Luxury leather goods continued to be adversely impacted by the lingering effects of the pandemic in 2021, with the category recording another year of double-digit volume and current value declines, exacerbating an already weak performance from the previous year. Non-essential store closures, limited tourism and lack of travel opportunities (particularly impacting demand for luxury travel goods, which for a second consecutive year recorded the weakest performance in the category) and infrequent socialising opportunities continued to reduce demand for perceived non-essential items such as luxury leather goods.
New business ideas are being trialled in South Africa to cater for aspirational consumers who want to own luxury leather goods but cannot afford the price of a new piece. Renting a luxury handbag for a day or on a weekly/monthly basis is therefore becoming an increasingly popular option, which not only reduces the cost compared to making a full investment in terms of a purchase, but also enables the customer to rotate the style and brands according to their outfit without having to make a major commitment.
Due to duties and taxes, luxury leather goods can be fairly expensive when purchased locally and despite a growing array of luxury products now being made available in South Africa, they are still marked by a very limited range. Social media platforms have allowed personal shoppers to make a place for themselves in the market, although not to the same extent as witnessed in China.
Luxury bags and small leather goods, driven by the women’s category, will remain the largest contributor to sales in South Africa over the forecast period. For African women wearing traditional outfits, an international branded handbag is the ideal way to show their status, with materials such as crocodile, snake and alligator being popular among local wealthy consumers.
Many local consumers still want to own luxury pieces but do not have the funds to do so. As a result, they are likely to turn to alternatives such as renting or buying second-hand luxury leather goods, a trend that is supported by the likes of Luxity and The Changing Room, which provide luxury consumers with authentic and difficult-to-find luxury items at competitive prices.
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Understand the latest market trends and future growth opportunities for the Luxury Leather Goods industry in South Africa 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 DefinitionsThis report originates from Passport, our Luxury Leather Goods research and analysis database.
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