The Race to Control the Luxury Leather Business

 As more fashion labels push into the accessories business, luxury titans like Kering, LVMH and Hermès jockey for control of a leather market in flux.

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According to Exane BNP Paribas, in 2014, the global market for luxury leather accessories grew to represent almost 30 percent of the overall personal luxury goods market, up from 18 percent in 2003.  

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Indeed, Bain puts the 2015 global market for luxury leather accessories at €43 billion (about $46 billion at current exchange rates).

But along the way, this boom in business has stretched the supply of luxury-quality leather to breaking point.
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Currently, leather of the quality needed by luxury houses can only be sourced from Europe
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Meanwhile, accessible luxury brands, such Michael Kors, Kate Spade and Tory Burch, have taken market share from high-end labels. Meanwhile, Michael Kors' share in the leather goods market has grown from 1 percent in 2008, to 6 percent in 2013. Megabrands have fundamentally abandoned the €500 (about $535) price point, according to Exane BNP Paribas.
http://www.businessoffashion.com/articles/intelligence/the-race-to-control-to-the-luxury-leather-business