Do you want to start a leather goods business? Are you a brand owner who wants to maximize sales? In this post, I will share tips that will help you build a successful leather goods business.
Leather goods have high-profit margins. This makes it a profitable business to venture into. However, building a leather goods business requires planning. You must understand the different aspects of running the business. This includes sourcing for products, cost management, branding, marketing, and customer retention.
So, importers, brand owners, AMAZON sellers, retailers, and wholesalers, let’s get started.
7 Tips That Will Help You Maximize Sales
Understanding the Market
While leather goods are generally fashionable, certain leather goods sell faster and generate more profit than others. Also, some leather goods appeal more to your customers depending on the demography of your target market. Aside from the type of leather goods, certain designs, patterns, and styles are more in demand over time. To understand the current trends in the market, visit your local market and check out online marketplaces.
Find your target audience and the leather goods that appeal to them, including styles and designs. Look for gaps in the market that you can fill. For instance, if there is a particular style or design that is trending in other locations but hasn’t gotten to your country, you can be the first to introduce it to the market and create a niche for yourself.
Find a Reputable Supplier to Source for Quality Products
One of the major challenges retailers and wholesalers face is getting a reliable supplier who can consistently supply quality leather goods.
One way to meet with suppliers is by attending trade shows. Here, you get to meet with the suppliers one-on-one. You can inspect the products and build a business connection with suppliers. However, this can be cost-intensive. If you don’t mind the cost and time implication, you can look up and plan to attend a trade show near you.
Another way to find suppliers of leather goods is on online marketplaces like Dunhuang, Alibaba, Amazon, and the like. This is more convenient than attending tradeshows but it comes with its own risk too. You have to deal with middlemen, making it difficult to ascertain the product quality. The prices of the goods will also be more expensive since you are going through middlemen. Also, you have to be very careful and do your due diligence so you won’t lose your money to scammers disguised as middlemen.
My preferred option is to source directly from manufacturers. With this, you can ascertain quality and also get the goods at factory prices. To get started, you can check out my recommendation of the top leather goods manufacturers worldwide.
Finding a reliable manufacturer can make all the difference for your business. You can source your products directly and cut costs associated with middlemen. Some manufacturers also offer customization options, giving you control of the final looks of your products. You can also request product samples so you can access the quality of products before making a huge financial commitment.
Offer Diverse Product Range
To ensure profitability, you should offer a diverse range of products, As it’s often said “Don’t put all your eggs in one basket”. This will enable you to cater to the needs of a broader customer base. It will also make your brand known as a “one-stop shop for leather goods”
Build a Strong Brand Identity
Building a strong brand identity will help you stand out. Create a logo for your business and emboss it on your products. This will make your products unique and also put your brand in people’s faces. It’s just like a silent advertisement for your business whenever customers use your leather products in public.
You can also create a website to tell your brand story and display your leather goods. Craft a compelling story for your brand. It can include the inspiration behind your leather goods business, how you source your products, the type and quality of leather used in manufacturing them, and any other personalization services you offer.
Leverage Social Media For Digital Marketing
Digital marketing is non-negotiable if you’re going to succeed in the leather goods industry today. Most people research online and read reviews before purchasing anything, including leather goods. So, you should leverage social media for digital marketing.
Upload your products on your social media pages using interesting captions highlighting each product’s unique features.
Also, ask for reviews from your customers. Let them leave positive reviews on your website and social media pages. You might also want to leverage paid advertising and influencer marketing.
Offer Competitive Prices
Consumers of leather goods always seek the most value for their money. They want to get high-quality leather products at the cheapest possible rates. Check out your competitor’s price range for similar products and offer competitive prices. If possible, you can concede a small percentage of your profit margin for a more competitive edge and higher turnover.
You can also offer subscription packages with discounts for large purchases and returning customers. This way, you can create and maintain customer loyalty and long-term profitability.
Prioritize Customer Satisfaction
Customer satisfaction is crucial for business continuity and brand loyalty. Prioritize your customers in every phase of your leather goods business. When selecting designs, find those that appeal the most to your customer base and make the purchasing process as seamless as possible for them.
Provide customized packaging and fulfill online orders on time. Ensure that all product shipments get to your customers before the expected delivery day. You can also offer custom designs and additional services like maintaining and repairing leather goods.
Cost Management Tips and Profit Optimization
You must learn to manage costs and optimize profits to run a profitable leatherware business. Below are some tips for doing so.
Identifying and minimizing unnecessary expenses
Carefully analyze your business processes to identify and cut any unnecessary expenses. For example, you can save on shipping costs by ordering in bulk instead of making multiple small orders. You can also get products at cheaper rates when you buy directly from manufacturers.
Negotiating better terms with suppliers
Your negotiation skills are essential when dealing with suppliers, as they will determine your stocking expenses and profit margin. Contact several suppliers and compare their pricing with the quality of goods each supply before selecting one. Negotiate for discounts where possible. Most suppliers offer discounts on bulk purchases.
Streamlining Your Business Operations
Improve efficiency by streamlining your business operations. Avoid unnecessary delays and bottlenecks.
Attend to your customer’s requests quickly. If there will be any delay in delivering your customer’s orders, do well to communicate and assure them they will get their orders as soon as possible.
