Luxury Leather Goods in Taiwan

2021 DEVELOPMENTS

Demand for luxury travel goods declines as international travel bans and border closures see tourism come to a halt

The COVID-19 pandemic has been seeing sales of luxury leather goods recording slightly slower current value growth rates. With the Taiwanese authorities having to implement a nationwide lockdown in mid-2021 due to the spread of the virus, this has been impacting sales of luxury leather goods.

Demand remains strong for top-tier brands as their well-off buyers are not impacted financially by the pandemic

In spite of the pandemic, top-tier brands have continued recording strong growth moving into 2021. The main reason for this is because the consumer base of luxury leather goods in Taiwan is mainly made up of affluent consumers with higher disposable incomes.

E-commerce gathers pace during the pandemic thanks to online platforms from brands like Louis Vuitton and Coach

The internet is rapidly changing the distribution landscape for luxury leather goods in Taiwan, especially among convenience-seeking Millennials, who are usually quite price-sensitive consumers and are used to accessing information about products and making purchases online. As a result, the retail distribution share of the online channel has continued to grow in 2021, especially with the influence of the COVID-19 pandemic.

PROSPECTS AND OPPORTUNITIES

Eased travel restrictions should kick-start the recovery process in luxury travel goods

Luxury leather goods is expected to post strong annual current value growth rates throughout the forecast period. Luxury travel goods, which has been recording steep sales declines in 2020 and 2021, is expected to rebound into positive growth rates from 2022, which will help drive the performance of luxury leather goods overall.

Social media will maintain a crucial role in the advertising and exposure of women’s luxury bags and small leather goods

Over the forecast period, the fast-growing affordable segments as well as the strong demand generated by the increasing impact of social media will be some of the main growth drivers. Luxury handbags and small-sized bags from brands such as Prada, Burberry and Bottega Veneta are set to remain popular among younger people due to their relatively affordable prices and functionality.

The fashion industry will continue to struggle until the virus is under control on a global level

As a result of the pandemic, the fashion industry has been suffering in 2021, and will likely continue to do so over the forecast period. As the main fashion weeks continue to be impacted, with shows being cancelled, designers will continue to postpone releasing their latest collections in order to avoid them underperforming.