Luxury Bags and Shoes Fight the Recession

Major brands and retailers of luxury bags and shoes have been confirming a resilient demand for handbags and leather goods. Hermes’ CEO Patrick Thomas recently told the Financial Times that sales of leather goods in the luxury market for the second quarter rose to 21 percent.

Reuters reported that attitudes in Paris last week for the fashion shows only reinforced Hermes’ thinking that they would never stoop to enter the so-called “masstige” segment.

Sebastian Manes, director of accessories at Selfridges & Co, told Reuters at the Vivienne Westwood show, “Yes there is the crisis, but it’s always an opportunity for some brands. We’re going to have a record year and record profit.”  The British department store is achieving this by moving more towards niche items and staying away from masstige products.

Although they lost some ground in 2008, Bulgari is on the road to recovery, according to a Bloomberg report. CEO Francesco Trapani says there’s been a higher demand for their handbags, especially in Asia, that has played a key part in their recovery. Trapani said, “Greater China, including Hong Kong, Macau, Taiwan, are doing well, and Australia, South Korea and the U.K. are doing okay.”

It seems these luxury brands’ recovery strategies rely greatly on Asia, but hopefully the U.S. will be able to help the luxury handbag cult get back on it its feet soon enough. If these luxury brands and retailers are optimistic and confident in the future, then we should be too.

Via: Luxury Insider