"At the macroeconomic level, China's economy achieved positive growth ahead of the rest of the world in 2020, demonstrating strong resilience in economic development. The construction of a new 'dual circulation' development paradigm with the domestic big circulation as the main body, together with the strong and diversified domestic demand market, will become the core engine for the industry's sustained recovery." Li Yuzhong, Chairman of the China Leather Association, stated this at the 10th Standing Council Meeting of the 8th Session of the China Leather Association and the 2021 National Leather Industry Association Work Conference held in May this year. He noted that given the leather industry's ongoing recovery and the low base of indicators such as sales revenue, output and export volume in 2020, the major economic indicators of the leather industry are expected to see a recovery growth in 2021.
Domestically, China's leather industry has entered a period of in-depth restructuring. It still faces challenges such as mounting environmental protection pressure, rising comprehensive costs and the impact of alternative materials, and sustaining stable operation is subject to numerous tests. Li Yuzhong pointed out that the leather industry in China suffered an unprecedented blow in 2020 due to the COVID-19 pandemic. However, facing the severe and complex domestic and international situation, the industry proactively responded to the challenges, solidly carried out the work of ensuring stability in six key areas and protecting six fundamental interests, steadily promoted the resumption of work and production. Relying on advantages such as a complete industrial chain and a rapidly responsive supply chain, the industry strived to defuse the risks and shocks brought by the pandemic. The decline in major operation indicators has been continuously narrowing since the second half of 2020, and the economic operation has rebounded steadily.
In 2021, with the extensive rollout of global COVID-19 vaccination, the global economic development environment has improved, but it will still take time to achieve a full and thorough control of the pandemic, especially with little substantive change expected in the first half of the year. Due to the cumulative effects of factors such as the sluggish global market and escalating risks of trade frictions, the leather industry still faces considerable development pressure in the international market.
Li Yuzhong introduced that 2021 is the first year of the 14th Five-Year Plan. Looking ahead to the 14th Five-Year Plan period, as consumers' demand for a quality and personalized life continues to grow, the leather industry still has great potential to meet people's yearning for a better life. The industry is in urgent need to further explore growth drivers in various market segments, sub-sectors, as well as in mid-to-high-end and personalized products. Product innovation, brand upgrading, intelligent manufacturing, smart industrial clusters, circular economy and sustainable development will become the key words for the industry's development, and a new image of the leather industry characterized by "green, fashion and quality" will take shape.
Li Yuzhong put forward three suggestions:
First, the industry should boost confidence and seize opportunities, especially the concept of dual circulation. While maintaining the overseas market, it is more important to tap into domestic potential and enhance the high-quality development of the industry through the domestic circulation.
Second, the industry should take scientific and technological innovation, transformation and upgrading as the core of development. The traditional leather industry is closely linked to science and technology. At present, many of our enterprises have made substantial investment in scientific research and achieved cross-border cooperation, and technology has brought good economic and social benefits to the industry's development.
Third, the entire industry should unite as one to carry out the "Crisis Response Project", and take it as a top priority for the industry at present.