The Leather Goods Market | France

Leather goods are used to make leather bags, wallets or belts.

The leather goods market is an important market since it represents 2.8 billion euros in France. Relatively few companies operate in the sector (8,000 according to the National Leather Council).

Leather goods are concentrated around luxury companies that appropriate the market on which brands create value on each product. Therefore, margins are substantial but strongly linked to the underpinning brand more than to the quality of the products.

In a sector that, apart from luxury, suffered from the difficult economic situation from 2010 to 2012, many leather goods with an insufficiently value-creating brand experienced difficulties, as did the Texier Group. There have been a few instances of companies in difficulty within the sector. Leather goods remains a craft profession in which man hours are important. Faced with the cost of labour, it is important for leather goods manufacturers to properly value their products in a market where counterfeiting takes up a significant part of the value.

There are many challenges in the sector, such as increasing the production of quality French leather and, above all, combating counterfeiting, which has a significant value for the sector. Stakeholders in the sector must also be vigilant to the risk of the image often put forward by animal protection associations. Significant communication budgets are therefore necessary for the sector to improve its brand image.

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LVMH

  • Country : France
  • Turnover : 30.6 mds€

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  • Turnover : 18 M€

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  • Country : Italy
  • Turnover : 3,5 Mds€

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  • Country : France
  • Turnover : 350 M€

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  • Turnover : 4 Mds€

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