Luxury Leather Goods in Australia

PROSPECTS

Iconic women's luxury bags revamped for a male audience

Rising fashion-consciousness among younger male consumers in Australia continued to support healthy growth in volume and current value sales for men's luxury bags and small leather goods in 2019. Leading brands are increasingly attempting to tap into this trend by taking classic products originally designed for women and reinventing them for a male audience.

Luxury leather goods players continue to embrace personalisation strategies

Luxury leather goods is among the categories best positioned to benefit from the growing demand for personalised luxury goods in Australia. Louis Vuitton is a pioneer in this area with its Mon Monogram service, which allows customers to have bags and other leather goods from the brand personalised with their initials and coloured stripes of their own choice.

Efforts to target younger consumers set to intensify

Younger consumers – mainly millennials but increasingly members of Generation Z as well – are rapidly becoming a key demographic for luxury leather goods in Australia. Smaller and less costly leather items such as bags, wallets and belts are a popular choice among young people who aspire to own luxury brands, but are not yet able to afford designer apparel, fine jewellery etc.

COMPETITIVE LANDSCAPE

Gucci launches its DIY service in Australia

Gucci joined the growing number of luxury goods brands tapping into the personalisation trend in 2019 with the launch of its Gucci DIY service in Australia. This service enables consumers to customise select Gucci products with their initials and by choosing from a diverse range of fabrics, colours, trims, patches, embroidered designs etc.

Louis Vuitton works to win over Generation Z

While relatively few members of Generation Z may yet be able to afford to buy luxury brands themselves, they are often purchased for them by parents and other older relatives. Moreover, luxury goods producers recognise that targeting this group early increases the likelihood of them becoming lifelong customers.

Further gains projected for internet retailing

The value share of internet retailing in luxury leather goods increased steadily over 2014-2019, and further gains are likely over the forecast period. The channel will continue to benefit from growth in purchasing power among younger consumers, who are more inclined to buy online.

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