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The South Korea (Republic of Korea) Handbags Market size is forecast to increase by USD 260.72 million, at a CAGR of 3.63% between 2023 and 2028. Several factors play a crucial role in the market's growth, such as the increasing consumer spending on fashion and personal goods, the growing influence of celebrity endorsements on purchasing decisions of handbags, and the design and material innovation leading to product premiumization. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing consumer spending on fashion and personal goods is the key factor driving the market. Over the years, consumer spending on personal goods, including handbags, has increased. One of the main factors driving consumer spending on personal goods is the growing awareness of consumers about fashion. The availability of a wide range of products in the personal goods segment, including handbags, plays an important role in helping consumers choose the desired product according to their needs.
Further, with increasing brand awareness and fashion among consumers, jute or plastic bags are being replaced by stylish and branded handbags, not only for shopping but also for office use. Also, online advertising is also an essential part of a marketing strategy. Market players often sign multi-year endorsement deals with well-known celebrities to enhance their brand value. These marketing initiatives drive demand for handbags. Thus, such factors will drive the market during the forecast period.
The growing trend of personalization and customization is the primary trend shaping the market. Customizations such as leather handbags made of precious metals, such as gold and silver, or studded stones, such as diamonds, are drivers of the growth of the market. Customized products have gained popularity in South Korea in recent years. Owing to improve their product's visual appeal, top market players provide personalized and customized options. The level of personalization and customization varies, ranging from the strap and buckles to the embroidery or name tag addition.
Additionally, advancements in technology, such as online customization platforms and 3D modeling software, have made it easier for brands to offer customization options for handbags. Thus, such factors stimulate the growth of the South Korea (Republic of Korea) handbags market. Due to the high price of bags new purchases are expected to increase the value of sales of handbags, which in turn will drive the growth of the market during the forecast period.
Threats associated with counterfeit products is a major challenge that affects market expansion. The availability of a wide variety of handbags is encouraging local and regional players to introduce low-quality products. Market players offering counterfeit handbags sell them at very low prices compared with branded products. The growing penetration of e-commerce platforms among consumers has further propelled the sales of counterfeit products by widening their reach in any location across South Korea. Customers face difficulties in distinguishing between genuine and counterfeit products, as they appear similar.
Additionally, the increasing availability of several counterfeit products in offline and online distribution channels will affect the sales and pricing strategies of genuine vendors present across South Korea during the forecast period. Furthermore, low product reliability negatively impacts customer faith and may discourage the adoption of handbags to a certain extent among consumers. This, in turn, may limit the development of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 14 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The totes segment is estimated to witness significant growth during the forecast period. A tote is preferably used for shopping purposes. Tote bags are large handbags that have parallel handles hanging from the sides, which allow them to be hung from the user's shoulder, making them the most preferred choice for shopping. The totes available in the market are mostly made of leather, as well as fabrics such as canvas, jute, or nylon.
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The totes segment was the largest segment and was valued at USD 379.26 million in 2018. Additionally, fashion-conscious consumers usually look for unique styles, designs, and colors in totes that can provide an aesthetic appeal along with a modern look. Increasing demand for totes among the working population, the growing demand for tote travel bags at airport retail outlets, the rising preference for affordable luxury totes, and the increasing availability of personalized and customized totes are the major factors expected to fuel the demand for tote bags as well as the expansion of the totes segment in the market during the forecast period.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
In the bustling landscape of the market, a dynamic fusion of tradition and modernity unfolds. Handbag production thrives, complemented by innovative ecological packaging designs that resonate with the nation's eco-conscious youth-inspired culture. With the rise of digital channels and online shopping, Shinsegae Group leads the charge, catering to tech-savvy Gen Z and Millennials with a curated selection of fashion accessories. K-Pop stars, adorned with fragrances and cosmetics from luxury companies like Dior, set aspirational lifestyle trends, influencing beauty standards and inspiring digital media advertisements.
Both domestic and foreign businesses capitalize on this momentum, leveraging e-commerce shopping platforms for product launches, expansions, and promotions. The Korea Customs Agency ensures seamless handbag exports and handbag imports, while specialty stores remain hubs for exclusive collections. In this vibrant market, the WhatsApp campaign emerges as a strategic tool, connecting consumers with their favorite brands and K-Pop celebrities, shaping the future of luxury goods in South Korea.
South Korea (Republic of Korea) Handbags Market Scope |
|
Report Coverage |
Details |
Page number |
135 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.63% |
Market growth 2024-2028 |
USD 260.72 million |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
3.25 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
alexander wang, Burberry Group Plc, Capri Holdings Ltd., Chanel Ltd., Guess Inc., Hermes International SA, Kering SA, LVMH Moet Hennessy Louis Vuitton SE, METROCITY, Prada Spa, PVH Corp., Sungjoo Group, Tapestry Inc., and Tory Burch LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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