Premiumization is a process where the manufacturers make a brand or a product more appealing to consumers by emphasizing on its superior quality and exclusivity. It is driven by preference for high-quality products and the desire to demonstrate success. Customers tend to choose premium quality products owing to the rise in per capita income. Luxury handbagare premium products due to high pricing with value added features and specification. Such features attract the attention of the customers, who can afford premium range of products. This is expected to increase the adoption of luxury handbag among its end users. This in turn boosts the growth of the market. Social media marketing is one of the major strategies adopted by various companies and industries, including wearable products market, on imparting awareness about their product offerings among target customers on social media channels. Thus, through social media marketing strategy, the global luxury handbag market sights critical opportunity in gaining traction and eventually increase its registration among its target segments. Meanwhile, companies are also re-examining the value of brand heritage and brand history for their customers. Consumer demand has become the core focus of the business, hence the adoption of an onmi-personal approach, irrespective of the choice of channel.
The global luxury handbag market size is segmented on the basis of type, distribution channel, and region. By type, it is classified into handbag, backpack, wallet, and others.By distribution channel, the market is further sub-segmented into duty free stores, online stores, discount stores, hypermarket, specialty stores. By region, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (German, France, UK, Italy, Spain, The Netherlands, and Rest of Europe), Asia-Pacific (Japan, China, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Key players profiled for luxury handbag industry include LVMH, FurlaSpA, Longchamp, Luxottica Group, Mulberry Group, Vera Bradley, Guccio Gucci S.p.A, Samsonite International S.A./Tumi brand, Valentino S.p.A., and ZV France SA.
KEY BENEFITS FOR STAKEHOLDERS
- The report provides an extensive analysis of the current and emerging market trends and opportunities in the global luxury handbag market.
- The report provides detailed qualitative and quantitative analysis of current trends and future estimations that help evaluate the prevailing market opportunities.
- A comprehensive analysis of the factors that drive and restrict the growth of the market is provided.
- An extensive analysis of the market is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential segments or regions exhibiting favorable growth.
KEY MARKET SEGMENTS
By Type
- Handbag
- Backpack
- Wallet
- Others
By Distribution Channel
- Duty free stores
- Online stores
- Discount Stores
- Hypermarket
- Specialty stores
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- The Netherlands
- Rest of Europe
- Asia-Pacific
- Japan
- China
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Table of Contents
Executive Summary
According to the report titled 'Luxury Handbag Market by Type and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2019-2026,' the luxury handbag market size was valued at $58.3 billion in 2018 and is expected to reach $89.9 billion by 2026, registering a CAGR of 5.6% from 2019 to 2026. In 2017, Europe accounted for nearly 35.0% share of the luxury handbag market.Emerging economies, especially in Asia-Pacific, such as India, China, Indonesia, and the Philippines are progressively spending on luxury cosmetic products, owing to increase in disposable income. Consumers in Hong Kong aged 30 to 49 have the highest disposable income and thus, are the biggest buyers of luxury products in the country. Similarly, in India, factors such as emergence of young populace, increase in disposable income, rise in number of working women, and surge in affordability of luxury products are expected to drive the growth of the market. The demand for luxury brands and specialized products is on the rise as Indian consumers gain additional acquaintances with global media and travel more. Several international luxury brands such as Gucci and Louis Vuitton are present in the country for numerous years.
Furthermore, consumers in Singapore are image conscious and hence, place a high priority on personal accessories. For this reason, international handbag brands that combine revolutionary design with ease of use, continue to dominate the market. Furthermore, consumers in New Zealand, who reside in urban centers, boost increase in disposable income alongside easy accessibility to handbags through retail outlets. Moreover, departmental stores generally specialize in luxury brands and hire assistants to offer advice to consumers. This direct selling approach appeals consumers in the region and boosts the sales of luxury products. Thereby, the market for luxury handbag is witnessing considerable growth in regions such as India, China, and New Zealand.
Multiple taxes such as local tax, import duty, high internal shipment cost, and trade margins cumulatively increase the prices of the imported luxury handbags. Accounting these factors, price of such products for buyers gets extremely high and hence, pricing becomes a major threat for luxury handbags. In countries such as India, where consumers are very price-sensitive, many luxury brands have launched products in smaller quantities to make them affordable. The trade war between the two biggest luxury markets, namely, the U.S. and China, hampers the cosmetic products market since heavy tariffs are levied by either countries on the goods imported. This may especially cause risk to the American luxury brands since the new tariffs may shift the focus of Chinese consumers toward their domestic brands or Korean brands. The fierce trade war between the two major economies is expected to hamper the growth of the luxury market in other massive regions such as Asia.
Premiumization has facilitated a bridge between desirability of luxury experience and necessity of mass market. As a result, it plays a key role in the overall luxury handbag market growth. Currently, customers seek for superior quality and design when it comes to using any kind of consumer good products, including handbag irrespective of its high-end price tags. This results in increase in demand for premium handbag brands.
Most of the developed countries have witnessed surging demand for luxury handbags. This is attributable to the rise in per capita income of target customers, coupled with extended product offerings of luxury handbag manufacturers. Thus, surge in demand for various luxury products triggers growth of global luxury handbag market.
Endorsement of handbags by celebrities is a major driver of the global luxury handbag market growth. Influence of celebrity promotions of handbag has shown positive growth in the overall market in terms of value sales. Celebrity marketed luxury sales have increased significantly, in terms of value, over past five years, specifically in China, Germany, the U.S. and the UK. Hence, celebrity branding and endorsement provides an avenue for the growth of the global luxury handbag market in terms of value sales.
According to Shankar Bhandalkar, Senior Analyst, Consumer Goods, 'Luxury handbag companies have been making several important mergers and acquisitions to expand their operations in both international and domestic market. Exposure to social media, urbanization, and increasing preference toward investments on personal luxury goods, which include bags as well, are some of the factors that have propelled the market growth”
Key Findings of the Study
- In 2018, by type , the handbag segment accounted for around higher market share, growing at a CAGR of 5.80% from 2019 to 2026.
- In 2018, by distribution channel, the specialty stores segment accounted for higher luxury handbag market share.
- In 2018, by region, Europe accounted for a higher value luxury handbag market share.
Key players profiled for luxury handbag industry include LVMH, FurlaSpA, Longchamp, Luxottica Group, Mulberry Group, Vera Bradley, Guccio Gucci S.p.A,Samsonite International S.A./Tumi brand, Valentino S.p.A., and ZV France SAS
Companies Mentioned
- LVMH
- FurlaSpA
- Longchamp
- Luxottica Group
- Mulberry Group
- Vera Bradley
- Guccio Gucci S.p.A,Samsonite International S.A./Tumi brand
- Valentino S.p.A.
- ZV France SAS
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 245 |
Published | February 2020 |
Forecast Period | 2018 - 2026 |
Estimated Market Value ( USD | $ 58.3 billion |
Forecasted Market Value ( USD | $ 89.9 billion |
Compound Annual Growth Rate | 5.6% |
Regions Covered | Global |
No. of Companies Mentioned | 9 |