31 Jul '16, 7pm

Weekend Read | Mini handbags are on the rise

LONDON, United Kingdom — If a customer walked into a Chanel store today, for the first time in five years, looking for a Classic Flap bag, they’d be forgiven for doing a double take at the price tag. From 2009 to 2014, the cost of a Classic Flap skyrocketed by 70 percent. Indeed, a Boston Consulting Group study of seven major luxury brands found that, from 2002 to 2012, the prices of their handbag offerings increased by an average of 14 percent each year. By hiking their prices, brands like Chanel and Louis Vuitton have pushed entry-level customers out of the luxury handbag market — and into the path of accessible luxury labels, such as Michael Kors , Tory Burch and Coach . From 2010 to 2015, when sales of handbags in BRIC countries grew at a compound annual growth rate of of 6.6 percent, according to Exane BNP Paribas, accessible luxury labels presented less of a threat t...

Full article: https://www.businessoffashion.com/articles/intelligence/s...

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