9 March 2023

A new issue of Leatherbiz Market Intelligence, our exclusive fortnightly newsletter covering the leather pipeline, went live on March 7.

In this new issue, the newsletter draws a number of conclusions from the recent exhibition in Milan.
It argues that the Milan event made it clear that the gap between design-led leather and mass-produced material is widening.

Volume manufacturers make products that are easily interchangeable and, as long as suppliers have the right certification labels, it is relatively easy for buyers to switch from one producer to another. This means they are constantly battling against one another on price.

On the design-led side, there is still scope for highlighting the visual, haptic and creative appeal of leather, the report says, and this helps satisfy the subjective and emotional elements of consumers’ responses to the material.

Because of this, it argues, luxury brands are very happy with their business in leathergoods, which is yielding rich rewards.

There is a problem on the horizon, though: raw material supply. Many of the items that sell so well for the big brands require the highest-quality raw materials, such as select European calfskins. All the indications are that availability of this material will decline in the next few years.

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