In The Face Of Women'S Handbags, How Will The Luxury Enterprises Upgrade Their Strategies And Actively Respond To Them?

London, UK - handbags are the world's top.

The company's foothold is not a secret.

Leather goods (70% to 90% of handbags) are personal luxuries.

The largest single product category has naturally become the ultimate battleground.

90% of total revenue.

There are many reasons for this.

From the perspective of consumers, handbags are a symbol of strong social status and wealth. It is easier to mix and match with other single products. There are many occasions for application, and the life of products is relatively long. Usually, it is "month" or even "year", and the "use cost" of handbags is much lower than that of shoes or clothing.

Standing in the perspective of brand CEO, handbags are the only products that can really make money, and sales density and full price sales rate are higher than other products.

The sales volume of leather products of all major brands is Leather goods exposure across luxury brands.

This also makes the handbag category become a battleground for the military. The main international brand players who are proficient in the art and technology of handbag marketing dominate the market.

Handbag products contributed nearly 75% of revenue to Louis Vuitton, and nearly 45% and 40% respectively in Prada and Gucci. Handbag strategy is indeed very critical, and Sanford Bernstein advanced analyst Mario Ortelli carried out the analysis shown below.

The importance of handbags to Louis Vuitton, Gucci, and Prada

Louis Vuitton: new package & Classic

According to the world clothing and shoe net, Marc Jacobs, the former designer of Louis Vuitto, Nicolas Ghesqui re, is good at bringing a sensation to the series.

But Ortelli explained that during the Jacobs term, brand sales mainly relied on the low price of the classic first letter handbag, plus some high priced products to maintain brand positioning.

Since the first brand series was released in 2014, Ghesqui re has launched several high priced seasonal styles to pform its new classics to continuously inject new vitality into the handbag series of the brand.

The Petite Malle handbag became the most coveted bag of Paris fashion week in the autumn and winter of 2014, and then developed into the core package of Louis Vuitton. Its position is comparable to the classic but relatively inexpensive style of Speedy.

In January this year, the last conference of the super fashion brand was launched at Kim Jones, and a new version of Petite Malle was launched.

Louis Vuitton's Petite Malle handbag. Photo source: Shutterstock

"Louis Vuitton has done a particularly good job, which is to re launch the handbags in a season after a few years and release them again. They did this in Manhattan recently," Ortelli said in the report.

There are also Capucine reissued in 2013, and then sold out in stores in London, Milan and Paris. "Now we can say that Capucine is already one of the core packages of Vuitton."

Over the past 8 months, Louis Vuitton has also launched a new version of the price range from 1500 to 2000 euros (about RMB 11690 to 15588 yuan), and expands the breadth of existing styles by providing different colors and materials, or with applique or embroidery decoration.

Looking forward to the future, Ortelli said, "we will also see that Vuitton will launch a new package. But compared with the" acceleration "in the second half of 2016 to the first half of 2017, that is, the rhythm will be more normal than about 4 new packages each season. [about 2 to 4 new packages will be launched every quarter].

The analyst also believes that Louis Vuitton will provide more seasonal or limited edition handbag styles, and will also review the brand history files and reintroduce seasonal handbags for the development of brand evergreen, such as Petite Malle.

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Gucci: maximize brand fever

Since Alessandro Michele became the brand creative director in 2015, Gucci has always tried to play a new momentum after the Transformation -- reintroducing traditional styles and new styles to boost handbag sales.

Ortelli said, "Gucci has a large proportion of leather products, clothing, shoes and other products in history. Compared with that, Vuitton was originally made from leather products, and this year it has introduced clothing and shoes."

Gucci's Dionysus "Dionysus bag" photo source: Shutterstock

"In the creative direction of Michele, now Gucci is also a classic brand," he continued. "For example, Dionysus or Sylvie handbags, [Michele] [Michele] widened the range of handbags products that Gucci had originally positioned 1500 to 3000 euros, and also launched a higher priced Gucci, Totem and other handbag products for customers who pursue elegant taste.

Indeed, in view of the rapid growth of Gucci's brand strength and sales momentum, the brand has launched two new product lines with different price ranges in the past 8 months: the price ranges from 1500 to 2000 euros, and 2500 to 3500 euros.

In 2017, the brand continued to launch new packages of Ophidia, Ottilia and so on on the basis of the highly successful Dionysus "Bacchus bag".

"Gucci hopes to introduce high and medium priced products to meet the booming market demand.

This will greatly promote the growth of Gucci in 2018, "explains Ortelli.

Prada: reduce prices and enhance competitiveness

Of the three brands mentioned in this article, the price range of Prada handbags is the most limited.

In the past, the handbags of the fashion house were higher than their counterparts.

For example, the mini size Prada Galleria sells for 1100 euros, but the Louis Vuitton's trumpet Speedy sells for 650 euros, and Gucci trumpet shoulder bag is around 690 euros.

Over the past 8 months, Prada has further reduced the price range of new handbags to 750 to 2000 euros.

Ortelli said, "the expansion of low prices can support Prada sales in the short term, and sales will grow." but he also pointed out that Prada's current bag structure is not as strong as Vuitton and Gucci, and the new handbag can not be launched at the price range of 1500 to 2000 euro, but this range can actually attempt to replicate the successful mode of Galleria handbag.

"The price range of the other two brands is very wide," he said.

Prada flower strap Galleria Prada. Photo source: Prada

In September last year, Prada's profit in the first half of 2017 was not expected by analysts, and its profit dropped to its lowest level after IPO in 2011.

In order to get back to the right track, the Milan based fashion house always relies on handbags.

Ortelli said: "we believe that Prada will continue to introduce new and unique designs in the next few years, trying to create new evergreen products in this important product category."

He also suggested that brands should launch new products at a high price range of 1400 to 3500 euros while focusing on low price series, which will help Prada increase sales.

"Facing the biggest and most powerful two brands in the handbag Market, Louis Vuitton and Gucci, Prada is now defending itself and trying to get potential benefits, which is a big challenge."

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