Top-selling bags are worth more than $8 trillion.
The value of handbags is rising, especially in the United States, but a new study by the consultancy consultancy PwC shows that the world’s biggest brand is actually struggling to keep up.
“It’s been quite a challenge,” said David Moulden, senior analyst at PwL, which analysed more than 80 million sales data for more than 2,000 brands.
“The main challenge is that most people still think handbags are very expensive, which is not the case.
It’s more of a cost-effectiveness problem.”
People still buy handbags because they like them, but that is changing.
The consumer has shifted to the concept of ‘handbag’ and not just ‘bag’.
“The study also found that consumers are increasingly buying handbags on a budget.
The PwS study found that shoppers are spending on average $200 more per year than they did two years ago, and that average annual spending for the top-sellers has jumped $1,600 per year since 2014.
PwC also found an alarming rise in the number of customers who are opting to buy their bags on Amazon, the online marketplace.
In fact, the study found a 20 per cent increase in shoppers who were buying their bags from Amazon in the first half of this year, compared to the same period last year.”
We were shocked by this,” Mr Mouldeng said.”
These numbers are not good for brands, especially if you’re a major brand, but we’re not saying that’s bad.
It is a sign that Amazon is growing rapidly, which makes it hard to keep pace with demand.
“In the US alone, Amazon alone has seen an increase of about $1.8 billion in value in the last 12 months, and we’ve got more than a billion Amazon shoppers across the world.”
Amazon has become the largest online retailer in the world.
Its market share has grown rapidly in the past year, reaching 51 per cent in the US, followed by Walmart and Google in second place.
“Amazon’s been one of the biggest beneficiaries of the consumer shift to Amazon,” Mr McMoulden said.
Pew Research estimates that consumers will spend more than four times more on handbags in the next three years than they do on cars.
While the rise in consumer spending on handbag has been accompanied by a rise in car sales, there is little sign of that trend changing.
According to PwG’s research, there were more than 7.7 million cars sold in the second quarter of 2017, and an average of 2,939 new vehicles were sold every month in the UK.
“This has been an important driver of the overall growth in the retail sector over the past two years,” Mr Fowley said.
“The industry has been growing strongly and that is a reflection of consumers buying more.”
However, the pace of growth in car spending has slowed in recent months and we have to be very cautious in projecting how it will continue to progress.