IBIS World Releases Report on Luxury Handbag and Luggage Industry

Despite moderate revenue declines in 2008 and 2009, revenue in the Luggage and Accessory Stores industry has risen over the past five years. IBISWorld estimates that revenue increased at an average annual rate of 1.1% to $9.54 billion during the period. In 2012, revenue is expected to grow by a healthy 3.9%, signaling the return of consumer spending on affordable luxury.

“Still, industry participants have not been able to completely sit back and relax,” says IBISWorld industry analyst Nikoleta Panteva. “Companies are still making promotional efforts to cater to aspirational luxury shoppers, who indulge in purchases up to $300. For example, major player Coach launched a lower-priced product line in 2009 to capture this demographic.” These movements toward lower price points help increase affordability, which stimulates demand. To balance lower price points and retain profit, the industry relies on imports.

The top four industry companies are Coach, Claire's Stores, Moet Hennessey Louis Vuitton (LVMH) and Genesco. Together, these operators give the Handbag, Luggage and Accessory Stores industry a medium level of market share concentration. Over the past five years, industry concentration has increased significantly, as has Coach’s individual market share. Meanwhile, former major operator Wilson's Leather exited the industry in 2008, pushing down concentration. Says Panteva, “This exchange of power has caused the top four firms to gain more power, as their share of the industry has increased.” IBISWorld forecasts that concentration will grow in the coming years. Players like LVMH and Genesco are focusing on acquisitions to expand their brand names and recognition. This move will likely push the industry into the high-level concentration bracket in the next five years. Furthermore, consolidation will help maintain profit margins.

While the number of companies is expected to decrease, industry revenue is still set to rise over the coming five-year period. As the economy rebounds during the next five years, industry revenue is forecast to grow at an even faster annualized rate. The market is maturing as companies move into new categories and increasingly fight against counterfeit goods. Because new geographic locations are limited, the men's goods category is expected to continue to grow, stimulating new sales within existing markets. With new sales opportunities under pressure, retailers are going on the offensive against stores that sell counterfeit accessories. For more information, visit IBISWorld’s Handbag, Luggage and Accessory Stores in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes specialty retailers that primarily sell handbags, luggage or clothing accessories, or any combination of these products. Stores in this industry do not sell apparel.

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 information and analysis on every US industry. 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, visithttp://www.ibisworld.com or call 1-800-330-3772.