Someone provided a link showing there are not just high end and low end leathers, but roughly 5 categories. The problem is the price for good leather clothes is astronomical, especially with the very low price of the materials, while the quality of low end is terrible and the middle of the market is completely missing.
What doesn't have demand is the secondary tier of leather. Basically, "let's bond this shitty leather with plastic" doesn't have any takers anymore.