Improving living standard, growing disposable income, and rapidly growing urban population are expected to open new avenues to the global leather goods market

 

Leather goods are products that are produced from leather. Some of the common qualities of these goods include texture, color, cut, natural oils, and leather products' grain. Leather goods can be classified into purses, wallets & belts, footwear, handbags, traveling bad, jackets, and others.

Increasing disposable income and improving living standards is predominantly fueling market growth. Robust growth in travel and tourism industry is driving demand for leather-based products such as stylish and compact traveling bags. According to the World Travel and Tourism Council (WTTC), in 2018, global travel and tourism grew 3.9 percent, above global GDP growth of 3.2 percent and contributing a record $8.8 trillion. Travel and tourism increased its share of leisure spending to 78.5 percent, up from 77.5 percent in 2017. Also, growing demand for purses, wallets & belts, footwear, handbags due to changing fashion trends is further anticipated to foster market growth. Moreover, the growing urban population is another major factor augmenting the market growth of leather goods. According to the United Nation, in 2018, 55% of the world’s population lived in urban areas, a proportion that is expected to increase to 68% by 205

From the geographical point of view, Asia Pacific is expected to gain significant growth over the forecast period and this is attributed to the expanding e-commerce industry which is driving the sale of leather-based products. According to the India Brand Equity Foundation, the Indian E-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much of the growth for the industry has been triggered by an increase in internet and smartphone penetration. The ongoing digital transformation in the country is expected to increase India’s total internet user base to 829 million by 2021 from 636.73 million in 2019.

Key Developments:

1.      In March 2020, Randa Accessories, a global provider of apparel and accessories, partnered with iconic American lifestyle brand and retailer Cole Haan, to design, produce, and distribute a modernized generation of men’s and women’s belts, and men’s wallets, and small leather goods.

2.      In August 2020, Mark Cross, the American luxury leather accessories brand, launched the 1845 Mini Trunk

3.      In May 2020, Kering announced that it is participating in the Shanghai New Product Launch Festival 2020 as part of the 5th May Shopping Festival to showcase the latest in fashion, leather goods, jewelry, and watches from its renowned Luxury Houses.