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Handbags and Accessories - US - April 2017

Handbags and Accessories - US - April 2017

"Consumers remain cautious when it comes to spending their discretionary income, and for most, handbags and accessories aren’t at the top of the priority list. In fact, consumers are buying fewer accessory items and/or shifting toward more affordable options instead of designer labels. Young, urban, and upscale consumers represent the primary target opportunity, yet they need to be reminded – and may need to be persuaded – to accessorize."

- Diana Smith, Associate Director - Retail & Apparel

This Report discusses the following key topics:

People are not buying as many accessories
Affordable luxury is the name of today’s game 
Accessories are afterthoughts


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Figure 1: Items purchased and repertoire of items purchased, by generation, February 2017
Figure 2: Percentage of those reducing purchases in the category, by generation, February 2017
Figure 3: Retailers shopped, February 2017
Figure 4: Handbag preferences, February 2017
Figure 5: Reasons for purchase, February 2017
The opportunities
Figure 6: Select handbags purchased, by gender, February 2017
Figure 7: Select other accessories purchased, by gender, February 2017
Figure 8: Attitudes toward handbags and accessories, by iGeneration and Millennials, February 2017
Figure 9: Reason for purchase – To treat myself, by gender and age, February 2017
What it means
THE MARKET
What you need to know
Young adults more engaged in the category
The ying yang effect: stable economy but cautious consumers
Upscale brands taking a hit
Consumers opt for affordable luxury
Market factors
Market synopsis
Younger generations are key targets
Figure 10: Population by generation, 2012-22
Men play an important role
Figure 11: Population by gender and generation, 2017
Consumer confidence is peaking…
Figure 12: Consumer confidence and unemployment, 2000-January 2017
…but that doesn’t mean consumers are on a spending spree
Figure 13: How extra money is spent, January 2017
Other economic conditions create opportunistic market
Strong US dollar impacts luxury segment
Figure 14: Price-adjusted Broad Dollar Index, 2012-17
Affordable luxury is “in”
Figure 15: Household income distribution, 2015
Sharing economy impacts market
Laptop and mobile device ownership affects handbag size and interiors
Imitation brands may be impacting quality perceptions
KEY PLAYERS
What you need to know
Affordable accessorizing more than just a trend
Luxury sector losing status
Handbags get smarter
Craftsmanship gets personal
What’s working?
“Small but mighty” handbags
Fast fashion jewelry
“Uptown, downtown” co-branding
Now trending
What’s struggling?
Luxury sales not so luxurious
Jury’s out on smartwatches
What’s next?
Technology will continue to redefine what “style” means
THE CONSUMER
What you need to know
Need to stop the leaking
Men buy bags and accessories, too, and yes, for themselves
Indulgence within means
Accessories are afterthoughts
Accessory-focused stores not primary destinations
Purchase incidence
Purchase of any accessories is high, but a majority are buying four items or less
Figure 16: Purchase incidence, February 2017
Figure 17: Repertoire of items purchased, February 2017
18-34s with $75K+ HHI are the sweet spot
Figure 18: Repertoire of items purchased, by age and income, February 2017
A note of caution: over a fifth of consumers are buying less
Figure 19: Percentage of those reducing purchases in the category, by age and gender, February 2017
Men spend more than women
Figure 20: Purchase incidence of women’s vs men’s clothing or accessories, by gender, October 2015-November 2016
Figure 21: Amount spent on women’s accessories, by gender and age, October 2015-November 2016
Figure 22: Amount spent on Men’s accessories, by gender and age, October 2015-November 2016
Types of bags purchased
A bag’s purpose drives selection; backpacks and purses most popular
Figure 23: Types of bags purchased, February 2017
Yes, men carry bags too
Figure 24: Types of bags purchased, by gender, February 2017
Millennials “see now” and want to “buy now”
Figure 25: Types of bags purchased, by generation, February 2017
In their words: women describe their handbags
Handbag preferences
Non-designer versus designer
Figure 26: Preference on non-designer vs designer labels, February 2017
Figure 27: Preference on non-designer vs designer labels, by select demographics, February 2017
One high-end bag versus several generics
Figure 28: Preference on number of bags, February 2017
Figure 29: Preference on number of bags, by generation and household income, February 2017
Change bags or carry the same one
Figure 30: Role of occasion on bag choice, February 2017
Figure 31: Role of occasion on bag choice, by race and Hispanic origin, February 2017
In their words: hot or not brands
In their words: defining good value
In their words: important attributes
Other accessory purchases
Everyone needs socks
Figure 32: Other accessory items purchased, February 2017
Women love their jewels
Figure 33: Other accessory items purchased, by gender, February 2017
In their words: how women accessorize
Retailers shopped
Two thirds of consumers have made an online purchase
Figure 34: Retailers shopped by at least one quarter of respondents, February 2017
Accessory and jewelry stores not primary destinations
Figure 35: Retailers shopped by less than one quarter of respondents, February 2017
Highly fragmented category drives up price competition
Figure 36: Items purchased, by retailers shopped, February 2017
In their words: where they shop
In their words: online and mobile buying
Reasons for purchase
Accessories need to “catch their eye”
Figure 37: Reasons for purchase, February 2017
Figure 38: Reasons for purchase, by age, February 2017
Men are more purpose-driven than women
Figure 39: Reasons for purchase, by gender, February 2017
In their words: who or what influences women to buy?
Attitudes toward handbags and accessories
To each their own
Figure 40: Attitudes toward handbags and accessories, by iGeneration and Millennials, February 2017
Low interest in subscription services
Figure 41: Interest areas pertaining to the category, by iGeneration and Millennials, February 2017
In their words: subscription and rental services
Data sources and abbreviations
Data sources
Abbreviations and terms
Market
Mintel post-election survey methodology
Other market data
Figure 42: Median earnings of full-time, year-round workers, by gender and female-to-male earnings ratio, 1960-2015
Figure 43: Household income distribution, 2005-15
Figure 44: Household income distribution, by race and Hispanic origin of householder, 2015
Figure 45: Household income distribution, by age of householder, 2015
Figure 46: Perceived changes in spending, January 2017
Figure 47: Disposable Personal Income change from previous period, January 2007-Dec 2016
Figure 48: GDP change from previous period and consumption expenditures, Q1 2007-Q4 2016
Figure 49: US gasoline and diesel retail prices, January 2007-February 2017
Figure 50: Food sales at home and away from home, January 2003-December 2016
Figure 51: Median household income, in inflation-adjusted dollars, 2005-15
Handbag images shown in survey
Figure 52: Satchel example, February 2017
Figure 53: Cross-body bag example, February 2017
Figure 54: Tote bag example, February 2017
Figure 55: Shoulder bag example, February 2017
Figure 56: Clutch or evening purse example, February 2017
Figure 57: Backpack example, February 2017
Figure 58: Briefcase with hard case example, February 2017
Figure 59: Laptop case/bag example, February 2017
Figure 60: Workout bag example, February 2017
Figure 61: Purse example, February 2017
Other consumer data
Figure 62: Accessory items purchased, by gender, October 2015-November 2016
Figure 63: Purchase incidence of watches, by gender and age, October 2015-November 2016
Figure 64: Amount spent on watches, by gender and age, October 2015-November 2016
Figure 65: Types of hosiery purchased, October 2015-November 2016
Figure 66: Attitudes toward fashion, October 2015-November 2016
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
The Mintel fan chart...

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