The COVID-19 pandemic has seriously injured the consumer goods industry and has hampered the handbag market growth. According to Fortune Business Insights™, the global market slumped by a staggering 25.6% in 2020, with its size predicted to reach USD 49.63 billion in 2021. The main reasons for the market’s declining growth trajectory in the 2020-21 period include sharp demand contractions underpinned by falling incomes, increasing raw material prices, and reduced production.
Sequential Brands Group Centric Brands to Collaborate for Handbag Jewelry Collections
In November 2019, Sequential Brands Group teamed up with Hollywood celebrity Jessica Simpson to enter into a multi-year licensing partnership with Centric Brands. Under the agreement, the two companies will collaborate to develop, manufacture, and distribute Simpson’s new line of handbag and jewelry collections. The in-house teams of both companies will share their expertise to create a range of products that will be based on Jessica Simpson’s brand philosophy that fashion should be approachable and fun for women. Such alliances between fashion brands and celebrities are rapidly augmenting the prospects of this market.
Tote Segment to Dominate the Market with 34.5% Share
By type, the market has been segmented into tote, clutch, satchel, and others. At 34.5% in 2020, the tote segment is expected to dominate the global market during the forecast period. This is primarily attributable to the meteoric rise in the popularity of tote bags among consumers due to their versatility. For example, since tote handbags are made from fabric, usually cotton, they are reusable, thus making them a sustainable alternative to plastic bags.In Europe, too, this segment dominates, holding a market share of 34.6% in 2020.
Based on raw material, the market has been divided into leather and fabric. On the basis of end-user, the market has been categorized into men and women. In terms of geography, the market has been grouped into North America, Europe, Asia Pacific, South America, and the Middle East Africa.
Presence of Large Fashion Brands to Stimulate Market Growth in Europe
- Europe is poised to lead the handbag market share for the foreseeable future as the region is home to prominent fashion brands, such as Louis Vuitton and Prada. Complementing this is the high per capita income of consumers in Western Europe, which makes products of these brands affordable to a broad range of people. In 2019, the region’s market size stood at USD 16.14 billion.
- South America is expected to create huge investment and sales opportunities for market players due to the rapidly expanding urban population in the continent, while promising economic growth in Africa is likely to spike the demand for luxury consumer products, such as handbags.
Entry of New Players in the Market to Heat up Competition
Leading bag makers in this market are set to face intense competition as new players enter the market and alter the governing dynamics. These companies are introducing novel bag offerings in a bid to capture a wider customer base and establish their presence in the market. In response, the existing key players in the market are aggressively expanding their distribution networks, engaging in acquisition activities, and actively collaborating with diverse entities to deepen their footprint.
- August 2019: Galvan, a London-based fashion major, released its maiden handbag collection to supplement its eveningwear and bridal-wear line. The three bags launched by the company have been made from silk satin and sequins and have been produced in Italy, designed to suit any outfit.
List of Key Players Profiled in this Market Report:
- Kate Spade (New York, USA)
- Burberry (London, UK)
- Prada S.p.A. (Milan, Italy)
- Chanel Ltd (Paris, France)
- Coach IP Holdings LLC (New York, USA)
- Calvin Klein Inc. (New York, USA)
- Hermès International S.A. (Paris, France)
- Fendi (Rome, Italy)
- Guccio Gucci S.p.A. (Florence, Italy)
- Louis Vuitton Malletier (Paris, France)