You know that moment when you pull your bag out of the wardrobe for a con and there are little flakes of what used to be the outer material just... everywhere? Congratulations, your PU leather is delaminating. It's the most common way cheap ita bags die and it happens to almost everyone at least once.
Why it happens
PU leather, sometimes listed as "faux leather" or "vegan leather" or just "leather" with no other detail, is a fabric base with a polyurethane coating on top. That coating is what gives it the leather look and feel. On budget bags, that coating is thin. Really thin. And polyurethane breaks down over time through a process called hydrolysis, which means moisture in the air literally eats the coating from the inside.
Heat speeds it up. Humidity speeds it up. Storing the bag in a plastic bin or against another PU surface where it can't breathe speeds it up. Basically, being in Sydney speeds it up.
The frustrating part is that a bag can look and feel perfect for six to eight months and then start peeling almost overnight. It's not a manufacturing defect in the traditional sense. It's the material reaching the end of its planned lifespan, which on cheap PU is about 12 to 18 months.
Can you fix peeling PU?
Not really. Once the coating starts to delaminate, it's structural. The bond between the polyurethane layer and the fabric base is gone and there's no gluing it back.
You'll find tutorials online about using fabric glue or flexible adhesive to stick the flaps down. This works for maybe a week before the surrounding area starts peeling too, and now you've got glue residue on top of the peeling.
Clear nail polish as a sealant over the peeling edges. Same story. Temporary, and it changes the texture and look of the surface.
The honest answer is that once a PU bag starts peeling, it's done. You're choosing between living with it getting worse or replacing the bag.
How to slow it down on a bag that hasn't started yet
If you've got a PU ita bag that's still in good condition and you want to maximise its life:
Store it stuffed with acid-free tissue paper so it holds its shape and has airflow. Don't store it in a plastic bag or sealed container.
Keep it away from direct heat. Not next to a heater, not in a hot car, not against a sunny window.
Wipe it down with a damp cloth every few weeks to remove surface grime that can trap moisture against the coating.
Don't stack it against other PU items. The surfaces can stick together and pull the coating off each other.
Use a leather conditioner designed for PU, not real leather. Real leather conditioner can contain oils that accelerate PU breakdown.
The replacement conversation
Look, if your bag peeled after 8 months and you paid $20 for it, that was always the deal. The materials at that price point have a lifespan and you got it.
If you want the next bag to last longer, you're looking at a different material entirely. Oxford nylon doesn't peel because there's no coating to delaminate. Canvas wears but it wears visibly, so you see it coming. Cordura is basically indestructible. Reinforced pleather (which is PU but in a much thicker application over a stronger base) lasts significantly longer than the budget stuff but it's not immune forever.
We use a mix of waterproof nylon, Oxford fabric, and reinforced pleather across our range depending on the bag. The 17 inch backpack is scuff-proof and waterproof nylon. The 15 inch backpack is reinforced pleather, but a thicker application over a stronger base than what you'll find on a $25 bag. The totes are waterproof Oxford. Each material was picked for the use case of that specific bag rather than just defaulting to whatever's cheapest.
The one thing they all have in common is that none of them will flake into your wardrobe after six months. That's a pretty low bar, but apparently it's not standard.

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