I think the time the watch spent in display case under spot lights etc. may have dry up the leather and caused it to deteriorate faster even when wearer take the most care of it.
I have Seiko leather strapped watch too. Worn in as carefully as I can, but the leather top surface starts to flake.
It happened within a year's time.
Send back to centre, can't do much. Not warrantied. Changed one, and its being a year of normal use, still nice and soft.
Thus I deduced that the watch was displayed on the case too long and maybe too hot/dry (with spot lights etc). Next time, see one in case, ask for new one from the store room. my2sens