2010 Edition -- New Report by Koncept Analytics

Handbags represent one of the key accessories completing the wardrobe of women for ages, which also serve as a major driver behind the growth of the fashion world. Changes in the key trends in the handbag market result mainly because of the changes in the fashion and luxury market. Fashion designers and boutiques are increasingly including handbags in their new collections as designer handbags generate high margins. Designer handbags are registered a high growth in the prices for the last several years. The US handbags market witnessed a decline in growth in 2008 and 2009 because of the global economic slowdown. The financial recession not only caused a fall in domestic demand, but also led to a fall in exports. The EU handbags market consists of six major markets - Italy, France, the UK, Germany, Spain and the Netherlands – which collectively account for the majority share in sales and production of handbags. In EU, handbags are mainly sold through specialist chain and independent retailers. The US and EU handbag market is all set to witness a growth in the coming years as result of huge export demand from countries like China and India and also as a result of improving economic conditions in their domestic as well as international markets. Competition has been one of the major characteristics of the handbag market with numerous independent designers launching their own stores. The premium handbag companies mainly include luxury brands as well as private label retailers. For a long time, Europe is the largest market for luxury handbags with brands like Louis Vuitton, Chanel, Gucci and Prada; but American designers are giving it a touch competition with new strategies and branding initiatives. Companies like Coach Inc, Louis Vuitton SA, Burberry Group Plc and Hermes International SCA have shifted their attention to under-penetrated markets with huge growth potential, like China and India. Also, companies have realigned their distribution channels to cater to customer needs more efficiently and reduce their operational costs at the same time.