Retailers are anticipated to strengthen their in-store experience to combat e-tailers
New York, NY (PRWEB) November 15, 2014
The handbag, luggage and accessory stores industry is expected to grow over the five years to 2014. Despite a dip in disposable income during 2010, strong consumer spending led considerable double-digit gains as consumer confidence soared and encouraged consumers to purchase industry goods. However, heightened competition from online retailers has limited growth in recent years. IBISWorld Economic Analyst Britanny Carter says in the updated report, “Moreover, fast-fashion retailers outside the scope of this industry, such as H&M and Zara, have expanded their market reach considerably and sell many industry products at competitive rates.” Further stemming gains, per capita disposable income growth is expected to slow during 2014, reducing industry revenue growth during the year.
Chain stores have continued to increase their share of total industry revenue over the past five years. Some major companies have contracted as a portion of the market due to branding and supply issues. However, data from Statistics Canada indicates a growing number of chain stores relative to one-store locations. While the wide range of products retailed within this industry limits its concentration, companies that own multiple locations are expected to continue expanding their presence within the industry. Chain stores are able to negotiate more favourable upstream supply contracts due to their strong buyer power. Several companies, such as Danier Leather Inc. also manufacture their own products and, therefore, eliminate the price-premiums incurred through traditional supply contracts. Coupled with improved demand conditions, these factors are anticipated to increase industry profit from 2009 to 2014.
Revenue in the handbag, luggage and accessory stores industry will continue to climb upwards over the five years to 2019. While disposable income is expected to accelerate over the period, competition from online retailers will continue to siphon an increasing share of the industry's market. Carter says in the updated report, “In addition to avoiding costly rent, online stores do not require sales associates and e-tailers can consequently competitively price industry products while maintaining favourable returns.” In response, retailers are anticipated to strengthen their in-store experience through superior customer service and events.
For more information, visit IBISWorld’s Handbag, Luggage & Accessory Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry includes specialty retailers that predominantly sell handbags, luggage, clothing accessories or any combination of these products.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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