Nothing To Hide

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

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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

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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.


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THE LEATHER MANUFACTURING PROCESS

OVERVIEW

ANIMAL HUSBANDRYAND SLAUGHTERING

RENDERING ANDFLAYING

LEATHER TANNING

BEAMHOUSE TANYARDRETANCOLOR

FATLIQOURINGFINISHING

RAW MATERIAL FINISHED PRODUCT

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THE LEATHER VALUE CHAIN

OVERVIEW

COMMODITY LUXURY PRODUCT

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THE LEATHER VALUE CHAIN


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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


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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

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THESIS QUESTIONHow can Design Management help identify creative assets and strategically allocate them to make improvements for

the global leather Industry?

ISSUES

?

ECONOMIC

ENVIRONMENTALSOCIAL

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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.

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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.)


TRACEABILITY

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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


LABELING

TRACEABILITY

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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.


LABELING

TRACEABILITY

CERTIFICATION

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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.


LABELING

TRACEABILITY

CERTIFICATION

CONSUMERAWARENESS

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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

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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.

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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

Business

Nothing To Hide