If you’ve been griping about the high cost of luxury leather handbags, you’re not alone. The fashion houses are also complaining as the price of calfskin soars.
The price of the prized leather increased by 43% last year, and in the first six months of this year it’s already risen another 21%. Apparently these high prices are driven by the skin’s scarcity. With less premium leather in circulation the price of the material has increased. And when the price of leather goes up, so does the cost of all goods made with it.
Apparently this is just a case of supply failing to meet the demand. Shoppers have become more selective after the financial crisis, so they’d rather spend money on a high-quality investment piece than a throwaway accessory. With more consumers choosing leather goods over canvas and synthetic ones, luxury brands have added more accessories using the skin to their collections to meet demand.
The problem also lies with consumers eating less beef. Cattle production has fallen in key European markets, and that’s restricted the availability of premium blemish-free hides. The export duties on hides from Latin America, China, and India have also increased.
Sadly it seems most fashion experts don’t expect the trend to change any time soon. Most predict the prices will still be soaring well into 2012. There’s still plenty of leather handbags around, but it seems we’ll have to pay top dollar to enjoy them!
