According to a report, conducted by Million Insight, there is no contest and there is not going to be in the years to come either: bags will grow richer and richer. So much so that, from now until 2028, leather goods accessories will undoubtedly play a leading role in the market. On top of that, they will be enjoying a boost at (nearly) unbelievable speed
They have first spotted it on the river Thames. Well, they could hardly miss it, in fact. Then, they have noticed it at Palm Jumeirah, Dubai, standing out in the dock. It was a gigantic sample of a bag. To be more precise, it was the Olympia model by Burberry. For the records, the British fashion brand opted for this quite original way to promote their it-bag. While pursuing a marketing strategy, previously started in May, which has engaged “Very important Influencers.”
An example, among others: Kendall Jenner and Shygirl. For all that, however, placing in the water a maxi Olympia bag (whose original variation, made of “top-notch quality” leather, is 100% made in Italy), shows a specific, and particular meaning. In other words, it evidences that leather goods are an essential and undisputed asset in the fashion luxury consciousness.
Such consciousness has a huge market value, which is going to increase more and more: we are about to explain it to you shortly, in the following paragraphs. In fact, in the years to come, bags will grow richer and richer, as emphasized in a report performed by Million Insight.
Bags will grow richer and richer
While conducting market analysis, Million Insight have estimated that, by the end of 2021, the luxury bag business turnover will reach, in terms of value, 65.48 billion dollars, compared to 62.30 billion dollars in 2020. Considering the pandemic and its effects, such result would be quite astonishing. It is not really like that though. There is much more. As regards accessories, whose Compounded Average Growth Rate (CAGR) is going to amount to 5.3%, revenues will even reach, in terms of value, 94 billion dollars in 2028. What is going to be the leading driver for such remarkable growth? Quite simple: the increase in the number of working-age women all over the world.
According to Million Insight, buyers highly regard luxury accessories as important items. Furthermore, they can now purchase them more easily on the web. Besides that, in the fashion world, players consider bags as the most crucial factor to judge one’s look. In addition: the power of a brand, together with its being recognizable, is one more driver for sales growth from the perspective of buyers who earn, according to Equifax (a multinational consumer credit reporting agency), 100.000 to 250.000 dollars a year.
Tote bag is most popular (in 2020, its market share amounted to 36%), while shoulder bags are going to enjoy a more considerable boost from 2021 to 2028. As regards materials they are made from, leather luxury bags accounted for 47% of the whole market in 2020. This business segment – wrapped up Million Insight – is bound to expand and increase to a considerable extent, mostly driven by the rising number of brands and a more comfortable lifestyle. In other words, bags will grow richer and richer.