Global market for leather goods, Increasing eCommerce development demand
The global market for leather goods is estimated to experience steady growth during the forecast period and will post a moderate CAGR of over 4% by 2020.Global footwear production reached 16 billion pairs in 2017, an increase of over one third since 2000.
Here are few points you need to consider while thinking of setting up your online leather goods business.
1. Identify your market, think of leather products you design, which you feel would be good for marketing/ buyers you are thinking of! and what you can expect to charge for your leather goods.
2. Plan your selling strategy, how to generate the traffic, leads etc, which may easily convert into sales and make revenue for you.
3. Find a right ecommerce system that help you to organise all your online activity like product display, customer management, lead management. etc.
4. Make sure you take good quality photograph of your leather products, possibally you need to take 2 to 3 photograph of each product and optimize them using any photo-tool (like photoshop)
5. Use your social media to talk about your brand initially then interact from your webplatform, so people come to your site to check your products. and try to identify which products are being clicked the most.
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- Analysts have estimated the footwear market segment to be the largest product segment during the estimated period. 54% of global production of genuine leather is used in the footwear industry;
- Handbags Women’s handbags represent a huge leather goods market. Bags are not only a useful accessory;they are also a sign of social rank. There are many price segments in the market and a widevariety of styles and designs. Consequently, the market for handbags retailing at US$1,000 and abovehas been growing quite rapidly in the past five years.
- Women’s and men’s briefcases made of genuine leather and synthetic materials hold an importantplace in the market.
- Belts has a steady and relatively large market especially in the traditional men’s belts segment. Belts arenot much influenced by fashion, since changes occur mostly in buckle designs. The manufacturing processof such items has become highly mechanized.
- Watch straps also constitute a relatively large market that has only been slightly threatened by metal or syntheticstraps since it stabilized some years ago.
- Considering 2015 and 2016, total US leather production came to 669.1 million square feet.
- Indian leather industry produces a total of 1,397.5 million square feet of leather – 52.4 million of which fall off to heavy bovine leather.
- Italy is still the undisputed European leader when it comes to leather production. Italians produce 1,573.5 million square feet of leather a year and 1,119.3 million of that sum goes on light leather from bovine animals.
- Chinese leather industry creates a turnaround of no less than 3,913.1 million square feet of leather. China also produces 201.2 million square feet of heavy bovine leather – most in the world.
Global demand and potential buyers worldwide
Factors such as the high durability of leather products, which translates into product value for consumers, is leading to the growth of this market during the estimated period. In the fashion industry, improvements in leather processing technology, manufacturing capabilities, and productivity, without compromising on the durability, form, stability, and comfort, has helped in sustaining the demand for leather products on a global scale.
- Owing to high demand, the leather goods industry is on a growth spree. Forecasts are, this vertical will grow at a CAGR of 3.4 percent over the next five years and will touch US$ 91.2 billion by 2018.
- Demand for leather products is increasing from the military segment. Various products such as saddles, harness, belts, holsters, and footwear used in the military are made from high quality leather.
- Footwear and gloves are made from full-grain leather, thus there is a rise in the overall growth of the leather goods segment.
- Changing fashion trends impel consumers to prefer leather goods which are compact and stylish. This also encourages leading market players to introduce trendy and innovative products. This factor is creating a robust development in the leather goods segment.
- The world of leather goods, has started to change over the past three years, as male consumers have joined the market by making more purchases. Popular accessories marketed to men vary from traditional items like belts and watches, to more modern shoes, leather goods, wallets, bags etc.
- Euromonitor International’s luxury goods research data confirm the significant growth of men’s luxury accessories over the review period. Men’s designer leather footwear witnessed current retail value sales growth of 39% from 2009 to 2014, while men’s luxury watches registered growth of 52%. Men’s luxury bags and small leather goods, which still have relatively smaller market sizes than footwear and timepieces, also grew by 24% and 40%, respectively.
Opportunities & Recent Trends
Due to the large number of players in direct competition for market share, competitive rivalry is at an all-time high with new design and innovative leather products driven by changing lifestyle and fashion trends.
Increasing innovation in leather goods with new features and designs is the main factor responsible for a growing consumer base of leather products. The inherent qualities of leather – being fireproof, dustproof, crack-proof, and durability are driving the growth of the leather goods segment. Increasing per capita expenditure is another factor that is fuelling revenue growth of the leather goods segment.
Increasing per capita income and rising urbanization are likely to lead to increased consumer spending on luxurious items. The craze of buying branded commodities has also increased among people which is further likely to propel the growth of the leather goods segment in the global luggage and leather goods market during the forecast period.
Consumers are aware of the latest fashion trends due to increasing adoption of social media and this is anticipated to increase consumer inclination towards branded leather goods. This trend is expected to drive revenue growth of the leather goods segment during the projected period. With economies growing rapidly, the retail chain is also expected to show substantial growth, thereby augmenting the growth of the leather goods segment. Further, an increase in tourism activities around the globe has promoted the growth of various industries including the leather industry. This factor is also likely to boost segmental growth over the forecast period.
The trends of the last few decades have been quite strong. Footwear used to take up nearly 70% of all leather produced in the world but it dropped to nearer 50% in the middle of the last decade which has just ended. On the other hand, automobile upholstery was only about 1% as we moved into the 90s and was nearly 10% by the mid-decade with general upholstery for households and aeroplanes also growing.
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Different type of trade show in local and international market for that specific product type
- IILF - India International Leather Fair - is a platform for global manufacturers and exprters including national players engaged in the leather industry, to come forward and get together to display their products and services and conduct business.
- KABO Footwear Fair is the most prestigious professional show of the products of Czech and foreign footwear manufacturers within the Czech and Slovak Republics.
- With an output of nearly 25 % of the worldwide output, China has become an important leather producer. Its leather industry is rapidly growing. China and the neighbouring countries are one of the most dynamic and potential markets because their increasing demand for leather goods and synthetic leather. Due to these facts, the CSLF China International Synthetic Leather Fair has turned into one of the most important trade fairs for the branche.
- The SAPICA is an international footwear and leather goods fair. It is the most important trade fair of the sector in Latin America and the second largest in America.
- The I.L.M Offenbach is an international order fair for leather goods and takes places every six month. Here the latest trends and collections of the coming season are presented. Buyers use this exhibition as an information and communication platform.
- The Mipel in Rho is a international fair for bags, leather-goods and fashion accessories. International exhibitors from around the world present their latest collections to a professional audience. This exhibition is communication and information platform in the industry and provides the exhibiting companies the opportunity to establish new contacts. Visitors can find out here in depth and comprehensive information on the latest trends of the coming season.
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Tips for Selling Leather Products online
All fashion retailers and other associated players, offering very low prices, took the bottom off the business. Lots of aspiring fashion hubs in emerging markets this year 2017