Bags of potential

Before the days of pockets, handbags were used by men to carry money and other valuable items.¹ But that was in the Middle Ages – fast forward to the present day, and the handbag has spent many decades as a must-have female fashion essential.

The introduction of low-cost, mass-volume designs, coupled with the rise of e-commerce, has had a huge impact on both the production and purchasing of handbags. The worldwide market was valued at $47 billion in 2018, and this is set to rise to $55 billion by 2025.² Here, we look at the exciting changes shaping the industry, now and in the future.

Miniskirts, slip dresses, scrunchies: the 90s was an iconic decade for fashion. Perhaps the biggest phenomenon of them all, however, was the ‘it’ bag. Fashion brands competed to have their designs worn by the celebrities and fashion models of the moment, helping to drive explosive growth in the handbag industry.

More recently, a global shift towards e-commerce and faster, more convenient fashion has been a bigger contributor to industry growth. Busy lifestyles mean consumers are increasingly choosing to shop online for their handbags. They’re even shopping on the go through their mobiles, and on social media. 

Research shows that 43% of internet users now use social channels to research products,³ while 30% say they would make purchases through them directly.⁴

Figures have also revealed that despite competition from the world of mass-produced fashion, online luxury goods sales could triple by 2025.⁵ This is exciting news for handbags retailers, giving them greater possibilities to capitalise on this sales channel. Not to mention the fact it gives them the chance to reach shoppers in places where they currently have no physical store.

However, businesses expanding into new markets will need to bear in mind that shipping internationally means adhering to each particular country’s customs regulations. They’ll also need to complete the necessary shipping documentation to prevent delays at the border, which they can do quickly and easily with support from FedEx and our dedicated customs tools. Discover more about these here.

To expand your online business across the world, offering a quick, reliable and convenient delivery service could help you attract new and repeat customers. With FedEx, and our powerful network, you can:

• Reach key markets worldwide

• Connect to thousands of retail pick-up and drop-off points, including 2,500 in the UK 

• Offer customers quick and easy returns

• Provide tracking, notifications and a choice of delivery options 

Discover our diverse range of e-commerce services and solutions here. 

While Italian craftsmen gave handbags a firm footing in the world of global trade, this market has exploded far beyond its humble origins. Did you know that China is now one of the fastest-growing importers and exporters of handbags – and has been a driving force in bringing them online?

Cheaper materials and a growing manufacturing workforce have allowed Chinese business owners to create their own handbags and choose their own price ranges.⁶ And this has certainly paid off, with revenue in China’s ladies handbags market skyrocketing from $13.2 billion in 2012 to a projected $32 billion in 2020.⁷

But China isn’t the only country in Asia-Pacific ripe with potential for the handbags sector. With per capita income and e-commerce penetration rising in places such as India, South Korea and Indonesia – and consumers there becoming increasingly brand-conscious – experts are suggesting that these emerging markets could become ones to watch over the next five years, especially when it comes to high-end handbags.⁸

In 2017, luxury goods sales in emerging markets soared by 32%, and this growth is set to continue.⁸ India and Mexico in particular present exciting opportunities for businesses looking to expand, with the luxury goods sectors in both countries on track for future growth.

It’s an exciting time to discover emerging markets. With FedEx, you can reach new customers in countries such as India, Mexico and Colombia and benefit from:

• Time-definite inbound, outbound and domestic Latin America and the Caribbean services

• Our market-leading presence in Brazil, Chile and Argentina

• Customs-cleared parcel delivery services to/from Asia-Pacific 

• Connections to 19,000+ post codes and 4,000+ cities and towns in India thanks to our dedicated ground network

Discover more about our fast, reliable services to Asia-Pacific and Latin America here. 

Yet despite rising pressure from mass produced brands, high-end designers are keeping Italian craftsmanship alive both online and on the ground. For instance, Artificial Intelligence is opening up some exciting doors, allowing brands to use the data they’ve gathered about their customers to curate a more personalised and interactive experience.⁹

Meanwhile, in places such as Scandicci, Italy, some of the biggest names in fashion are building factories for artisans to create leather handbags en masse.¹⁰ What remains to be seen now is whether these investments continue to pay off, and whether handcraftsmanship can hold its own against the lower cost products in the market.

Bags and accessories are set to be one of the hottest e-commerce categories in the next couple of years,¹¹ with worldwide revenue predicted to reach a huge $103 billion in 2022. This highlights how much opportunity there could be for smaller, more artisan retailers to jump on the digital bandwagon if they haven’t yet done so.

Handbag brands are also being encouraged by experts to concentrate more on consumer needs when it comes to developing and launching new products. Why? Because there’s a key trend emerging among shoppers – particularly the younger generations – to choose more versatile bags from brands that address the social and environmental issues that matter to them.¹² 

As well as having an online shopfront, retailers may also want to look at tools that can make e-commerce processes simpler. For instance, the wide range of industry solutions available through FedEx can help businesses to streamline online billing, prepare shipments easily and enhance their delivery management.

There are lots of companies currently benefitting from our deep e-commerce expertise at FedEx – including British earphones manufacturer brand, Snugs. See how the business has leveraged our extensive coverage and fast global deliveries to bring its products to online shoppers across the globe here.

With millennials a key group for luxury retailers to target, businesses will also need to consider the fact this demographic isn’t particularly loyal to brands in markets such as Europe and China. Collaborations and celebrity endorsements have become bigger purchasing factors in the luxury fashion market – especially when it comes to handbags.¹³

The global handbags industry – in particular the e-commerce market – is full of promise, both for small, heritage brands and bigger manufactuers alike. This should give businesses in every industry confidence that by having their finger on the pulse of consumer attitudes and embracing all facets of the digital revolution, they too could experience powerful growth.

Start exploring the opportunities that await your business with FedEx. Our wide range of services and team of logistics experts can bring you closer to more markets, new customers and exciting possibilities. 

Availability of services and transit times referred to may vary depending on origin and destination. Terms and conditions apply – visit fedex.com for full details of our services.
 

¹ The evolution of: the handbag, Reader’s Digest

² Handbag Market Size, Share & Trends Analysis Report By Product (Tote Bag, Clutch, Satchel), By Raw Material (Leather, Fabric), By Distribution Channel (Offline, Online), By Region, And Segment Forecasts, 2019-2025, Grand View Research

³ Social commerce – Statistics & Facts

⁴ Social commerce trends for 2020 you need to look out for, Smart Insights

⁵ The Future of Online Luxury Retail, Luxe Digital

⁶ The Advantages of Manufacturing in China and the Benefits it Brings to your Business, Sourcify

⁷ Total revenue of women’s handbag market in China from 2012 to 2021, Statista

⁸ Global Powers of Luxury Goods 2019: Bridging the gap between the old and new, Deloitte

⁹ The Artificial Intelligence Opportunity for Luxury Retailers, Techedge

¹⁰ The home of ‘Made in Italy’ handbags is booming, Washington Post

¹¹ The State of the Ecommerce Fashion Industry: Statistics, Trends & Strategy, Shopify

¹² Women’s Handbags – The New Normal, NPD Group

¹³ Millennials willing to spend more on luxury, Gucci & Louis Vuitton most popular brands, Fashion United