Leather goods refers to the industry of preparing fine leather and producing articles with this same leather, whether they are bags, gloves, belts, or other fashion items. While it is easy to name some of the houses that belong to the world of luxury, it is much less easy to draw a clear line between leather goods as a whole and the so-called luxury leather goods.
According to a a report from the National Leather Council, the leather goods sector as a whole generated a turnover of 3.236 billion Euros in France in 2017, for a sector that includes 448 companies and employs nearly 21,000 people in France.
Moreover, according to Mazars,"made in France" would be particularly sought after in a global luxury leather goods market that grew by 70% between 2003 and 2012.
The luxury leather goods market remains dominated by the main luxury brands, leaving little room for new entrants. The numerous takeovers testify to the growing concentration of the market.
The main source of growth in the market remains China and its upper-middle class with strong purchasing power.
1.2 A growing global market and optimistic professionals
Breakdown of luxury revenues by segment World, ****, % Source: ****
The global luxury market has grown in recent years to reach $**** billion in ****. **% of revenues are for the luxury personal goods segment, which includes luxury leather goods.
Breakdown of luxury personal goods revenue by segment World, ****, % Source: ****
The Luxury Leather Goods segment represents ...
1.3 A fast growing French market
In line with the good figures worldwide, luxury leather goods are doing very well in France.
Evolution of luxury leather goods sales France, ****-*****, million euros Source: ****
Luxury leather goods recorded a strong increase between **** and ****. According to Euromonitor forecasts, this trend is expected to continue: between **** and ****, Euromonitor considers that ...
2.1 A demand primarily from women
Distribution of sales of luxury leather bags and small leather goods by gender France, ****, % Source: ****
The demand for luxury leather goods in France is mostly female. Sales of luxury leather bags and small leather goods are mainly aimed at women. The latter accounted for **% of sales in **** and still accounts for ...
2.2 The different consumers
Tourists, especially from China
Luxury leather goods have been able to benefit from an increase in local and especially international purchases. Indeed, France has set new records in terms of tourist arrivals, with over ** million foreign visitors in **** and ****. Among them are Chinese tourists, who now play a key role in ...
2.3 Sustainability criteria: the emergence of veganism
According to a BCG survey, **% of the French consider that their purchasing behavior is influenced by sustainable development criteria. This trend is even stronger among the younger generations. However, the criteria vary according to the age category as illustrated below.
Which sustainability criteria do you value when it comes to buying ...
2.4 The Made-in France label
Made-in-France is a guarantee of quality: consumers associate it with know-how and history.
Which manufacturing country do you consider the best for luxury brands? World, ****, % Source: ****
According to a survey conducted by BCG, France ranks second in terms of recognition of its know-how. Although Italy is considered the best manufacturing country ...
3.1 At the base of the value chain: the activities around the raw material
Suppliers of raw hides and skins
Companies operating in the leather and raw hide sector are often directly integrated into the slaughterhouses. Their activity depends largely on the economic situation of the agricultural world (***) as well as on the evolution of the national and international leather market.
Evolution of the turnover ...
3.2 French leather goods production concentrated in Ile-de-France and Auvergne-Rhône-Alpes
In this section, we broaden the scope of the study, and focus not only on luxury leather goods, but leather goods in general and more specifically items manufactured in France (***). The turnover of the French Leather Goods industry amounts to *.* billion euros, up *% from last year in ****. [***] This trend is explained ...
3.3 A concentrated market
Breakdown of the luxury leather goods market share France, ****, % Source: ****
The French market is highly concentrated: indeed, * groups gather **% of the market share. These are LVMH SA, Hermès International SCA and Kering SA. LVMH SA is the leader in this market, with **% of sales, far ahead of Kering SA (***).
3.4 The distribution of leather goods is marked by the rise of digital technology
Evolution of the distribution of luxury leather goods sales by type of distribution France, ****-****, % Source: ****
It can be seen that the majority of sales are made in stores. Online sales are in the minority, but the share of luxury leather goods sales made online has been growing steadily in recent ...
4.1 Price range & auction
Pricing of leather luxury products
Although it is difficult to define a clear boundary between what is luxury and what is not, one great characteristic that is unique to luxury items is that they have no upper price limit. Thus, if we can arbitrarily consider that a luxury handbag starts ...
4.2 Production concentrated on a small number of products
In this section, we broaden the scope of the study, and focus not only on luxury leather goods, but leather goods in general and more specifically on items manufactured in France (***). Billing for leather goods manufactured in France by an establishment or one of its subcontractors amounted to approximately €*.* billion in ...
4.3 The growing importance of the second-hand market
The second-hand market is steadily increasing. Luxury brands of bags and luggage are particularly popular via these channels, with bags accounting for **% of the second-hand market in France and small leather goods accounting for **% of luxury second-hand purchases.
Multiple web platforms promote second-hand items, as illustrated in the chart below:
4.4 The threat of counterfeiting
European luxury manufacturers lose nearly ** billion euros a year to counterfeiting. [***] This is not only a loss of revenue, but also a loss of direct jobs: legitimate manufacturers need less manpower and as a result, nearly ***,*** jobs are considered directly lost in these sectors across the EU. Specifically, the luxury clothing, ...
The "leather" denomination
The term leather is protected by French regulations (***), chips or powders of reconstituted leather and even materials derived from bio-manufactured hides can not bear the name leather. The indications "synthetic leather", "reconstituted leather" or "leather of ..." are therefore not legal and have no right to be affixed to ...
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The luxury leather goods market - France
Publicado en 05/10/2022 by Inès Duffort
Excellente étude, bien sourcée et structurée. Cela m'a beaucoup aidée dans ma recherche.
Merci Inès pour votre retour! Nous sommes heureux d'avoir été à la hauteur de vos attentes.