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					ACCESSORIES MAGAZINE/NPD 2009 CENSUS REPORT



  Handbags
  KEY RETAIL TRENDS 2009
  • Even though handbags have benefited in recent years as being an “it”
    classification in the fashion world, sales slowed down last year for the
    first time in many seasons. Dollar sales declined 5 percent while units
    fell 8 percent.
  • Average unit price for the handbag classification was $24; however, there
    is a wide range of average unit prices among retail channels. Not
    surprisingly, mass merchants were on the low end with an average unit

                                                                                                                     price of $10, while department stores were at the high end at $67.
                               WOMEN’S HANDBAGS1                                                                   • Consumers may have shied away from the most expensive designer
                                Retail Sales Estimates                                                               bags, but handbags continue to command the highest average retail
                                       $ Billions                                                                    pricepoints of any accessories classification.
                 Projected 2010*                                     $9.34
                                                                                                                   • Nearly 20 percent of the dollar sales were at retail pricepoints of $200
                      2009                                            $9.2
                      2008                                            $9.6                                           or higher. The average unit retail in this high-end category is $357.
                      2007                                            $9.0                                         • There’s almost an even split between consumers who purchased her
         Source: The NPD Group / Consumer Tracking Service for Accessories / 12ME Dec 09
         1
                                                                                                                     handbags at regular versus sale price.
          Handbags defined as all Women’s Bags, including Handbags, Totes, Duffle Bags, Messenger
         Bags, Sport Equipment Bags, Briefcases/Attaches, Laptop Bags, Fanny/Waist Packs, and                      • Consumers age 35 to 54 accounted for 32 percent of all handbag sales
         Diaper Bags
           *Projections provided by Accessories Magazine                                                             last year. The average unit retail price to this age group was about $25.
                                                                                                                   • Younger consumers, those ages 18 to 34, nearly equaled their older
                                                                                                                     counterparts in dollar sales. However, younger consumers spent more on their
                                                                                                                     handbags purchases. Average unit sale for younger consumers was $29.
                                  WOMEN’S HANDBAGS1
                                                                                                                   • Improved technologies in faux leather materials, nylons and other fabrics
                                     Price Breaks
                                                                                                                     drew in new consumers. Boosted fashion styling helped, too.
                                           % of 2009 % of 2009                         Average                     • Most handbags continue to be purchased in store. Online sales
                                            Dollar     Unit                              Unit                        accounted for about 12 percent with Internet pure play retailers showing a
                                            Sales     Sales                             Retail
                                                                                                                     4 percent dollar share. Nonetheless, despite that increase, Internet
    Total                                      100%               100%                     $24                       handbag retailers also experienced a 34 percent drop in dollar sales
    Less than $15.00                           18%                57%                      $8
                                                                                                                     compared to 2008.
    $15.00-$24.99                              18%                22%                     $20
                                                                                                                    • Early emerging item for 2010: the “bar” (aka mini bag, wallet-on-a-string,
    $25.00-$49.99                              18%                13%                     $34
    $50.00-$99.99                              12%                 5%                      $68                        disco bag) is already gaining importance during first quarter.
    $100.00-$199.99                            15%                 2%                     $140                     • At bridge to better pricepoints, key retails are between $300 to $400.
    $200.00+                                   19%                 1%                     $357                     • At moderate pricing, key retails retails are between $58 to $68.
    Source: The NPD Group / Consumer Tracking Service for Accessories / 12ME Dec 09                                • Average retails for leather bags now fall between $200 to $250. Key
    1
     Handbags defined as all Women’s Bags, including Handbags, Totes, Duffle Bags, Messenger Bags, Sport
    Equipment Bags, Briefcases/Attaches, Laptop Bags, Fanny/Waist Packs, and Diaper Bags                             retails in the bridge to better pricepoints range are $300 to $400. At the
                                                                                                                     moderate level, key retails are $58 to $68.

                                                                                     WOMEN’S HANDBAGS1
                                                                                 Retail Sales Estimates by Channel
                                                                                        2009                                Dollar              2009                                  Unit              Average
                                                                                       Dollars              % of            % Chg               Units                % of            % Chg                Unit
                                                                                      (millions)           Dollars         09 vs 08           (millions)             Units          09 vs 08             Retail
       Total                                                                           $9,168.3            100%               -5%                 375.9              100%               -8%                 $24
       Department Stores                                                               $2,120.7            23%               -12%                  31.7               8%               -17%                 $67
       National Chains                                                                  $601.4              7%                2%                   32.3               9%               -10%                 $19
       Mass Merchants                                                                   $871.1             10%                -2%                  91.1              24%               -11%                 $10
       Specialty Stores                                                                $2,858.8            31%                -1%                  60.0              16%               -11%                 $48
       Internet Pure Plays*                                                             $330.4              4%               -34%                  11.3               3%                -7%                 $29
       Catalog/Direct Mail                                                              $117.5              1%               -42%                   7.4               2%               -39%                 $16
       Home Shopping                                                                    $248.0              3%                13%                   5.7               2%                -8%                 $43
       Off-Price/Factory Outlets/Warehouse Clubs                                        $533.3              6%                10%                  35.3               9%                 7%                 $15
       Other                                                                           $1,487.1            15%                1%                  101.1              27%                1%                  $15
      Source: The NPD Group / Consumer Tracking Service for Accessories / 12ME Dec 09
      1
       Handbags defined as all Women’s Bags, including Handbags, Totes, Duffle Bags, Messenger Bags, Sport Equipment Bags, Briefcases/Attaches, Laptop Bags, Fanny/Waist Packs, and Diaper Bags. Other includes Food and
      Drug Stores, Flea Markets, Mall Kiosks, Salon/Spas etc.
      * A Pure Play is solely an Internet retailer with no physical store


 22 Accessories/March 2010

				
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