Looking Into The Future Of The Leather Industry
The leather industry’s future in the UK and globally is expected to compound annually with a growth rate of over 5% from 2019 to 2023.
If that didn’t make any sense, here’s what you should know - The steady growth of disposable income, improved living standards, fashion trends, and growing domestic and international tourism has created a global demand for leather products.
If you’re a leathercrafting enthusiast with an entrepreneurial mindset, you can sense the opportunity here. With the global leather industry’s stimulated growth, your hobby can now become a means of sustenance.
Through this article, we will walk you through how the leather industry fared pre and post the pandemic and how you can start up your very own leather crafting business by harnessing e-commerce platforms’ growth.
Everything You Need To Know About The Leather Industry
The leathercraft industry is a vast market that witnesses multiple stakeholders actively creating the final leather product. Thus, to help you better gauge the demand before setting up your own leather crafting business, here’s an overview of the leather industry.
The Leather Industry Pre-Covid
In the UK and other western countries, we saw an increase in spending on luxury goods, especially leather, due to the growing fashion-consciousness among customers.
Consumers flocked towards leathercraft designs and styles that flaunt modern aesthetic looks. Increased awareness through online media due to evolving lifestyles and the rise of smartphones further fueled these trends.
The ever-rising number of working women in the West also resulted in escalated consumption of personal leather accessories like handbags and footwear.
In the Asia-Pacific region, developing economies like Indonesia, Bangladesh, and India helped rally consumer demands for leather products. This period was forecasted to be the fastest-growing period ever due to drastic improvements in standards of living.
The Present Context of Leather Industry
In today’s scenario, E-commerce retail channels play a significant role in consuming leather goods in the market. Online sales have made it easier for consumers to browse through products, making it profitable for small and medium-sized leathercraft businesses.
Customisations on request is a trend that is being driven by millennials as they turn towards leather crafting for personalised gifts.
Therefore, there is a great demand for quality leathercraft products, and starting a leatherwork business can prove to be extremely profitable.
Future Prospects In Leathercrafting
Western countries like the US represent one of the largest markets for Leather Crafting products. The development of digital payment options like PayPal and the ease with which transactions are made has further bolstered the demand for leathercraft products on the online front. In China, India, Indonesia, and Bangladesh, consumer markets are also expected to register periods of maximum demand for leather products due to the higher per capita income projections.
The leathercraft business is expected to draw young entrepreneurs who will become interested in this lucrative business proposition. In a society where manufacturing has been primarily replaced by service industries, quality leathercraft products will see a stark rise in demand.
Also Read: How To Turn Leathercraft Into Success
Setting Up Your Leather Business
If you haven’t already gotten into the world of leathercrafting, now is the goldmine period to do so. With young consumers flocking towards leather as a luxurious material, the demand for these products is unprecedented. However, leathercraft products demand quality over quantity which makes handmade leathercraft the absolute premium products.
Here we’ve put together an outline that’ll guide you in setting up your entrepreneurial venture.
Define Your Plan
Having a clear vision of your business model will drive you to become a successful entrepreneur. By mapping out some of your leather crafting business’s nuances, you can gain insights into customer demands and cater to them more efficiently.
A few important metrics you must consider are:
Calculate Investment Costs
The great thing about setting up a leathercraft business is that you start off with a relatively low overhead investment. If your focus is on building up an inventory with DIY products, your major expenses will be incurred in procuring the leather.
If you plan to customise readymade handbags, purses and other small leather items, your major expenses will be to purchase leather products wholesale.
You can store these in your house until you start receiving orders and have to ship them off to customers.
.Ar:ti|sans provide you with all the essential leather crafting tools as part of a wholesome leather crafting kit to ensure the most authentic leather crafting experience. It’s a must-have kit and will help minimise material procurement costs.
If you’re considering renting a place to store your products, keep track of the overheads. Other expenses are related to business operations like procuring materials and advertising, especially if you’re going to market your product online. Minimise these expenses as they’ll eat into your profitability metrics.
Identify Your Target Audience
Identify the market niche in which you’ll operate and market your product to the customers accordingly. Having too broad a target market may reduce your market penetration ability, and having too narrow a market may make you miss out on potential customers.
Also, price your articles reasonably so that you appeal to all potential customers. After all, it’s your sales that will help you create a profitable leather business.
If you’ve ever come across handmade leather products, you know how magisterial and spellbinding these products are. Tap into this abundant market by creating a leather business that promotes customisable and authentic DIY leather-crafted products that ooze elegance.
Also Read: How To Turn Leathercraft Into Success
As you may have understood, setting up a leathercraft business is not as hard as it seems. With proper guidance, you can effectively turn your hobby into your source of income. We at .Ar:ti|sans have put together resources ranging from articles, blogs, guides, and DIY projects that you can turn to for inspiration. We provide the one-stop solution to all your leathercrafting queries.