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The leather handbags market is estimated to grow by USD 8.5 billion at a CAGR of 4.84% between 2022 and 2027. The market's growth hinges on various factors such as the personalization and customization options available for leather handbags, the impact of celebrity endorsements on consumer purchasing choices, and the durability of leather goods, which enhances product value for customers. These elements collectively contribute to shaping consumer preferences and driving demand within the leather handbags market. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market is intricately tied to evolving trends in women's participation in working women, especially among American women. Omnibus surveys highlight the growing preference for luxury and premium handbags, particularly within the fabric handbag segment. With the rise of online distribution channels, consumers seek handcrafted accessories made from high-quality leather materials. These pieces not only make fashion statements but also signify investments in craftsmanship and durability. In an era of rapid globalization, young adults prioritize fashion accessories that reflect their lifestyles. Leather handbags, renowned for their compartments and accessories, cater to consumer preferences for quality and longevity. As consumers increasingly prioritize luxury, the leather handbag segment continues to thrive, offering timeless elegance and sophistication.
The influence of celebrity endorsements on customer purchase decisions is notable driving market growth, although factors such as rising labor costs and fluctuating raw material prices may impede the market growth.The Producers of bags face challenges such as increasing competition, rising raw material costs, and changing consumer preferences. To stay competitive, they must focus on innovation, quality, and affordability. The use of advanced technologies like automation and digital marketing can help them streamline their operations and reach a wider audience. In conclusion, the Leather Handbags Market is a dynamic and competitive industry that requires a deep understanding of consumer preferences, production processes, and market trends. Brands that can offer high-quality, stylish, and ethically-produced products at affordable prices are likely to succeed in this market. Our researchers analyzed the data with 2022 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.
The market is witnessing a surge in customization and personalization trends, particularly among young adults in developed and emerging countries. Rapid globalization and increasing consumer spending have fueled this demand, as individuals seek fashionable, convenient, and comfortable accessories that reflect their unique lifestyles and consumer behavior. High-quality leather bags, known for their durability and lifespan, are a popular choice for both traditional and customized designs. Customization extends beyond straps and buckles to include embroidery, name tags, and other features. Working people and fashion-conscious consumers alike are drawn to the aesthetic appeal of these fashion accessories. E-commerce companies and startups are capitalizing on this trend, offering customized leather handbags through various distribution channels and social platforms. However, concerns regarding animal killing and raw material prices, as well as trade regulations, may impact the production analysis and value chain optimization of this market. Product improvement, product launches, and technological innovations continue to shape the market landscape, with emerging revenue pockets and application niches driving growth in the luxury and affordable leather handbag segments. Product approvals and brand recognition remain key factors for market players in this competitive industry.
Companies often sign multi-year endorsement agreements with high-profile celebrities to enhance their brand value. Selena Gomez, an American singer and actress, and Michael B. Jordan, an American actor, are brand ambassadors for Coach (a brand by Tapestry Inc.). Customer engagement programs are introduced through offline and online channels to increase awareness. With growing internet penetration globally and the success of social media campaigns, companies promote their products at a minimal cost.
Young adults, influenced by rapid globalization and changing lifestyles, are significant consumers in the market. Durability and high-quality leather are key factors in their purchasing decisions, driven by consumer behavior and fashion consciousness. Leather handbags offer convenience with compartments and pockets, making them a desirable fashion accessory for working people. Brand recognition and product portfolio are essential for market dominance. Traditional handbag manufacturers continue to improve their products, ensuring durability and lifespan, while startups offer affordable leather handbags with customized designs. Product approvals and launches, driven by technological innovations and social media platforms, are crucial for market growth. The leather handbags market is subject to raw material prices, trade regulations, and production analysis. Value chain optimization and emerging revenue pockets, such as application niches, are essential for market expansion. Designer pieces, Luxury consumers seek high-end, durable, and comfortable leather handbags, while e-commerce companies offer a wider distribution channel. Animal killing and ethical concerns are significant challenges in the market. Product approvals and technological innovations are essential for addressing these concerns and maintaining consumer trust. The market's application dominance and installed base continue to grow, driven by consumer spending and fashion trends.
Companies are also offering handbags made from the skins of animals such as calves, lambs, snakes, crocodiles, and alligators. The demand for such handbags is also high due to their premium and exclusive look and feel. Handbags made from exotic animal skin are emerging as a high-profile segment for companies in the market. This has increased the demand bags made from the skins of different animals, especially exotic animals, which will propel the value sales of the global market during the forecast period.
The volatility of raw material prices presents a significant challenge for manufacturers on a global scale. Leather production encompasses several intricate stages, including procurement, processing, and tanning or synthesis. Compliance with numerous government regulations and the utilization of various chemicals during manufacturing further inflate the cost of leather as a raw material. Many renowned international brands, such as PRADA, COACH, Giorgio Armani, Burberry, Mulberry, and DOLCE&GABBANA, operate their manufacturing facilities in Asian nations like China, Indonesia, Bangladesh, and Vietnam. However, the rapid increase in labor costs over the past decade in these regions has squeezed profit margins for vendors, posing a notable obstacle in the global leather handbags market. To address this challenge, vendors are increasingly embracing new technologies, fostering innovative collaborations, and implementing automation within the manufacturing process.
