Summary of our market study

Since 2020, the leather goods market has faced significant challenges due to the Covid-19 pandemic, particularly in Spain where sales dropped by roughly 10.49%, disrupting a previously positive growth trend. Despite this setback, the global leather goods market is projected to expand significantly, with an anticipated annual growth rate of 6.6%, potentially reaching a valuation of US$405 billion by 2030. Asia is poised to lead this growth, particularly China, due to the surge in High Net Worth Individuals (HNWI) within the region. In the luxury segment, key players such as LVMH, Kering, and Tapestry dominate, controlling substantial market shares.

The Spanish market has shown resilience, as indicated by a slow but recovering domestic market, notable export activities (€840 million in 2020), and a positive trade balance buoyed by a shift towards high-end and mid-range products, led by the handbag category which constitutes 61% of sectoral revenues. Despite global disruptions, the Spanish leather goods sector maintains its competitiveness, underpinned by artisanal craftsmanship and a steadily growing interest in eco-consciousness and second-hand markets. Regulations such as EU Regulation 1007/2011 ensure the industry's compliance with standards concerning labeling and compositions, with Spain standing out for its expertise and tradition, especially in regions like Andalusia.

Evolving Consumer Preferences in the Spanish Leather Goods Market

The leather goods market in Spain has experienced a significant transformation, influenced by both global trends and the local impact of the Covid-19 pandemic. The Spanish sector, renowned for its high-quality craftsmanship, has been integrating new consumer patterns such as sustainability, online shopping, and the second-hand market while stabilizing amid recent economic challenges. Historically, Spain's leather goods industry has catered to a mix of high-end and mid-range products, with luxury items being less prominent except for a few exceptions like the globally recognized brand Loewe. The country's expertise in leather craftsmanship makes it an attractive hub for many international brands seeking quality production. The market contraction was directly linked to reduced consumer spending on non-essential items during the Covid-19 pandemic and restrictions on physical retail operations from March to May 2020. Notwithstanding, the sector demonstrated resilience, maintaining employment levels relatively stable compared to the previous year.

As the market rebounded in 2021 with the lifting of restrictions and the return of tourists, the outlook for 2022 and beyond looked promising, anticipating a recovery in consumption. With an increased awareness of fashion's environmental impact, consumer demand for sustainability has shaped the market, with approximately 20% of consumers pivoting away from animal leather products. However, the longevity and aesthetic qualities of authentic leather continue to support its popularity. The second-hand market has seen a surge, particularly in the case of high-end leather items such as Louis Vuitton luggage and bags, which have witnessed demand spikes between 70% and 101%, respectively. The expansion of the second-hand market reflects a growing Spanish commitment to reduce the carbon footprint and supports a circular economy. The Spanish leather goods industry, predominantly consisting of small businesses employing between one and ten people, has shown adaptability through digitization and a shift toward e-commerce. The international reputation of Spanish craftsmanship, especially from the town of Ubrique in Andalusia, has bolstered Spain's standing. The allure of traditional and modern luxury continues to thrive, propelled by the market appeal of influential social media platforms. In conclusion, the Spanish leather goods market is robust, with an anticipated growth and a diverse structure poised to meet the evolving demand for quality, aesthetics, sustainability, and digital engagement.

A Glimpse into the Pantheon of Leather Luxury: Prominent Market Players

In the illustrious realm of leather goods, a select few companies have risen to the zenith of luxury, dominating the market with their unparalleled craftsmanship, iconic designs, and enduring appeal. These market titans not only epitomize the essence of opulence but also influence trends and set standards for quality and aesthetics across the globe.

  • LVMH (Moët Hennessy Louis Vuitton) : Leading the luxury leather goods industry is LVMH, a conglomerate that is synonymous with high fashion and premium quality. Louis Vuitton, one of its prominent brands, is renowned for its signature monogrammed handbags and luggage, with a history steeped in Parisian elegance and innovation.
  • Kering Close on LVMH's heels, Kering stands tall with a diverse brand portfolio that includes names like Gucci and Saint Laurent. Kering is celebrated for blending contemporary artistry with timeless Italian craftsmanship, thereby creating pieces that are desired by aficionados of luxury across the world.
  • Tapestry : Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, is a name that resonates with accessible luxury. These brands have carved their own niches within the Tapestry umbrella, offering a mix of classic American style, playful sophistication, and bold footwear.
  • Prada : Prada, the Italian fashion powerhouse, has long been associated with avant-garde style and minimalist chic. Its leather goods epitomize the confluence of forward-thinking design with the legacy of Italian leather artisanship.
  • Hermès Hermès, another stalwart in the luxury sector, is the epitome of exclusive craftsmanship. Best known for its iconic Birkin and Kelly bags, Hermès represents a legacy of meticulous handcrafting and exquisite detail that stands the test of time.
  • Loewe Representing Spain's vaunted position in the global leather goods market, Loewe, owned by LVMH, is a testament to the country's rich heritage of leather artisanship. Its innovative approach to design and commitment to quality has positioned Loewe as a sought-after brand for those in the know.

