In an interview with Philippines-based TV company, ABS-CBN, “influential Filipino fashion retailer”, Mark Gonzalez, stated that major luxury brands, such as Louis Vuitton, Celine, Fendi, and Dior, are expanding in the Philippines, with significant moves, including the opening of flagship stores, being made towards the end of 2021. The expansion spans all the product categories covered by the brands, including luxury leather goods, as well as areas such as designer apparel and footwear (ready-to-wear).
Most luxury travel goods brands, including Samsonite, American Tourister, and Delsey, have discounted their luggage and promoted the “buy now travel later” message in order to generate sales in the context of challenging economic conditions and ongoing restrictions on travel due to the COVID-19 crisis. In addition, luxury travel goods brands have worked to develop a presence on e-commerce platforms such as Shopee and Lazada to reach more consumers in the context of restrictions on the operations of physical stores and consumers’ concerns about viral transmission through social contact.
Restrictions on travel have led to marked declines in the number of inbound tourists visiting the Philippines. However, at the same time, it has meant that higher-income consumers have not been able to travel abroad to shop for luxury goods and, therefore, have been forced to purchase them domestically.
While luxury leather goods is expected to continue to see double-digit current value growth in 2022, and indeed for the rest of the forecast period, the category is not set to reach pre-pandemic levels of sales until 2023. Given the profound economic impact of measures introduced to limit the spread of COVID-19, rational purchasing will persist amongst even wealthier Filipinos for some time to come, with consumers seeking offers and attractive prices before committing to a purchase.
As the Asian market drives a large percentage of revenue for luxury leather brands and also continues to provide significant growth potential, some brands in the category are looking to court consumers in the region more directly by partnering with Asian celebrities. In 2021, for example, Burberry recruited Filipina socialite and celebrity, Heart Evangelista, to endorse the brand.
The e-commerce channel is expected to register double-digit growth in sales of luxury leather goods over the forecast period as it continues to build on the expansion of its consumer base resulting from the COVID-19 crisis. With physical stores closed and consumers wary of venturing out because of concerns about exposure to the virus, there was a marked upturn in online demand across many product categories, including luxury leather goods.
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Understand the latest market trends and future growth opportunities for the Luxury Leather Goods industry in Philippines 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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