ibisworld industry report 44833 handbags, … handbags, luggage & clothing accessories stores in...

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]


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


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


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


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



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

ibisworld industry report 44833 handbags, … handbags, luggage & clothing accessories stores in...

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