2 November 2023
Image shows the Mercedes-Benz S 680 GUARD 4MATIC.
We published our latest Leatherbiz Market Intelligence newsletter on October 31.
This time, the newsletter picks up on recent results from the luxury leathergoods sector that may show some sign of slowdown, noting that a number of commentators have gone so far as to proclaim the end of the luxury boom.
According to Market Intelligence, however, the strong resilience that luxury leathergoods sector has shown time and again suggests that those commentators’ assessment may be somewhat premature.
Sales over the Christmas period and then Chinese New Year, very important times for gifts and purchases, will help determine how serious the situation is.
Leathergoods aside, the newsletter says the automotive market is also worth watching. It notes that, in recent weeks Mercedes-Benz posted interesting results. “Here, of course, the leather pipeline’s interest is in the vehicles that have a strong impact on leather demand,” Market Intelligence said. “The production and sales figures for the S-Class were particularly striking. With only around 11,000 units, the number of these cars sold fell well short of expectations.”
Mercedes-Benz describes the S-Class as a luxury saloon. In its home market, Germany, it has a price of around €100,000. Market Intelligence said future indications of a wider decline in sales of luxury class cars may be evidence that “the rich really are no longer quite so willing to spend their money”.