Upstream Vertical Integration in the Luxury Leather Goods Industry: Evidence from Italy and France

Abstract

This study explores the re-emergence of upstream vertical integration in the luxury leather goods industry. Based on information from interviews of two leather manufacturing professionals and a business case study, the present paper examines the factors guiding manufacturers to expand their operations to a vertically integrated model of production. The results provide insight into the advantages of vertical integration across the leather manufacturing industry, as well as offering considerations applicable to other sectors of production.