- News Republic | Sales Of Main Brand GXG Decreased. Online Sales Of Mousse Group Maintained Rapid Growth.
- Fabric accessories | China Textile Federation Delegation Investigates Xuzhou Industrial Textiles Enterprises
- Fabric accessories | Wei Qiao Textile Innovation Management Measures
- Management treasure | How To Share The Skills Of Selling Clothes?
- The Lantern Festival Is At Hand. Winter Wear Is The Main Character.
- Shaoxing Launched Textile Industry Support Policy
- Cotton Clothing Standard Has Been Put Into Effect Since March 1St.
- Cotton Policy Support In Minqin County, Gansu
- New Regulations On Textile And Clothing Export Were Questioned
- 08 Shishi Shoe Enterprises Break Through Crisis, Export Continues To Grow
- 09 Shoe Enterprises Change People To Find Shoes Factory
- Jinjiang Shoe Raw Material Burst Fire
- Behind The Characteristics Of Footwear "Volume Reduction"
- Chengdu Boots Will Appear In Moscow Shoe Show