The current development status of the leather industry in 2020: the industry is stable but under pressure.

In 2019, the world economic growth rate continued to decline, and international trade and investment growth performed poorly, making the external environment for the leather industry very severe. From the perspective of domestic production, in 2019, the output of light leather in China above designated size was 574 million square meters, with leather industry clusters mainly distributed in Fujian, Sichuan, Hebei, Guangdong, Shandong, Zhejiang, and other regions. From the leather price index, in recent years, the overall trend of leather prices has been downward, with the index below 100 points, reaching 75.43 points by the end of August 2020. From the perspective of industry operation, the industry's sales revenue has declined, amounting to 1,098.199 billion yuan in 2019. Overall, the downward pressure on the industry's economic operation has significantly increased, making it urgent to accelerate the promotion of high-quality development, maintain the healthy and sustainable development of the industry, and enhance the ability to resist risks.

An output of 574 million square meters, mainly distributed in Hebei, Fujian, Sichuan, Shandong, and other places.

From the production perspective, in 2019, the output of light leather in China above designated size was 574 million square meters, with Hebei Province having the largest output, accounting for as much as 33.6%. In the downstream product industry, the output of fur clothing above designated size has increased, the output of leather shoes and boots enterprises has slightly increased, while the output of leather clothing has declined. In 2019, the output of fur clothing enterprises above designated size was 4.777 million pieces, a year-on-year increase of 22.82%; the output of leather shoes enterprises above designated size was 3.947 billion pairs, a year-on-year increase of 1.79%; the output of leather clothing enterprises above designated size was 65.6623 million pieces, a year-on-year decrease of 9.22%.

From the perspective of industrial regional distribution, China's leather output is mainly concentrated in Fujian, Sichuan, Hebei, Guangdong, Shandong, Zhejiang, and other regions. In recent years, China's tanning enterprises have gradually shifted from large and medium-sized cities to small cities and towns, with 70% of enterprises concentrated in coastal areas such as Fujian, Zhejiang, Guangdong, etc., but mainly consisting of small enterprises, with relatively few large enterprises forming scale, resulting in low production concentration.

After adjusting and optimizing the structure, China's leather industry clusters have developed rapidly, initially forming an industrial cluster area where upstream, midstream, and downstream products are mutually supportive, with strong specialization, clear division of labor, prominent characteristics, and playing a crucial role in driving the local economy. In terms of spatial layout, the eastern and central-western regions develop in coordination, promoting the orderly specialization of the industry and effective undertaking. Sichuan, Hebei, Shandong, and other places leverage labor and leather source advantages to undertake industrial gradient transfer, achieving new breakthroughs on new technologies and new platforms, and embarking on a new path of industrial development that combines transfer and transformation, enhancement and expansion.

Overall price decline, index below 100 points.

From the perspective of the leather price index, from 2015 to August 2020, the overall trend of leather prices has been downward. At the beginning of 2015, the price index was at 114.96 points, reaching a recent peak of 119.35 at the end of February 2015. After 2018, the price index fell below 100 points, with slight fluctuations in the second half of 2019, but still below 100. As of the end of August 2020, the leather price index was 75.43.

Sales revenue has declined, and the industry is under pressure.

Overall, from 2015 to 2019, the sales revenue of the leather industry above designated size fluctuated and declined. In 2019, the main leather industry (shoe making, bags, tanning, leather clothing, fur and products) achieved sales revenue of 1,098.199 billion yuan, a year-on-year decrease of 0.87%, with the annual trend showing a characteristic of high opening and low running.

In 2019, among the main leather industries above designated size, the sales revenue of shoe enterprises was 681.832 billion yuan, a year-on-year increase of 2.05%; the sales revenue of bag enterprises was 141.905 billion yuan, a year-on-year decrease of 1.66%; the sales revenue of tanning enterprises was 118.263 billion yuan, a year-on-year decrease of 13.14%; the sales revenue of leather clothing enterprises was 58.511 billion yuan, a year-on-year increase of 6.43%; the sales revenue of fur and products enterprises was 53.601 billion yuan, a year-on-year increase of 1.55%. The total profit of the main leather industry above designated size was 65.837 billion yuan, a year-on-year decrease of 1.96%.

Overall, although the industry operation is relatively stable, with a slight year-on-year increase in sales revenue for shoe enterprises, leather clothing, and fur and products enterprises, the sales revenue and total profit of the industry above designated size have both declined, with sales revenue of sub-industries such as bags and tanning declining, especially the tanning industry showing a significant decline, leading to increased downward pressure on the industry.

For more data, please refer to the "China Leather Tanning Processing Industry Production and Sales Demand and Investment Forecast Analysis Report" by the Forward Industry Research Institute, which also provides solutions for industrial big data, industrial planning, industrial investment, industrial park planning, and Investment.