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Leather & Fur Suppliers Adapt to New Retail Environment

by Luke Hickman

May 14, 2018

In recent years, brick-and-mortar retailers have struggled to cope with shifts in consumer behaviors. Every year, internet shopping plays a bigger role in the overall retail scene. Many suppliers of consumer products, including leather, fur, and allied products, have been affected by the distress of this traditional retail channel and increasingly are seeking out new channels so as to avoid suffering the same fate.

Direct-to-consumer (DTC) sales are becoming ever more important as suppliers of leather, fur, and allied products implement omnichannel approaches to reach consumers. Many companies that supply this market are employing long-term strategies focused on improving their DTC businesses. Specifically, companies are investing in their online presence and e-commerce sites. Company web sites serve as important informational resources and marketing tools, and sites equipped for DTC purchases represent an extra point of distribution.

DTC operations also include company-owned retail stores and outlet stores. Advantages of a company-owned specialty store include the full immersion of the consumer in the brand experience and the ability for a supplier to gain insight into demand for its products and react more quickly to changes in demand. Outlet stores serve as a lower-price point-of-entry into luxury brands. Direct retail and e-commerce channels typically grant larger margins for suppliers in comparison to more traditional channels.

Samsonite, a luggage company traditionally focused on distribution through department stores and other third-party retailers, has taken steps to increase its DTC retail business by adding new stores and acquiring businesses with a bigger DTC presence. For example, in 2017, Samsonite acquired eBags, an e-commerce retailer of travel-related products, providing a boost to Samsonite’s e-commerce sales.

Learn More

For more insights into the US leather, fur, and allied product market, see Leather & Fur Products: United States, a report recently released by the Freedonia Focus Reports division of The Freedonia Group. This report forecasts to 2022 US leather, fur, and allied product demand and shipments in nominal US dollars at the manufacturer level. Total demand is segmented by product in terms of:

  • leather luggage
  • non-leather luggage
  • leather women’s handbags and purses
  • non-leather women’s handbags and purses
  • leather personal goods
  • non-leather personal goods
  • leather and fur apparel
  • other leather and fur products

Total shipments are segmented by product as follows:

  • luggage
  • women’s handbags and purses
  • personal goods
  • leather and fur apparel
  • other leather and fur products

Other related Freedonia Focus Reports include:

  • Apparel: United States
  • Athletic Footwear: United States
  • Footwear: United States
  • Jewelry & Watches: United States
  • Sports Equipment: United States

About the Author

Luke Hickman is a Research Analyst for Freedonia Focus Reports. He holds a degree in economics, and his experience as an analyst covers multiple industries.

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