Handbags: 2007 Key Retail Trends

• At $7 billion, handbags continued as a top-selling classification, with many retailers expanding space to accommodate more and/or new brands. Yet compared with previous seasons, most retailers and industry experts agree that overall growth slowed down this past year, due in part to oversaturation of product. According to a Goldman Sachs survey of 1,550 American consumers, 32% percent planned to buy fewer handbag this year; 51% said they’d buy the same amount, 18% said they’d buy even more.



• At the luxury level, consumers showed little price resistance for the "right" design, even at retail prices exceeding $1,000. Even moderate consumers often "traded up" to handbags priced as high as $700. That said, there are indications that “It” bag mania is slowing as consumers seek variety.



• While designer brands reigned at department stores, "indie" labels (such as Be & D, Botkier, Foley & Corinna and Lockheart, to name a few) continued gaining strength in boutiques, as consumers sought out unique new styles.



• Moderate handbags struggled—particularly in leather, which lacked novelty and color, say buyers. Promotional pricing helped (ranging from $9.99 to $59.99), as did embellishments like embroideries, novelty fabrics and patterns.



• Primary brights flourished as a spring trend. For fall, classic neutrals such as black, chocolate brown and burgundy prevailed. Gray emerged as a "new" neutral, while metallic finishes (including updated metallics, such as gunmetal) were prevalent enough to become virtual fashion staples.



• Fur was popular for fall/winter. Real and faux versions abounded in large-scale silhouettes, with luxurious creations at the high end. Exotic skins also abounded (from alligator and python to stingray).



• Exterior pockets continued as popular details, as did quilting (in traditional and diamond patterns, plus creative circular and zig-zag versions).



• Hardware streamlined, with subtler details like buckles, kiss-lock closures and chain-strap handles. Interior organizational components remained key.



• At every pricepoint, large-scale silhouettes endured as best sellers (largely popularized by celebrities), including duffles, slouchy hobos, gathered frames and trapezoid shapes, as well as zip-around domes. Oversized and elongated clutches were popular handbag silhouettes even for daytime.



• Yet again, designers and celebrities delved into branded licensing. Some launches: Tracy Reese, Isaac Mizrahi and Jill Stuart, as well as Jessica Simpson and Fergie for Kipling. Denim collections such as Joe's Jeans, True Religion and Seven for all Mankind also launched handbag lines.



• In terms of "eco chic"/green accessories, handbags led the way, with "repurposed" materials ranging from recycled plastic and rubber to candy wrappers and billboards. Retailers agreed, however, that handbags and all environmentally beneficial products must look good as well as being "earth-friendly" to guarantee consumer interest.



• As a hybrid of leather handbags and belts, designer belt bags (a.k.a. "fanny packs") emerged as a surprisingly hip "subtrend"—including versions from brands such as Gucci, Anna Sui, Seven for All Mankind and L.A.M.B.



• Several "subcategories" of functional (yet always fashionable) handbags continued—including laptop cases, carry-on and diaper bags, plus "interchangeable" bags with removable interior compartments.



• Another extension of the handbag classification—travelgoods—fared well (generating a record $19.2 billion in sales within the past two years, according to the Travel Goods Association). In terms of function, smaller-scale silhouettes (adhering to airline regulations), more lightweight materials and increased mobility with in-line skate wheels are key concerns for consumers. Like in handbags, more designers are entering into travelgoods via capsule collections (including Stella McCartney for LeSportsac, Jeremy Scott for Longchamp and Alexander McQueen for Samsonite).

Special Occasion Handbags:
2007 Key Retail Trends

• The classification held its own this year, with sales increases for prom season and fourth quarter. It remains a year-round business overall.



• Clutches dominated across the board, followed closely by vintage-style frames, as well as pouches in velvet and satin. Both often came equipped with interior shoulder or wrist straps for a hands-free option. In general, bigger was better: Larger variations sold best across the board.



• This larger-sized phenomenon in special-occasion handbags marked the "day-into-evening" trend. Handbags embellished appropriately for evening, yet large enough for daytime needs (to hold cell phones, BlackBerries and other essential gadgets) emerged as a subcategory in its own right. "Day into evening" counts junior and contemporary customers as its target audience, although longer-length "envelope" clutches also appealed to mature consumers.



• Customers also purchased smaller-scale box clutch silhouettes, which complemented voluminous apparel and often showed up on the red carpet.



• Bows, large faceted jewels (with colored and/or clear stones), flocked fabrics, ruched ribbon trims and passimenterie, were popular details.



• For Spring '07, key looks included lace overlay treatments, bright citrus colorations and natural embellishments such as mother-of-pearl and shells. Metallics (including metal mesh and "liquid silver" styles) were especially popular for the Fall/Holiday '07 season.