At present, my country's leather industry has overcapacity and is dominated by small and medium-sized enterprises. Due to the low standardization of raw materials and products, tanning, thinning, dyeing and color matching, and leather matching in the leather processing link mainly rely on manual labor. The level of mechanization in the industry is not high, and a large number of small and medium-sized enterprises have room for survival. According to the targets set by the "Twelfth Five-Year Plan Guidance for the Leather Industry", the number of large and medium-sized enterprises in the leather and footwear industries will account for 20% and 28% respectively in 2015, with small enterprises occupying most of the market share. Most of the small and medium-sized enterprises have low R&D and design capabilities, and the phenomenon of product homogeneity is prominent, leading to overcapacity at the low end of the industry and serious pollution.

After 2011, the growth rate of my country's clothing and footwear consumption has continued to decline, and the export advantage has weakened, and the growth rate of the leather industry has also been affected. In 2016, the income and profits of my country's leather, fur, feather products, and footwear industries increased by 3.69% and -2.43% year-on-year, respectively, and the growth rate was the lowest since 2000. The leather industry business climate index and entrepreneur confidence index also continued to decline , The difficulty of business operations has increased. In 2017, the leather industry achieved revenue of 1.47 trillion yuan, a year-on-year decrease of 2.81%, and realized a net profit of 89.6 billion yuan, a year-on-year decrease of 1.75%. The difficulty of industry operations has further increased.

With the decline in the industry's prosperity and the government's increased environmental protection requirements, outdated leather production capacity has been gradually eliminated. In 2010, the output of light leather in my country reached 749 million meters, and since then it has shown a downward trend, and the industry concentration has increased. In 2016, the output of light leather in my country was 735 million meters, a slight increase of 3.31% year-on-year. In 2017, the output of light leather in my country remained stable.