Also, keep track of your inventory. Know when to order new products so you don’t run out of goods.
Develop strategies to increase your profit margins
Eliminate intermediaries by sourcing your products directly from manufacturers. This will reduce your purchase cost and increase your profit. Also, leverage online marketplaces like Amazon, eBay, and Etsy to market and sell your products.
Upselling and cross-selling
Upselling and cross-selling are ways to increase your revenue. Think of it this way, your customer needs a product, then you suggest other products you think they might need. They might not be aware they need it until you suggest it to them. This way, they end up buying from you more than they planned to.
For example, if your customer is interested in a simple laptop bag and you notice they’re holding a tablet, you can suggest a more expensive laptop bag with compartments for laptops, phones, and journals. If your customer wants a fashionable cross-body bag, you can suggest a leather wristband or wallet that matches the bag.
Common Challenges You Might Face in the Leather Goods Business
Navigating Ethical and Sustainability Concerns
Leatherware consumers are more eco-conscious than ever before. To satisfy this concern, ensure that the manufacturers you purchase from observe the best eco-friendly practices in their production process. You can also ask for their environmental certifications. Stocking leatherware made from vegetable-tanned leather can also satisfy the ethical concerns of eco-conscious buyers.
Maintaining Customer Loyalty
Although building and maintaining customer loyalty is quite challenging, it is worth the effort because it will guarantee continuing patronage. To maintain customer loyalty, streamline your operation process to create a seamless customer purchasing experience. Ensure customer requests are promptly answered, and orders are swiftly fulfilled.
You can also offer subscription packages and discounts on return purchases. Additional services such as leatherware repair and maintenance also help build customer loyalty. It gives them a better customer experience and helps increase their trust in the durability of your product. Customers who are highly satisfied with their purchase experience will likely recommend your products to their family and friends.
Managing Inventory
You need to put a system in place to properly manage your inventory. This will ensure you don’t run out of stock on in-demand products and don’t overstock products with little demand.
You can use inventory management software to help you keep track of all these.
It’s best to plan your inventory three to six months ahead so that new products can arrive before you run out of stock. That way, you’ll minimize sales loss. Always keep a safe stock of popular items around peak seasons.
Adapting to the Changing Market Trends
Like in every other business, the trend changes occasionally. To ensure you stay current, monitor customer purchase patterns shifts. You can do this using an inventory management system. Monitoring the social media pages of top leather goods influencers can also give you insight into upcoming trends.
By closely watching shifts in demand and the leather goods online market, you can predict new trends and adapt your inventory to meet them.
Scaling the Business
As your brand presence grows and your business becomes more profitable, you can scale the company to include newer ranges of leather products and accessories that complement existing products. You can also start taking international orders. This will significantly increase your profit margins. However, you must be sure you can ship international orders, as delays or shipping failures can hamper your brand reputation.
5 Profitable Leather Goods Ideas
You need to have a comprehensive business plan before starting your business. You should decide which leather goods you want to sell. Here are some of the most profitable leather goods you might want to consider.
Leather Bags
Leather bags are one of the most popular and in-demand products. There is a wide variety of designs, and styles suited for various purposes. They include:
- Leather purses and wallets
- Leather clutch and handbags
- Leather backpacks
- Leather tote bags
- Leather briefcases
- Leather laptop bags
- Leather messenger bags
- Leather hobo bags
- Leather crossbody and shoulder bags
- Leather waist bags
Leather Wallets
Leather remains the most popular material for making both male and female wallets. You can’t go wrong with a leather wallet business. Leather wallets come in various styles and designs to suit varying needs and popular trends. Whether bifold, trifold, card holders, money clips, or travel wallets, you’ll find numerous wallet designs made with different types of leather.
Leather Watch Band
Leather watch bands are the classic go-to option for watch lovers, so you’ll have a ready market. Leather watch bands are made with various types of leather in varying designs and colors. However, to profit from the leather watch band business, it’s best to partner with watchmakers to purchase wholesale from you.
Leather Accessories
From belts to keyrings to wristbands and chokers, the list is endless. Leather jewelry is becoming a trend again, so diving into this niche can be profitable.
Car Accessories
Starting a leather car accessories business has several key benefits. Leather is highly valued for its premium feel, durability, and ease of cleaning, making it a popular choice for enhancing vehicle interiors. This not only improves the car’s look but also helps maintain its resale value. With the growing demand for stylish and comfortable car interiors, the market for leather accessories, like seats, steering wheel covers, and interior decor, offers great potential for profit and growth.
Shopping Guide
If you’re considering starting a leather bags business, one of your priorities should be finding a manufacturer of high-quality leather bags. Mherder offers a broad range of premium-quality leather bags. These bags are made from the finest local and Italian genuine leather. You can check out our wholesale leather bag buying guide to get started.
Final Thoughts
Although the leather goods market is highly competitive, you can build a profitable leatherware business and stand out. You must carefully plan your leather business and adapt unique strategies to distinguish your brand and drive sales.
Source for high-quality products, build a strong brand identity, and offer competitive prices. You should also offer a diverse range of products, and prioritize customer satisfaction.
You can partner with Mherder to supply premium-quality leather products in unique, customizable styles and designs. As a direct manufacturer, partnering with us will help reduce your production costs and guarantee a regular stock of quality bags.