The above players, among others, form an elite circle of influential brands that drive the global luxury leather goods industry. Each entity, with its own unique philosophy and aesthetic, contributes to the ever-evolving tapestry of this high-end market.

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  • Number of pages : ~ 40 pages
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  • Last update : 30/03/2023
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Summary and extracts

1 Market overview

1.1 Definition and presentation

Leather goods are garments made from leather. These include handbags, gloves, belts and other leather goods. Indispensable fashion accessories, leather goods have been at the heart of a consumer surge in recent years.

The global market is growing fast, particularly in Asia, which represents a high-potential growth driver. However, the United States is still the world's leading market, followed by China and Japan, with European countries a distant second. The luxury leather goods market is relatively concentrated. The top six companies in the sector (LVMH, Kering, Tapestry, Michael Kors, Prada and Hermès International) control around two-thirds. Sales are more fragmented if we look at the market as a whole, with a multitude of smaller companies present in most countries.

In Spain, the leather goods market fell by around 10.49% in 2020, after growing by 2.18% the previous year. The covid-19 crisis considerably hampered sales, due to the sanitary closure of stores, particularly strong from March to May 2020. However, employment was maintained, with the number of employees almost stable compared with the previous year. Sales of leather goods have picked up in 2021 with the easing of restrictions. The outlook for 2022 is promising, with a recovery in consumption and the return of tourists to the peninsula.

1.2 Global market

The global leather goods market could double within the decade. Sales in this industry are expected to grow annually by +*.*%, from US$*** billion in **** to US$*** billion in ****.

sales trends in the leather goods market World, ****-****, US$ billion Source: ****

The increase in affluent customers and the trend towards branded and ...

1.3 Domestic market

In ****, the Spanish leather goods sector generated almost *** million euros. This figure fell in **** due to the health crisis. These are INE data, gathered under CNAE code ****: "Fabricación de artículos de marroquinería, viaje y de guarnicionería y talabartería".

sales trends in the leather goods market Spain, ...

1.4 International trade

In ****, **% of leather goods production in Spain was destined for export, for a total of *** million euros. France is by far the biggest buyer, with *** million euros worth of products, i.e. **% of the total. The main trading partners are in Europe, followed by Asia.

Destination of leather goods exports by ...

1.5 Covid-19

The pandemic had a devastating impact on the leather goods sector. The most significant phenomenon was a drop in consumption, as the population focused its purchases on essential goods. In Spain, the leather goods sector is essentially artisanal, which made the transition to online sales more complex. The crisis has therefore ...

2 Demand analysis

2.1 Quality and aesthetics

Leather goods most often refer to handcrafted, high-end products. For this type of product, the primary determinant is value for money, cited by **% of consumers, followed by product quality for **% of those surveyed.

Main purchasing factors for high-end craft customers Spain, ****, % of total Source: ****

In addition, the new consumer is increasingly ...

2.2 Durability and second-hand

Consumers are increasingly aware of the fashion industry's impact on the environment. In ****, an international study found that **% of people had already given up the use of animal leather.

Consumer perception of the leather industry Worldwide, ****, % Source: ****

However, the purchase of leather is resisting. One of the arguments put forward is ...

3 Market structure

3.1 An international industry dominated by majors

In the luxury leather goods industry (***). The world's two biggest brands are French, accounting for over a third of total luxury leather goods sales.

Market share of leading luxury leather goods brands World, ****, in Source: ****

Only one Spanish brand appears in the ranking of the ** international luxury brands: Loewe, owned by ...

3.2 Expertise that appeals to international brands

Spain is internationally renowned for its leather craftsmanship. While major fashion brands relocated their production to Asia in the early ****s, more and more of them are now relocating to Europe. Spain, and Andalusia in particular, is the preferred destination.

