Demand for handbags and accessories will grow as the global economy strengthens
Los Angeles, CA (PRWEB) June 13, 2013
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. As a result, IBISWorld expects that industry revenue will grow an annualized 2.2% over the five years through 2013 to $95.5 billion. In 2013, revenue is expected to grow marginally at 0.3%, 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,” says IBISWorld industry analyst Kiera Outlaw. 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 Asia, such as Vietnam. 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 2.5% over the five years through 2013 to $61.0 billion, or 63.9% of industry revenue.
Concentration in the Global Handbag and Purse Manufacturing industry increased slightly in recent years due to mergers and consolidation among industry participants. Concentration is also expected to increase slightly in future years as this trend continues in a saturated and mature industry. The industry is highly fragmented. The very high labor intensity of most of the industry's production lends itself toward many small operations. While large-scale manufactures operate in China and Europe, newly industrialized countries also have a large number of small businesses that manufacture apparel accessories and handbags, continues Outlaw. The size of the industry is expected to increase over the five years to 2013. 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.
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. 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
Industry operators manufacture handbags, purses, wallets and other articles normally carried in a pocket or handbag (apart from jewelry and watches). The industry also comprises establishments that manufacture apparel and clothing accessories made from textiles and other fabrics (other than those for babies) and headgear of all materials.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.