BoF Insights | The New Era of Designer Bags: Redefining Leather Goods Report

Designer luggage and small leather-based items (SLGs) present no indicators of relinquishing their position as a mainstay of trend manufacturers, based on The New Era of Designer Bags: Redefining Leather Goods, the most recent report from BoF Insights. The class, at $72 billion right now, is predicted to develop to $100 billion by 2027 as per information from market analysis agency Euromonitor Worldwide, regardless of lingering pandemic results and right now’s rising financial pressures.

Most of this development will happen on the earth’s two largest markets for designer luggage and SLGs: the US and China. Proprietary analysis from BoF Insights finds that at the same time as purchasing behaviours shift and tastes evolve, customers in each international locations stay loyal to the class that gives performance, model and, in lots of circumstances, a extremely valued standing symbols. Among the many basic inhabitants surveyed in June 2022, round 40 % within the US and 50 % in China are “engaged” customers within the class, having bought designer luggage or SLGs within the final 12 months or intending to buy within the subsequent 12 months. In each international locations, almost all high-net-worth people (HNWIs) — with investable property value a median worth of between $1.5 million and $2 million — are engaged within the class.

For manufacturers, the marketplace for designer luggage and SLGs is more and more crowded. To remain related, designer manufacturers purpose to “personal” a selected model, be it when it comes to silhouettes, supplies or colourways, usually requiring a balancing act between basic and novel options throughout a portfolio. Even so, imitation is rife within the class and as soon as a model designs what turns into an “It” bag, rivals usually purpose to go to market with their very own variations of that design, creating strain to be in a cycle of fixed innovation.

Heritage manufacturers are sometimes now competing face to face with modern manufacturers which have recognized and moved swiftly into gaps out there. For each incumbents and newcomers, collections now want to talk to an expanded definition of “luxurious,” which faucets into a brand new zeitgeist that values accessibility, casualisation and sustainability. Bag methods that purpose to raise manufacturers, optimise pricing and innovate with superstar tie-ups equally want to contemplate the communities they need to be a part of and the worth techniques to which their customers belong.

As the primary in a collection of category-focused analyses from the staff at BoF Insights — The Enterprise of Style’s information and evaluation suppose tank — the report additionally explores how manufacturers and retailers have to refine their methods to arrange for the following chapter in designer luggage and SLGs, as customers are already altering how and the place they store for merchandise within the class.

BoF Insights analysis finds that over half of engaged client journeys for this class now begin with shopping on-line and, within the case of China, are influenced by livestreaming. In the meantime, resale and rental have scaled dramatically from their former existence in bodily boutiques, thereby enabling larger entry for customers and altering how they understand and worth luggage as an funding asset.

• Analyses the worldwide marketplace for designer luggage and SLGs from premium and luxurious manufacturers, with a minimal retail worth of $250 / 1,500 Chinese language yuan.
• Options proprietary analysis with customers and HNWIs within the US and China, revealing probably the most in-demand manufacturers and kinds, finances by demographic group, the psychology behind purchases, and client attitudes in direction of channels like resale and rental.
• Offers govt steering round ways for model elevation, together with pricing structure.
• Consists of concise case research on Burberry, Saint Laurent, Mansur Gavriel, Telfar and Rimowa, in addition to strategic evaluation of key manufacturers positioned throughout the value spectrum, reminiscent of Bottega Veneta, Coach, Gucci, Hermès, Jacquemus, Kate Spade, Louis Vuitton, Mark Cross, Off-White, Prada and Stella McCartney.
• Outlines how the concurrent forces of accessibility, casualisation and sustainability are increasing the definition of luxurious whereas assessing how know-how is impacting client behaviour and product portfolios.

The report relies on three proprietary analysis inputs:

• 4 proprietary surveys:
• A demographically balanced basic inhabitants client survey within the US
• A nationally consultant basic inhabitants client survey of the net inhabitants in Tier 1-3 cities in China
• A panel performed by Altiant LuxuryOpinions® on behalf of BoF Insights of HNWIs within the US, who individually have a median worth of $2 million in investable property
• A panel performed by Altiant LuxuryOpinions® on behalf of BoF Insights of HNWIs within the China, who individually have a median worth of $1.5 million in investable property
• 24 interviews with executives from manufacturers, retailers, rental and resale platforms, influencers and consultants within the US and China
• 10 in-person retailer audits and pulse interviews performed at designer bag manufacturers and luxurious retailers in Chicago, London and New York

Corporations featured within the report embody: Bottega Veneta, Burberry, Coach, Gucci, Hermès, Jacquemus, Kate Spade, Louis Vuitton, Mansur Gavriel, Mark Cross, Off-White, Prada, Rimowa, Saint Laurent, Stella McCartney and Telfar.