French luxury leather goods market to slow down in 2012

Balenciaga Velo Bag

According to French based research firm Xerfi, after 8 years of continued growth, the French luxury leather goods market will decreased by 3,5% in value in 2012. The research firm indicates the higher prices of raw materials and increasing salaries of workers in Asia as the two main reasons which are likely to contribute to the ebb in the leather goods market. Xerfi advises in its research study that luxury brand should extend their product offering with lower priced goods in order to keep up with the new developments.

By contrast, internet sales are likely to continue their growth, according to Xerfi (in 2010, internet sales accounted for 2% of total sales for luxury brands). One of the examples provided is Gucci which is currently listing online in France over 600 products priced between 500 and 3.300 euros.

adapted from AFP