How Coronavirus Outbreak Affects Leather Industry

Italy’s national leather industry association, UNIC, has estimated that the effects of the coronavirus outbreak could lead to a reduction in the combined turnover of Italian tanners of around 10% this year. 

 

In commenting in the first week in March on the effect on the business of the coronavirus, UNIC emphasized that the situation was evolving constantly and said it was impossible to put an exact figure on what the outbreak might cost in the long run.

It said brands and analysts who monitor the luxury and fashion sectors, have estimated that global sales in the medium-to-high end could suffer a downturn of as much as €40 billion!

These calculations, combined with other factors, such as projected declines in demand in other markets that traditionally consume important quantities of leather, led UNIC to its estimate in a 10% fall in Italian tanners’ turnover this year.

UNIC calculates the combined annual turnover of the 1,200 companies that are currently active in the Italian leather manufacturing sector to be €5 billion. This means that, if its estimates are correct, the global coronavirus outbreak could cost Italian tanners €500 million! – says Leatherbiz news resource.