Global Luxury Handbags Market 2019-2023
About this market
Vendors are constantly reforming and introducing new designs and patterns owing to growing competition and customer demand arising from rapid changes in the fashion industry. Customers seek luxury handbags for formal (especially leather handbags) and casual purposes (such as metal and precious stone studded handbags). To meet such evolving customer needs: vendors regularly expand their product lines. Leather handbags fall under the promoted and most in-demand segment of the market. This is because leather offers products a premium feel. The durability of leather also attracts customers to buy leather products such as leather handbags. The high demand and supply shortage also allow manufacturers to increase their prices. The innovation in designs and the use of exotic leather to manufacture products have enabled manufacturers to cater to the demand from high-end and premium customers. Technavio’s analysts have predicted that the luxury handbags market will register a CAGR of over 7% by 2023.
High influence of celebrity endorsements on purchase decision
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. Manufacturers of handbag and personal luxury goods adopt different marketing campaigns and strategies to expand their consumer base.
Rising labor cost and fluctuating raw material prices
The 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 Mere 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. Fluctuations in raw material costs are other challenges for global manufacturers.
For the detailed list of factors that will drive and challenge the growth of the luxury handbags market during the 2019-2023, view our report.
The market appears to be fragmented and with the presence of several companies. This market research report will help clients identify new growth opportunities and design unique growth strategies by providing a comprehensive analysis of the market’s competitive landscape and offering information on the products offered by companies.
Technavio Announces the Publication of its Research Report – Global Luxury Handbags Market 2019-2023
Technavio recognizes the following companies as the key players in the global luxury handbags market: Hermès, Kering, LVMH, Prada, Tapestry.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is the increasing demand for convertible handbags.”
According to the report, one of the major drivers for this market is growth in the number of international tourist arrivals and the expenditure is expenditure to contribute to the growth in demand for personal luxury goods, consequently driving the sales of the market.
Further, the report states that one of the major factors hindering the growth of this market is the stringent government regulations for procuring raw material such as leather.
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