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 ...

2.1 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 ...

3.1 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 ...

4.1 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 ** € *** €

5.1 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 ...