Executive Summary

Feb 2019
PROSPECTS
Travel and tourism benefits luxury travel goods

A strengthening global economy, intense competition between airlines and consumers’ increasing preference for experiences over goods have led to rapid growth in travel and tourism globally. With the growth of the US economy, fuelled by recent tax cuts and near record-high consumer confidence, luxury travel goods lifted luxury leather goods to growth in 2018, as US consumers invested in high-end luggage and other travel accessories for their more frequent travels.

Social media shareability drives sales

Social media helped shape consumer preferences for handbags in 2018, as shoppers opted for pieces that would be instantly recognisable and impressive to their friends and followers. Consumers’ renewed affinity for logos, brought about by streetwear trends, grew sales at European fashion houses to record highs, as social media users sought to show-off logos and branded prints from Gucci, Louis Vuitton, Chanel, Balenciaga and more, in addition to less logo-heavy yet equally recognisable bags from the same brands, such as Gucci’s Marmont and Chloé’s Nile handbags.

Brands make headlines for controversial destruction practices

Producers of luxury leather goods made headlines in 2018 for their controversial stock destruction practices, intended to prevent both discounts and secondary market sales, which could damage their brand image. Burberry revealed it destroyed USD37 million of goods for the year ended 31 March 2018, whilst luxury group Richemont, which owns Cartier, destroyed USD557 million of goods in May 2018, with other brands, including Chanel and Louis Vuitton, revealing that they also burn or destroy unsold stock.

COMPETITIVE LANDSCAPE
European luxury conglomerates capitalise on trends

France’s largest luxury conglomerates, Kering and LVMH Moët Hennessy Louis Vuitton, benefited from changing consumer preferences, as their brands’ creative directors were quick to capitalise on industry trends. Alessandro Michele’s recent transformation of Kering’s Gucci into a millennial-friendly and logo-forward brand has resulted in record sales and attention for the legacy brand, whilst Demna Gvasalia of Balenciaga (also Kering-owned) has earned similar praise and a subsequent sales lift for his streetwear-inspired and meme-inspiring design changes.

US brands seek acquisitions amid turnarounds

As European luxury groups enjoyed record sales and profitability, struggling US brands sought to replicate their success and cost-saving synergies by building luxury groups of their own through acquisitions. After acquiring the Kate Spade and Stuart Weitzman brands in 2015 and 2017, respectively, Coach Inc changed its name to Tapestry Inc in October 2017, in a bid to assert its new identity as a multiband company in the image of Kering and LVMH.

Internet growth spurs experiential retail strategies

Internet retailing continued to be the fastest growing channel for luxury leather goods in 2018, as the number of internet-based retailers and shopping platforms grew, and consumers became increasingly comfortable purchasing high-end products online. Faced with competition from marketplaces such as Farfetch, which enables customers to shop in multiple boutiques throughout the world on one centralised site, traditional retailers are increasingly looking towards experiential retailing and product curation to compete with online competitors, as they seek to add value to store visits.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Luxury Leather Goods industry in USA with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Luxury Leather Goods industry in USA, our research will save you time and money while empowering you to make informed, profitable decisions.

The Luxury Leather Goods in USA market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Luxury Leather Goods in USA?
  • What are the major brands in USA?
  • How dynamic is the growth of Luxury Leather Goods internet sales?
  • What is driving growth?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply function

Luxury Leather Goods in the US - Category analysis

HEADLINES

PROSPECTS

Travel and tourism benefits luxury travel goods
Social media shareability drives sales
Brands make headlines for controversial destruction practices

COMPETITIVE LANDSCAPE

European luxury conglomerates capitalise on trends
US brands seek acquisitions amid turnarounds
Internet growth spurs experiential retail strategies

CATEGORY DATA

Table 1 Sales of Luxury Leather Goods: Value 2013-2018
Table 2 Sales of Luxury Leather Goods: % Value Growth 2013-2018
Table 3 NBO Company Shares of Luxury Leather Goods: % Value 2013-2017
Table 4 LBN Brand Shares of Luxury Leather Goods: % Value 2014-2017
Table 5 Distribution of Luxury Leather Goods by Format: % Value 2013-2018
Table 6 Forecast Sales of Luxury Leather Goods: Value 2018-2023
Table 7 Forecast Sales of Luxury Leather Goods: % Value Growth 2018-2023

Luxury Goods in the US - Industry Overview

EXECUTIVE SUMMARY

The taste for luxury goods is changing in the US
Millennialisation and the role of experiences are shifting luxury
The competition varies within luxury goods categories
E-commerce continues to disrupt store-based retailing
Luxury goods is expected to see growth once again

MARKET INDICATORS

Table 8 Number of High Net Worth Individuals (HNWI): 2013-2018

MARKET DATA

Table 9 Sales of Luxury Goods by Category: Value 2013-2018
Table 10 Sales of Luxury Goods by Category: % Value Growth 2013-2018
Table 11 Inbound Receipts for Luxury Goods by Country of Origin: Value 2013-2018
Table 12 NBO Company Shares of Luxury Goods: % Value 2013-2017
Table 13 LBN Brand Shares of Luxury Goods: % Value 2014-2017
Table 14 Distribution of Luxury Goods by Format and Category: % Value 2018
Table 15 Forecast Sales of Luxury Goods by Category: Value 2018-2023
Table 16 Forecast Sales of Luxury Goods by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources