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The luxury handbags market is estimated to grow at a CAGR of 7.68% between 2022 and 2027. The size of the market is forecast to increase by USD 29,125.59 million. The growth of the market depends on several factors, including design and material innovation leading to product premiumization, the high influence of celebrity endorsements on purchase decisions, and increased expenses by international tourists.
This report extensively covers market segmentation by distribution channel (offline and online), type (handbag, backpack, wallet, and others), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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Technavio categorizes the global luxury handbags market as a part of the global apparel, accessories, and luxury goods market, within the textiles, apparel, and luxury goods market. The parent market, the global apparel, accessories, and luxury goods market, covers products and companies engaged in the manufacturing/marketing of apparel, accessories, and luxury goods. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The high influence of celebrity endorsements on purchase decision are notably driving market growth, although factors such as rising labor cost and fluctuating raw material prices may impede the market growth. 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.
Key Luxury Handbags Market Driver
The high influence of celebrity endorsements is notably in driving the market growth. The fashion industry has been experiencing rapid changes and advances over the last two decades, mostly due to the growth in the number of fashion-conscious consumers, especially in developing regions. Endorsements and the use of fashion products, such as luxury handbags by celebrities, serve as catalysts in propelling purchase decisions.
Manufacturers of handbags and personal luxury goods adopt different marketing campaigns and strategies to expand their consumer base. Celebrity endorsement is a popular marketing tool used by vendors to build their brand image and trigger the sales of luxury handbags. Celebrities such as Taylor Swift, Beyonce, Hailey Baldwin, Selena Gomez, and Kendall Jenner often endorse new products and brands. Furthermore, online advertising is also an essential part of marketing strategies. Vendors often sign multi-year endorsement agreements with high-profile celebrities to enhance their brand value. Therefore, these marketing initiatives will propel the growth of the global market during the forecast period.
Significant Luxury Handbags Market Trend
Personalization and customization of luxury handbags are emerging trends in the market. Customization of luxury handbags is an emerging trend among target customers. The customization of products is not only limited to luxury handbags but exists for luxury handbags made of materials, including hard metal (e.g., gold and silver) and precious stones (e.g., diamonds), particularly in the fashion industry.
In the luxury segment, leading market players offer customized products that enhance the aesthetic appeal of their offerings. The extent of personalization can vary from the strap and buckles to embroidery or adding a name. Moreover, the concept of monogramming and embroidery is trending in the luxury handbags segment, particularly among women. For example, The Monogram Shop by Capri customization allows customers to personalize handbags, which renders them more unique and expensive than a standard product. Thus, the rise in customization and personalization of luxury handbags globally complements market growth through new purchases. Hence, such factors will boost the global market growth during the forecast period.
Major Luxury Handbags Market Challenge
The rising labor costs and fluctuating raw material prices are major challenges impeding market growth. Many international vendors have their factories or original equipment manufacturers (OEMs) located in Asian countries, such as China, Indonesia, Bangladesh, and Vietnam. This is because labor costs have grown rapidly in the last decade, thereby raising their production cost. The changing economic conditions have also adversely affected the labor costs of other international countries from where the company imports its supplies. Therefore, an increase in the production cost of the vendors lowers their profit margins and proves to be a challenge for the vendors.
Furthermore, the process of manufacturing luxury handbags includes the procurement and use of several raw materials. The fluctuations in raw material costs also pose a challenge to global manufacturers. Moreover, the price of these materials also depends on transportation costs as they include the supply of raw materials to factories, the supply of intermediary goods to production sites, the transportation of end products to warehouses, and the delivery of finished goods to end users. Therefore, an increase in transportation costs increases the cost of the end products. However, since the market is highly competitive, it restricts vendors from increasing the prices of the end products, thereby reducing profit margins, which, in turn, may hamper the growth of the market in focus during the forecast period.
Key Luxury Handbags Market Customer Landscape
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 Luxury Handbags Market Customer Landscape
Vendors 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.
Dolce and Gabbana S.r.l. - The company operates under one segment. The company under this segment offers footwear, clothing, accessories, and beauty products for men, women, and children. The key offerings of the company include luxury handbags.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the offline segment will be significant during the forecast period. Offline distribution channels include retail formats such as specialty stores, hypermarkets, departmental stores, convenience stores, supermarkets, and warehouse clubs.
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The offline segment was valued at USD 52,955.00 million in 2017 and continued to grow until 2021. The specialty stores segment comprises exclusive brand stores, multi-brand stores, apparel stores, and personal goods stores. The brand specialty retail stores also help vendors plan their budgets for marketing, advertising, promotions, brand building, training, and IT support. On the other hand, the hypermarkets, supermarkets, convenience stores, and clubhouse stores segment offer a variety of brands and stock-keeping units (SKUs) at competitive prices. They have dedicated aisles for luxury goods, including luxury handbags, which increase the visibility of the latest luxury handbags and trendy fashions. Furthermore, department stores are one-stop solutions for shopping. The availability of all products at a single stop is the major factor for consumers to select department stores. Popular department stores that sell luxury handbags include Nordstrom, Barneys New York, Macy, and Sears Brands. Therefore, such factors will propel the growth of the offline segment in the global market during the forecast period.
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Europe is estimated to contribute 33% 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.
European countries, especially Western European countries, are considered hubs of luxury goods due to the presence of various well-known personal luxury goods brands such as Hermes International SA and Kering SA. This huge availability of personal luxury goods in the region is the principal factor that makes Europe the largest market. The major share of the market in Europe comes from France, followed by Italy and the UK.
Moreover, individuals in countries like Germany are fashion-conscious, and the popularity of luxury products, especially among women, is one of the primary drivers for the market in the country. Additionally, the emergence of online retailers and rising online campaigns have increased the sales of these handbags and other luxury products through online platforms.
Furthermore, the prominent European tourism market also encourages tourists to spend on luxury goods. Wealthy tourists from countries like China and Middle Eastern countries visit Europe for luxury shopping. Therefore, this increases the sales of luxury products. In addition to this, spending in the men's segment on luxury products is one of the latest trends in the market. Fashion weeks, online platforms such as blogs and social media, and the prevalence of online retailers are driving men toward luxury goods. Therefore, all these factors will aid the regional market growth during the forecast period.
The regional market was highly impacted by the COVID-19 pandemic in 2020. However, in 2021, due to the vaccination drives, various business and industrial activities related to the manufacturing of luxury goods, such as handbags, resumed. Furthermore, rising consumer living standards supported by their increasing disposable income levels are augmenting the sales of personal luxury handbags in Europe. Hence, the abovementioned factors are expected to boost regional market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027.
Luxury Handbags Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.68% |
Market growth 2023-2027 |
USD 29,125.59 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.65 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 33% |
Key countries |
US, China, Japan, France, Italy, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
3.1 Phillip Lim Retail LLC, CHANEL Ltd., Mulberry Group Plc, Burberry Group Plc, Capri Holdings Ltd., Compagnie Financiere Richemont SA, Dolce and Gabbana S.r.l., Fendi, Giorgio Armani S.p.A., Hermes International SA, Kering SA, Maus Freres SA, Prada Spa, PVH Corp., Ralph Lauren Corp., Rebecca Minkoff LLC, River Light V L.P., Sungjoo Group, Tapestry Inc., and The LVMH group |
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 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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