Luxury leather goods has been amongst the most resilient categories within personal luxury in China during the COVID-19 pandemic. However, luxury travel goods has been an exception, with sales seriously negatively impacted when international travel ground to a halt.
Both volume growth and unit price increases contributed to the resilience of value sales of luxury leather goods in the Chinese market. Leading luxury players such as LVMH, Chanel and Hermès all increased the prices of their products in 2020 to combat the increased logistics cost and shortage of inventory due to production disruption brought about by the pandemic.
Although the COVID-19 pandemic pushed luxury groups to gear their businesses towards online, brands are still aware of the irreplaceability of engaging offline events. Pop-up stores are nothing new for retailing, but luxury brands have been putting effort into this as a method of offline marketing in the Chinese market, given its high flexibility and timeliness, especially when brands customise offline events for new product launches.
Affordable luxury leather goods had already been losing motion pre-COVID-19, and the pandemic amplified the fact that affordable luxury brands were underperforming ultimate luxury brands in leather goods. The middle classes, the target group for affordable luxury brands, appears to be more vulnerable and price-sensitive amidst and post-COVID-19, thus have curbed their consumption of luxury items.
As younger generations are emerging as the growth engine for luxury leather goods, distinct expressions of identity are increasingly favoured by consumers nowadays, propelling the trend of crossover collaborations with popular cartoon icons amongst luxury goods companies. Incorporating the cartoon icon on luxury products, although seems bold, has proven to be the best-positioned and most effective way to reach gen Z consumers.
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Understand the latest market trends and future growth opportunities for the Luxury Leather Goods industry in China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Luxury Leather Goods
This is the aggregation of luxury bags and small leather goods and luxury travel goods.See All of Our Definitions
This report originates from Passport, our Luxury Leather Goods research and analysis database.
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