Hermes Birkin
Trends ebb and flow and come and go but the last time the designer handbag industry saw an "ebb" was ages ago! Peek in your closet and count the number of designer handbags you have....maybe seven, 10, or maybe just one? Designer handbags are going the way of the samurai and while the reasons are numerous, we can partially thank millennials for not wanting the cache of a Chanel or Louis Vuitton neverfull. If you're in your 40's or 50's, chances are you've got your IT bag for now and won't be looking for another for a few years to come.
In the meantime, millennials are quite content to do fast fashion with rapid turnover. And it's not just millennials... This is bad news for the likes of Michael Kors, Coach, and the Kate Spades of the industry because their bags used to fall into the traditional handbag sweet spot of $200-$400 and a growing population of handbag-holders aren't willing to pay that for "designer". Indeed check eBay for the number of discounted Kate Spades; or note that over half of the Coach bags purchased are bought at an outlet! Apparently, the Kors, and Spade's of the world were considered "aspirational brands" but once you get the bag then you have to aspire to something else.....
Couple that with luxury brands like Chloe and Chanel implementing price increases (to further differentiate themselves as luxury brands??) and the gap is getting large. The third point on this perfect storm seems to be the proliferation of leather handbags from the likes of Zara that can create a leather handbag for around $100.
Stop for a second to ask what a "designer" handbag is because that question needs its moment in the light. These aspirational brands were considered designer and now the luxury brands are moving to further solidify themselves as different. The question I pose is are you saving even more to get that Chanel, or opting out of the discussion for the in-season and on-trend leather handbag from Zara....for a mere $1,200 less?!
I'm still saving...
