The Micro Transition of Luxury Handbags

Prices of Classic handbags from major luxury brands have increased by 70 percent since 2009. The year over year rise of price is averaged at 14 percent. Brands like Chanel and Louis Vuitton have made their offerings less accessible by increasing the price caps and at the same time, increasing their exclusivity. The instance has, however, increased inclination towards other luxury labels like Michael Kors, Coach and Tory Burch. The market of handbags has been rising throughout the globe with only the BRIC countries accounting to annual growth rate of 6.6 percent. The figures are cited by Exane BNP Paribas. According to experts the market is still subdued by new buyers who mostly go for moderate price tags. Against the backdrop, handbags are through a generic transformation. Luxury handbags are scaling their sizes to match up with lower price tags. Handbags have become smaller than they used to be some years back. The micro versions of luxury inventories are affordable for entry level customer in contract to their full sized versions. Gucci is offering various small sized customization of the original large size version introducing Micro, Against the backdrop, handbags are through a generic transformation.

Luxury handbags are scaling their sizes to match up with lower price tags. Handbags have become smaller than they used to be some years back. The micro versions of luxury inventories are affordable for entry level customer in contract to their full sized versions. Gucci is offering various small sized customization of the original large size version introducing Micro, Nano and Toy size handbags. The Mini Fendi Peekaboo comes with a starting price tag of USD 3,150 while the micro version, almost half the size of the former, costs USD 1,550. Similarly, a full sized Sac du Jour from Saint’s Laurent costs USD 2,750 compared to its toy edition that costs USD 1,350. The trend is also caught up by retailers such as Selfridges, Saks Fifth Avenue and Barneys. Reports highlight that in 2015, sales via Selfridges rose by 100% for mini handbags while their searches increased by 50% on yearly basis. For handbag manufacturers, the increasing base for mini handbags is bringing new consumer segments into their ambit. Foraying into the scaled sized segment, it allows them to increase sales gaining new customers. Moreover, producing the micro version is economic for brands as they can reduce cost of production by reducing the size. This is also with some negative impact to the brand. Because as they reduce their size to scale up the cost the brand image would be affected; which would keep their exclusive customers away. Still it is believed by experts that buyers, including the exclusive ones, can benefit from the factor of originality with the inventories. Desirability of the band is major factor for this shift in Luxury Handbag market. The exclusivity of the levels is what that sells and brands are gaining well from it. However, there are also brand like Prada who has reduced the price without compromising on the size. The market is vibrant and it can turn out towards new developments in years to come. Whatever might be the developments, Luxury handbags has been and will be always a prized possession for divas and the lure that surrounds the fashion will drive the industry.