In the Consumer market, continue to be a popular choice for fashion-conscious individuals. Rapid globalization and increasing disposable income have led to a significant Consumer spending on these accessories. Companies like Young Adults, Consumer Goods, and LifeStyles, offer a wide range in various colors, styles, and sizes. The consumer preferences is driven by their durability, versatility, and timeless appeal. Globally, the Consumer market for Leather Handbags is growing steadily, with a particular focus on emerging markets. Consumers in these regions are increasingly adopting Western fashion trends, leading to an uptick in demand. Companies are responding to this trend by investing in Consumer research and development to create innovative designs and materials. For instance, Consumer Goods is known for its Compartmental Leather Handbags, which offer ample storage space and a sleek design
The market share growth by the offline segment will be significant during the forecast period. The offline distribution channel generates revenue from the sale of products through specialty stores, including exclusive brand stores, multi-brand stores, apparel stores, factory outlets, airport retail stores, and personal goods stores; hypermarkets, supermarkets, convenience stores, and clubhouse stores; and department stores. companies operating in the organized retail sector are based on factors such as geographical presence, ease of production and inventory management, and goods transportation. Supermarkets and hypermarkets have dedicated aisles for luxury goods, including leather handbags, which increase the visibility of the latest leather products and trendy fashions.
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The offline segment was valued at USD 19.73 billion in 2017 and continue to grow by 2021. Department stores and speciality stores are the largest revenue contributors in the market through offline channels. Speciality stores offer fashion and related accessories in one store providing easy access to the latest fashion products for customers. Speciality store retailers attract customers through their strategic marketing initiatives and merchandising (e.g., carrying the latest fast-fashion styles). In the fast-fashion sector and among younger customers, brand recall is considered important. Brands are expanding their presence across the world by establishing new stores in prominent markets such as North American and European countries and are extensively improving store experiences. For instance, Hermes International opened a new store in Poland in December 2019. The company offers a personalized selection of products, including to exceed customers' expectations and provide a distinct purchasing experience in each store. Therefore, such strategies and the opening of new brand-specific stores are expected to drive consistent sales growth through offline stores during the forecast period.
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APAC is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. China, South Korea, Japan, and India are the key leading countries in this region. The APAC region, specifically China, South Korea, Japan, and India, is experiencing substantial growth in the market. Factors contributing to this expansion include rising fashion consciousness, replacement of price-focused consumers with fashion-focused ones, and the flourishing fashion industry. Notably, casual are in high demand among youngsters aged 15-24 years, driven by fashion events, celebrity endorsements, and a growing population with increased disposable income. The growing target population (aged 15-64 years) and disposable income will also drive the demand of all categories, including premium and luxury ranges. In addition, the growth in tourism in the region plays a pivotal role in driving the growth of the market in APAC.
The 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 growth strategies.
Global Market 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.
Burberry Group Plc - The company offers luxury handbags such as Vintage Check Boucle Mini Lola Bag.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 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.
In the consumer goods industry, leather handbags continue to be a popular choice for fashion-conscious individuals. The Consumer market is a significant segment with a global presence. Rapidly changing consumer preferences and lifestyles have led to an increase in the demand for these products. The Consumer Preferences for Leather Handbags are driven by factors such as durability, style, and brand reputation. Consumers are willing to invest in high-quality Leather Handbags that offer longevity and a classic look. Brands like Comfortable, Durable, and Stylish (CDS) and Rapid have gained popularity for their innovative designs and affordable pricing. The Production of Leather Handbags involves several processes, including cutting, stitching, and embellishment. Consumers are increasingly concerned about the ethical and sustainable production of these products. Brands that adhere to ethical production practices and use high-quality materials are gaining favor in the market. On the other hand, Womens Wear / working women offers a wide range of Patent Leather Handbags, which are known for their shiny finish and durability. In conclusion, the Leather Handbags market is a significant segment of the Consumer Goods industry, driven by increasing Consumer demand and innovation. Companies are investing in research and development to cater to this trend and offer Consumers high-quality, stylish, and functional Leather Handbags.
In the dynamic world of fashion,bags continue to be a popular choice among consumers. The Raw Materials used in the production of these handbags are essential, with Hides and Skins being the primary source. The Leather is then processed through various stages, including Tanning, Dyeing, and Finishing, to create high-quality handbags. The Market for Leather Handbags is significant, with a growing number of consumers showing a preference for these accessories. The Segment is competitive, with numerous Consumers seeking out the latest Fashion Trends and Affordable Prices. Brands and Manufacturers use various Marketing Strategies, such as Social Media Campaigns and Influencer Partnerships, to reach their target audience. The Handbag industry is also subject to various regulations, including DesigneRights and Intellectual Property Laws. Quality and Durability are crucial factors in the success of the market is making it essential for Brands to maintain high production standards. In conclusion, the market is a thriving sector, with a strong focus on innovation, quality, and affordability. Brands and manufacturers must navigate various challenges, including regulatory requirements and consumer preferences, to succeed in this competitive industry.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.84% |
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Market growth 2023-2027 |
USD 8.5 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.62 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 32% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alexander McQueen Trading Ltd., Burberry Group Plc, Capri Holdings Ltd., Cole Haan International B.V., CraftShades, Dooney and Bourke Inc., Fossil Group Inc., Guess Inc, Hennes and Mauritz AB, Hermes International SA, Hidesign, Kering SA, Lefty Production Co., LVMH Moet Hennessy Louis Vuitton SE, Prada Spa, Stefano Ricci S.p.A., Steven Madden Ltd, Tapestry Inc., Ted Baker PLC, and River Light V L.P. |
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Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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