Why Is It Bag Trying To Return To The Market?

"It package" is trying to return to the market.

In the early 00 years of the 1990s and the early 00 of twenty-first Century, many bags were sought by consumers and became the symbol of social status, which became the main driving force for the growth of European luxury brands, including the Flora series of Gucci, the Mombasa series of Saint Laurent, and the Lariat series of Balenciaga.

Fendi was one of the most popular brands at that time. Its Baguette handbag featured a rectangular appearance and a short band. In the ten years after the 1997, it launched more than 700 styles with a sales volume of up to 60 million and an average price of $1500.

"Everyone...

Everyone is talking about handbags. The attention of handbags is comparable to that of the Pope. "

An anonymous fashion reporter told The New Yorker in 2006.

Today, some luxury bags can still cause a boom, especially the Herm s Birkin platinum bags and Chanel 2.55 handbags.

But most of the classic handbags are no longer in the past. They are already at the end of the fashion consumption cycle. They also have the same brand style logo style as well as their ostentatious consumption behavior.

Now, sneakers have replaced bags, arguably becoming essential fashion accessories.

But brand logo is returning, and luxury sales are booming again.

Some brands have turned their attention to the explosive bags that they once built.

By adding modern elements (such as slanting bag belt) and adopting a new marketing strategy (such as cooperation with a large number of net partners), Fendi and Dior brands are giving their classic bags second spring.

At least for Dior, this effort worked: in the summer of 2018, Saddle saddle bag returned to the market in a high-profile fashion, and market data showed that sales were good.

A report released by NPD group in 2018 showed that although the market of the fashionable handbags valued at 190 billion is declining, the sales of luxury bags are increasing because a large number of consumers think that luxury bags are worth investing.

Dior's parent LVMH group said its sales of all its leather goods increased 15% in 2018 to 18 billion 500 million euros (about 21 billion US dollars).

Fendi, the brand of LVMH group, is on the same path as Dior.

In order to return the Baguette handbag to the market, the flagship store in Fendi held a party event during the fashion week in New York.

Fendi also took an online advertisement to reveal the origin of Baguette handbag to the Carrie Bradshaw of the Sex andthe City actress.

It is too early to tell whether the advertisement is successful.

People's consumption behavior has undergone tremendous changes in the past ten years.

In the past, the desire of women was to have the same package as other people. Now they prefer Limited accessories to show their keen sense of fashion.

Therefore, although the brand restores the classic bag for the new generation of consumers, it is wise to make profits from the nostalgia. But the meaning of the package after restarting is very different from that of the past. Consumers who have experienced the first "It package" craze especially understand the difference.

Silvia Gaitan, a shopping consultant and stylist, is stationed in New York. Most of her customers are between 30 and 70.

In their view, the "It package" is restarted to cater for net red rather than the needs of popular women.

Gaitan prefers more personalized luxury bags.

"My customers are not interested in them at all," she said of the Dior Saddle saddle bag.

"They try to stay away from fashion trends."

Joan Kaufman, a shopping consultant, said her customers would still let her buy Premium accessories for Chanel and Herm s.

"This is a status symbol," she said.

Nevertheless, in the age when sports shoes are unified in fashion, the designers of classic accessories are still attracting people's attention.

The "It pack" advertising "Blitzkrieg" has aroused concern in social media, and their prices in the secondary market have also risen.

This phenomenon is partly due to the rise of the retro trend.

The millennials are looking at the classic sections of the 1980s and 90 in a completely new way. They are eager to acquire products with traditional elements and historical sense.

Fashion brands such as Versace and Marc Jacobs are eager to restart the products that made them famous for decades.

Robert Burke, a luxury industry consultant, is chief executive officer of Robert Burke Associates, a retail consultancy. He says many consumers are willing to spend $4000 to buy a bag to buy two characteristics of a bag, "durability and recognition".

As for the popular style of Instagram users, consumers choose more from 400 to US $600 than ever before.

For investment oriented millennial consumers, Baguette handbags and Saddle saddle bags are "tempting," Burke said.

Fendi pays particular attention to the excavation of the history of Baguette handbags.

The brand has taken a series of net red advertising blockbuster. Net red Caroline Daur pays tribute to sex and the city in one of its advertisements, and the heroine played by Sarah Jessica Parker in this play once showed the love of Baguette handbag in 2000.

Parker even made a guest appearance in the advertisement, repeating her lines in sex and the city: "this is not a bag, this is Baguette handbag."

"In order to attract a new generation of consumers, the brand must update the classics," Luca Solca said.

He also said that in a competitive market, products that are recognized by the market are very important for luxury brands, and restarting the classics is a shortcut to achieve this goal.

The flourishing second-hand market has built a bridge between the old bag and the new generation of consumers.

A young woman may not be able to afford the $2000 package, but now she can buy cheaper secondhand goods from second-hand luxury goods trading websites, such as Rebag, The RealReal and Vestiaire Collective.

Last week, Andrea Loredo, a 28 year old fashion blogger, bought himself a The bag after she saw the retro Baguette handbag in New York fashion week.

This is the first time that she has bought luxury bags.

She considered buying Baguette handbags directly from Fendi, but thought the handbag was too different from the original one.

She also predicts that this handbag will continue to appreciate in the secondary market this year, so she can sell it over time.

"That's why I bought bags in the second-hand market," she said.

Luxury brands are far away from second-hand trading sites, but the latter fully reflects the growing demand of consumers for retro style.

Rebag Charles Gorra, founder and chief executive, said that the second-hand price of the bag had been raised by 300% in the 12 month before Dior announced the restart of Saddle saddle bag in July 2018.

(the Saddle saddle bag after the reopening debuted in February 2018 at Maria Grazia Chiuri's Dior show, which went public in the same autumn.

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In order to give the Saddle saddle bag second spring, Dior has taken a very active marketing strategy, and invited 100 to cooperate with Chiara Ferragni and Eva Chen to promote this package.

Tribe Dynamics data show that in the third quarter of 2018, Saddle saddle bag created a media exposure value of nearly US $350, but it slumped to $193300 in the last 3 months of 2018, and the original momentum did not last long.

But the price of second-hand Saddle saddle bags is still rising.

The RealReal data show that the second-hand price of this bag doubled from 2017 to 2018, reaching 42% of the initial retail price.

On Rebag, the Saddle saddle bag is currently close to 75% of the current retail price, while the second-hand price of retro is about 30% of the market price.

This bag is better than the average in the secondary market: in the 6 to 12 months after the listing, most of the bags will lose 40% to 60% of the value and then depreciate rapidly.

Fendi's task of reviving Baguette handbags may be even more arduous.

Used Baguette handbags are not as revalued as second-hand Saddle saddle bags.

In fact, Gorra stopped buying second-hand Baguette handbags more than a year ago because the price was too low -- only more than 200 dollars.

Influenced by Fendi advertising, the current second-hand price is between 400 and 500 dollars, but it is still 80% lower than the current retail price.

"Everything remains to be seen," he said.

In the future, luxury brands may extend the restart cycle of classic bags by three to five years, including increasing control over distribution channels and steadily introducing new models.

But it is also a problem whether the bags that are restarted can last as long as the original ones.

"In the era of the advent of Baguette handbags and Saddle saddle bags, the pace of consumption is far less than that of today," Burke said.