Tanners sail against the global tide

Despite a difficult 18 months, the Spanish leather sector has embarked on a promotional programme to educate both leather buyers and the public about the benefits of Spanish-made leather. The campaign is being spearheaded by the newly-formed association Cec-Fecur which is known in English as the Spanish Confederation of Tanners. After several years in which the tanners of Spain had two associations based around the two principal tanning regions of Barcelona and Valencia, both sides have now put aside their differences to form a single body. The union of the two domestic associations CEC and FECUR, has been a great achievement, not only for the sector as a whole but also for the members, as they can now offer an improved and wider range of member services. Leather International asked Josep Ballbè, general manager of Cec-Fecur to explain how the campaign will work and how Spanish tanners are adapting to the growth of the leather and leather products industry in Asia and increased competition from globalisation. Ballbè also provides an overview of the tanning industry, highlighting the challenges that face Spain's tanners and looks towards high quality, service and fashion as key elements to sustain the sector's future. Can you provide details about the 'Spanish Tanners' campaign organised by CEC-FECUR, outlining its strategy, promotional activities, objectives, time scale and intended end-results? The Spanish Tanners campaign began approximately three years ago after we carried out a study of the sector from an international point of view. This campaign consists of three phases: A. A questionnaire to find out what image we transmitted as an industry B. A logo which would transmit the correct message or messages C. Active communication Each element was as follows: (A) The questionnaire, sent out to opinion leaders such as journalists, fashion designers, manufacturers etc, was focused on their impressions of Spanish products (leather) and the tanning sector as a whole. Once the results were analysed, we were able to study the strong and weak points of the sector. Overall, the impression was positive (those who answered the survey highlighted the quality of Spanish leather, the design, innovation, the seriousness of the industry and its environmental stance). Although, it clearly stated that we had not been able to communicate these added values. With this in consideration, a designer was sought to create a logo, which would illustrate graphically those qualities that we sought to communicate. (B) During mid-2002, we started with our Tanners News magazine. The magazine is aimed at fashion designers and end-user clients of tanners. It is mailed every four months and the contents vary from interviews with top designers to information relating to the sector. (C) Lastly, we have commenced a campaign where we are inviting journalists of top international publications, including Leather International, to Spain so that they can get an in-depth view of the sector. The objectives are to communicate added value and eventually transmit these same values to the final consumer. It is vital for the industry that the consumer is aware of what they are purchasing. This is also essential if we want to compete in a globalised society. How have the past twelve months been for the Spanish leather sector in general? During 2002, the Spanish tanning industry showed general signs of decreasing sales. Our first estimations for the year ending 2002 show that production during the year fell by 10% compared with 2001. A general overview by sub-sectors for the year 2002 is as follows: * Bovine: decrease * Sheepskin without wool: decrease * Doubleface (wool-on sheepskins): slight increase * Goatskin: remained stable (as forecast) With regard to exports, these have fallen by around 17%. The sub-sectors that have suffered the most have been the garment and footwear nappa producers of sheepskin and goatskin. On the other hand, doubleface has been a growth sector compared with 2001, up 15%. The main export market for the Spanish tanners is Europe, representing a market share of 72% of all exports. However, the total share has dropped 21% with respect to the previous year. On the contrary, Asia has grown and now represents 18% of total exports (4% in 2001). Italy remains the largest export market for the Spanish tanning sector, accounting for 23% of exports, and is followed closely by Türkiye, France, Portugal, Hong Kong and China. The main emerging markets for Spanish leather are: China is probably the most interesting emerging market and we have seen a spectacular growth of over 178% to position itself within the top five buyers. In 2001, China was ranked as the 13th most important market for the Spanish tanners. Finished bovine hides are the most demanded articles which has seen a significant increase in demand, raising by a spectacular 472%. That places finished bovine hides as the fifth most exported article; Türkiye, with an increase of 22%. Türkiye is the main buyer of doubleface (33% of total exports); Hong Kong has increased purchases by 44%, representing the 7th most important market for Spanish leather'. What about your buyers? With regard to clients, the footwear sector, the main buyer of Spanish leather, has been slightly affected by the global crisis - to a lesser