The Bag Is A Leather Handbag

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

From consumer’s perspective, the motivation of their purchasing high-end products is complicated. According to the report of Mintel (Academic.mintel.com, 2013), which showed that the reason why a large number of customs have purchased luxury merchandise in UK. There were 44 percent of female interviewees and 48 percent of male interviewees bought high-end goods due to the good quality. In addition, 31 percent of men and 18 percent of women consider the sophisticated technique

Fashion and luxury, always have been one of the biggest topics to discuss. When to ask: What is luxury, what does it really mean in history and today at the time of materials access. We may not have an exact answer, because the word of 'luxury' has so many meaning, due to questioning: who, what, when, where, etc...Simply asking these questions, we can find out that this word exceeds to different fields in our society, such as the hiararchy of possession, can be defined by ethical difference of wealthy and poverty between layers of people, who have compeletely different life conditions. Everyone can judge it differently, which depends on how personally we take it. Do we a material people, who live live in material world? Do we need that much from in and out all polished with the Swarovski crystal? To get to todays, we must understand how the systems in the past worked. Does contemporary luxury fashion industry satisfying consumer's need, if on the high street market is full of fast fashion company who are trying to persue people that their goods is shorter uses, but promises up-to-date with latest trendy, mainly lowest price tag. What is the future for young creatives after graduations, luxury promises them to make-end-meet, what about their creativity fashion dream or just end up with basic luxury brands like they used to exists before.

According to Luxury Activist (2016), luxury goods purchase in physical stores has been growing by 3% since 2013, online sales have a solid 20% growth reaching 6.7 billion pounds. Indeed, luxury sales online have reached 12.5 billion pounds in 2014, doubled it from the previous year. McKinsey forecasts all luxury brands would embrace the online market by 2025 (75% was digitally influenced until 2014), the online luxury sales may go up to 62.5 billion pounds (Remy, Catena and Durand-Servoingt, 2015). The online share of total online luxury sales was expected to double from 6% (in 2015) to 12% by

The author who inspired the topic of this thesis is Dana Thomas. As a fashion writer, Dana Thomas, has analyzed the changes in luxury fashion business. Thomas has been writing about fashion for the past twenty-five years in various journals such as Newsweek, The New York Times Magazine, New Yorker, Harper’s Bazaar, Vogue, Financial Times, and more. Dana Thomas’ two books, Deluxe and Gods and Kings, are the inspiration for this thesis. Deluxe: How Luxury Lost Its Lustre goes into great detail the secrets of the leading luxury industry brands, namely Prada, Gucci and Burberry, to showcase the “New Luxury” of today and how “luxury lost its luster” by featuring the manufacturing and logistical processes. Thomas exposes that many luxury brands use the same Asian factories that mass-market retailers employ, which raises questions concerning quality and craftsmanship for luxury brands.

Hermès International, sometimes also referred to as Hermès of Paris or Hermes, is a French luxury goods manufacturer. It has been consistently ranked as the world’s most valuable luxury brand in different valuation and ranking studies published by leading consultancies. Hermès as a brand enjoys an iconic status in the world of luxury. A combination of rich heritage, exquisite craftsmanship, eye for detail and high levels of quality and professionalism through the entire manufacturing process gives Hermès a position of superiority in the very competitive and ruthless world of luxury.

An increasing economic interdependence of national economies across the world experiences a rapid cross-border movement of goods, service, technology and capital. Luxury goods industry, serve as one of the most competitive industry, emerging and developing rapidly all the time. To a great extent, globalization promotes the development of luxury goods industry significantly in spite of the big shock hit by several times of economic crisis.

The Birkin bag is a highly exclusive handmade bag from France; it is very expensive because of its exclusivity but also because of how it is constructed and the materials

On a flight from Paris to London, Hermès’ chief executive Jean-Louis Dumas had the privilege in sitting next to actress Jane Birkin in 1981. She had this old, straw travelling bag and she decided to place it in the overhead compartment of her seat when everything inside fell out and the bag itself because history. Jane explained to Jean-Louis how difficult it was for her to find the perfect leather purse, but had no luck. That’s when in 1984, Jean-Louis designed a black supple leather bag for Jane, and named it “The Birkin Bag”. It became a popular status symbol within the media eye. These beautiful and personal accessory of luggage are handmade and are known as a fashion symbol of wealth due to the high pricing and usage of celebrities. The

The new handbag offering presented in the course of the last two seasons has concentrated on bags priced above £1,000, however has needed new and intriguing products in the key price range of £500 to £800. The design team will guarantee that they convey appealing new product within this key price range while keeping on to invigorating the collections across their maximum price range. The benefit of this will be dynamic.

Coach has a very strong brand image. They continue to gain new customers and because of devotion and loyalty they are able to keep repeat customers. Brand image can be considered everything to customers when searching for a handbag. Industries that manufacture handbags must be able to provide what is considered a “chic service”, while continuing a “thriving business” (Foster, 2006). Due to the brand image that Coach has they are able to introduce new and more risky handbags with the confidence that most current consumers will continue to purchase their

The mid-level luxury handbag and accessories industry is slowly growing. This Industry relies on consumers having an ample amount of discretionary income to be able to purchase luxury handbags or accessories because this is a want and not a necessity. The PESTEL analysis showed that this industry should focus on economic and social principals for strategic significance for any future changes. Brand awareness is an important social factor because it allows buyers to recognize your brand and more people will realize who that specific company is. Brand awareness bring customers to a company because they want the latest trend from a specific company that is on the market. This can lead to brand loyalty which intern leads to repeat buyers over time. The external factors which have the greatest impact on this industry’s sales and margins is rivals from sellers and substitute products. Vera Bradley’s chief rivals in this industry are Coach, Michael Kors, and Kate Spade. There’s many more competitors in this industry that offer handbags and accessories that is why competition among rivals are tough because they are all competing for the same discretionary income from buyers. Substitute products are a factor also because people could be purchasing counterfeits or more luxury brands could be on sale and they are spending the same amount of money for a better product. The opposite could be happening buyers could be purchasing non luxury products just to hold their

Burberry is uniquely positioned as a classic British apparel brand with high global brand awareness to capture the globalization of consumer demand. Its distinctive luxury brand with international recognition and broad appeal. The company’s outlook for the accessible luxury goods industry remains positive from both a geographic and product point of view. Burberry had become positively hip and popular among a younger demographic. It has a unique history and positioning as the authentic British lifestyle brand and highly successful merchandising and marketing strategy across both appeal and accessories. In 2000 Burberry’s total sales were 225.7 million and by 2003 sales had went up to 593.6 million.

Scope of activities Hermes’ main scopes of activities are The Leather Goods-Saddlery, The Clothing and Accessories, The Silk and Textiles Division and Perfumes and Watchmaking divisions. The main activity of the group, leather goods and saddlery has multiplied by nearly 3.5 in eight years, thanks to the construction of several manufacturing and supply development. The Clothing and Accessories division's sales have increased, by 17% per year since 2008, particularly about the success of the new loan-to-product collections.

Abstract The Italian industry of fashion goods is a business worth 67.6h billion in 2006 (Il Sole 24ore, January 10, 2007), of which about 26h billion is due to the luxury segment. Marketing gurus state