Global Handbag and Purse Manufacturing Industry Market Research Report from IBISWorld has Been Updated

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Demand for handbags and clothing accessories weakened over the past five years as consumers in recession-hit countries held off on nonessential spending. Demand for higher-priced luxury products, however, increased in Asian markets as incomes in the region rose. Companies that operate in developed economies are increasingly sourcing accessories and handbags from manufacturers in China, where production costs are lower. The industry is forecast to grow over the next five years as conditions in the global economy strengthen and disposable incomes and consumer sentiment increase. For these reasons, industry research firm IBISWorld has updated a report on the Global Handbag and Purse Manufacturing industry in its growing industry report collection.

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Demand for handbags and accessories will grow as the global economy strengthens

Demand for the Global Handbag and Purse Manufacturing industry weakened over 2008 and 2009 as consumers in recession-hit countries held off on nonessential spending. However, demand for higher priced luxury products rose in countries such as China. “Many Europe-based companies, such as LVMH, are placing a greater focus on the Asian market as incomes in the region rise,” says IBISWorld industry analyst Nikoleta Panteva. As a result, IBISWorld expects that industry revenue will grow an annualized 2.6% over the five years through 2012 to $93.6 billion. In 2012, revenue is expected to grow 3.1%, reflecting the slow recovery and constrained economic growth in developed countries.

Europe and Asia account for a large share of handbag and accessories manufacturing revenue. Items produced in Europe (Italy and France in particular) are regarded as high-quality, luxury products that command a higher price. However, companies that operate in developed economies are increasingly sourcing accessories and handbags from manufacturers in China, where production costs are lower. “As wages in China rise, production is shifting to lower cost producers in the region, such as Vietnam,” adds Panteva. “As a result of these trends, international trade accounts for a large share of revenue.” IBISWorld anticipates that international trade will increase at an annualized 3.5% over the five years through 2012 to $59.9 billion, or 64.0% of Global Handbag and Purse Manufacturing industry revenue.

The size of the industry is expected to increase over the five years to 2012. However, the number of companies in Europe and the United States is expected to decline. Companies in developed nations are continuously shifting their operations from manufacturing to design and wholesaling. Eurostat data indicates that the number of companies in Italy has fallen in most years since 1999. Concentration in the industry increased slightly in recent years due to mergers and consolidation of industry participants. The level of industry concentration is expected to increase slightly in future years as this trend continues in a saturated and mature industry. The industry is highly fragmented, as the very high labor intensity of most of the industry's production lends itself toward many small operations. While large scale manufactures operate in the industry in China and Europe, newly industrialized countries also have a large number of small businesses that manufacture apparel accessories and handbags.

Demand for handbags and accessories is expected to grow over the next five years as conditions in the global economy strengthen. As disposable incomes grow and consumer sentiment recovers, consumers will make purchases that they postponed during the recession. As such, industry revenue is forecast to grow in the next five years to 2017. International trade will remain a key feature of the industry, as production continues to shift to low-cost countries. For more information, visit IBISWorld’s Global Handbag and Purse Manufacturing industry report page.

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IBISWorld industry Report Key Topics

Operators in this industry manufacture handbags, purses, wallets and other articles normally carried in the pocket or handbag (apart from jewelry and watches). The industry also comprises establishments that manufacture articles of apparel and clothing accessories made from textiles and other fabrics (other than those for babies) and headgear of all materials.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique industry information and analysis. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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