Luxury Leather Goods in Russia

2021 DEVELOPMENTS

Contrasting fortunes for luxury bags and luxury travel goods as Russia eases its COVID-19 restrictions

2021 was a favourable year for luxury bags and small leather goods in Russia. A key factor in this were the various restrictions that limited opportunities to spend on other products, as well as foreign travel.

Retailers and brands turn to e-commerce to reach consumers stuck at home

Producers of luxury leather goods refocused their efforts on the digital landscape after the outbreak of COVID-19, with this trend seeing further development in 2021. Prior to the outbreak of COVID-19 there was limited interest in shopping for luxury leather goods online, with many consumers seeing the in-store experience as being an important part of the sale.

Louis Vuitton retains its lead despite decline in sales of luxury travel goods

Louis Vuitton Vostok OOO maintained its lead in luxury leather goods in 2020, although it saw a dip in its share. The player benefits from a strong distribution network, high brand recognition, significant investment in marketing activities and regular new product launches.

PROSPECTS AND OPPORTUNITIES

Resumption of travel could present challenges and opportunities within luxury leather goods

Luxury leather goods fared significantly better than had been anticipated following the outbreak of COVID-19 with the limitations on travel ensuring consumers spent money at home, including on luxury bags and small leather goods. However, as outbound tourism starts to pick up again it is likely that luxury bags and small leather goods will see more stable growth.

Digital engagement strategies key for capturing the next generation of consumers

All players are set to focus on strengthening their online presence and developing their e-commerce presence over the forecast period. The trend for online shopping was already starting to take off pre-COVID-19, but it has flourished since then due to the various measures introduced to control the pandemic.

Economic pressures could threaten sales to aspirational shoppers

While luxury leather goods is projected to see stable growth over the forecast period, the prevailing economic uncertainty in the country could pose a significant threat to some brands. Women’s designer handbags play a crucial role in overall category sales, with sales driven by practicality but more so desirability, with consumers keen to acquire the latest fashions and the most desirable and on-trend brands and product lines.