Sourcing leather with confidence

There was a distinct environmental theme to the event. Dr Victoria Addy (BLC) set the scene by explaining ‘What is an eco-leather’ and Tom Schneider of Guangzhou Tantec Leather described how his company were able to optimise the use of energy, wastewater and chemicals in the tanning process to produce a leather which has a Low Impact to the Environment (Lite).
Dr Gerhard Wolf, BASF, emphasised the importance of promoting leather as a high
performance material to the consumer. He stated that the USP of leather has always been that it is a natural product, but this is no longer enough for consumers. The sales message needs to be developed and Wolf suggested this should involve a ‘green angle’ which was in
keeping with the rest of the day’s presentations.
BASF offer the technology to produce high performance leathers. One example is the Lugafast range of dyes which offer greater fixation to the collagen structure and thus is wash, perspiration, rub or migration fast. The Lugafast dyes are currently available in black, brown and red. By the end of the year yellow and blue will become available.
This is particularly timely as there is legislation due to come into force in China regarding the minimum colourfastness standards. It does imply that tanners will have to change their processes but Wolf believes that this new image is a must for the continued success of the leather supplier.
The conference’s tag-line was ‘responsible supply chain management’. On this subject, Colin Browne, CEO of Pentland Asia, talked about Effective sourcing in Asia. The Pentland Group develop world class footwear and apparel brands which are sold in 176 countries across the world. They have been sourcing out of Asia since 1964. He outlined the critical challenges and opportunities facing business in Asia.
Suppliers are under pressure with substantial wage increases, a labour shortage, more stringent environmental standards and the weakening dollar. But at the same time Asia’s domestic market continues to surge ahead whilst western economies flounder. Jon Hopper, PrimeAsia Leather Corporation’s presentation followed, outlining how tanners can cope with the changing cost environment. 
Federico Brugnoli, Unic, spoke about the added value which can be derived from clean tanning production, therefore making investments in clean technology and environmental protection more economically viable. Brugnoli stated that the Italian tanning industry is still concentrated in four production clusters and, of the €5.4 billion total produced, two-thirds was exported. Italian leather’s main market is China. The technology exists for 76% of tannery waste to be recycled. Average yearly environmental protection costs to Italian tanneries are estimated at €570,000.
Brugnoli proposed certification schemes, such as the EU eco-label, as a means of capitalising on the ‘green demand’ from consumers, identified by market research carried out with Ministry of Environment assistance. The research identified the following opportunities: green public procurement, increased perception of quality and an increased selling price for environmentally sound product.
An average of 83% of consumers in Italy, Germany and the USA told researchers that they would be ready to spend more. Around the same percentage also felt that ecological, ethical and technical aspects determine the quality of leather. Consumers saw plastics, rubber and synthetics as more polluting than leather, while textiles were seen as less polluting.
Proceedings concluded with a presentation from Paul Pearson of ICT on the implications of REACH regulations for the footwear industry.