LEATHER GOODS MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

Designers worldwide showcase new apparel through fashion shows and events, thereby attracting more consumers toward leather clothing For instance, in September 2020, the Forever Leather Fashion show was organized in Shanghai, China. The show displayed a variety of leather products, including a range of modern-style jackets, cross-stitched trench coats, travel bags, leather sneakers, duffel bags, and ankle boots. Such instances bring together hundreds of thousands of leather buyers, manufacturers, and designers from different provinces.

An increasing number of High-Net-Worth Individuals (HNWIs), coupled with the growing trend of designer and branded clothes in major markets, such as the U.S., France, and China, is boosting the demand for leather products. Leather goods are exclusive and often premium priced. The demand for leather products is significantly growing in China owing to the increasing number of High Net worth Individuals (HNWIs) and Ultra-High Net worth Individuals (UHNWIs) in the country. According to the Global Wealth Report 2019, published in October 2019, by Credit Suisse Group AG, in 2018, China had 10% of the world’s total HNWIs.

Market Restraints

Low availability of raw materials, availability of synthetic alternatives such as plastic leather, and availability of leather goods at low cost are some of the factors restraining the growth of the global leather goods market.