Leather Cant Hide From Beefs Luxury Sticker Shock

The video discusses the impact of drought and rising feed costs on the leather market, affecting supply chains and luxury brands like Prada and Gucci. These brands are adapting by downgrading leather quality, reducing leather usage, or switching to synthetic alternatives. The video also explores how fashion trends, such as ankle boots, are influenced by leather prices. The discussion includes potential implications for the faux fur market and highlights how luxury goods companies hedge against price fluctuations, similar to airlines hedging oil prices.

What are some of the reasons for the increase in leather prices?

• Increased demand for leather goods

• Drought and high feed costs

• Technological advancements in leather production

• Government subsidies for leather

How have luxury brands responded to the rising cost of hides?

• By closing stores

• By downgrading leather quality and reducing usage

• By expanding their product lines

• By increasing the price of their products

What potential shift might luxury brands consider due to high leather prices?

• Focusing on local markets

• Switching to synthetic materials

• Increasing the use of real fur

• Reducing the number of products

Why might ankle boots be more in vogue compared to knee-high boots?

• Ankle boots are cheaper to produce

• Ankle boots are more comfortable

• Ankle boots require less leather

• Knee-high boots are out of fashion

How do luxury goods companies manage the risk of fluctuating leather prices?

• By hedging prices like airlines do with oil

• By increasing marketing efforts

• By outsourcing production

• By reducing production