extent - and more heavily affected by the increase in footwear imports. Approximately 67% of total footwear consumption in Spain is now imported from other countries. Export demand for leather-manufactured goods has increased in value by 11% and 1% in quantity. How is each tannery segment of the Spanish sector performing? The main destination of Spanish tanned skins is the footwear industry, which purchases 59% of all national production. Demand for leather is probably one of the most stable sectors as Spain has a healthy and growing footwear industry. Fashionwear is the second destination, taking around 30% of Spanish leather production, followed by small leathergoods with 9% and tapestry with 2%. Is Cec-Fecur actively involved in promoting better quality raw materials and animal welfare? The Spanish Confederation of Tanners has been directly involved in all those projects where the final objective is to improve the quality and characteristics of raw materials. The organisation is very much aware that due to the type of processes carried out by the Spanish tanneries, it is a basic necessity to make available top quality raw materials. 50% of the raw material used by the Spanish tanners is of national production, whilst the 50% outstanding is sourced from several other countries. With regard to the national market, agreements have been signed with government organisations to promote the improvement of the raw material within the farming sector. Direct actions have also taken place within the slaughterhouses with the aim to improve and make more humane the treatment given to the stock prior to their sacrifice and the methods used during slaughter. There has also been a direct collaboration with machinery manufacturers to improve the skinning of the carcases in order to minimise damage to the hides and skins. The confederation also works closely with Cotance and has assisted with the draft proposal of the BREF report which is aimed at providing improvements to ensure hide and skins quality inside the abattoirs. Cec-Fecur has also promoted the creation of a Raw Materials Forum, comprised of Spanish tanners and hide and skin dealers. The main objective of this forum is to ensure a better treatment of the raw material. Explain how you see the next 1-3 years for the Spanish leather making industry? The prevision for the Spanish tanner industry for the next 1-3 years are to strengthen quality products which also incorporate creativity, design, technology and fashion. At the same time, we must consolidate and grow in emerging markets, as these have a great capacity to absorb greater quantities of 'mid-top' and 'top-top' leather products. Nevertheless, it is important for the companies to make an effort and produce innovative strategies, such as improving management, production and commercialisation. The Spanish industry is clearly working in that direction, and is already developing collective initiatives, both in the field of raw material supplies and sectorial promotion. We will also be promoting modern production processes, waste management and water and chemical recycling plants in the tanneries. How is Cec-Fecur involved in assisting tanners to comply with the strict environmental legislation? Cec-Fecur extensively monitors new and existing EU environmental legislation, which directly affects the leather sector. We also defend the interests of the industry before the national and European public administrations. Cec-Fecur is responsible for keeping the industry updated with any new regulations when either the local government, central government or the European Union approves new laws. As a confederation we also encourage a higher level of eco-efficiency between companies via the integration of differing environmental processes used by the sector. To achieve the objective, Cec-Fecur has initiated a study to find and incorporate 'The best available techniques' (BAT) in the industry. We have participated in a number of different seminars to promote the study. In addition, Cec-Fecur has also developed two software applications, PREVICUR and ENVICUR, which aim to promote and facilitate the daily environmental management of the companies in accordance with the industrial processes carried out by the sector and the legislation. What makes Spanish leathers different from those made in the rest of the world? Spain has a long tradition of leather making. It was during the 14th century when we began to find early written records of tanning. It has since developed to become a rather prosperous and high-tech industry in the country. Doubleface is one of the specialities that is recognised worldwide from Spain. It is based on the quality of the raw material (merino) and the know-how of the tanning process. The seriousness of the sector is also another factor highly valued in the major world markets, as well as the close working relationship between the tanners and the finished products industry. Please add any additional information that you think would be interesting to the readers of Leather International? A great effort has been carried out by CEC-FECUR to promote the use of the latest IT systems within the industry, such as e-commerce, as well as the creation of a common platform for the sector. The percentages for export and production are calculated with regard to value and not by unit.