|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The handbags market is forecasted to register a CAGR of 4.5% during the forecast period, 2021 – 2026.
Since the COVID-19 pandemic has forced a major part of the world’s population to sit at home owing to travel restrictions and lockdown, the industry of fashion apparel and accessories has been hit hard as offline retail stores and shopping outlets were shut off for a significant duration of the year. Also, most of the potential consumers limited their spending on fashionable accessories and appeals, which directly impacted the sales revenues of the top big brands in the handbags market. However, as the pandemic situation is improving gradually, the spending patterns of consumers have increased, and the market is expected to regain its potential as the economies of the developing nations improve.
The handbags market is highly driven by consumer preferences toward changing trends and fashion, particularly among the millennials. In order to cater to the growing demand, especially in the luxury handbags segment, key players are trying to form strategic partnerships and expansions.
The handbags market is driven by the growing fashion industry, with handbags being considered a major fashion statement. Also, the increasing social media influence on consumers from Instagram and Twitter is responsible for the inclination of potential consumers toward the market. Since the majority of the global young adult population is engaged in these social media platforms, handbag companies are targeting their product ranges at this age group.
However, the presence of counterfeit products is one of the key challenges faced by brands globally.
Scope of the Report
A handbag, commonly known as a purse, is a handy medium-to-large bag used to carry personal items. The handbags market is segmented by product type, distribution channel, and geography. By product type, the market has been segmented into satchel, bucket bag, clutch, tote bag, and other product types. By distribution channel, the market has been segmented into online retail stores and offline retail stores. By geography, the market has been segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasting have been done in value terms of USD million.
|By Product Type|
|Other Product Types|
|By Distribution Channel|
|Online Retail Stores|
|Offline Retail Stores|
Key Market Trends
Growing Demand for Leather Goods
Leather is one of the most widely traded commodities in the world. There is a continuous demand for leather from the fashion industry, driven by footwear, luggage bags, and accessories such as handbags. This is due to the increase in the production of light leather for handbags and its imports from Asian countries such as China, India, and Vietnam. Major importing countries of leather for handbags are the United States and Japan. However, hit by high import tariff rates of leather from China in 2018, India has become one of those opportunistic markets for imports of leather handbags for major companies from the United States and Europe. In addition, in 2016, Hermes International witnessed an increase in sales of around 14.5% from leather goods and saddlery, driven by sustained demand and increased production capacity. However, in 2017, the company witnessed revenue growth of 11% from Asia-Pacific and the United States, driven by the sales of re-exports of leather handbags.
The growing demand for leather goods is expected to drive the leather handbags sector due to the rise in re-export operations conducted by two luxury brand importers, Hermes and Louis Vuitton.
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Europe and North America are Leading the Handbags Market
Western consumers are increasingly becoming brand conscious about their consumption choices, especially those that reflect their style and personality. Hence, the handbags segment in the regions of Europe and North America has witnessed an evolution in the recent past. The fashion accessories segment has gone from being a mere necessity purchase to gaining a foothold in the lifestyle shopping category. The growth of e-commerce, with the facilities of online shopping, is also expected to contribute significantly to the growth of the retail market in the coming few years in the European and North American regions.
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The market studied is highly competitive, with a considerable number of regional and global players operating in the market studied. The major strategies adopted by these companies include product innovations, expansions, and mergers and acquisitions. The major players dominating the handbags market are Coach, Kate Spade, LVMH, Michael Kors, Ted Baker, Baggit, Hidesign, Fossil, and Gucci. An advanced distribution network provides a competitive advantage to the key market players. Moreover, it is crucial for players to continuously innovate to operate and grow in the market due to the rapidly changing consumer demands and preferences.
Burberry Group PLC
Prada Holding BV
Fossil Group, Inc.
Guccio Gucci S.p.A
In 2019, Louis Vuitton launched handbags connected with flexible screens, and this innovation was reserved for the latest smartphones. The company also acquired the controlling stake (~59.01%) in Christian Dior for USD 13.1 billion.
In 2019, Chanel SA introduced its spring-summer collection 2019, which offers a range of handbag products of different kinds and styles. The handbags are mostly styled in calfskin and gold-tone metal. These handbags are available in a range of colors, including pink, blue, and yellow.
In 2018, Capri Holdings Limited acquired Jimmy Choo, which has enhanced positioning in the attractive and growing luxury handbag and footwear segments. This is expected to provide the company exposure to global markets across the fashion and accessories segments. Capri Holdings Limited changed its name from Michael KorsHoldings in January 2019 and acquired Versace to become the leading global fashion luxury company.
Table of Contents
1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.2 Bucket Bag
5.1.4 Tote Bag
5.1.5 Other Product Types
5.2 By Distribution Channel
5.2.1 Online Retail Stores
5.2.2 Offline Retail Stores
5.3.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 Rest of Asia-Pacific
5.3.4 South America
18.104.22.168 Rest of South America
5.3.5 Middle-East and Africa
22.214.171.124 South Africa
126.96.36.199 Saudi Arabia
188.8.131.52 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Burberry Group PLC
6.4.3 Prada Holding SpA
6.4.4 Kering Holland NV
6.4.5 Capri Holdings Limited
6.4.6 Chanel International BV
6.4.7 Kate Spade & Company
6.4.8 Chanel SA
6.4.9 Kering SA
6.4.10 Hermes International SA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
Frequently Asked Questions
What is the study period of this market?
The Global Handbags Market market is studied from 2016 - 2026.
What is the growth rate of Global Handbags Market?
The Global Handbags Market is growing at a CAGR of 4.5% over the next 5 years.
Which region has highest growth rate in Global Handbags Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Handbags Market?
North America holds highest share in 2021.
Who are the key players in Global Handbags Market?
Michael Kors, Burberry Group PLC, Prada Holding BV, Fossil Group, Inc., Guccio Gucci S.p.A are the major companies operating in Global Handbags Market.