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What’s next for the The $1,000-and-over handbag market?
Overall, our panelists agree on the continued momentum in luxury handbags. Davidowitz of Davidowitz & Associates, for one, is adamant: “The $1,000-and-over handbag business will keep growing—it’s a priority for affluent women, and price is no object. No one is talking about an explosion in the $100 handbag business.” MMG’s Feller, however, cautions that too much merchandise is crowding the highest price tier. And much of the time, he adds, those products simply don’t warrant sky-high prices.
Unity Marketing’s Pam Danziger thinks the real opportunity lies in “premium product” versions within the $200 to $500 range, and predicts diminished growth for the $1,000-and-over price tier. Probably inspired by high-priced handbags, Feller points out that watches have carved out a whole new “fashion luxury” subcategory unto themselves—such as Technomarine’s diamond bezels with plastic straps. Designer sunglass prices are also likely to escalate even further, he adds, with new luxury licenses. Case in point: Tiffany’s new venture into eyewear.
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