Role of Handbag Industry in World of Fashion

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Role of Handbag Industry in
World of Fashion

Since the beginning of life men and women both are keen to look
special, thus no one can conclude when fashion came into existence.
But we can easily notice the enhancement of this industry with time.
There was a time when fashion industry limited to appeals only.
Accessories were used just as add-ons no one pays much attention to
them, at least from manufacturing point of view. With time the
enhancement of fashion industry people start thinking beyond
apparels, in this era, fashion starts from your cap and ends at your
footwear. With time fashion went beyond limits, now it's not just about
clothes, it comprises everything you are carrying.
Clothes, accessories, footwear, jewelry and handbags are a major part
of today's fashion industry. There are a few additional parts like
makeup, hairstyle etc. which are not considered as a part of fashion
industry. Usually we find only few major parts everywhere, or we can
say people concentrate more on clothes, footwear and jewelry. It's
difficult to find the trends of other associated sub industries of fashion.
Just like Handbag industry it is one of the great examples in this
respect. There are lots of unknown facts and figures about this
particular industry which can be useful to anyone. The main reason of
lacking in such crucial information of all these industries is less
awareness and researches being conducted. No one knows why this
industry has been avoided for such long time. If you look are the yearly
demand of handbags you will find it's more than 150 million.

Yearly demand of handbag industry is more than 150 million; this
demand includes luxury, semi luxury and general handbags. It's the
global demand in which approx 75% of the demand comes from Asian
countries like China and India. The top ranking country in world
population is China followed by India, so there is no doubt the number
of consumers in these two countries are higher than as compared to
any other country. Here population is playing a big role as top two
countries with highest population lies in Asia which enhance the
revenue.
One more factor which brings Asia on top is having tourist and
shopping hubs like Japan, Malaysia and Thailand. Furthermore if we
have a look over luxury handbags we will find that UK is leading with
28% of consumer share. This is because all luxury handbag industries
belong to European Union.

After demand when we have a look over production of these handbags
we will find Europe as leading producer of luxury bags. Europe alone
have 70% market share of production of luxury handbags. Further
Europe is followed by other countries like US, Australia, Canada and
Asia in luxury handbags production.
Where when look at overall production of handbags world widely we
will find Asia on top with more than 68% market share. This is again
because of low production cost, most of the luxury branded, semi
branded, and non branded handbags manufactures prefer Asia for
production. This is because here they find low cost labor, easy
connectivity and from export point of view as well Asia is the best place
in terms of connectivity.

There was a time when fashion was all about looking awesome, than a
time came when fashion was all about following your favorite celebrity
and now we are enjoying a time when it's all about brands. Even now
day's many celebs prefer brands over personal designers. If we have a
look over market share of handbag brands we will find Louis Vuitton is
leading with 31% followed by Chanel 24% preceded by Gucci 15%.
Price of a handbag depends on many things but the most essential
things are the material. Around 40%-70% what you pay is the cost of
material, rest of the amount is branding, labor and other associated
cost. But there is no hard and fast rule, it may possible a hand stitched
bag having low cost material because usually it's about labor.

Leather is one of the prime material used for manufacturing of
handbags, it's a symbol of luxury. Top notch brands like Chanel, Hermes
and Louis Vuitton are especially known for their rare leather bags.
Although there are many organizations like PETA who are regularly
spreading the awareness to stop using leather, fur and other animal
extracted products, which decreased the demand of all such products
though out the world. But still rare leather bags are still demand which
force manufacturers to produce these bags.

As leather products are somewhere responsible for death of animals,
manufactures are now using artificial leather in manufacturing of
handbags. This artificial leather is nothing but a type of synthetic
polymer, these polymer are so sophisticated and look like leather.
These polymers are long lasting and have no effect of weather, further
these polymers are easy to available and can be manufactured in
various colors and patterns. All these qualities make these polymers a
primary chose for manufacturers. These polymers are in huge demand
in past 10years it's increased by 85%.
Another alternative and 100% eco-friendly material used in
manufacturing is fabric. Fabric is easy to produce its natural and not
even affect environment. Easy to stitch, carry and washable, further it
not requires extra care as well.

Thus demand of fabric bags never dropped, it may go out of fashion for
some time. But after some dramatic ups and downs fabric bags are still
in existence and always will be.
No one can ignore an industry which generates global revenue of more
than $300 billion in a financial year which is one fourth of total global
annual revenue of fashion industry i.e. $1,200 billion.
Although handbag industry is generating revenue of $300 but huge
number of manufactures are unknown brands. Where only three
brands are there who are generating a noticeable revenue these are
Chanel, Gucci, and Louis Vuitton with $7, $12.1 and $28.4 billion
revenue respectively.


References:
http://en.wikipedia.org/wiki/List_of_synthetic_polymers
http://www.forbes.com/powerful-brands/list/
http://www.mllee.com/description/boxeswithouthinges.htm
http://www.worldhandbagreport.com
http://www.forbes.com/powerful-brands/list
http://www.secretvintagecollection.com