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TUESDAY, OCTOBER 8 2013
World Leather BusinessWeek
7
explained. “Livestock prices have risen
significantly due to higher prices in exporting
countries. Our local market depends on
imports to cover 75% of local demand.”
Indian leather exports to fall
short of target
I
ndian leather exports are expected to fall
slightly short of the country’s $6 billion
target for the year, with current estimates set
at $5.75 billion. However, this would still
represent a rise of approximately 15% year-
on-year, according to the All India Skin
and Hide Tanners and Merchants Association
(AISHTMA).
President of the association, M Rafeeque
Ahmed, said: “Though I am not happy at the
shortfall, I feel despite the turbulence in the
global finance, we have done reasonably well
on the export front.”
Many exporters are investigating new
markets in South America, Africa and the
domestic market in response to the drop in
demand from certain European countries.
However, while exports to Germany, Italy,
Spain and Russia are down by around 10%,
exports to the US and Denmark are up by
approximately 20% and exports to the UK
have risen by 10%.
According to Mr Ahmed, the sector has
been harmed by currency fluctuations and
raw material shortages, with large quantities
of semi-finished leather being exported to
China and Italy. Despite this, the leather
sector is now among the country’s top ten
foreign exchange earners.
Rabeanco to expand in Malaysia
H
ong Kong-based S&W Handbags, the
company that owns luxury leathergoods
brand Rabeanco, is to open seven new
Rabeanco stores in Malaysia within the next
year.
The brand already has two Malaysian
stores but is hoping to capitalise on growing
sales in the country. According to the
company, its flagship store in Pavilion Kuala
Lumpur, which opened in 2011, has
experienced an “overwhelming response”.
Managing director Andrew Ng said: "We
would like to see three to four Rabeanco
stores in Kuala Lumpur and about two to
three in Penang by next year. The expansion
plan would depend on locations as we are
looking for quality growth.”
The brand is expanding rapidly in Asia,
with a further 11 stores planned for China,
bringing the total there to 35. There are also
plans to open stores in Indonesia and the
Middle East within the next couple of years.
Hong Kong sales account for
approximately 50% of the brand’s sales,
followed by China and Taiwan. However,
Chinese sales are expected to top the list
within the next two years.
Rabeanco also has stores in Amsterdam,
Antwerp, London and Los Angeles.
AMERICAS
Chrysler’s future in question as
owners battle it out
T
he owners of Chrysler have put the
company forward for an initial public
offering, as neither Fiat nor United Auto
Workers can agree on the carmaker’s
direction.
Fiat, which owns nearly 60%, has been
trying to take full control of the US company
but the trust demanded the listing after talks
failed to agree on a buyout deal.
Information in the stock market listing
document has raised questions about Fiat's
commitment to its Chrysler alliance.
Fiat is “critical for us to compete with our
larger and better-funded competitors,” said
Chrysler in the document, but then added,
“Fiat has informed us that it is reconsidering
the benefits and costs of further expanding
its relationship with us and the terms on
which Fiat would continue the sharing of
technology, vehicle architectures and
platforms, distribution networks, production
facilities and engineering and management
resources.”
US: Shrinking herds push beef
prices higher
U
S feedlots had 7.2% fewer cattle being
fattened for slaughter on September 1
than a year earlier, according to a US
Department of Agriculture report. Exports of
beef during the first seven months of 2013
were up 2.8%.
“The feed report really catapulted prices
higher,” Lane Broadbent, vice-president of
brokerage Kis Futures, told
Reuters
. “This
week’s rally is based off the assumption that
our supplies are going to get tighter and
tighter.”
As of January 1, the cattle herd was at the
smallest since 1952 after the worst drought