Why Do The Traditional Luxury Brands Sell Bags?

According to the world clothing shoes and hats net, in the past few seasons, Vetements and

Noticeable, you may also notice those explosions - even hoodies, motorcycle jackets, retro mosaic jeans and so on.

Although these single products are exciting and even persistent, in fact, let the majority of them make the most of them.

It is not the clothes and trousers on these T platforms that bulge up, but accessories, especially bags.

"Many T shows have never invested in mass production, and their purpose is to do marketing propaganda.

Historically, the traditional luxury brands no longer exist, and now they are selling bags. "

The founder of Losangeles's Retro shop Decades was once the "most influential" judge.

Face, "says CameronSilver.

Bags represent a special category in the luxury market - the price is high and can guarantee the sale of the original price.

According to a report issued by the Bank of Paris, accessories, especially bags, play a decisive role in the luxury market.

In 2016, accessories sales accounted for 30% of the global luxury market, while in 2013 it was 18%.

In the fiscal year of 2015, the total revenue of Kai Yun group, which owns Gucci, YvesSaintLaurent and other brands, was 7 billion 900 million euros, and its leather sector earned more than 50% of its total revenue, while the income of garments only accounted for 16% of its total revenue.

For LV, which accounts for 1/3 of the total income of LVMH group, the income of the bag is also quite optimistic in LV (LVMH group puts the garments and accessories together in Fashion&LeatherGoods, and it is difficult to get data of two categories respectively).

Now, LV's handbags and other accessories have 180 products, while the women's garments only have 380 products.

For the independent fashion house Chanel, which does not belong to any luxury group, the income of the bag is very heavy.

BizJournals has analyzed Chanel's income: most of the Chanel's fashion items come from bags, which account for about 50% of the total revenue of the brand, and most of the revenue comes from cosmetics. 3 million

Since bags and accessories are making money, why do these luxury brands display their clothes on the T stage crazily, not just bags? The answer is simple: they just want to maintain the brand exposure with ready-made clothes, and do marketing on the T platform, so that consumers can buy some other things such as bags, shoes or lipsticks and powder.

It's almost a common saying in fashion circles: let perfume be the first luxury that young people have.

But what you need to understand is that luxury brand products are not just a dress, or a style, they sell IP.

Although these fashion houses began to sell in ready-made clothes and sometimes made more fashionable, they were associated with most of the middle class consumers in terms of more affordable bags, shoes and lipsticks.

These bags, lipsticks and sunglasses are usually produced by outsourcing IP to third parties.

Luxottica, the world's largest eyewear manufacturer, is responsible for the production of PaulSmith, MiuMiu, GiorgioArmani, Dolce&Gabbana, Tiffany, Versace, ToryBurch, Coach and other brands of sunglasses.

And Kai Yun group has just taken back the production line of Gucci glasses from the world's second biggest glasses maker Safilo group in October this year. It will be in the design, production, supply chain, brand, marketing and sales to control the glasses production line.

Chanel is still a special example.

Although Chanel has made glasses from Luxottica to produce, they still insist on holding their own perfume and cosmetics in their hands.

According to Bloomberg news, although Chanel also performs well in making up garments and leather goods, some of its revenue comes from its high margin products, perfume and cosmetics.

Balmain is also a business model.

The brand has no more than 10 flagship stores in the world, and its total revenue in 2012 is 50% of its revenue generated by third party licensed products.

Similarly, its sub line PierreBalmain has adopted such a method to do business.

For these high fashion houses, this business model is effective.

Although consumers can't afford to buy more than $4000 in Chanel garments, they still want to rely on this elegant brand, which is why $600 Chanel sunglasses and $90 will sell well.

"You need to look at their business models. This is a mixed mode of business. The contribution of ready-made garments to sales is very small. They are advertising for sunglasses, cosmetics, skin care products and perfume."

KatalinaSharkeydeSolis, former digital director of Chanel, said.

Dolce&Gabbana, who was all over Italy, was also doing this.

In June 2015, it was unable to sit still. It launched the first nail polish in history, with 47 colors.

This is also done to open up young people's wallet with this $28 nail polish. If they are rich, they may buy a Dolce&Gabbana cotton blended lace dress at a price of more than 5000 dollars.

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