1. Areas of Innovation è Fashion: innovation as to color (s) effects, finishing effects è Performance: Easy Care, functional properties è Leather Processing : Ecology, resources (chemicals, energy, water) Innovation in the Leather Industry

2. What will trigger innovation è Legislations : REACH, International Protocols on Greenhouse Gas Emissions è Scarcity of resources : Energy, chemicals, water è Pressure on leather as a material At same we need to ask who wiil be paying (more) for what kind of innovation?

3. Europe’s strength in Innovation è Europe still has a good pool of leather technologists, engineers and chemists –BUT: This is about to change è Europe has numerous leather institutes and schools as a base for good education è Europe possesses a powerful chemical and machinery industry è The efficiency of R&D and innovation in Europe is high

4. Weakness / Threats for innovation in Europe è Costs for R&D activities in Europe are high è Level of education and experience in areas outside Europe has greatly improved è Tanneries in emerging countries have become global players. This triggers a demand for local R&D and innovation è REACH is bureaucratic monster and will absorb resources ( which are not available for research), it will lead to a reduction of available chemicals which must not necessarily be considered a problem

5. Opportunities è REACH and concerns regarding ecology and toxicity can further accelerate the development and production of leather as a high end, high quality material with unique properties ( re-discover leather and market it adequately ) è Compliance with REACH will become a ’de facto ‘ requirement also outside of Europe, European companies being the closest to this development could be the first to be ‘REACH compliant’ è REACH regulation offers special provisions (PPORD) which facilitate the development and test marketing of new chemical products

6. What is necessary ? è Clear positioning of all partners as to quality, ecology and sustainability in leather making è Find out what makes leather unique as a material for designers and decision makers è Pool resources ( within EU projects, collaboration of industry partners ) – less but meaningful projects involving as many as possible partners of the supply chain è Seek the partnership with leading international retail chains è Tanneries open up to alternative value adding processing of hides ( collagen)? è This development may go along with a further restructuring and consolidation of the European Leather and Supply Industry

7. Consumer expectations Value Leather holds value: - Appearance & - Experience Performance - Durability ( shape,color, surface after wear) - Comfort ( ‘feel’, ‘smell ’: how close to nature) - Easy care Ethics Animal treatment Environment / Ecology Fashion Color, textures, effects

8. Uniqueness of leather uniqueness Polymer to -Cover defects -Protect from soiling, wear, elements Collagen fiber network -max. thermal comfort -water uptake /release -water vapor permeability -very high mech. strength -unique look and texture -Not renewable -resources (fossil) -Waste -Toxic substances -energy/resources