Statement pieces have given way to more affordable, practical small leather goods like wallets and phone cases. I’d say this is a clear sign of the shift consumers are making from ‘conspicuous consumption’ to ‘calculated consumption.
Port Washington, NY (Vocus) May 25, 2010 –
According to The NPD Group, Inc., a leading market research company, business in the accessories market appears to be on the rise.
According to The NPD Group, Inc.’s Consumer Tracking Service, the fashion accessories market was down 10 percent from January through December 2009, but a strong first quarter in 2010 hints at a recovery. January – March fashion accessories sales were up 17 percent, and as a result, the market was down just 6 percent for the 12 months ending March 31, 2010.
“Overall accessories still have a way to go to show that they are firmly in recovery mode,” said Marshal Cohen, chief industry analyst, The NPD Group, Inc., “However there are some significant indications that consumers are selectively reaching back into the fashion accessories business to begin their return to spending.”
It was sales of women’s accessories that led the way for the first quarter of 2010. Total women’s fashion accessories were up 20 percent, driven by a solid performance in women’s handbags. Dollar volume sales of total women’s handbags were up 31 percent vs. the same period last year.
A closer look at the results shows that some of the drivers behind the growth can be found in the sales of handbags with an average price of $100. Sales of those bags comprised 46
percent of the total dollar sales in the handbag market. That translates to an increase of 9 share points in handbags with that price point, and suggests that women are beginning to spend on handbags again.
“Women are going to be the key to getting the accessories business thriving again…as go women so goes the fashion accessories market,” said Cohen, “And as we exit the great recession, and we see women begin their return to spending on fashion accessories, I think that will become a leading indicator of the fashion business’ return to a sense of normalcy.”
The small leather goods category for both men’s and women’s had been a bright spot for all of 2009 and continues to post positive results for the first quarter of 2010. Dollar volume sales of small leather goods for both men and women were up 9 percent for the first quarter of 2010 and for the most recently reported 12 month period ending March 31, 2010, sales were up 3 percent. Purchases of wallets, mobile phone cases and wristlets were the key drivers of this growth.
“It sure looks like the recession took a big bite out of big accessories. Statement pieces have given way to more affordable, practical small leather goods like wallets and phone cases,” observed Cohen, “I’d say this is a clear sign of the shift consumers are making from ‘conspicuous consumption’ to ‘calculated consumption.’”
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion , food and beverage, foodservice, home, office supplies, software, sports , toys, and wireless. For more information, contact us , visit npd.com, or follow us Twitter at twitter.com/marshalcohen and twitter.com/npdfashion. Become a fan of Marshal Cohen at facebook.com/npdmarshalcohen and watch him on YouTube.
The NPD Group, Inc.
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