The APLF (The Hong Kong international fair of leather, shoes, bags, materials and technologies...) gives seven different reasons how to profit from the financial crises. The financial crisis and the recession forecast by economic analysts look inevitable. In this article we offer some ways on how your company can profit from the Asian markets and in this way offset the negative aspects foreseen in the international media.

1. The coming recession means that economic growth and the GDP both in Europe and the US will drop into negative territory in the coming months. This will have a negative effect on retail sales to the end consumer.
   
   
2. On the other hand, the economy in many Asian countries, principally China, will continue to grow which will keep up demand for raw materials, chemical products and finished goods, etc.
   
   
3. Economic growth in China, in the last quarter was +9.9%. There may be a deceleration in Chinese economic growth but it is extremely unlikely that this will fall into negative territory.
   
   
4. Until August retail sales in China grew by 14.3% between January and August 2008, and 21.7% in value terms. In October 2008, retail sales boomed by 22% compared to the same month last year. Compare this performance to the US, this figure fell by -3.0% in October 2008. (More information from China Retail News)
   
   
5. Although Chinese exports (e.g. footwear, leather bags) could decrease, Chinese manufacturers and retail outlets will turn their attention to the internal market of 1.37 billion people of which some 260 million are middle class with disposable income.
   
   
6. In this way, the fall in exports forecast for Europe and the US due to the recession should be replaced by more sales inside China and other markets in Asia.
   
   
7. The weakness of local currencies, for example in Latin America, in US dollar terms, will make exports of leather, footwear and leather goods more competitive.
   

2009 will be the 25th anniversary of APLF which is regarded and the world’s definitive event for the leather industry.

For three days (March 31 to April 2) both exhibitors and buyers will enjoy the annual opportunity to get know about the latest developments and trends; swap industry information and make new industry contacts. There is no other fair recognised for its track record and high level of visitors (35,000 attended the fair in 2008).

In fact, 80% of the exhibition space at the upcoming APLF - Materials, Manufacturing and Technology (MM&T) (March 31 - April 2, 2009) is already booked. Several exhibiting companies have booked bigger booths than before in anticipation of picking up additional business.

(12/12/2008)