WWW.IBISWORLD.COM� Handbags,�Luggage�&�Clothing�Accessories�Stores�in�the�US September 2010 1
IBISWorld Industry Report 44833Handbags, Luggage & Clothing Accessories Stores in the USSeptember�2010� Nikoleta�Panteva
In the bag: Steady demand for affordable luxury accessories will boost industry growth
2� About�this�Industry2 Industry Definition
2 Main Activities
2 Similar Industries
3 Additional Resources
4� Industry�at�a�Glance
5� Industry�Performance5 Executive Summary
5 Key External Drivers
7 Current Performance
9 Industry Outlook
12 Industry Life Cycle
14� Products�&�Markets14 Supply Chain
14 Products & Services
16 Demand Determinants
17 Major Markets
18 International Trade
19 Business Locations
21� Competitive�Landscape21 Market Share Concentration
21 Key Success Factors
22 Cost Structure Benchmarks
24 Basis of Competition
24 Barriers to Entry
25 Industry Globalization
27� Major�Companies27 Coach Inc.
28 Claire’s Stores Inc.
30 LVMH Moet Hennessy Louis Vuitton SA
31 Genesco Inc.
34� Operating�Conditions34 Structural Risk Index
34 Investment Requirements
36 Technology & Systems
37 Industry Volatility
38 Regulation & Policy
38 Industry Assistance
39 Taxation Issues
40� Key�Statistics40 Industry Data
40 Annual Change
40 Key Ratios
41 Historical Performance
42� Jargon�&�Glossary
www.ibisworld.com��|��1-800-330-3772��| ��[email protected]
WWW.IBISWORLD.COM� Handbags,�Luggage�&�Clothing�Accessories�Stores�in�the�US September 2010 2
Operators within this industry are specialty retailers that primarily sell handbags, luggage or clothing
accessories, or any combination of these products. Stores in this industry do not sell apparel.
The�primary�activities�of�this�industry�are
Selling handbags
Selling hats and other headwear
Selling leather accessories
Selling travel bags and luggage
Selling costume jewelry and watches
Selling wallets and gloves
Selling ties and other neckwear
44819 Lingerie,�Swimwear,�Uniform�&�Bridal�Stores�in�the�USRetailers sell specialized apparel.
44831 Jewelry�Stores�in�the�USRetailers of precious jewelry and watches.
45211 Department�Stores�in�the�USDepartment stores sell a variety of apparel, accessories, perfumes and other personal goods.
45331 Used�Goods�Stores�in�the�USUsed goods stores sell apparel and accessories, secondhand.
45411a E-Commerce�&�Online�Auctions�in�the�USOnline retailers sell a variety of goods, including handbags, luggage and clothing accessories, primarily via the internet.
Industry�Definition
Main�Activities�
Similar�Industries
About�this�Industry
The�major�products�and�services�in�this�industry�are
Footwear accessories
Handbags
Hats and headwear
Jewelry and watches
Luggage and briefcases
Men’s accessories
Travel and sports bags
Wallets, gloves and personal accessories
WWW.IBISWORLD.COM� Handbags,�Luggage�&�Clothing�Accessories�Stores�in�the�US September 2010 3
About�this�Industry
For�additional�information�on�this�industry
www.apparelandfootwear.org�American Apparel and Footwear Association
www.bls.gov�Bureau of Labor Statistics
www.travel-goods.org�Travel Goods Association
Additional�Resources
�IBISWorld writes over 700 US industry reports, which are updated up to four times a year. To see all reports, go to www.ibisworld.com
WWW.IBISWORLD.COM� Handbags,�Luggage�&�Clothing�Accessories�Stores�in�the�US September 2010 4
Inde
x
100
60
70
80
90
1602 04 06 08 10 12 14Year
Consumer sentiment index
SOURCE: WWW.IBISWORLD.COM
% c
hang
e
24
−8
0
8
16
1602 04 06 08 10 12 14Year
Revenue Employment
Revenue vs. employment growth
Products and services segmentation (2010)
28.5%Handbags
7.5%Luggage and
briefcases
17.5%Jewelry and watches
7.1%Wallets, gloves and personal accessories
3.7%Footwear
accessories
16.2%Travel and sports bags
10.2%Men's accessories
9.3%Hats and headwear
SOURCE: WWW.IBISWORLD.COM
Key�Statistics�Snapshot
Industry�at�a�GlanceHandbags,�Luggage�&�Clothing�Accessories�Stores�in�2010
Industry�Structure Life Cycle Stage Mature
Revenue Volatility Medium
Investment Requirements Low
Industry Assistance Low
Concentration Level Medium
Regulation Level Light
Technology Change Medium
Barriers to Entry Low
