Hong Kong high-end leather bag specialist C&R International will return to Fashion Access this October as an upturn is expecting to be seen at the global leather goods market in H2 on the back of the gradually improving economy.
With annual export sales reaching US$700 million and specialization in exotic skins such as ostrich, seal and kudu, the company admitted that the recent global financial crisis has hit the leather goods sector hardest ever over the last two decades since the company has established.
"We've seen that buyers were extremely cautious when placing orders last year. Orders for high-end leather products were obviously dropped," said C&R International manager Fanny Hui.
"Because of the difficult market situation, we were very reluctantly forced not to participate in APLF and Fashion Access last year... However, the worst has passed and our sales have been slowly going back to a level more in line with our target since H1 so it's time for us to return to Fashion Access this fall to look for new market opportunities."
The company aims to expand its existing client base which has been focusing on the US, Europe, Japan, Southeast Asia and China into the Middle East. Hui explained: "Consumers in the Middle East have very high consumption power. Market reports have shown that they are much less affected by the global financial crisis and therefore it will be a perfect market for our high-end handbags. We believe Fashion Access, which has earned a renowned track record of quality buyers across the globe, can help us reach out to this new market."
The company, with both OEM and ODM services on offer, has noticed a polarization in terms of buyers' preference over the last twelve months. Hui said: "Demands have gone extreme. We've seen more orders have either been placed on very low priced products or very high-end ones but in much less quantity such as women's handbags in ostrich or python leather. This was mainly due to the brand name effects."
She continued: In response to the changes in market demand, we've been offering new categories of products such as simpler yet more trend-driven styles that are made of different types of leather in order to lower the total costs that come from materials. Deerskins that have very soft handle and python leather which can be easily sourced have recently become the most sought-after materials in the market."
At the forthcoming Fashion Access, C&R International will feature its S/S 2010 collection which has been incorporated Chinese elements into its design. "After the high-profile Beijing Olympics last year, China has been gaining a much stronger foothold in the international market in terms of quality and design of products that are produced from the country. We believe our latest Chinese influenced collection can help us stand out from the crowd at the fair ground in October," Hui said.