Quality and respect for tradition are guaranteed by the"Zonas de ...

4 Offer analysis

4.1 Product typology

The Spanish leather industry is oriented towards high-end and mid-range products, which account for almost **% of the total. Luxury products are less well represented, with the notable exception of Loewe.

Breakdown of leather goods by quality Spain, ****, % (***) Source: ****

In terms of items produced, bags largely dominate production lines, accounting for **% of ...

4.2 Average prices

Prices vary from * to ** depending on whether the products are mid-range or luxury.

Products Price Luxury goods prices Belts ** € *** € Handbags ** € ***€-****€ Luggage ** € **** € Backpacks ** € **** € Travel bags ** € **** € work items ** € **** € Portfolios ** € *** €

5 Regulations

5.1 Regulations

The textile and clothing sector is regulated by EU Regulation ****/****, which lays down rules on:

Textile fiber denominations, textile product labeling methods, as well as indications on labels, markings and documents accompanying textile products during the various production, processing and distribution cycles; Determining the fibrous composition of textile products by quantitative ...

6 Positioning the players

6.1 Player segmentation

  • Louis Vuitton Malletier
  • Kering
  • Prada Groupe
  • Vinted
  • Vestiaire Collective
  • Loewe

List of charts presented in this market study

  • Sales trends in the leather goods market
  • Sales trends in the leather goods market
  • Destination of leather goods exports by country
  • Breakdown of exports by product type
  • Origin of leather goods imports by country
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Latest news

Fashion: how Prada reinvents itself - 13/01/2024
  • Prada was founded in 1913 by brothers Mario and Martino Prada.
  • By 2023, Prada's retail sales have increased by 13% compared to 2022.
  • The luxury goods market is expected to see around 40% of its global sales absorbed by China by 2030, according to Bain & Company.
  • Prada created its own foundation in 1995, which is located in Milan.
Gucci: a challenge for Kering - 08/01/2024
  • Gucci, Kering's flagship brand, guarantees two thirds of the group's profits.
  • Kering acquired a 30% stake in Valentino.
  • Kering also bought Creed perfumes.
  • Balenciaga, one of Kering's brands, has been in difficulty since November 2022
Louis Vuitton, the luxury house that makes the Auvergne countryside shine - 07/09/2023
  • Saint-Pourçain-sur-Sioule has a population of 5,200.
  • The Louis Vuitton workshop in Saint-Pourçain-sur-Sioule employs almost 900 people.
  • Louis Vuitton has two rolling luggage production sites, one in Marsaz in the Drôme and the other in Saint-Pourçain-sur-Sioule.
  • Louis Vuitton's first workshop in Saint-Pourçain-sur-Sioule was set up in 1990, the second in 1995, and the third in 2020.
  • The leather goods group has around twenty workshops in France, mostly located in rural areas.
Start-ups bet (again) on second-hand goods - 26/03/2023
  • Vestiaire Collective, valued at over €1 billion
  • 23 million users in France for Vinted
  • - 500,000 euros in sales by 2022 for Collection 40
  • - 1.1 million euros in fund-raising planned for Omaj
  • - 1.8 million euros in funds raised the previous year for Mökki (30 sites planned by the end of the year)
  • - Expected annual market growth: 15-20%
  • - Estimated market value: several tens of billions
Prada, Milanese realism that keeps pace with the luxury giants - 13/03/2023
  • Sales up 25% to €4.2 billion
  • Above-market growth
  • The Italian brand saw its profits soar by 58% last year, to €465 million - strong sales growth in Europe and the United States more than offsetting a slowdown in China
Vinted: 15 years on - 09/03/2023
  • Founded in late 2008 in Lithuania
  • More than 65 million users in 16 countries
  • Over 19 million users in France
  • 57% of users are between 18 and 34 years old
  • More than half of users are women
  • Sales of 245 million euros in 2021 (60% growth over 2020)
  • Over $560 million raised since launch
  • Losses of 118 million euros in 2021
  • 7.6 million downloads in the UK by 2022
  • Over 200,000 drop-off points in Europe for Vinted Go
  • 200 drop-off and pick-up points in the Paris region by summer 2022
  • Target of 2,000 lockers in the Paris region by the end of 2023
  • Launched in the United States and Germany in 2010

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Louis Vuitton Malletier
Kering
Prada Groupe
Vinted
Vestiaire Collective
Loewe

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