Luxury Leather Goods in Australia

PROSPECTS

Increasing demand from the younger generation

Aspirational consumers are more likely to spend their income on leather goods, since they aim to own designer goods as aspirational pieces and for the status they represent, rather than it just being a purchasing habit. The younger generation forms a significant share of this aspirational customer base; these consumers like to save their disposable income to be able to afford luxury leather goods.

Luxury leather goods are becoming more affordable

Premiumisation in the realm of fashion has seen an influx of luxury brands committing to the production of accessories that, at an affordable price, allow consumers to tap into the luxury market. Whether it is a wallet or a bag, it gives the consumer the satisfaction of owning something from a luxury brand that they would not otherwise have been able to afford.

Demand for handbags is growing

Women’s luxury bags and small leather goods saw the fastest current value growth in 2018, with non-traditional formats such as backpacks and belt bags becoming increasingly popular as more luxury brands introduce them in their offering. Gucci introduced its iconic Double G belt bag, and this trend was later picked up by Chloé and Marc Jacobs.

COMPETITIVE LANDSCAPE

The changing layout of stores

The layout of many luxury stores, such as Burberry and Gucci, has changed. The new retail format allows consumers to touch, feel and engage with the products to make the whole shopping experience experiential and meaningful.

Increased mergers and acquisitions and collaborations

Many collaborations have been seen in luxury goods. Alexander McQueen collaborated with Globe Trotter; these two British brands, renowned for their flawless craftsmanship, introduced a limited-edition luggage range, which played on the strengths of both brands.

Companies incorporate personalisation

Premiumisation has led to a marked increase in the demand for individualisation or some degree of personalisation, for which customers are willing to pay a premium. The Daily Edited (TDE) is an iconic example of an Australian luxury brand that customises leather accessories.

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