Industry Globalization Medium
Competition Level Medium
Revenue
$8.6bnProfit
$812.4mWages
$1.3bnBusinesses
30,076
Annual�Growth�10-15
4.6%Annual�Growth�05-10
4.2%
Key�External�DriversConsumer�sentiment�indexPer�capita�disposable�incomeNumber�of�females�aged�15�to�39�years�oldCompetition�from�department�storesDomestic�trips�by�US�residentsInternational�trips�from�the�USPrice�of�leather
Market�ShareCoach Inc. 27.3%
Claire’s Stores Inc. 10.1%
LVMH Moet Hennessy Louis Vuitton SA 8.1%
Genesco Inc. 5.6%
p. 27
p. 5
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 40
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM� Handbags,�Luggage�&�Clothing�Accessories�Stores�in�the�US September 2010 5
Key�External�Drivers Consumer sentiment indexThe level of consumer confidence affects household expenditure in general. When consumer perception of the economy is positive and consumer confidence is high, households feel more comfortable about
making purchases of discretionary goods, such as accessories. Household finances, business conditions, unemployment, inflation, income and government economic policy can all affect sentiment and future spending perceptions.
Executive�Summary
Despite moderate revenue declines in 2008 and 2009, the small luxury nature of clothing and leather accessories has buoyed the industry over the last five years. IBISWorld estimates that industry revenue will increase at an average annualized rate of 4.2% to $8.64 billion over the five years to 2010. From 2009 to 2010, revenue will increase at a slightly lesser rate of 1.6%.
Companies within the Handbags, Luggage and Clothing Accessories Stores industry have not been completely able to sit back and relax. Companies are still making promotional efforts in order to cater to the
aspirational luxury shopper, who indulges in purchases up to $300. For example, major operator Coach recently launched a lower priced product line to capture this demographic. These movements toward lower price points help to increase affordability, which stimulates demand. In order to balance lower price points, the industry imports goods from abroad in order to maintain profit margins, which are recovering at an estimated 9.4% of revenue.
Players are expected to consolidate after a short period of solid recovery. By 2015, the number of companies is expected to reach 25,723, representing an average annual decline of 0.2% for the five-year period, versus 3.3% growth
in the previous five years. While the number of companies is expected to decrease, industry sales are still expected to rise during the five years to 2015. Furthermore, consolidation will help to maintain profit margins, which will hover around 11.0% of revenue during the next five years.
The trend toward consolidation will increase revenue concentration among the industry’s major players. The accessories market is currently dominated by the top four companies, which comprise an estimated 51.1% of industry revenue. This concentration at the top is expected to continue in the coming years, as the market matures and consolidation continues.
The maturing market is evidenced by moves into new categories, increasing new store growth abroad, and a progressively intense fight against counterfeit goods. As new geographic locations are limited, men’s goods are expected to continue to grow as a category within the industry as a method of stimulating new sales within existing markets. Similarly, the limited availability of new locations and target customers in the United States is encouraging more retailers to open stores abroad rather than domestically. Finally, with new sales opportunities under pressure, retailers are going on the offensive against stores that sell counterfeit accessories. As the economy rebounds in the next five years, revenue is expected to grow even faster, at 4.6% per year on average to total $10.82 billion in 2015.
Industry�PerformanceExecutive�Summary�� |�� Key�External�Drivers�� |�� Current�PerformanceIndustry�Outlook�� |�� Life�Cycle�Stage
� Demand from the aspirational luxury shopper will continue to drive revenue growth