Executive Summary

Feb 2019
PROSPECTS
Healthy growth in women’s luxury bags and small leather goods

Women’s luxury bags and small leather goods recorded robust growth in a competitive market in 2018. It benefited from the rising awareness and availability of luxury brands and the popularity of new product launches, such as Chanel’s popular Gabrielle handbag line.

Classic, retro, neutral and floral designs are in demand

Canada’s diverse, multicultural population, especially in the luxury centres of Toronto and Vancouver, creates a diverse market for luxury leather goods, especially handbags. Although luxury leather goods in Canada features a wide range of brands and strong competition, the most sought-after brands remain well-known luxury brands with long pedigrees, heritage, craftsmanship and classic designs.

Luxury players offer personalisation to enhance the customer experience

Personalisation is an ongoing trend in luxury goods, as consumers look for ways to express their individuality and as technology evolves to allow the convenient personalisation of products. Luxury leather goods operators promote personalisation as way for their brands to engage with customers and better serve their individual preferences.

COMPETITIVE LANDSCAPE
Michael Kors retains its lead despite promotional discounting

In 2017, Michael Kors Holdings continued to lead luxury leather goods, although it only saw slow growth, after a strong decline in 2016. In recent years, Michael Kors’ sales declined because of decreasing traffic in shopping centres, fierce competition in the company’s core handbags category, and a pricing strategy reliant on promotional discounting.

The continued rise of Gucci

Gucci, owned by French luxury group Kering, continued its strong sales growth in 2017, recording an impressive performance with a double-digit increase. Gucci has experienced tremendous success in attracting millennial and aspirational consumers in Canada, along with wealthy tourists.

Internet retailing is expected to record the fastest growth

Although internet retailing is expected to continue to see the fastest growth over the forecast period, growth will be hampered by the fact that a considerable share of sales is driven by international tourism. In addition, luxury customers still value the experience of shopping in a physical store, wanting to see and feel different materials before spending on high-priced items.

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Luxury Leather Goods in Canada

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Overview

Discover the latest market trends and uncover sources of future market growth for the Luxury Leather Goods industry in Canada with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Luxury Leather Goods industry in Canada, our research will save you time and money while empowering you to make informed, profitable decisions.

The Luxury Leather Goods in Canada market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Luxury Leather Goods in Canada?
  • What are the major brands in Canada?
  • How dynamic is the growth of Luxury Leather Goods internet sales?
  • What is driving growth?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply function

Luxury Leather Goods in Canada - Category analysis

HEADLINES

PROSPECTS

Healthy growth in women’s luxury bags and small leather goods
Classic, retro, neutral and floral designs are in demand
Luxury players offer personalisation to enhance the customer experience

COMPETITIVE LANDSCAPE

Michael Kors retains its lead despite promotional discounting
The continued rise of Gucci
Internet retailing is expected to record the fastest growth

CATEGORY DATA

Table 1 Sales of Luxury Leather Goods: Value 2013-2018
Table 2 Sales of Luxury Leather Goods: % Value Growth 2013-2018
Table 3 NBO Company Shares of Luxury Leather Goods: % Value 2013-2017
Table 4 LBN Brand Shares of Luxury Leather Goods: % Value 2014-2017
Table 5 Distribution of Luxury Leather Goods by Format: % Value 2013-2018
Table 6 Forecast Sales of Luxury Leather Goods: Value 2018-2023
Table 7 Forecast Sales of Luxury Leather Goods: % Value Growth 2018-2023

Luxury Goods in Canada - Industry Overview

EXECUTIVE SUMMARY

Luxury goods maintains robust growth in Canada in 2018
Producers of luxury brands see the growth potential of millennials
The retail landscape in luxury goods remains fragmented and highly competitive
Store-based retailing dominates, with mono-brand stores increasing
A more competitive environment looms after expansionary 2017 and 2016

MARKET INDICATORS

Table 8 Number of High Net Worth Individuals (HNWI): 2013-2018

MARKET DATA

Table 9 Sales of Luxury Goods by Category: Value 2013-2018
Table 10 Sales of Luxury Goods by Category: % Value Growth 2013-2018
Table 11 Inbound Receipts for Luxury Goods by Country of Origin: Value 2013-2018
Table 12 NBO Company Shares of Luxury Goods: % Value 2013-2017
Table 13 LBN Brand Shares of Luxury Goods: % Value 2014-2017
Table 14 Distribution of Luxury Goods by Format and Category: % Value 2018
Table 15 Forecast Sales of Luxury Goods by Category: Value 2018-2023
Table 16 Forecast Sales of Luxury Goods by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources