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Nothing to HideNew Frontiers in the Leather Industry for the 21st Century
Pratt Institute | Design Management 2007 | Melanie Cohen | Nicole Casey | Michael Melnick
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century
OBJECTIVE #1Identify issues within and surrounding the global
leather industry and their impact on three fundamental levels: people, planet and profit.
OBJECTIVE #2Make recommendations as to how can design management help identify creative assets and
strategically allocate them to make improvements for this dormant industry.
OVERVIEW
Copyright © 2007
HISTORY OF LEATHERMans relationship with leather dates back to very
early civilization
ANCIENT TIMES INDUSTRIAL REVOLUTIONChemical Agents
Technological Innovation
Mass Production Capabilities
MODERN TIMES
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century OVERVIEW
Copyright © 2007
The global Leather is a multi billion dollar industry.
Estimated value for the U.S. industry in 2005:
~$102,292,000,000
Leather is everywhere.
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century OVERVIEW
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century
THE LEATHER MANUFACTURING PROCESS
OVERVIEW
ANIMAL HUSBANDRYAND SLAUGHTERING
RENDERING ANDFLAYING
LEATHER TANNING
BEAMHOUSE TANYARDRETANCOLOR
FATLIQOURINGFINISHING
RAW MATERIAL FINISHED PRODUCT
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century
THE LEATHER VALUE CHAIN
OVERVIEW
COMMODITY LUXURY PRODUCT
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century OVERVIEW
THE LEATHER VALUE CHAIN
COMMODITY LUXURY PRODUCT
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century
ECONOMIC OVERVIEW
OVERVIEW
Price and supply are highly influenced by external factors driving the meat industry such as Climate, disease, trade tariffs, regulations and consumption .
The U.S exports more than 50% of its hides to be processed overseas under less stringent regulations .
EXTERNAL FACTORS
COMMODITY LUXURY PRODUCT
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century ISSUES
ECONOMICFragmented Value Chain
Global Competition
Trade Tariffs
Climate instability
Rise in Agra-Commodity Prices
ENVIRONMENTALAir / Land / Water Pollution
Water Waste
Unregulated disposal of Chemicals
Animal Cruelty & Hide Breeding
Carbon Emissions
SOCIALHealth Concerns
Child Labor
Labor Rights / Sweatshops
Migrating industry
Unaware consumers
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century
THESIS QUESTIONHow can Design Management help identify creative assets and strategically allocate them to make improvements for
the global leather Industry?
ISSUES
?
ECONOMIC
ENVIRONMENTALSOCIAL
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century RECOMMENDATIONS
APPROACH
The Hide is the first creative asset in the Leather value chain. Therefore, any attempt to create a more sustainable value chain must start at the source.
Copyright © 2007
1. TRACEABILITYSINGLE COW MONITORING (SCM)
By identifying the origin you can start identifying all the following steps in the value chain.
Closely monitor and control quality, health, environmental footprint and create sustainable tanning practices on a global scale.
Provide a foundation for building better post consumption systems.
Establish a platform for Informing consumers, building trust.
Impact on related industries (Meat, Dairy etc.)
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century RECOMMENDATIONS
TRACEABILITY
Copyright © 2007
2. LABELINGWhat does “Made in Italy” mean anyway?
A Universal Standard - Setting global industry criteria to be used for labeling products manufactures across borders.
Encourage Transparency
Build trust among consumers
Create innovation opportunities
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century RECOMMENDATIONS
LABELING
TRACEABILITY
Copyright © 2007
3. CERTIFICATIONGlobal Leather Certification Program
Backed by the UN and ITC
Following the trend of CSR, environmental sustainability and economic viability delivered through the collaboration of Industry, government and NGO’s.
Creating opportunities for innovation and building sustainable strategic advantage in a dormant industry.
Incentive programs for early adopters.
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century RECOMMENDATIONS
LABELING
TRACEABILITY
CERTIFICATION
Copyright © 2007
4. CONSUMER AWARENESS“What do you stand for?”
Or
“Where does it come from?”
“What damage was inflicted on the world?”
The key in driving a shift in the industry and closing leather’s lifecycle full circle is:
Consumer knowledge
Mass Purchasing power
A platform based on traceability, labeling, certification and consumer awareness education programs can lead to a new kind of consumer.
Creating change across the entire value chain.
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century RECOMMENDATIONS
LABELING
TRACEABILITY
CERTIFICATION
CONSUMERAWARENESS
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century RECOMMENDATIONS
5. ECO SYSTEM APPROACHIt is essential to look at the leather industry as one whole system.
A lifecycle approach from the breeding of the cow to the recycling of the leather goods.
“One Economy One Ecology”
“Everything is connected – Everything matters”
“For one product to be sustainable the whole system must be sustainable”.
Bruce Mau Massive Change
LABELING
TRACEABILITY
CERTIFICATION
CONSUMERAWARENESS
ECO SYSTEM
Copyright © 2007
Nothing to Hide New Frontiers in the Leather Industry for the 21st Century RECOMMENDATIONS
The leather industry can gain a strategic advantage through economic, environmental and social well being as a result of consumers being faced with the power to make informed decisions and buy or ban a product based on it’s true nature.
This approach supports the UN Millennium Goals by:
Ensuring environmental sustainability and developing a global partnership for development.
Copyright © 2007
Nothing to HideNew Frontiers in the Leather Industry for the 21st Century
Thank you.
Pratt Institute | Design Management 2007 | Melanie Cohen | Nicole Casey | Michael MelnickCopyright © 2007