Based on my experience with leather jackets I wouldn't say that what you're showing us is a baggy jacket - that's how a jacket can sit until it's settled in. I've owned maybe 50 jackets over 30 years and what I find is that they often look like this when new, then they mold to your body shape with time. Before this happens they can look... awkward. I suspect that many a good jacket has been sold or returned before it had a chance to do its job.