Coach is probably a bad example here because they are known for using high quality leather, and they are also among the less expensive "designer" brands (there

Coach is probably a bad example here because they are known for using high quality leather, and they are also among the less expensive "designer" brands (there are Coach leather purses in the $200-500 range, wheras you are looking at $2000-5000 for a brand like Louis Vuitton - also high quality leather, but not worlds apart from Coach). There is a huge amount of variability in quality of leather, from top grain to full grain to split grain, to "genuine" and "bonded." In general though I agree with your point that it's possible to get the same quality as a luxury brand for cheaper, and luxury brands are about signalling, but it's a continuum. There are also plenty of "luxury" bag brands in the $200-500 range that use crummy leather and you'd be way better off with Coach (or a local artisan like you mentioned.)