The leather goods market - France

The global leather goods market, particularly the luxury segment, has faced significant challenges due to the impact of the COVID-19 pandemic, notably due to reduced tourist numbers in France, which fell by more than 50% in 2020. Despite this, the demand for high-end leather accessories, valued for both function and aesthetics, and the booming fashion industry, have maintained a degree of buoyancy in the market. French manufacturers have shown resilience, with a consistent growth in revenues reaching €3.47 billion. The market has seen growing concerns regarding sustainable fashion and environmental impacts, with regulations in place to control chemical usage and promote health and safety. Counterfeiting remains a significant issue for the leather goods industry.

Sales of luxury leather goods in France are mainly concentrated around three major players—LVMH, Hermes International, and Kering—dominating the market with strong brand recognition bolstered by the Made-in-France label. Digital sales channels are also gaining momentum, with internet sales accounting for 12.3% of total sales.

The market is characterized by a heavy reliance on subcontracting, with some luxury brands outsourcing a significant portion of their production. The industry follows stringent regulations in the EU aimed at consumer protection and environmental practices, with specific standards for labeling and production enforced by the decree of November 23, 2017, and subsequent legislations.

Evolving dynamics in the French leather goods market amidst global shifts and domestic flourishing

The French leather goods market, renowned for its fine craftsmanship and luxury segment, has traditionally catered to a robust international demand, with an especially strong affinity in the Asia-Pacific region. This market encompasses a range of high-end products including leather bags, wallets, and belts which, combined with France’s historical reputation for luxury, continues to draw in consumers both domestically and internationally. In recent years preceding the COVID-19 pandemic, France witnessed a significant upsurge in demand within its borders.

Factors such as burgeoning tourism, contributing to sales growth, and a favorable economic climate for consumers acted as catalysts. Notably, Asia has demonstrated a marked appetite for leather goods, with sales in the Asia Pacific making up over 40% of the global market share. Despite the global downturn caused by the pandemic, the French market for luxury leather goods has shown resilience pre-crisis.

Exports showed positive momentum, with a notable yearly growth rate of nearly 8%. In the same vein, regions like Hong Kong and Singapore have been substantial importers of French luxury leather goods, contributing significantly to the export figures, which stood at more than €7 billion.

The trends towards sustainability and ethical consumerism have begun to reshape the market dynamics. A substantial proportion of the French population now considers a brand's commitment to sustainable practices as a crucial factor in their purchasing decisions. Consequently, this shift is pushing brands to reconsider their manufacturing processes and product lines, integrating more eco-friendly and non-animal-derived materials. Despite these challenges, the 'Made in France' label continues to bolster the reputation of French leather goods beyond the confines of the luxury sector. It is perceived, especially in comparison to global counterparts, as a byword for quality, with France ranking second globally for its recognized craftsmanship in luxury brands.

All in all, the French leather goods market remains an influential player on the global stage, armed with a strong brand image and an evolving product mix in response to shifting consumer values, though not immune to the pressures of a post-pandemic economic recovery and the push for greater sustainability.

Dominant trio in the French luxury leather goods market: LVMH, Hermès International, and Kering

Within the illustrious realm of the French luxury leather goods market, three iconic names rise above the rest, shaping the industry with their prestigious brands, unparalleled craftsmanship, and global recognition. These vanguards of vogue are none other than LVMH Moët Hennessy Louis Vuitton, Hermès International, and Kering – a trinity of opulence that commands the attention and admiration of the fashion world.

• LVMH Moët Hennessy Louis Vuitton, often simply referred to as LVMH, stands as a colossal force, with an array of esteemed brands under its luxury umbrella. The crown jewel of its collection, Louis Vuitton, is synonymous with high fashion and is acclaimed for its exquisite handbags and luggage pieces that merge tradition with innovation. Louis Vuitton's influence is complemented by other LVMH-owned entities in the leather goods arena, including Céline, Christian Dior, and Loewe. The conglomeration's strategic acquisitions and an extensive portfolio of luxury brands have solidified its position as a dominant player in the sector.
  
  
• Hermès International, with its singular eponymous brand, has earned renown for its understated elegance and time-honored artisanal techniques. Hermes’ signature orange boxes and meticulously crafted accessories, such as the iconic Birkin and Kelly bags, are coveted symbols of status that weave the narrative of French luxury into each stitch. Hermès stands as a testament to the allure of simplicity and the enduring legacy of quality.
  
  
• Kering, a conglomerate that has risen to prominence with its own impressive roster of luxury labels, brings to the market a diverse blend of heritage and modernity. Gucci, a brand under Kering's expansive wing, has experienced an extraordinary renaissance, coupling its rich Italian heritage with contemporary cultural influences to captivate a new generation of luxury consumers. Kering's portfolio is also graced by the refined aesthetics of Bottega Veneta and the edgy, innovative designs of Yves Saint Laurent, each contributing to the group's stature within the luxury landscape. 

The tight grip these three behemoths have on the leather goods market is a testament to their deep roots in craftsmanship, their unyielding commitment to excellence, and their adeptness at staying at the forefront of style and luxury trends. Together, LVMH, Hermès, and Kering weave a majestic tapestry of French savoir.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 08/03/2022

Summary and extracts

List of charts

• Market share of leading luxury leather brands
• Projected leather sales
• Total billings of French leather goods manufacturers
• Foreign trade in leather goods
• Main customer markets for French leather goods manufacturers
• Number of trips to mainland France and French overseas departments
• Industries most affected by counterfeiting
• Sustainable fashion: the new criteria of consumption
• Evolution of sales of luxury leather goods
• Which country of production do you consider the best for luxury brands?
• Number of companies and employees in the leather goods industry
• Structure and share of billings by number of employees
• Répartition de l'effectif en maroquinerie par catégorie de métier
• Share of French sales of the main luxury leather goods brands
• Total sales of the LVMH group in luxury leather goods
• Total sales of the Kering group in luxury leather goods
• Market shares of the main players in the leather goods segment
• The main distribution channels
• Part de seconde main dans l'achat de produits en cuir en fonction de l'age
• The impact of the COVID-19 crisis on the leather goods segment
• Breakdown of French leather goods production
• A la question "pour quel produit en cuir seriez-vous pret à attribuer un budget plus èlevé afin de l'obtenir les sondés ont répondu ....
• Parmis les individus qui n'achètent pas de produits en cuir, les raisons sont ...