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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 are pivotal in driving market growth, including rising consumer expenditures on fashion and personal goods, the escalating impact of celebrity endorsements on handbag purchases, and ongoing design and material advancements contributing to product premiumization. The surge in consumer spending underscores the enduring appeal of fashion and personal accessories, fueling market expansion. Moreover, celebrity endorsements wield significant influence over consumer preferences, particularly in the luxury handbag segment, shaping purchasing decisions and brand perceptions. Additionally, continuous innovation in design and materials elevates product quality and exclusivity, driving premiumization trends within the market. These interconnected factors collectively propel growth, fostering innovation, brand differentiation, and heightened consumer demand within the fashion and personal goods industry. The market forecast 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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The market epitomizes elegance and functionality, catering to fashion-conscious consumers worldwide. With a focus on watches, jewelry, and luggage, the market encompasses a diverse range of accessories essential for every fashionista. Retail sales soar as trends like minimalist designs and brilliant colors captivate enthusiasts, while big brand logos continue to make a statement. Euromonitor International provides insightful vendor analysis, shedding light on market dynamics and consumer preferences. Amidst concerns for product safety and labelling requirements, the handbags market adheres to a stringent regulatory framework, ensuring quality and compliance. As trade associations and duty-free shops flourish, the demand for Western-style handbags and leather goods market remains steadfast, reflecting the ever-evolving tastes of global consumers. 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The handbags market experiences a dynamic landscape influenced by various factors such as GDP per capita, exchange rates, and urbanization trends. With a focus on exponential trend smoothing, manufacturers adapt to evolving consumer preferences by incorporating brilliant colours and quality materials. Design and material innovation drive material segmentation and customization of handbags, offering consumers a personalized experience. The rise of the e-commerce sector facilitates online purchasing and omnichannel retailing tactics, while Seoul Fashion Week and influencer collaborations set fashion trends. However, economic volatility and severe competition pose challenges, leading to counterfeiting issues and store closures. Brands like Studio Concrete leverage influencers and pop-up stores to stay relevant amidst market fluctuations. With platforms like Coupang and Naver Shopping, consumers have access to a wide range of handbag options, from luxury to affordable, reflecting the diverse preferences in this ever-evolving market.
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 the 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Market Segmentation by Material
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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